Cobinhood Crypto Exchange Review: Zero Fees, Big Risks in 2025

When you're trading crypto, every fee adds up. A 0.1% trading fee might seem small, but if you're making frequent trades, it can eat into your profits fast. That’s why Cobinhood caught attention in 2017: it promised zero trading fees - for makers and takers alike. No hidden costs. No surprise charges. Just pure price action. For a while, it felt like a game-changer. But is it still worth it in 2025? Let’s cut through the noise.

What Makes Cobinhood Different?

Cobinhood’s whole identity is built on one thing: no trading fees. Unlike Binance, Coinbase, or Kraken - all of which charge somewhere between 0.1% and 0.6% per trade - Cobinhood charges $0.00 for every buy and sell order. That’s not a promo. It’s their model. And it’s still active in 2025.

They make up for it with their native token, COB. You don’t pay fees to trade, but you can earn COB tokens by trading, referring users, or joining their “Candy Machine” giveaways. Staking 1,000+ COB unlocks “COB points,” which you can redeem for fee rebates, early access to new listings, or even cash bonuses. It’s a loyalty system disguised as a token economy. Whether it’s sustainable is another question.

The platform supports over 50 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and its own COB token. That’s far fewer than Binance’s 350+ or Coinbase’s 200+. But if you’re not chasing obscure altcoins, it’s enough. The interface is clean, fast, and works on both desktop and mobile. The app has a 3.8/5 rating on the App Store, with users praising how easy it is to place orders and track prices.

How Safe Is Cobinhood?

Safety is where things get shaky. Cobinhood is registered in the Cayman Islands - a jurisdiction with minimal crypto regulation. That means no government oversight, no FDIC insurance, and no legal recourse if things go wrong.

They offer two-tier verification:

• Level 1 (No KYC): Just an email and password. You can trade crypto, but you can’t deposit USD. Withdrawals are capped at 3 BTC per day.
• Level 2 (KYC Verified): Submit ID documents. Unlocks USD deposits, margin trading up to 5x, and access to ICOs and financial products.

For users who want privacy, Level 1 is tempting. But it also means anyone can open an account anonymously - which makes the platform a magnet for suspicious activity. The lack of identity checks raises red flags for institutional users and regulators alike.

Security features include Google Authenticator 2FA, SMS alerts, and “New Device Confirmation” emails. These are standard. But there’s no cold storage transparency. No public proof that most funds are offline. That’s a big deal. If you’re holding more than a few hundred dollars, you should treat Cobinhood like a trading account - not a wallet.

Withdrawals, Fees, and Limits

Cobinhood doesn’t charge trading fees - but it does charge withdrawal fees. For Bitcoin, it’s 0.001 BTC per withdrawal. That’s about $60-$80 depending on price. It’s in line with industry norms, but not free. Other coins have similar fees: 0.01 ETH for Ethereum, 0.1 LTC for Litecoin.

Withdrawal times are inconsistent. While most exchanges process BTC withdrawals in under 2 hours, multiple Trustpilot reviews from 2024 report delays of 2-3 business days. One user wrote: “I needed cash fast. Took three days. My other exchange did it in 40 minutes.”

There’s no direct bank deposit option unless you complete Level 2 KYC. That means if you’re new to crypto and want to buy your first Bitcoin, you can’t do it on Cobinhood. You have to buy it on Coinbase, Kraken, or a peer-to-peer platform first, then send it over. That’s a major barrier for beginners.

Who Is Cobinhood Really For?

Cobinhood isn’t for everyone. It’s not a good fit if you:

• Want to deposit USD directly from your bank
• Trade large amounts (over $10,000 per month)
• Need fast customer support
• Value regulatory protection

But it’s a strong option if you:

• Trade small to medium amounts frequently (under $5,000/month)
• Already own crypto and want to avoid trading fees
• Are comfortable with limited support and no KYC
• Want to collect COB tokens and use the loyalty program

Here’s a real example: If you trade $10,000 per month on a 0.1% fee exchange, you pay $10 in fees each month. That’s $120 a year. On Cobinhood? $0. Over five years, that’s $600 saved. That’s real money.

But here’s the catch: if you hit a withdrawal delay or lose access to your account, those savings vanish. And customer support is slow. Trustpilot shows a 2.1/5 rating based on only 9 reviews - but the pattern is clear: 67% of negative reviews mention unresolved issues and responses taking over 72 hours.

The COB Token: Utility or Mirage?

Cobinhood’s native token, COB, has a total supply of 1 billion. As of October 2024, around 411 million are in circulation. The price? Around $0.00028. That’s barely a penny. The 24-hour trading volume? $0. Zero. Not a typo.

It trades on just one market - Cobinhood itself. No major exchanges list it. No liquidity. No price discovery. That’s not a sign of strength. It’s a sign of isolation.

COB’s only real use is inside Cobinhood’s ecosystem. You can’t spend it elsewhere. You can’t stake it for yield on other platforms. You can’t even easily sell it without moving it back to the exchange. It’s a closed loop. And if Cobinhood ever shuts down? COB becomes worthless.

Some users say the COB points system is worth it. Others say it’s a distraction - a way to keep people trading even when the platform lacks real innovation.

How Does It Compare to the Competition?

| Feature | Cobinhood | Binance | Coinbase | Kraken | |--------|-----------|---------|----------|--------| | Trading Fees | 0% | 0.1% (maker/taker) | 0.6% avg | 0.16-0.26% | | Supported Coins | 50+ | 350+ | 200+ | 150+ | | Fiat Deposits | Only with KYC | Yes | Yes | Yes | | Max Leverage | 5x | 125x | 3x | 5x | | KYC Required? | Optional (Level 1) | Yes | Yes | Yes | | Withdrawal Speed | 1-3 days | <2 hours | <1 hour | <2 hours | | Customer Support | Slow, email-only | Live chat, 24/7 | 24/7 chat | 24/7 phone/chat | | Trust Score | Medium-High Risk | Low Risk | Low Risk | Low Risk |

Look at that table. Cobinhood wins on fees. It loses on everything else: liquidity, speed, support, and trust.

The Big Problem: Sustainability

How does Cobinhood make money if it charges $0 in trading fees? The answer is unclear. They don’t publish financials. They don’t disclose revenue streams. The only clues are their COB token and rumored premium services.

Analysts at CoinCentral and BitTrust question whether this model can survive long-term. Most exchanges make money from fees, staking, lending, or institutional services. Cobinhood does none of that at scale. Their 2024 daily volume? Just $18.7 million. That’s 0.08% of the global market. Binance does over $10 billion per day.

They’ve announced plans for institutional custody (Q4 2024), fiat on-ramps in 15 countries (Q2 2025), and a decentralized exchange integration (Q4 2025). But these are promises. No deadlines have been met so far.

The 2019 bankruptcy of their sister company, CoinMarket, still haunts them. Even though Cobinhood wasn’t directly involved, users remember. Trust doesn’t come back easily.

Final Verdict: Worth It?

Cobinhood is not a scam. It’s still operating. It still has users. It still runs a clean interface and delivers on its zero-fee promise.

But it’s a high-risk gamble. If you’re a small, frequent trader with crypto already in hand, and you’re okay with slow support and no regulatory safety net - then yes, Cobinhood can save you money.

If you’re new to crypto, need fast withdrawals, want to deposit USD, or care about long-term security - look elsewhere. Binance, Kraken, or even Coinbase’s lower-fee tier are safer bets.

Cobinhood is a niche tool. Not a main exchange. Use it for specific trades. Don’t store your life savings there. And never forget: if the platform vanishes tomorrow, your COB tokens and unwithdrawn funds disappear with it.

Getting Started on Cobinhood

If you still want to try it, here’s how:

1. Go to cobinhood.com and click "Sign Up".
2. Enter your email and create a password. No ID needed yet.
3. Verify your email. Your Level 1 account is active.
4. Send crypto from another exchange (like Coinbase or Kraken) to your Cobinhood deposit address.
5. Start trading. No fees.
6. If you want to deposit USD or use margin, complete Level 2 KYC - upload your ID and wait 24-72 hours.

Pro tip: Only deposit what you’re willing to lose. And keep most of your crypto off-exchange in a hardware wallet.