How can users with different trading strategies benefit from Prime membership?
The newly launched Huobi Prime membership is regarded as the most inclusive membership in the crypto industry for bringing VIP benefits to all categories of users. The Prime membership is also believed to be the program that makes it easiest for different users to upgrade their membership levels.
This article aims to advise on how different Huobi users, such as retail investors, Huobi Token (HT) holders and institutional investors, can tailor their strategies to maximize the VIP benefits. This takes into account that Huobi Prime’s recent entry in the market, which means many beginners or even some crypto veterans are not very familiar with it.
🔹Prime levels chart
First, let’s take a look at general level upgrading. There are three strategies to promote the Prime levels for all categories of users: they can either reach a certain volume of spot trades, increase their balance to a certain amount, or reach a certain volume in futures trading. There are 12 Prime levels (Prime 0 — Prime 11), and members at Prime 0 to Prime 9 can pick one of the three methods to promote their levels.
For example, if Prime 0 members want to be promoted to Prime 1, they can either simply increase their balance to at least 2,000 USDT, or reach a 30-day accumulated trading volume of over 10,000 USDT from spot trading or reach a 30-day trading volume of over 100,000 USDT from futures trading.
It should be noted that starting from Prime 1, members can enjoy discounts of at least 20% on transaction fees. The higher the level, the higher the discount. Members of Prime 6 and above can even enjoy exclusive privileges such as a dedicated account manager and access to industry reports.
🔹Prime fee rates
What can retail investors do?
Let’s say Bob, a retail investor, has traded digital assets equivalent to 2.5 million USDT at Huobi Global in the past 30 days. This puts Bobat the level of Prime 3 where he will enjoy spot trading fees of 0.1% (50% lower than that of Prime 0).
In this situation, Bob only needs to trade additional digital assets equivalent to 50,000 USDT to upgrade to Prime 4 (3 million USDT required for spot trading) and enjoy spot trading fees of 0.08% as a maker, and 0.09% as a taker.
It is worth mentioning that with the same accumulated trading amount, Bob can only be a VIP 1 member at other top cryptocurrency exchanges with spot trading fees of 0.09% as a maker and 0.1% as a taker.
🔹What can institutional and high-volume investors do?
Let’s say Euphemia is a crypto veteran and now holds digital assets worth 80,000 USDT. This puts her at the level of Prime 5 where she can enjoy spot trading fees as low as 0.065%, and U-margined futures trading fees as low as 0.005%.
To maximize Euphemia’s benefits in this case, she only needs to hold additional digital assets equivalent to 20,000 USDT to upgrade her level to Prime 6 (minimum 100,000 USDT) to enjoy exclusive privileges such as a dedicated account manager and access to asset reports.
How much in trading fees can a top investor (Prime 11) save by trading on Huobi Global instead of other top exchanges? Let’s take spot trading by a Prime 11 member Eric as an example.
Assuming Eric trades assets worth 1 million USDT (60% with maker orders; 40% with taker orders), the fees he would pay at Huobi Global are: 600,000 USDT*0.0126% + 400,000 USDT*0.0218% = 162.8 USDT.
However, the fees charged by other top exchanges could be 600,000 USDT*0.015% + 400,000 USDT*0.03%= 210 USDT. Eric can save around 47 USDT or about 20% of his transaction costs by trading at Huobi Global.
🔹Huobi Token — Secret weapon for Prime members
As a privilege for Huobi users, HT can serve as a secret weapon for promoting Prime levels and reducing transaction costs. HT holders can be promoted to higher membership levels more quickly as a 1.5x multiplier will be applied to their HT assets. For example, Prime 0 members can be promoted to Prime 1 by adding another 300 HT (about 1,450 USDT) to their holdings.
In addition, HT token holders will enjoy an additional 12% discount off the fee rate for their Prime level if they pay for their transaction fees using HT.
Taking Eric’s case as an example, if he pays the transaction fees using HT, his cost at Huobi Global would be 600,000 USDT*0.0126%*88% + 400,000 USDT*0.0218%*88% = 143.4 USDT. Eric can save around 67 USDT or about 30% of his transaction costs by trading at Huobi Global compared with trading at other top exchanges.