How to

Hodl Hodl – a fast way to trade bitcoins and litecoins

Key facts:
  • It does not require storing these cryptocurrencies in the platform’s own wallet.

  • When selling on Hodl Hodl, a multi-signature wallet contract is generated.

November 2019 Update: Hodl Hodl no longer provides Litecoin exchange services.

Hodl Hodl is a currency exchange with an important differentiation when trading bitcoins (BTC) or litecoins (LTC), since it does not require storing these cryptocurrencies in the platform’s own wallet. For example, to sell on Localbitcoins, another p2p exchange platform, you must first store the BTC to be exchanged in the platform’s own wallet, in order to sell later.

The step of storing cryptocurrencies for exchange is unnecessary in Hodl Hodl as transactions within the platform are conducted directly from users’ personal wallets. When selling on Hodl Hodl, the contract is generated with a multi-signature walletwhere one of the private keys is assigned to the BTC seller and the other is reserved.

There is an advantage to this modality: since it is a direct process, exchanges are done much faster than other exchanges.

In addition to all this, Hodl Hodl offers a very interesting feature for beginners, and this is it I can use the testnet service. Then it is possible to make an exchange without risk for the user’s real money.

Getting started with Hodl Hodl

The first step is to register on the platform, for which you need to go to the main portal.

Source: Hodl Hodl.

You can see the Hodl Hodl home screen, P2P cryptocurrency exchange, which does not store fundsas its main slogan says.

To start the registration process, select an option Sign up for free is located in the upper right corner and the registration form appears.

Source: Hodl Hodl.

After entering the data, the user needs to confirm his email address.

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When you open a link sent to an e-mail, a user profile appears in which additional personal data can be added. However, this is completely optional, since operations within the platform can be performed without defining personal data. Obviously, this would mean generating a certain degree of mistrust towards other users.

To continue, click on the option Exchange in the upper left corner.

Source: Hodl Hodl.

The Hodl Hodl main section appears. If the user wants, he can start trading within the platform. The following section, however, provides an initial exploration of this bitcoin and litecoin trading site.

Research Hodl Hodl

In the previous picture you can see the initial screen of the exchange. It is important to note that all the described steps are focused on Bitcoin exchange from now on.

Description of the main menu:

  • Buy Bitcoins: In this section you see a list of all open offers to buy bitcoins.
  • Sell ​​bitcoins: As in the buy section, here are organized offers with which BTC can be sold.
  • My Dashboard: This section covers every aspect related to order tracking, latest transactions, latest notifications and latest exchanges.
  • Bitcoin News: It is a collection of important news about the bitcoin market.
  • Screencasts: These are a series of video tutorials, in English, that show how to communicate with the platform in a basic way.
  • FAQ/Help: This is the FAQ and user help section.

Finally, you can see the Bitcoin symbol, in the upper right part. It’s a two-option menu that allows you to change the cryptocurrency you’re trading with.

Below the menu there are two more sections, namely: Hodl Hodl presentation video and on the right a small list of offers that allow you to quickly buy bitcoins.

Source: Hodl Hodl.

Additional information about Hodl Hodl can be found at the bottom of the home page:

  • Key features: That’s a list of features that make Hodl Hodl stand out. Among the main ones is the ability to run tests using Hodl Hodl TESTNET
  • Sell ​​Bitcoin: Similar to section buy bitcoins, described above, is a small list that allows you to sell quickly.
  • Hodl Hodl VS other exchanges: It is a comparative table, which presents the characteristics that make this portal stand out from the others. It should be warned that this does not mean that it is better than others for these four simple reasons, it is completely subjective.

Before you start trading on this platform, you need to make some necessary configurations.

The first thing is to review the payment methods that will be accepted. To do this, you need to go to Payment methods. This option is located in the drop-down menu in the upper right corner, shown below.

Source: Hodl Hodl.

Here you select an option Payment methods.

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A list appears with all the payment methods registered in Hodl Hodl, but these are not the only ones, because it is possible register custom payment methodsalthough it should be noted that in order for them to be listed, they must be reviewed by an administrator.

If you want to make a request to add new payment methods, you must select an option Add payment method (moderated).

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The first thing will be to assign a type, this can vary between: cash, ATM withdrawal, bank deposit, online payment systems and phone top-up.

On the other side, You need to assign a name and then select the country where this payment method is used. If this last option is left blank, the payment method will be considered global.

At the end, a description of the payment method is placed, although this field is completely optional.

Finally, choose Save.

When a new payment type is added, the following screen will appear:

Source: Hodl Hodl.

As you can see, the payment method has been successfully registered, but it still has a status Not yet approved or which has not yet been approved by the administration team. Once your status is approved, it will be displayed on the main list.

It is also necessary, before starting, configure the addresses to which we will receive bitcoins or litecoins during purchases. For this reason, go back to the drop-down menu and select Trading Setting.

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in this section, the addresses where we will receive the funds have been set. As you can see, there are some boxes that allow you to enter the country, region and city where the user is located. In the case of users residing in the United States, they will only be able to exchange with licensed users.

Finally, you must enter the number of simultaneous contracts to be managed, bearing in mind that every open offer, whether buy or sell, is an open contract, and here it is indicated how many will be managed simultaneously.

Finally, the changes are saved and everything is ready to trade within Hodl Hodl.

Buy cryptocurrencies on Hodl Hodl

As happens in many exchange offices, There are two ways to buy or sell cryptocurrencies: You can search for an offer and start an exchange immediately, or post your offer and wait for another user to start an exchange.

Here’s how to buy bitcoin through open offers. To do this, you need to go to the section Buy Bitcoins from the main menu.

Source: Hodl Hodl.

The screen shown above appears. In the section Filter offersoffers are filtered according to the following criteria:

  • Location: The country for which the offers will be distributed. Global offers can be additionally included if the option is checked. Include global offers.
  • Amount: The purchase amount, either in fiat currency or bitcoin.
  • Payment period (max.): This is the payment term, i.e. the expected time period for completing the purchase from the seller.
  • Payment type: It is the type of payment you want to choose, for example, cash or different types of online payments.
  • Method of payment: Depending on the type of payment, you can choose between different registered payment methods.
  • Average payment time (max.): This is the average time the user estimates the exchange will take.

At the bottom is a list of offers, obviously they will appear ordered depending on the applied filters. Likewise, each column corresponds to the following parameters:

  • Price: Value of 1 BTC in fiat currency.
  • Conf: It is the number of confirmations in the blockchain that a user requests before they can start an exchange. Note that the higher the number of confirmations, the longer the waiting time.
  • payment methods: Payment method set by the user.
  • Min/Max: These are the minimum and maximum limits between which the sales offer moves, in fiduciary currency.
  • Pay. Win: This is the duration period, or in other words, it is the maximum waiting time to perform the operation.
  • Aug. Rls. Time: It is the average time it takes a user to complete the sales process.
  • Location: Location of the offer.
  • Merchant and rating: From here you can also see your username as well as whether your profile is verified and if you have exchange licenses, this for US users

On the other hand, there is a button for the second way of buying ADD AN OFFER, in the main menu which allows you to add and publish a new offer.

By clicking on the specified button in the purchase section, Buy Bitcoinsthe following screen appears listing the parameters of the specified purchase

Source: Hodl Hodl.

If this is your first exchange, an option will appear First trade limit or first exchange limit, this refers to the maximum amount of dollars that can be traded.

On the other hand, we have a small box in which we are shown the quantities that will be processed.

Source: Hodl Hodl.

  • For deposit: The total amount to deposit, adding the amount you want to buy, along with the amount of commissions, either from the exchange or from mining.
  • It goes to the customer: It is the total amount that will be deposited, as it is purchased.
  • Exchange commission: It’s Hodl Hodl’s own commission.
  • Fiat exchange fee deduction: It is the commission amount in fiat currency.
  • Transaction fee (estimated): Estimated amount for the transaction. It is estimated that when the contract is opened between the buyer and the seller, a mining commission is created, which can vary depending on network congestion.

At the bottom you only need to put: Amount to buy, either in dollars or bitcoins. The Publication address This is the address where the bitcoins being purchased will be posted. This will appear blank if addresses have not been previously configured. Finally, there is the payment method, obviously it will be the one specified by the seller.

To open the exchange, just click the button Accept the offer and make a contract. This displays the sales contract.

Source: Hodl Hodl.

The next step is to wait for the seller to deposit the funds as escrow, in order to proceed with the payment. Note that nothing needs to be paid until the funds are deposited.

At the top you can see the status of the contract, in this case On hold or pending. At the bottom there will be a chat that allows you to communicate with the seller. Likewise, it is worth avoiding providing personal or bank details, as the user may be a victim of identity theft.

The transaction status is now During That is, the user has already paid, and since he does not require confirmations in the blockchain, because he chose so, it is time to make the payment using the chosen method.

When you pay, choose I have sent the payment.

Now we just have to wait for the seller to release the funds.

Source: Hodl Hodl.

Here, the funds are released and we need to do only two things: Wait for the funds to be confirmed in our wallet and leave a comment with a rating for the user. And voila, the BTC purchase is complete.

Publish an ad

This method of creating ads works for both selling and buying.

As already mentioned, there is another way to buy, and that is to post an ad. We will do this by returning to the menu again. Buy bitcoinbut this time we will choose Add an offer

Source: Hodl Hodl.

A general form appears that allows you to create buy or sell announcements.

Since this is a long form, the explanation will be covered part by part.

i want

From here you choose the type of advertisement, i.e. buying or selling. The ad location is set in the same way. starting with country, region and city. These last two are completely optional.

Price

In the next part, the price at which we want to buy or sell is set. In this regard, there are two options, we can specify the exact price, that is, the range in relation to the price published by the exchange.

Source: Hodl Hodl.

Limitation of one contract

From this section, the minimum and maximum limits are set for each transaction we make.

Offer balance

This is the balance you are willing to trade before the announcement closes. This balance must be greater than or equal to the maximum limit previously set.

First trade limit

It is the maximum limit that a person can make in their first exchange on the platform.

Confirmations

It is the number of confirmations in the blockchain that the contract must have in order to subsequently move on to the next steps. The higher the number of confirmations, the longer the payment period will be.

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Time limits

In this section, the payment window is set, that is, the time in which the operation will be opened after the creation of the contract. The time during which the ad will be available is also set in the same way. This time will be the local time managed by our computer.

Payment methods

From here, enter a payment method to accept. We will start by defining the type, then the payment method and finally the instructions. It is possible to set an optional description.

It should be noted that by selecting the option, it is possible to set more than one payment method Add another payment instruction.

Source: Hodl Hodl.

Description

In this section you can leave a description of the exchange.

Other options

Finally, indicate whether our ad will be enabled and whether you want it to be private. This is quite convenient, because when placing a private ad, the only way to access it will be through a link that the user can share. Otherwise, the ad will appear in the main listing.

When everything is ready, we just need to choose Save.

Source: Hodl Hodl.

The above screen shows the published ad. From this same menu, you can modify, disable or delete the advertisement.

On the other hand, it is possible to manage ads from the column My offers found in the drop-down menu.

Source: Hodl Hodl.

The process for managing bids received through a published ad is as follows. Let’s start by going to My contracts from the drop-down menu.

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Having an open contract, pending status is appreciated. Click on it to see more detailed information.

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The steps to follow from here will be the same as when a direct purchase was made.

Sell ​​cryptocurrencies on Hodl Hodl

Before we start, we clarify that this section only shows how to sell bitcoins directly, not through ads, because posting the ads section in the previous section works in both cases.

Let’s start then by going to the option Sell ​​bitcoins in the top menu.

Source: Hodl Hodl.

If you notice, the interface is exactly the same as the shopping lists, so I recommend going to the previous section to know how to filter the offers and know the meaning of each column. Once you’ve done that, come back here and choose the offer that best matches what you’re looking for.

Source: Hodl Hodl.

As you can see, the data is exactly the same as it appeared at the time of purchase. So, you continue to enter the amount to sell, then you have to choose the payment method and click on Accept the offer and make a contract.

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Here, the exchange contract is already open. Next, since the number of confirmations needed to proceed is zero, it’s time to deposit the funds. This option is selected Deposit bitcoins.

Source: Hodl Hodl.

The first thing will be to create a payment password, which allows us greater security of the funds we send. This is because when it’s time to release the funds, it will ask us for this password.

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As you can see, we already have an address where we can pay the deposit. Remember that we must send the exact amount specified.

Now we have to send the deposit and choose I sent the funds.

Source: Hodl Hodl.

Next is waiting for the customer to confirm the payment.

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Now that the payment is confirmed, it’s time to release the bitcoins. It must be taken into account that they cannot be released until it is confirmed that the funds are, in fact, in the user’s account. No matter how much the buyer insists, until the funds are reflected, the BTC should not be released.

Finally, press to release Release the deposit.

Source: Hodl Hodl.

As you can see, before releasing, you need to enter the password that was previously created.

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The last thing left is to leave a customer review and voila, the sale of BTC through Hodl Hodl is complete.

Final conclusions about Hodl Hodl

The first thing to note about this exchange is its speed. Since transactions are made from the user’s personal wallet, and there is zero confirmation on the blockchain, it allows for very fast exchanges. Compared to other exchange offices, this is a significant advantage.

On the other hand, perhaps due to the fact that Hodl Hodl is a relatively new exchange, the number of offers is a bit small.

A special use that can be found for this exchange is that it can be used as a MercadoPago payment guarantee, from MercadoLibre. As these are two-person contracts only, when purchasing an item, payment can be placed as collateral, and once the product is received, it can be released. This is also thanks to the fact that there is a possibility to create private ads.

If you want to see a video tutorial you can go to our YouTube channel, where we have one about it how to buy and another from How to sell en Wanted Wanted.

Featured image by Miguel Arroyo / Cryptonoticias.com

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