Huobi – The apparent online broker Huobi offers trading in a number of cryptocurrencies on its website. In addition, Huobi describes itself on its website as a global leader for cryptocurrencies. Moreover, the daily trading volume at Huobi amounts to more than 20 billion US dollars.

Are you currently a Huobi customer or are you considering investing funds in the near future? Then the following questions are undoubtedly important for you:

  • Is the company Huobi trustworthy?
  • What practical experience have investors had with Huobi so far?
  • What can consumers possibly do in the event of losses via Huobi?

The lawyers of the Herfurtner law firm have compiled answers to these very questions in this article on Huobi.

Table of contents

  1. Huobi experiences
  2. Huobi website
  3. Contact details of Huobi
  4. Huobi Authorisation
  5. Warnings from financial regulators about Huobi
  6. Online trading guide
  7. Lawyers advise on disputes

Parallel to the question of whether Huobi offers a suitable offer, it is relevant to deal with the basics for advantageous trading. We will also explain how the Huobi platform compares with other financial services. Furthermore, we will stand by investors and support them in questions and disputes in the context of Huobi.

Huobi experience

According to Huobi’s own information in July 2021, it is possible to trade crypto with almost 350 different assets. Huobi emphasises that its own offering enjoys the trust of investors worldwide.

The Huobi Group website also states that the group was founded in 2013 and is now a global leader in the digital economy, aiming to achieve breakthroughs in core blockchain technologies and the integration of blockchain technology with other industries.

In addition, Huobi Group has expanded into industry blockchain, public chain, digital asset and wallet trading, digital economy research, etc., and created a global industry ecosystem for the digital economy, he said.

Moreover, with the principle of globalisation, professionalism, compliance and diversification, Huobi Group is dedicated to providing secure and trustworthy Internet of Value (IoV) services to its ten million users in more than 100 countries and regions.

Furthermore, it is possible to trade at Huobi with a mobile app that can be downloaded from the respective Apple and Google stores. In addition, cryptocurrencies can be purchased with a credit card at Huobi.

Huobi website

Information on Huobi’s services can be found on the service provider’s English website at the URL

Imprint details

According to §5 of the German Telemedia Act (TMG), there are general obligations to provide information and mandatory details for the imprint in Germany. Accordingly, this obligation to “identify the provider” exists for all commercially operated websites.

This is because the information is intended to inform visitors to a website who they are dealing with. In addition, the address of the website owner plays a role in this context, if legal claims are to be enforced against him.

Also relevant in this context is the fact that keeping an imprint also applies to foreign service providers who carry out their business activities in Germany. However, no legally binding imprint could be found on Huobi’s website at the time of July 2021.

Operating company and trademark

The name of the online presence or the platform or the offer is not necessarily congruent with the operating company. In the past, it has often happened that companies operate with different trademarks at the same time.

Furthermore, it is common practice for certain providers to shut down the websites of discredited trademarks and to return to the market shortly afterwards using a new trademark. Therefore, when researching news and data about a service provider, one is well advised to always include the operating company in addition to the trademark.

The respective information can be found either in the imprint or often also in the footer of a website. On Huobi’s website, no difference between a trademark and an operating company could be determined at the time of observation.

Background to the domain

Some providers use their many years of experience to pretend to be reputable. However, the registration date of the domain always stands in the way of such explanations. Consequently, it is necessary to ask who the domain holder is and when the domain was registered.

Our legal advisors retrieved the data on the provider Huobi on 14.7.2021 with the following result: Domain Name: Registry domain ID: 105224392_DOMAIN_COM-VRSN Registrar WHOIS Server:

Registrar URL: Updated Date: 2021-04-01T06:55:42.944Z Creation Date: 2003-10-17T21:39:45Z Registrar Registration Expiration Date: 2022-10-17T21:39:45Z Registrar: Amazon Registrar, Inc.

Responsible Persons / Management / CEO

According to §6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the online presence must be stated in the imprint. This is often a member of the company’s management. Identifying the persons responsible by name is not only obligatory, but also a sign of transparency.

However, as of July 2021, Huobi’s website does not contain any information on the persons responsible for the content.

Huobi contact details

At the time of writing, the following information was available on Huobi’s website:

  • Huobi email address: n/a A.
  • Huobi address: n/a A.
  • Huobi’s telephone number: n. a. A.

Huobi Licensing

The existence of a valid licence issued by a European state financial supervisory authority can be an important characteristic of whether a provider is reputable. This is because a provider must make a great deal of economic effort to obtain a licence.

However, it does not necessarily have to be a case of investment fraud if a broker omits data on its licence or its regulatory status. The financial supervisory authorities listed here are responsible, among other things, for granting authorisations and supervising financial service providers:

  • Financial Conduct Authority (FCA, United Kingdom)
  • Austrian Financial Market Authority (FMA)
  • Federal Financial Supervisory Authority (BaFin, Germany)
  • Cyprus Securities and Exchange Commission (CySec, Cyprus)
  • Australian Securities & Investments Commission (ASIC, Australia)

However, no evidence of regulatory licensing could be found on Huobi’s website in July 2021. Interested investors can discuss what this circumstance entails with a lawyer from our law firm.

Regulatory warnings on Huobi

At the time of writing, the lawyers at our law firm had not received any official warnings from European financial supervisory authorities on the subject of Huobi.

Online Trading Tips

Online trading like Huobi is the extension of traditional trading in financial instruments into the World Wide Web. Here, as there, investors act with the intention of generating income through the purchase and sale of assets. Trading is no longer limited to shares. In fact, these assets, for example, are also available to exchange traders:

  • Fixed Deposit
  • Forex Trading
  • ETFs
  • Crypto Trading with Bitcoins and Altcoins, for example Ripple
  • Silver
  • Commodities
  • Real estate
  • Bank deposits

Online trading is carried out via intermediaries such as online brokers (such as Huobi) or banking institutions that provide their clients with a special trading software solution.

In particular, the extensive technological achievements are the reason why online trading is nowadays time-saving and uncomplicated and therefore as recognised as it is popular.

The advantages of online trading

Digitalisation has also had a considerable impact on the world of finance, especially with regard to trading such as at Huobi. This is because trading has gained particularly massive speed due to the technical possibilities.

Whereas investors and traders used to have to place their orders by phone, fax or post, this is now possible at the click of a mouse and with much less effort. Factors such as the duration and type of trade, pricing and quantities or the key account data no longer have to be discussed between the broker Huobi and its customers in a personal meeting.

Ultimately, the possibility of online trading has brought numerous advantages:

  • The platform executes the desired orders, all you need is an internet connection.
  • Transaction fees have gone down noticeably, as personal advice on the phone is no longer necessary.
  • Many tools can be used automatically and directly.
  • The base of tradable financial instruments is broader and deeper.
  • The risk of losses due to gaps is reduced.
  • Online traders have several tools and various indicators at their disposal.
  • Returns are achievable even with a small stake.

However, online trading not only provides investors with advantages in terms of the simple use of the trading platform. Especially through analysis options, indicators and the various tools, the investor enjoys noticeably more comfort.

Because the times when one still drew chart diagrams oneself or laboriously made one’s own calculations are over. Today, trading platforms offer their clients a wide variety of order types that online traders can execute on their own with a day trading provider of their choice.

An individual trading plan

Due to the fact that there are so many order types, online traders can customise a trading plan to their individual requirements and make various settings: Buy entries:

  • Buy Market Orders: The purchase is made at the current market price
  • Buy Limit Orders: The purchase is made below the current market price
  • Buy Stop Orders: The purchase is made above the current market price

Sell entries:

  • Sell above current market price (Sell Stop Orders)
  • Selling below the current market price (Sell Limit Orders)
  • One sells at the current market price (Sell Market Orders)

Exit orders:

  • One exits at a loss when the pre-determined price is reached (Stop Loss)
  • You move the stop loss depending on the development of the price (trailing stop orders)
  • Exit with profit at the moment the pre-set price is reached (Take Profit)

An additional advantage of online trading from the investor’s point of view is the absence of restrictions. Accordingly, one is free to choose the appropriate trading strategy and learn one’s own trading style. There are many different approaches:

  • Intraday trading – opening and closing positions during the course of a trading day
  • Swing trading – risky exploitation of fluctuating prices
  • Long-term trading
  • Automated trading with robots (“Expert Advisors”)
  • Scalping: aggressive short-term trading

A large number of those trading styles made online trading possible in the first place by eliminating the telephone dialogue with the trader. Therefore, one can speak of a trading revolution that now builds a bridge between countless private investors from all over the world and the global financial markets.

Money investors are well advised to check to what extent the provider Huobi offers these advantages.

The weaknesses of online trading

Not all that glitters is gold, and this also applies to online trading. For in addition to the advantages, there are also a number of disadvantages that inclined investors should take into account:

  • The existence of fraudulent trading portals has led to enormous risks of loss.
  • High losses can be expected if wrong decisions are made.
  • Private investors should already be experienced in trading and rely on resilient strategies.
  • Investors should keep a constant eye on the course of prices.
  • Compared to conventional trading, it is rather hasty.

Risky day trading in particular is not recommended for investors who are dealing with the topic of trading for the first time. This is because the risk of not correctly forecasting the development of prices is considerable, and due to the time pressure, adjustments are difficult.

Accordingly, this form of trading tends to be suitable for very knowledgeable or particularly risk-averse investors. If you belong to this group, day trading is an option for action in order to generate results in a timely manner. Moreover, one benefits, for example, from the elimination of fees for holding positions overnight.

Finally, such financing costs should also be included in the overall consideration of an investment. In addition, one saves oneself the proverbial rude awakening in the morning, should there be immediate and drastic price changes. Such “gaps” develop quickly due to negative reporting about a company.

On the other hand, one quickly sees success when one can report a profit at the end of a trading day. Furthermore, it is relevant for day traders to compare the trading fees of the different brokers. At this point, it can pay off to opt for a flat rate.

This pays off especially if you trade at a high frequency and separate order fees would significantly reduce the return.

Understanding risks and dangers

In order not to unnecessarily increase the risks and dangers of online trading, it is advisable to check through which company you want to become active on the markets. From the practical experience of our law firm, a number of questions have emerged that can be used to identify possible risks.

Applied to the example of Huobi, these would be as follows:

  • Is Huobi controlled by a European financial regulator and is the company subject to official supervision?
  • Are there any official warnings about Huobi?
  • Are there any warnings from lawyers or law firms who advise clients who have suffered losses in connection with Huobi?
  • Is there an imprint on Huobi’s website and can credible statements about the company’s place of business be found?
  • Does Huobi promise unusually high profits and conceal or downplay the risks?
  • Did the exchange with Huobi take place on the basis of an unsolicited telephone call?
  • Do other private investors have experience of Huobi, and what is the prevailing opinion in forums?

Behaviour in case of losses

If you suspect that you have been defrauded in trading, it is advisable to block further payments immediately. This is especially true if the provider recommends additional payments to compensate for losses. In addition, one should try to recover the lost capital.

Here, affected investors can seek investor protection and contact the lawyers of our law firm. This is because we examine both civil law and criminal law options as well as possible claims for damages against the service provider and against involved payment service providers such as financial institutions.

“A private investor who loses his capital in online trading is certainly not an isolated case. Many private investors are misled by the professional behaviour of financial service providers and only realise too late that they are not responsible for their losses

Our recommendation is therefore not to despair, but to react promptly and actively. Because the chance of recovering the lost capital is often greater than the aggrieved investors think. Would you like to talk to one of our lawyers about Huobi? Then click here to go directly to our contact area.