OKEx Review: Cryptocurrency Exchange With Derivatives Trading
OKEx is a Malta-based world-leading cryptocurrency exchange that allows users to trade on hundreds of tokens and futures trading pairs.
OKEx was founded in 2017 with headquarters in Malta and the Republic of Seychelles. CEO of OKEx, JayHao, had a background in game development and the semiconductor industry before joining the cryptocurrency space.
In 2018, it expanded crypto operations to Malta as the Maltese government has adopted an overall friendly approach to cryptocurrency trading.
When the cryptocurrency market took an unprecedented turn in March 2020, OKEx managed to top the sector with the largest top-tier trading volume. With significant expertise in the digital asset marketplace, OKEx is now home to an unprecedented number of seasoned traders.
Given the hype surrounding the platform as it continues to grow, here we discuss the performance and reliability of OKEx as a cryptocurrency exchange.
In our OKEx review, we cover everything you need to know to assess whether the platform is right for you. This includes metrics surrounding fees and commissions, tradable cryptocurrencies, features, safety, and more.
What is OKEx?
OKEx is a digital currency trading platform specifically designed to empower cryptocurrency traders. It provides advanced cryptocurrency financial services to millions of users in over 100 countries.
The platform currently has one of the most extensive lists of supported cryptocurrencies, along with over 448 trading pairs.
As a trading platform, OKEx offers spot as well as derivatives trading. This ensures that users have substantial flexibility when deploying their investment strategies.
What can you do at OKEx?
OKEx essentially serves as a third-party exchange that facilitates cryptocurrency trades.
The main features of the platform allow users to:
Buy/Sell Crypto
OKEx lets you convert over 30 fiat currencies into a number of cryptocurrency coins and tokens – including Bitcoin, USDT, and Ethereum.
Day Trading
Investors can use OKEx as a day trading platform for cryptocurrencies and derivatives – 24/7. This can be done through spot or margin trading of cryptocurrencies, futures contracts, and other digital tokens.
Benefit From Crypto Tools
With OKEx, users can diversify their investment portfolio using advanced tools for cryptocurrency mining, holding, and wallet management.
Education Academy
Traders can also access the OKEx Academy to read guides and analyses from industry experts and increase their knowledge of crypto markets.
OKEx Cryptocurrency Accounts
Before you sign up with OKEx, there are a few tools and features you should familiarize yourself with, as detailed below.
My Wallet
The main OKEx wallet displays all of your tokens that have since been deposited or withdrawn into and from the exchange. To make your funds more secure, OKEx wallets also have the option of a seed phrase. OKEx creates a dedicated wallet for each coin and stores it in its respective wallet as soon as you select it.
Funding Account
A Funding Account primarily serves as a digital bank account for your cryptocurrencies. From here, you can send, receive, and trade your digital assets to and from other wallets.
Any deposits or withdrawals will only occur via this account. Hence, you will first have to transfer your funds from the “Funding Account” to the respective trading account.
Trading Accounts
You can find all your trading accounts categorized within this tab. Here you have the spot account, fiat account, futures account, index trading account, and C2C trading account.
On top of the above, there is also an OKEx Savings Account and Mining Account.
How to Start Using OKEx
To benefit from its features, OKEx first requires you to have a verified user account.
Step 1: Create an Account
Register for a new account with your email address and password. If you are looking to deposit, buy, or perform any other function, you will need to provide personal information and verify it with a valid government-issued ID.
Step 2: Deposit Assets
You can proceed to deposit cryptocurrency assets by either buying digital coins with fiat or transferring your digital assets from an external wallet. When you are copying your unique wallet address from OKEx, make sure that it relates to the respective cryptocurrency. Once processed, the coins will then be available in your ‘Funding Account.’
Step 3: Start Trading
Users can then proceed to transfer their funds to the corresponding “Trading Account” to begin trading.
How to Buy or Sell Cryptocurrency Through OKEx?
One of the best features of OKEx is the ease to convert your fiat currency into cryptocurrencies. Currently, OKEx partners with 9 fiat providers who can facilitate fiat-to-crypto conversions for you. They offer a variety of payment methods such as:
- Bank transfer
- Credit and debit card payments
- Crypto transfer from other platforms
The buying process is reasonably straightforward once you set up your account, and can be completed in a matter of minutes.
All you need to do is:
- Step 1: Select the cryptocurrency you want to buy, alongside the exact quantity.
- Step 2: Choose your preferred payment method and proceed to complete the payment
- Step 3: Your cryptocurrencies will automatically be added to your wallet once the payment is processed.
How to Trade through OKEx?
To start trading at OKEx, select the respective trading option from the main menu. Once redirected to the trading page, you can choose your base asset.
OKEx will immediately show you a list of available pairs, from which you can select the one you wish to trade. If you already have a pair set in mind, you can also use the search bar.
In the spot option, OKEx allows for
- Spot trading, where the trade is settled at the spot price. No market volatility will affect the profit you make from this trade.
- Margin trading, where you trade by borrowing a pre-defined amount of capital through leverage.
OKEx Derivatives
OKEx stands out from the other players by offering the option to trade derivative instruments. These are assets that “derive” or take their value from the underlying cryptocurrency.
Such trades can be leveraged, allowing users to magnify profits (or losses). OKEx currently offers leverage of up to 100x, depending on the type of financial instrument. When trading derivatives, you can also opt to go long or short on the trade.
Here is a closer look at the different derivatives products offered at OKEx.
Futures
These cryptocurrency instruments are traded with an agreement between two parties to exchange the asset on a predetermined date. In cryptocurrency trading, such agreements are often tracked in terms of digital tokens.
There are two types of futures contracts, one is coin-margined futures and another is USDT-margined futures. So one is settled in BTC/other coins and another one is settled in USDT.
The platform claims that the system is manipulation-proof, and as it does not involve any fiat, it is not restricted by country regulations. Futures contracts can be traded on weekly, bi-weekly, quaterly, bi-quaterly.
Before engaging in a futures trade, you will have to set your margin parameters. Each option comes with its own set of risk management systems and formulas.
For example:
- In Cross-margin mode, the margin is considered from all your holding positions. In other words, all assets in your account will become your position margin.
- In fixed-margin mode, only the assets you specify for the particular position will be used as margin.
Perpetual Swaps
OKEx’s Perpetual Swaps are more widely called Perpetual Futures. These are similar to conventional futures contracts, except that there is no predetermined time or expiry date.
This derivative allows you to hold a position as long as you want, and exchange the assets for another at any given time. At the time of writing, OKEx has made Perpetual Swaps available for 23 different cryptocurrencies.
Options
Trading in options allows the investor to buy or sell an asset on an arranged day. However, they are not obliged to do so.
Essentially, it provides you, as the contract holder, the ‘option’ to decide whether the trade will benefit you or not. In order to gain this right, you will need to pay a ‘premium’. If you opt against taking the option to buy or sell the underlying instrument at a later date, you lose your premium.
When you are trading options, you need to specify whether you want ‘Calls’ or ‘Puts’. Calls give you the right to buy, whereas Puts comes with the right to sell.
Note: There are also several order limits and conditions users can set while trading on OKEx. This includes stop orders, market limits, and more. This provides great flexibility, as well as control over your cryptocurrency investment strategies.
OKB Tokens
The OK Blockchain Foundation has issued its exclusive global utility token in which it calls ‘OKB’. On the platform, users can now purchase OKB and trade them against other digital assets.
“OKB, the global utility token issued by OK Blockchain Foundation, is one of the fundamental infrastructures of OKEx trading platform. All OKB holders can enjoy exclusive functions on OKEx platform with a wide range of ecosystem use cases available. We hope to achieve a win-win situation in the global blockchain era and jointly promote the healthy development of the blockchain and digital asset sector through OKB. OKB is a deflationary token with the total supply of 300 million OKB, and a certain amount of OKB will be repurchased by the platform from the secondary market quarterly.”
OKEx Trading Fees
When it comes to trading fees, this is where OKEx really stands out from the crowd. OKEx distinguishes its traders into Normal and VIP users based on their previous trading volumes over the prior 30 days.
Within each group, there are further tiers that define the commissions and fees. Normal users are divided into 5 tiers and VIP users into 7 tiers.
Put simply, the more you trade, the lower the trading fees. You can work out your tier and fee from the “Fee Schedule Tier Link” in the “Profile” drop-down menu.
Apart from the tier system, the fees can also vary depending on whether you are a market ‘maker’ or market ‘taker’.
Takers are those who trade with the market prices presented on OKEx. In contrast, a Maker is one who contributes to the OKEx’s market by providing liquidity. Consequently, market “makers” get a much better commission rate, and in some cases – a rebate.
Click here to view the full trading fees for each type of trading.
Deposit and Withdrawal Fees
OKEx does not charge any deposit fee for its customers. The withdrawal fee, however, depends on the type of coin as standard network transaction fees remain applicable.
OKEx Financial Options
Apart from being a trading exchange, OKEx also provides cryptocurrency financial services. This means you can invest your crypto assets to earn interest and take out crypto-backed loans as required.
Earn Interest on Cryptocurrency
Under the Earn Program, OKEx offers many ways for you to generate interest on your dormant digital assets. The platform incorporates a traditional fiat financing approach to provide users with the same benefits on their cryptocurrencies.
- Savings Account earns you interest on your assets while giving you the flexibility to withdraw or move your coins at any time.
- Staking lets you contribute to various PoS networks, and in turn, rewards you with tokens.
- Term Deposits are similar to fixed deposits, where your investments are locked for a specific period for an agreed rate of interest. The interest is also paid out in tokens.
C2C Loans
The OKEx platform recently introduced the C2C loan arrangement, where users can borrow through customer-to-customer financing. In simple terms, the system allows OKEx to function as a marketplace where investors can either take or give loans.
Users can set interest rates and loan periods while being guided by OKEx regulations on transparency and safety.
At the moment, OKEx accepts BTC, ETH & OKB as collateral to take out loans in USDT. So, the feature is most beneficial for investors with access to BTC. In return, one can use their USDT to invest in an OKEx interest-earning facility and thus -generate passive income.
The best part here is that borrowers can request a loan, and set their own terms. This includes the amount, the duration, and interest rate. Investors can then choose which loan request they want to fulfil.
How Safe is OKEx?
The platform has undoubtedly managed to curate an extensive set of tools and resources that cater to most of the requirements of a cryptocurrency investor. However, the most crucial concern for any trader is the safety of their assets.
According to OKEx, they have designed a water-tight system that ensures the utmost security of your digital coins. By combining cold storage, private key generation, and backups – user assets are safeguarded. In addition, there is also two-factor authentication on offer, which serves as an extra layer of security for your funds.
OKEx is registered in Malta and Hong Kong and recently featured digital assets and trading services that are compliant with the Virtual Financial Asset Act (“VFAA”), which is a regulated authority by the Malta Financial Services Authority.
The exchange has never been hacked despite being one of the largest cryptocurrency exchanges in the world, and overall, OKEx is considered to be a safe and secure trading platform.
However, as a general rule, you should always remember that your assets are truly only in your control when you hold the private keys to your wallets. It is generally advised that you hold your funds for the long-term in wallets that you control and manage securely.
OKEx Review: The Verdict?
Overall, OKEx has created an ecosystem that works well for cryptocurrency traders. The system is flexible, giving you sufficient control over all of your trading needs. Even if trading is not your forte, the platform has solutions letting you earn interest on your digital assets.
Derivatives trading is another function that puts OKEx among one of the most utilized trading platforms in the market. Moreover, the exchange is home to over 448 trading pairs in spot trading, 9 tokens for futures, 23 tokens for perpetual swaps, 3 tokens for options trading.- with additional coins being added on a frequent basis.
Finally, with a great track record of security, despite being one of the largest exchanges in the world, OKEx comes out as a reliable platform for traders of all types.
The post OKEx Review: Cryptocurrency Exchange With Derivatives Trading appeared first on Blockonomi.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Oliver Dale, @Khareem Sudlow
