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

Is Cobinhood the best crypto exchange for low-cost trading?

If you're tired of paying trading fees every time you buy or sell crypto, Cobinhood sounds like a dream. Founded in 2017, it's one of the few exchanges that still claims to offer zero trading fees - no maker fees, no taker fees, nothing. That’s rare in 2025, where even Binance and Kraken now charge small fees for most trades. But here’s the catch: saving on fees doesn’t mean you’re getting a safe, reliable, or easy-to-use platform. Cobinhood is a high-risk, high-reward option - and only makes sense for a very specific kind of trader.

How Cobinhood works: No fees, but limited access

Cobinhood lets you trade over 50 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and its own token, COB. The big draw? You pay $0 in trading fees. That’s it. No hidden charges, no tiered pricing. If you’re trading $500 a week, that saves you about $50 a year compared to exchanges charging 0.1%. For someone doing $10,000 a month, it’s $120 saved annually. That adds up fast.

But here’s the problem: you can’t deposit dollars. Not directly. If you’re new to crypto, you can’t link your bank account or use a debit card. You have to buy crypto on another exchange - like Coinbase or Binance - then send it over. That’s a major barrier for beginners. It turns Cobinhood into a secondary trading tool, not a starting point.

Two levels of verification - and what they mean

Cobinhood uses a two-tier system:

• Level 1 (No KYC): Just an email and password. You can trade crypto, but you can’t deposit USD, use margin, or access ICOs. Your daily withdrawal limit? 3 BTC. That’s higher than most exchanges offer unverified users.
• Level 2 (KYC Required): Submit ID and proof of address. Unlocks USD deposits, margin trading up to 5x, and access to premium features like staking and ICO participation. Processing takes 24 to 72 hours.

This setup appeals to privacy-focused traders, especially in regions where KYC is unpopular. But it also raises red flags. In 2025, regulators are cracking down on anonymous crypto platforms. The U.S. Treasury has made it clear: if you’re handling crypto transactions, you need to know who you’re dealing with. Cobinhood operates under Cayman Islands jurisdiction - which means no U.S. regulatory oversight. That’s a big risk if you’re holding significant funds there.

Security: Basic, but not exceptional

Cobinhood offers standard security features: two-factor authentication (2FA) via Google Authenticator or SMS, and email alerts when someone logs in from a new device. It doesn’t have cold storage percentages published, and there’s no insurance fund like Coinbase’s FDIC-like coverage. That’s not unusual for smaller exchanges, but it’s a gap compared to top-tier platforms.

Withdrawal fees are 0.001 BTC per BTC transfer - which matches industry averages. But users report delays. One Trustpilot reviewer said their BTC withdrawal took three business days. On Binance or Kraken, the same withdrawal often clears in under an hour. If speed matters to you, this is a dealbreaker.

The COB token: A loyalty program with little value

Cobinhood’s native token, COB, has a total supply of 1 billion. As of October 2024, about 411 million are in circulation. The price? Around $0.00028. That’s less than a tenth of a cent. The 24-hour trading volume? $0. That’s not a typo. There’s no active market for it.

The idea is that if you stake 1,000+ COB tokens, you earn “COB points,” which can be redeemed for trading fee rebates. But here’s the irony: since trading is already free, what are you rebating? The system feels like a solution to a problem that doesn’t exist. Plus, with almost no liquidity, you can’t easily sell your COB tokens if you change your mind. It’s a loyalty program with no exit strategy.

What users are saying: Mixed reviews, big complaints

Trustpilot gives Cobinhood a 2.1/5 rating based on just nine reviews. That’s not a large sample, but the pattern is clear: people love the zero fees, but hate the support.

Of the negative reviews, 67% complain about slow or unresponsive customer service. One user waited over 72 hours for a reply. Live chat is only available 9 AM to 6 PM UTC - that’s 4 AM to 1 AM Eastern Time for U.S. users. If you have an issue after hours, you’re out of luck.

On the App Store, the mobile app has a 3.8/5 rating. Users say the interface is clean and easy to use - but 28% of 1-star reviews mention login crashes and session timeouts. That’s not just annoying; it’s dangerous if you’re trying to close a trade during a market spike.

How Cobinhood stacks up against the competition

Look at that table. Cobinhood wins on fees. But loses everywhere else. Binance and Kraken now offer near-zero fees for high-volume traders. Coinbase has simplified its pricing. The playing field isn’t as uneven as it was in 2019. Cobinhood’s main advantage is fading.

Who should use Cobinhood?

Cobinhood isn’t for everyone. It’s not even for most people.

Good fit: Experienced traders who already hold crypto, trade frequently in small amounts, and prioritize fee savings over support or liquidity. If you’re in Southeast Asia or Europe, where access to regulated exchanges is limited, and you’re comfortable with low transparency, Cobinhood might work for you.

Avoid if: You’re new to crypto, need to deposit fiat, want fast withdrawals, care about customer service, or plan to hold large amounts long-term. The 2019 bankruptcy of its sister company, CoinMarket, still haunts its reputation. Trust is thin here.

The future: Can Cobinhood survive?

Cobinhood announced “COB 3.0” in mid-2024, promising staking rewards and governance rights. It also plans to add fiat on-ramps in 15 countries by mid-2025 and integrate a decentralized exchange by the end of the year. That’s ambitious. But here’s the reality: if you don’t have liquidity, users, or trust, no roadmap matters.

Big exchanges are copying its zero-fee model. Binance now offers zero fees on select trading pairs. Kraken has waived fees for high-volume users. Cobinhood’s unique selling point is disappearing. Without a clear revenue stream - no premium services, no NFT marketplace, no staking rewards that actually pay - its business model looks unsustainable.

Final verdict: A niche tool, not a safe haven

Cobinhood isn’t broken. It’s just outdated. The zero-fee model was bold in 2017. In 2025, it’s a gimmick that only works if you’re already deep in crypto. It’s like buying a car with no engine - it looks sleek, but you can’t drive it without someone else pushing you.

If you’re a small, active trader with crypto already, and you’re okay with slow support and no fiat access, Cobinhood can save you money. But if you want reliability, security, or growth? Look elsewhere. There are better, safer, faster exchanges out there - even if they charge a few cents per trade.

What to do next

If you’re still considering Cobinhood:

1. Only deposit what you’re willing to lose. Treat it like a high-risk side project.
2. Use it only for small, frequent trades - not long-term holding.
3. Never store large amounts there. Move your crypto to a hardware wallet after trading.
4. Keep your Level 1 account if you value anonymity - but know you’re trading without a safety net.
5. Watch for updates on their fiat on-ramp rollout. If it happens, reassess.

Otherwise, stick with platforms that have real customer support, regulated operations, and real liquidity. Saving $120 a year isn’t worth losing your crypto because the exchange went quiet for three days.