OKX, formerly OKEx, is the 7th largest cryptocurrency exchange according to Coinranking and 2nd most trustworthy according to CoinGecko, offering services suitable for both advanced and beginner crypto traders.
Launched in 2014, OKX is based in Seychelles (because of the government’s favorable policies when it comes to crypto trading). The OKX platform offers its users trading options like spot trading, derivatives trading, and futures trading, among many other things.
The platform has gained interest as a great platform for spot and derivatives trading. It offers its users services such as staking, lending funds (both in crypto and in fiat currencies as well), and a mining section (where miners with computational infrastructure can come together and mine some specific coins in exchange for additional incentives).
It is easy to use and can accommodate different users (beginners, professionals and institutions). OKX has its own cryptocurrency called OKB, which is used to pay trading fees, among other additional charges on the platform. The use of OKB tokens qualifies users for multiple discounts that they won’t be able to receive if they are using other currencies (a way to incentivize the use of its coin).
List of Key Features on OKX Exchange
Given below is the list of features that a user may expect while using the OKX platform.
- It offers users a simple and adjustable user interface.
- A variety of trading options (spot, futures, and derivatives) are at the disposal of users.
- It is very easy to sign-up with the platform.
- OKX charges zero deposit fees and low withdrawal fees.
- It boasts high staking APYs.
- OKX charges low borrowing fees than what is usually charged by crypto exchanges.
- OKX has also launched an academy that teaches beginners about the crypto industry.
- The platform charges a low trading fee, which is reduced even further if using OKB tokens.
- OKX is a very secure platform, and it provides intensive customer support to its users 24/7.
- The exchange has a huge collection of coins to choose from.
- The platform accepts multiple payment options like credit cards, debit cards, mobile wallets, etc., available at the disposal of the users.
Above all, OKX is best known for its low fees. It charges zero deposit fees and very low withdrawal fees, making it a preferable choice for investors. Read our detailed review below to know more about OKX exchange in detail.
Registering with OKX is regarded as a “hassle-free experience” and could be done within a span of a few minutes and post that the users are free to avail of most of the features the platform has to offer. The platform allows users of more than a hundred countries to trade in hundreds of the top cryptocurrencies in the market. The exchange, however, is not available in the USA.
What is OKX?
OKX is the successor of its sister exchange OKCoin, launched in 2014 in Beijing and moved its headquarters to Seychelles. Since then, the platform has a diverse user base belonging to more than 100 countries and boasts a 24-hour trading volume worth 2 billion dollars.
This, undoubtedly, makes OKX one of the best crypto exchanges available to investors. It also is used by many new crypto projects as a platform to launch its Initial coin offering ( the reason why it had to move from China as the government cracked down on several crypto projects).
Although a centralized platform, OKX offers many features boasted by modern-day DeFi apps like staking, lending, etc. It has a mining section (OKX Pool) where the members mine about 9-10 proof-of-work coins using their high-performance computers, making the process of mining more economical and efficient for the company as it does not need to spend on setting up the costly infrastructure required to mine energy-intensive proof-of-work coins.
The launch of its native token, OKB, in 2018 enabled the platform to raise funds through a new source and also provided investors with a fresh utility token based on a fast-growing crypto exchange (similar to BNB). Users are able to avail of exciting discounts using the platform’s native token, which promotes the user base to use the platform more frequently and, at the same time, fuels the growth of the coin.
The platform has also launched its own blockchain network known as the OKEx chain, which is a smart contract platform based on the proof-of-stake consensus mechanism. The network won’t charge a gas fee from projects launched on the same, which not to mention would go a long way in decreasing the taxes charged by various projects on transactions.
The platform also supports P2P trading allowing users to sell and buy cryptocurrencies directly from each other. This happens when the price quoted by the seller (or buyer) is matched by another buyer (or seller).
Top Features of OKX Platform
OKX exchange has a lot to offer to its users. It has all the features that a top-tier crypto exchange should have and perhaps even more than that.
High Trading Volume
OKX has a 24-hour trading volume of $2 billion dollars. A high trading volume indicates that investors are showing more trust in the platform and making more trades which further indicates that the platform is secure and has good functionality, which are the primary factors that attract the investors.
Multiple Trading Options
OKX offers its users a multitude of trading options, including spot trading, futures trading, and derivative trading. Spot trading refers to trading securities (here cryptocurrencies) in exchange for money that is to be paid instantly.
The trade occurs on the spot, and therefore, it is referred to as spot trading. In Spot trading, unlike usual trading, buyers and sellers don’t follow the t+2 day payment system as is usually done. OKX also happens to be one of the largest platforms for Spot trading by volume.
Future trading is just the opposite of spot trading, where cryptocurrencies are exchanged for money at a predetermined date in the future for a price that has been determined at a prior date.
Lastly, derivative trading involves trading in derivatives which are nothing but contracts that derive their value from the underlying asset. A user can access all these options within the same platform using OKX.
Variety of Cryptocurrencies
OKX supports a total of 351 cryptocurrencies (all of which are the biggest by market capitalization) and a total of 625 trading pairs. It is also used as a platform for Initial Coin Offering by many projects, and hence it also hosts coins that represent novel yet high-potential projects.
Some of the top cryptocurrencies on the exchange are as follows: Bitcoin, Ethereum, OKB, Solana, Ripple, Shiba Inu, and many more low market cap altcoins.
OKX exchange was the first platform to list new meme coin Tamadoge (TAMA) and it went on to make 800% gains on the platform in its first week, achieving a 24 hour trading volume of 15 – 18 million USDT on the TAMA/USDT pair.
Centralized Exchange
Unlike exchanges like PancakeSwap, OKX is a centralized exchange (though it offers many features of a decentralized one like P2P trading, staking, yield farms, etc.).
This means that users are needed to submit their KYC documents with the platform if they want to trade using the platform. However, KYC doesn’t take a lot of time and is as easy as signing up for the exchange. Though OKX also has a DEX platform for those unable to use its CEX. You can check it out here.
Being decentralized also means that OKX is very fast when it comes to executing transactions, is very secure, and also has a robust customer support segment.
How Does OKX Work?
The OKX platform offers investors the option of buying a cryptocurrency (if available) directly from the exchange or buying it from one of its respective pairs. To execute the first type of trade, the investors are required to purchase the same by using their local fiat currency using their choice of payment method. The users also have the option of buying crypto from their respective pairs (in case they already have the other coin in that pair with them in their wallet).
This gives OKX the flexibility to accommodate both beginners as well as professionals who have executed these trades several times. OKX is operational in more than 100 countries around the world and recognizes about 600 different third-party payment interfaces operational around the world to make the trading experience as frictionless as possible for the investors using the platform. OKX also accepts other payment interfaces like credit cards, debit cards, etc.
To pay using cryptocurrencies (pairs), an investor is first required to connect his crypto wallet with the platform. In case he does not have the coin as per the pairing, he is required to purchase the same, add it to his wallet and then proceed with the purchase.
Reasons to Use OKX
OKX has grown over the past few years because of the following factors – helping it get new investors and retaining the satisfied old investors.
Ease of Use
OKX exchange could be accessed using a mobile phone (Android/iOS app) or on a computer through a web browser. As its user base is divided among beginners, experienced as well as institutional investors, the platform has to cater to every segment so that it doesn’t lose business from any of these segments.
From the very beginning, users are introduced to the simple interface of the software, as the process of signing up is just like signing up for any other tool or newsletter. The top portion of the page helps the users navigate different sections of the exchange. The simple tables help users easily comprehend the market trends and pick the right currency which they should be buying.
Customer Support
The customer support of OKX is something to boast about as it offers 24/7 customer support to its global audience helping them find answers to their queries and making their trading experience a bit more hassle-free. OKX offers its users an FAQ section that contains the most common doubts that have been raised by the users and what the OKX team feels might present problems for the users.
The in-person support could be availed using direct calls or emails. Messaging facility is also available that enables both mobile as well as desktop users to find answers to their queries from the team in live messaging. These facilities, however, are only available to registered users (We have provided a detailed step-by-step guide ahead that will help you register with OKX).
Deposit Withdrawal and Trading Fees
OKX exchange does not charge any fees for depositing funds with it as it adds to its total liquidity, which is one of the biggest indicators of how reliable the exchange is. Many other big exchanges, too, do not charge any deposit money from the depositors as it will disincentivize users from using the platform in the first place.
The users can only deposit cryptocurrencies into their OKX accounts as the OKX platform only permit fiat currency to be used for the direct purchase of cryptocurrencies by payment methods like Credit cards, bank account, third-party payment software, etc.
The withdrawal fees, however, vary with different coins. For Bitcoin, the withdrawal fee was about 0.0005 BTC, and for Ethererum, the same was 0.01 ETH. This is considered to be lower than what is being charged by many crypto exchanges in the market and thus helps OKX have the edge over other exchanges.
Security
OKX is considered to be one of the safest in the market. This claim is justified as the exchange has not been hacked even once.
The exchange, to ensure the security of the platform, has used multiple techniques like 2FA (two-factor authentication) and dual wallets (hot and cold wallets). The hot and cold wallets both contain information regarding the user’s account. The hot one, however, contains general information and is stored online. At the same time, the cold wallet is mostly an offline wallet that contains information that, although essential, is not used that frequently. This makes accounts difficult to hack as one part of the information is not online at all.
Trading Fees
Trading fees charged by the OKX platform depend on whether the trader concerned is a market maker or a market taker.
Market Maker
A market maker provides the market with liquidity. A market maker holds on to his asset or holds himself from buying one and only does so when the time is right and he is able to gain profit from the trade.
A market maker is rewarded for the risks he takes for holding the coin or the potential profits he risks sacrificing to make a wise purchase. Trading fees for a market taker are 0.10% and could be further reduced if he has with himself a specific amount of OKB tokens.
Market Taker
A market taker, on the other hand, is the price taker and is more concerned about the liquidity of his assets than the potential profit he makes. A market taker quickly buys or sells the offer made by the market taker. For a market taker, the trading fee charged by OKX is 0.15%. This means that a market maker is incentivized to make profits as it further rewards the platform too and also helps it in maintaining liquidity in the exchange.
Without a market taker, a market maker would not be able to make a profit, and without the market maker, the market taker would not be able to liquefy his investments at his convenience. Therefore both the market makers and market takers are codependent on each other, and the market is also dependent on their codependence.
Staking and Lending Loans
The OKX platform allows users to stake their idle cryptos in liquidity pools in return for interest. This incentivizes the users to contribute to the liquidity pool of the exchange. The exchange uses its liquidity pools to lend loans to borrowers in crypto and asks for the crypto in possession of the borrowers as collateral. The collateral is then used to replenish the different liquidity pools.
The borrowers have the choice to either borrow a “fixed loan” or a “flexible loan”. The period of the loan, along with the interest, is fixed in a fixed loan. The interest rate for such loans can go as low as 0.17% annually.
A Flexible loan, on the other hand, does not specify the period beforehand along with interest. So the borrower has the flexibility to pay early or late as per his convenience.
OKEx Chain
The OKEx chain is the new blockchain launched by OKX exchange. Just like the famous BSC of Binance, the OKEx chain too will act as a launch pad for new projects. The chain has a very high chance of getting popular and entering the mainstream.
How to Open an OKX Account?
Opening an OKX account is as simple as signing up for any game or website. The exchange, although being a centralized one, has done a good job in making the registration process of the users hassle-free. To open an OKX account, follow these steps:
- First, open the official website of OKX exchange (if on a desktop) or download the app from the app store or play store accordingly if on a mobile phone.
- Once the homepage/home screen appears, users will spot the Sign-up and Log-in buttons. To register for the first time, the users are required to click on the signup button.
- The user is then required to fill in his e-mail ID (or phone number) and create a strong password for his OKX account.
- Once the password is set, the user will receive a verification code over his email or as a message (depending on whether you use your e-mail or phone).
- After filling in the received verification number, the first level of registration is complete. From here on, investor can use the platform. However, he is required to complete the KYC verification the need to conduct transactions (withdrawals) that are above $100 within 24 hours arises.
Comparisons with Other Crypto Exchanges
It is also important to know where OKX stand when compared to other top exchanges.
OKX vs Binance
Binance, by trading volume, is the largest Cryptocurrency exchange in the world. Being the market leader, Binance is definitely more popular among investors because of it. It charges 0.1% on all spot transactions (the amount may vary depending on the coin being traded). Whereas in OKX, the trading fees are segregated on the basis of the trader (market maker and market taker).
Binance has two versions, Binance and Binance pro, whereas OKX only offers a single variant to its users; however, it can accommodate multiple types of users (beginners, professionals and institutional users). Both platforms have a blockchain network of their own; however, BSC is still more famous and has more projects operating over it.
OKX vs eToro
eToro is both a cryptocurrency exchange as well as a stock exchange providing its users with a variety of security options to choose from. The same could not be said for OKX, as although it offers multiple trading options, all of them are limited to cryptocurrencies. The eToro platform is operational in the US but is not operational in India. The opposite is true for the OKX platform.
OKX Review – Conclusion
OKX exchange is one of the biggest crypto exchanges in the world by volume. The platform has been able to achieve this feat using competitive fees, 24/7 customer support hearing all the queries of the customers, and robust security, which has not been hacked even once. Be it a beginner or professional, the platform accommodates every user segment making it a good choice for investors.
Read More-
- These are the Best DEX Coins to Buy
- How to Buy Tamadoge
- These are the Best Cryptocurrencies to Buy in 2024
FAQs
Is OKX a centralized exchange?
Yes, OKX is a centralized exchange which is the reason behind its user-friendly interface and its robust 24/7 customer service because of the presence of a central team(developers) dedicated to providing these services to the investors.
Does OKX accept Fiat deposits?
A user cannot deposit Fiat currency on an OKX account, but he has the option to buy cryptocurrencies directly using Fiat currency from his credit card, bank account, etc
Is OKX available in the US?
OKX, although available in 100 countries, is not available in the US. However, its sister company OKCoin is operational in the US.
Can I use OKX on mobile?
OKX can be accessed by users both on their desktops as well as their mobile phones (through mobile apps). The interface in both the set-ups provides the best experience to the traders.
Is OKX a safe crypto exchange?
OKX is a very safe and secure exchange. The platform has never been hacked as it uses 2FA, Hot and Cold Wallet pairing, to protect its traders from hackers.
