What is OKX? How does It work? Complete Beginner’s Guide [2024]

OKX is an online cryptocurrency exchange platform that permits traders to buy, sell, trade, mine, and even lend crypto.

The exchange was established in 2017 by Mingxing “Star” Xu as a spinoff of its sister company “OKcoin” which was forced to move its headquarters from Beijing to Hong Kong.

OKX is based in the Republic of Seychelles, albeit unavailable for U.S. users.

OKX has gained a reputation for catering to more advanced traders, and beginner investors may be better served elsewhere, given OKX’s focus on advanced trading tools and the breadth of cryptocurrencies provided.

Currently, the exchange lists over 300 coins, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC), along with the in-house token OKB, which provides specific discounts and perks to token holders.

The exchange currently carries a daily trading volume exceeding USD 16 Bn, serving more than twenty million users spread across more than 100 countries and regions.

OKX stands out from the competitive crowd given that it hosts its own blockchain, OKExChain, which caters to high-performance & EVM-compatible smart contracts, which feed the OKX platform.

In addition, OKX has attracted new customers through its loyalty and educational programs, which reward users with crypto-rewards.

Furthermore, the exchange is committed to the security of user funds. It adopts industry-standard security practices, whereby cold storage is utilized to transfer customer assets in and out of the exchange.

OKX also provides unique features such as the ability to set up a withdrawal password and special protection measures such as anti-phishing codes.

How does OKX work?

OKX is a cryptocurrency exchange platform, similar to companies like Coinbase or Binance. It allows users to buy, sell, and trade cryptocurrencies like Bitcoin and Ethereum. Here’s a breakdown of how it works:

Trading:

• OKX offers a variety of trading options, including spot trading, margin trading, futures trading, and options trading. Spot trading is the most basic type, where you buy and sell cryptocurrencies at the current market price. Margin trading allows you to borrow funds from the exchange to amplify your gains (or losses). Futures and options trading are more complex contracts that allow you to speculate on the future price of cryptocurrencies.

Accounts and Funding:

• You’ll need to create an account on OKX to start trading. Once your account is verified, you can deposit funds using various methods, though deposit fees are not entirely transparent. They do offer a demo account so you can practice trading before using real money.

Security:

• OKX emphasizes security measures to protect user funds. They tout secure storage practices, but it’s important to remember that cryptocurrency exchanges are not immune to hacking.

Additional Features:

• OKX offers other features beyond trading, such as staking cryptocurrencies to earn interest, borrowing crypto using your holdings as collateral, and access to DeFi applications.

Source: https://gemini.google.com/app

Is OKX Exchange Limited To Expert Traders?

At OKX, beginner traders feel overwhelmed by the breadth of trading options provided under the basic trading sections.

OKX has gained a reputation for mainly catering to advanced traders relying on complex trading tools.

The exchange is designed for traders who warrant access to margin, futures, and options trading both on the browser and through mobile trading; OKX provides its unique advanced features on all platforms and devices.

No KYC is needed for small traders who wish to indulge in the exchange’s offering, albeit withdrawals are capped at 10 BTC per day in addition to some trading tools are restricted.

Completing the KYC increases withdrawal caps and opens all trading tools.

However, it is always encouraged to finalize the KYC process before depositing any funds into the exchange.

Although beginner traders can still benefit from the offerings of OKX, advanced traders may be better poised to benefit from the complex financial services coupled with the in-house blockchain.

Pros & Cons Of OKX

Pros:

• Huge selection of more than 300 cryptocurrencies to trade
• Relatively low fees when compared to competitors ranging at and below 0.1%
• In-house blockchain that provides opportunities for advanced traders
• Multiple options available to buy cryptocurrency utilizing bank cards, bank accounts, or digital wallets
• Industry-standard security practices, such as cold storage for user assets

Cons:

• Trading interface tends to be complicated for beginner traders
• Complex and multi-tiered operational structure
• Tilted towards the Chinese market, which pauses a regulatory risk
• Some cryptocurrency pairs available face the problem of low liquidity and high slippage
• Not available for users within the U.S.

Our Take On OKX

OKX has continuously proven to deserve its place amongst the leading cryptocurrency exchanges globally regarding trading volume, with a fair twist towards experienced users.

Although not available for U.S. traders, OKX is an excellent cryptocurrency exchange with low fees and a vast selection of staking pools that long-term investors may benefit from.

However, traders must be wary of mixed customer reviews claiming that OKX features poor customer service and claims that funds were lost in the past at OKX.

To combat the infamous reputation, OKX has implemented a multi-faceted security system that builds on online and semi-offline risk management protocols, extensive data risk reduction systems, and multi-signature semi-offline clearance systems.

The exchange provides services ranging from spot trading, margin trading, options, futures crypto mining services, decentralized finance services (DeFi), and perpetual swaps.

However, one drawback to the amplitude of products and derivatives provided by OKX is that it may seem daunting to new users leading to wrong financial and trading decisions; thus, more educational material pushed by the exchange is warranted.

Our take is that the OKX exchange is a fair first step into entering the world of cryptocurrency.

However, users must take the highest levels of precaution when dealing with new products.

It is always recommended to drive a shift towards decentralized exchanges that do not have a centralized authority over users’ funds and are often less susceptible to being hacked.

OKX Fees

Compared to global exchange leaders, it is immediately evident that OKX ranks significantly lower in terms of fees, especially for premium users.

This is because OKX adopts a three-layer multi-faceted fee structure whereby fees are determined based on cryptocurrency traders, the type of users, and the historical volume traded by the user.

OKX fees start at a maker fee of 0.08% and a taker fee of 0.10%, which refer to transaction fees that users incur when orders are placed and filled.

In comparison, Binance charges respective fees of 0.10% for each, whereas BingX charges 0.02% and 0.03%, respectively.

In addition, a significant downside of OKX that users report is that the exchange does not disclose its fees pertaining to crypto deposits and withdrawals, whereby hidden cost details pose a red flag for many users.

Moreover, OKX does not offer its own in-house VISA/Mastercard or bank transfer opportunities.

Instead, it relies on third-party merchants who perform the cleaning services.

As a result, heightened security risks and elevated third-party fees have always pushed users dependent on fiat deposits and withdrawals away from OKX.

Below is a deep dive into the critical highlights of OKX exchange fees:

• Spot trading fees start at 0.08% for marker fees and 0.1% for taker fees and can go as low as -0.01% for maker fees and 0.025% for taker fees for the highest VIP level for class A cryptocurrencies.
• Futures trading fees start at 0.02% for maker fees and 0.05% for taker fees. They can go as low as -0.01% for maker fees and 0.020% for taker fees for the highest VIP level for class A cryptocurrencies.
• Higher-volume traders and traders carrying extensive futures or spot trading account balances will benefit from upgraded tiers
• Fiat withdrawal and deposit fees are undisclosed and depend on the third-party merchant at the time of the transaction
• Referring friends and family to join OKX through utilizing a personal referral code offers trading fee discounts and rebates.

Is OKX Safe?

In October 2017, reports emerged that many OKX account holders had their accounts compromised and their assets stolen, albeit the exchange blamed the users for failing to adhere to security measures and having their passwords saved online.

OKX strongly and firmly refuted any claims that pertained to weakness on the exchange side or compromise of any security measures put in place.

Ever since those claims emerged, the exchange has ensured that it has continuously implemented the most advanced and novel security measures to safeguard both its reputation and user funds are well guarded.

The exchange adopts the Global Server Load Balancing (GSLB) mechanism, a distributed cluster of servers and cold storage multi-sig wallets distributed globally to ensure that hacking is not straightforward and more complex.

Furthermore, OKX claims that all user asset deposits and withdrawals fall under a multi-layer risk management system which requires multiple blockchain confirmations.

In addition, the user’s private key cannot be compromised, given that it is stored in a temporary memory file rather than a permanent hard drive making it impossible for hackers to access it.

Finally, the communication between the exchange elements is done via a unique network communication protocol that is proprietary, which prevents online attacks.

However, similar to a centralized exchange, OKX should only be utilized to benefit from deep liquidity, trading derivative products, and as a bridge between fiat money and cryptocurrencies.

Trading Options

Advanced traders will be at ease within the OKX trading interface, given that the trading platform supports advanced trading options including market, limit, stop orders, and advanced conditional trades.

In addition, traders can view the market insight for a specific cryptocurrency by observing the order book under the OKX exchange.

Finally, the market charts are flexible and offer vast analysis tools coupled with the ability to customize layouts as per the user’s liking.

OKX also offers a breadth of unique products that users can utilize for increased returns.

These products include participation in token offerings to capture tokens at low prices.

Users can also capitalize on the in-house blockchain and access the smart contract support to launch their own tokens with unique features under the OKX platform.

Beginners may be overwhelmed by the diversity of the products.

Therefore, it is highly recommended for users familiarize themselves with the various products offered before engaging with the provided products.

Banking At OKX

It relies on third-party merchants to clear fiat deposits and withdrawals.

Thus, spikes in fees are expected. In addition, deposit and withdrawal options vary by currency at OKX.

For example, USD deposits and withdrawals are only allowed through Bank Transfers utilizing Signet or SWIFT instead of EURO deposits and withdrawals, which permit Visa and Mastercard Bank Cards.

Furthermore, restrictions on currency deposit and withdrawal options and fees are constantly being updated.

Thus, users are advised to regularly check the related documentation under this website.

The exchange currently lists more than 300 cryptocurrencies, whereby each cryptocurrency is paired with multiple other cryptocurrencies.

The wide breadth of cryptocurrencies is coupled with a large selection of earning products.

For example, the exchange offers various forms of crypto-staking, which refers to users committing cryptocurrencies for a set period in exchange for a pre-agreed yield return.

In addition, the exchange provides its users with coin offerings and initial sales to better capture coins early within their trading cycle.

In addition, the exchange offers leading mining pools with top assets and daily revenue so users can attach their mining rigs.

OKX App Experience

It offers its users a large selection of trading tools with high accessibility and deep liquidity to ensure timely order filling and optimal price quotes.

The exchange users can manage their accounts from the website or the mobile app available on Android-supported phones and iOS.

The OKX iOS app, which can be downloaded from the Apple Store, rates at 4.9 out of 5.0 stars, as opposed to 4.5 stars for the Android app, which can be downloaded from the Android Store, whereby both app versions share the same functionality and user interface.

The links for downloading the mobile apps can be found on the official OKX website.

In addition, mobile apps pose an advantage over the traditional browser platform since the apps are faster, more responsive, and developed specifically for the platforms to ensure utmost compatibility.

After logging in, the user can view the account balance, transaction history, and trade history.

Users enjoy access to trading tools for spot, futures, options, and other trading needs on the app. Additionally, users can opt for financial services and earning tools from the mobile app.

In addition, account holders can benefit from real-time market data, market insights, and order books to ensure that informed trading decisions can be taken.

The app provides a range of login options, including email and password combination, phone number and password combination, touch ID and face ID login options, Apple login option, and two-factor authentication (2FA) for enhanced security.

In addition, users are asked to complete a slide CAPTCHA to fight against bots clogging the network to ensure a seamless experience for real users.

OKX Site Experience

The OKX dashboard is extensive but focuses on being straightforward to ensure actions can be taken swiftly by traders.

From the account management portal, users can access all their account details.

The details include net portfolio balance in fiat currency, cryptocurrencies owned, trading history, and market data.

The exchange has an extensive “Learn” section whereby beginners and advanced users have access to an exhaustive list of tutorials and videos that aim to provide step-by-step guides.

It leads the way with industry analysis and research articles to provide deep insights into the market status and vital information that aids in shaping user trading decisions.

It users can access their accounts from the supported browsers after entering their login details, and the user enables two-factor authentication (2FA).

Compared to prominent competitors, this exchange website feels poor and limited, although packed with advanced tools.

It may seem less intuitive with a weaker user interface, but the functionality is high-end.

Registration Process

Like all centralized exchanges, it aggressively encourages completing the KYC process to unlock advanced trading tools and higher withdrawal limits.

The KYC application document requirements vary by country.

The KYC process involves real-time identity verification, which includes facial recognition using a mobile or computer camera.

However, users can still opt to skip the KYC if they are content with the limits provided by unverified accounts.

The required information for KYC registration are:

• Full name as reflected in identity documents
• Permanent address
• Date of birth
• Nationality
• Contact information
• Email address

ID Verification Documents:

• Government Issued ID-Card
• Social Security Number
• Driver’s License
• Passport
• Pan Card
• ID Card

Proof of Residence Documents:

• Municipal rates & taxes statement
• Municipality bill for utility services
• Internet service bill
• Landline telephone bill
• Bank statement
• Mortgage statement
• Government-issued documents

OKX Global Restrictions

In terms of territory access and jurisdictions, OKX does not provide its services to users from the U.S., Cuba, Iran, Hong Kong, North Korea, Sudan, Crimea, Malaysia, Syria, Bolivia, Bangladesh, Ecuador, and Kyrgyzstan.

Users should always be wary of the updated banned countries list to ensure that no bans are in place under users’ jurisdiction, so users are encouraged not to store their entire portfolio within a centralized exchange and opt for utilizing decentralized exchanges.

OKX Customer Service

The exchange has received positive reviews as to the customer support provided.

The support representatives tend to be swift in replying to all inquiries professionally.

Below are the key highlights of the customer service provided by OKX:

• Vast library of support articles and educational guides
• Basic support across social media, including Twitter, Facebook, Instagram, etc.
• Live support chat via telegram channel
• 24/7 telephone support, which is unique across competitors
• Support for 15 languages

Disclaimer ||

The Information provided on this website article does not constitute investment advice ,financial advice,trading advice,or any other sort of advice and you should not treat any of the website’s content as such.

Always do your own research! DYOR NFA

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