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

• DATE: 3 11 25
• BY: Stellan Marwick

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

If you're tired of paying trading fees on every buy and sell, Cobinhood sounds like a dream. It’s one of the few crypto exchanges that charges zero trading fees - no maker fees, no taker fees, nothing. That’s not a promo. That’s their whole model. But here’s the catch: it’s not for everyone. And if you’re new to crypto, you might walk into this platform thinking it’s easy money - and end up stuck.

Cobinhood launched in 2017 with a bold promise: remove fees to let traders keep more of their profits. Founded by ex-Google engineers, it quickly gained attention for its clean interface and zero-cost trading. But behind the scenes, things got messy. In 2019, its sister company CoinMarket went bankrupt. That shook trust. And even today, in 2025, many users still wonder: is this exchange safe, or just quietly fading away?

How Cobinhood Works - And Who It’s Actually For

Cobinhood doesn’t let you deposit dollars, euros, or any fiat currency unless you verify your identity. That’s Level 2 KYC. Without it, you’re stuck with crypto-only deposits. So if you just bought your first Bitcoin on Coinbase and want to move it over to Cobinhood? Fine. But if you’re starting from zero? You need to buy crypto elsewhere first. That’s a major barrier for beginners.

For people who already hold crypto and trade frequently, Cobinhood makes sense. Let’s say you trade $10,000 a month. On Binance or Kraken, that’s $10-$25 in fees. On Cobinhood? $0. Over a year, that’s $120-$300 saved. For small traders who make dozens of small moves, those savings add up fast.

But here’s the problem: Cobinhood only supports 50+ coins. That’s nothing compared to Binance’s 350+ or Coinbase’s 200+. If you’re chasing newer altcoins, you’ll likely be disappointed. You won’t find Shiba Inu, Dogecoin, or Solana on Cobinhood. It’s mostly Bitcoin, Ethereum, Litecoin, and a bunch of obscure tokens nobody talks about.

The COB Token - More Hype Than Utility

Cobinhood has its own token: COB. Total supply: 1 billion. Circulating: about 411 million. Price? Around $0.00028 as of October 2024. That’s not a typo. It’s worth less than a penny. And here’s the kicker - its 24-hour trading volume is $0. That means no one’s buying or selling it. Not even the exchange itself.

The platform claims COB gives you perks. Stake 1,000 COB tokens, and you earn “COB points.” Those points can be redeemed for fee rebates - even though trading is already free. It’s a loyalty program with no real reward. There’s no governance. No staking rewards. No utility beyond a confusing points system that few understand.

And the Candy Machine? That’s their giveaway feature. Promises free tokens. But users report it’s unpredictable. Sometimes you get nothing. Sometimes you get a token worth $0.01. It feels like a lottery with terrible odds - and no transparency.

Security - Light on Verification, Heavy on Risk

Cobinhood lets you trade with just an email and password. No ID. No proof of address. That’s Level 1 KYC. It’s great if you value privacy. It’s terrifying if you care about safety.

They do offer two-factor authentication (2FA) via Google Authenticator or SMS. And they send you an email if someone logs in from a new device. That’s standard. But without KYC, there’s no way to recover your account if you lose access. No customer support can help you. No identity verification means no recourse.

Withdrawal limits are also weird. Unverified users can only pull out 3 BTC per day. That’s higher than most exchanges, but it’s still arbitrary. And withdrawals cost 0.001 BTC - about $60 at current prices. That’s normal for Bitcoin, but it’s still a fee you didn’t expect.

And then there’s the history. CoinMarket’s collapse in 2019 left a shadow. Even though Cobinhood claims it’s a separate entity, users don’t trust it. Why should they? The company never fully explained what happened. No audits. No public statements. Just silence.

Customer Support - Where You Get Stuck

Don’t count on help when things go wrong. Trustpilot reviews show a 2.1/5 rating based on just nine reviews - but the pattern is clear. Two-thirds of complaints say support never responded. One user waited 72 hours for a withdrawal confirmation. Another said their account was frozen for a week with no explanation.

Their support hours? 9 AM to 6 PM UTC. That’s 11 PM to 8 AM in New Zealand. Good luck getting help during your trading window. Email support has a 48-hour SLA - but users say it often takes longer. Live chat exists, but it’s spotty. And there’s no phone number. No Twitter account. No active community forums. Just a Telegram group with 4,300 members - most of whom are just asking the same questions over and over.

Mobile App and Interface - Solid, But Flawed

The website and mobile app are clean. Simple. Easy to navigate. That’s Cobinhood’s biggest strength. The charts load fast. The order book is clear. Even beginners can place a market order without confusion.

On the Apple App Store, it has a 3.8/5 rating from over 1,200 reviews. People like the design. But the 1-star reviews? They’re all the same: “Can’t log in,” “App crashes,” “Withdrawal never arrived.” These aren’t minor bugs. They’re recurring issues that suggest poor maintenance.

The platform doesn’t offer advanced tools like stop-loss orders, trailing stops, or limit order types beyond basic ones. If you’re a day trader or swing trader using technical indicators, you’ll miss those features. It’s built for simple buys and sells - not complex strategies.

Who Should Use Cobinhood? Who Should Avoid It?

Use Cobinhood if:

• You already hold crypto and trade frequently (5+ times a week)
• You want to avoid trading fees and don’t mind limited coin selection
• You’re in a region with few exchange options (Southeast Asia, parts of Latin America)
• You’re okay with no customer support and minimal security

Avoid Cobinhood if:

• You’re new to crypto and need to buy with fiat
• You want access to major coins like Solana, Cardano, or Dogecoin
• You care about customer service or account recovery
• You’re trading large amounts - the lack of liquidity makes slippage risky
• You’re worried about regulatory risk - it’s based in the Cayman Islands with no oversight

The exchange’s market share is tiny - just 0.08% of global volume. That’s less than 1/500th of Binance’s. It survives because it fills a niche: cost-sensitive traders in places where banks block crypto. But that niche is shrinking. Binance now offers near-zero fees for high-volume traders. Kraken lowered fees too. Cobinhood’s edge is disappearing.

The Future - Will Cobinhood Survive?

Cobinhood’s 2025 roadmap says they’re working on institutional custody, fiat on-ramps in 15 countries, and a decentralized exchange integration. Sounds promising. But they’ve made big promises before. And they’ve delivered little.

Without trading fees, how do they make money? They don’t say. Maybe from COB token sales? Maybe from premium services? Maybe they’re just running on investor cash. The truth? No one knows. CoinCentral called their business model “unsustainable.” That’s not an exaggeration.

Right now, Cobinhood is a gamble. It’s not a scam - it’s still operating. But it’s not a safe place to store your life savings. It’s a tool for experienced traders who know the risks and want to shave off a few dollars in fees. If that’s you - go ahead. But if you’re looking for reliability, support, or growth - look elsewhere.

Frequently Asked Questions