About Hodl Hodl
Hodl Hodl is a P2P Bitcoin trading platform founded in 2016 and is run by Hodlex Ltd., an organisation based in the UK. The platform provides trading services to the users without holding any of their funds. It implies that the website is anonymity-focused and does not require following too many KYC or AML regulations. Instead, the platform uses multisig escrow to facilitate trading between the buyer and the seller, which reduces the possibility of theft.
QUICK FACT
Hodl Hodl – buy, sell or lend bitcoin on this easy-to-use P2P platform
Hodl Hodl Account Creation
Creating an account on HodlHodl.com is easy. All you need to provide is a username (an active email address), password, and your timezone. The platform asks for the timezone to make the transactions more convenient by adjusting the website’s working hours. When the user provides all the required information, Hodl Hodl will send a verification email to the address provided. The Hodl Hodl account will get activated by clicking the link in the email, and it will take the user to the login page of the website.
Hodl Hodl Services
Hodl Hodl services provide BTC buying, selling, and lending. Here are the steps involved in the different processes.
Buying BTC
• Log in to the account and click on the “Buy Bitcoin” button to purchase the Bitcoin.
• Then, one needs to set a few parameters to create an offer. These parameters include specifying the number of Bitcoins one wishes to buy, preferred payment method, and maximum time for the payment window.
• The platform also allows users to choose location-specific trading and payment methods.
• After setting all the parameters and filters, the buyer waits until the seller funds the escrow account with the required amount of BTC. The seller will directly receive the payment, after which they release the BTC on confirmation of the receipt.
• On transacting, each user gets a feedback rating which indicates how credible a user is.
Selling BTC
• The process of selling Bitcoin on Hodl Hodl is similar to the buying procedure. All the inputs and parameters are more or less the same. The major difference is that the seller must specify the payment method they would like to accept from the user buying the BTC.
• When the trade is initiated, the seller must fund the escrow with BTC that is agreed to be sold. On receiving the payment, they have to release the Bitcoins.
Lending Service
Hodl Hodl offers a lending service to its users by allowing them to borrow additional cryptocurrency against their BTC.
• The lender and the borrower have to set the loan specifics, including choosing the cryptocurrency, interest rate, loan term, and loan to value (LTV) ratio.
• Similar to the usual trading transaction, the collateral will be placed in the escrow account by the borrower. After that, the lender lends the agreed assets to the borrower, which must be paid back within the agreed time. The loan term can vary from a mere one day to 12 months.
• The borrower can pay the interest on the loan any time before the end of the loan time frame.
Hodl Hodl Payment Methods And Currencies
Hodl Hodl users can buy Bitcoins using a variety of payment methods that include:
• Cash
• Credit Card
• Gift cards from popular retailers
• Traditional methods like regular bank transfer, SWIFT, SEPA, etc.
• Online payment platforms like Revolut, Paypal, Venmo, etc.
• MoneyGram, Western Union, and other money transfer agencies
• Other Cryptocurrencies
Only Bitcoin (BTC) or liquid Bitcoin (L-BTC) is allowed as collateral when it comes to the lending service. Additionally, users can borrow limited types of cryptocurrencies through the platform, which includes:
• Bitcoin (BTC)
• Wrapped Bitcoin (WBTC)
• USD Coin (USDC)
• Binance USD (BUSD)
• Tether USD (USDT)
• Paxos Standard (PAX)
• Dai (DAI)
Hodl Hodl Fees And Limits
The Hodl Hodl fees and limits vary according to the service and other parameters associated with them, as follows.
Buying And Selling
At Hodl Hodl, the trading fee is split between the buyer and the seller. In general, the fee ranges from 0.5% to 0.6% (the default rate). The fee charged depends on the verification status of the user and their referral. Verified users are charged a rate of 0.5%. On the other hand, the users who joined via referral code are charged at a rate of 0.55%. If a different fee applies to each party, the lower of the two rates will be applicable. 0.001 BTC is the minimum amount of Bitcoin allowed to be traded.
Lending
The loan origination fee at Hodl Hodl ranges from 0.5% to 1.5%, depending on the loan term.
• 0.5%: For the loan for a single day
• 1%: For loans up to five months
• 1.5%: For loans exceeding five months
The minimum amount of loan permitted is 50 USD worth of cryptocurrency.
Hodl Hodl Security Features
Keeping users’ funds secure and safe is the priority of Hodl Hodl. To maintain the security of funds, they are locked in multisig escrow when the trade is initiated. For the release of funds, two keys are required, of which one belongs to the seller and the buyer, and the other is the platform’s key. It means even if there is any fault, the Bitcoin amount remains unaffected and safe. Such an arrangement keeps both the buyer and the seller safe from any potential scamming. In addition to this, the platform even gives the user the option to enable two-factor authentication.
Hodl Hodl Supported Countries
Hodl Hodl allows users from all corners of the globe to use the platform. However, there are a few restrictions in some instances where P2P trading is restricted due to regulations or other reasons. For example, United States users can only use the lending service. And users from Syria, Iraq, North Korea, and Sudan are not given permission to use the platform.
Hodl Hodl Customer Service
If a user wants to contact the customer support centre of Hodl Hodl at any time, they can use its Telegram channel, Twitter Account, or directly send an email to support. The platform also has an extensive FAQ section to answer users’ trading and lending services queries. The Hodl Hodl Team has even uploaded tutorials on their YouTube channel to assist the users with their different questions.
Conclusion
When it comes to a decentralised P2P Bitcoin trading and lending platform, Hodl Hodl is a valuable option with its new ideas. This platform seems to be much safer and trustworthy than a centralised platform with the custody of users’ BTC. Hodl Hodl does not hold the users’ funds and minimises third-party risk by using multisig escrow for trading and lending services. The platform also offers a TESTNET feature for users to experiment before beginning with actual trading. With a variety of payment options available and minimum verification requirements, Hodl Hodl turns out to be an excellent option for users who want to deal peer to peer.