OKX is an online cryptocurrency exchange platform that permits traders to buy, sell, trade, mine, and even lend crypto currencies.
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), USD Coin (USDC), along with the in-house token OKB, which provides specific discounts and perks to token holders.
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.
OKX Pros & Cons
- 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
- 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 The OKX exchange
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.