In May 2024, OKX (formerly known as OKEX) is recognized as one of the top cryptocurrency exchanges globally, attracting traders and investors due to its high trading volumes and extensive user base. With over 700 crypto pairs available for trading, its user-friendly interface makes it an ideal platform for both beginners and experienced traders.
However, OKX does not provide services to users in certain countries, including the USA, Singapore, Cuba, Iran, North Korea, Malaysia, Syria, Canada (Ontario and Quebec provinces), the UK, Bangladesh, Bolivia, Malta, and Hong Kong. Additionally, the exchange does not hold a license or registration in the Russian Federation.
History of OKX
Founded in 2017 in Hong Kong by Chinese entrepreneur Xu Mingxing, also known as “Star” Xu, OKX was created in response to the Chinese government’s ban on futures trading, which also affected another project, OKCoin. OKX focused on the international market, later rebranding from OKEX to OKX to reflect its broader ecosystem beyond just crypto exchange services.
After its launch, OKX moved its legal registration to the Seychelles, where its main office is now located. This decision was influenced by more favorable conditions for financial projects in the country. The OKX brand is registered under Aux Cayes FinTech Co. Ltd and is part of OK Group, 52% of which is owned by its founder, with additional shares held by other prominent business figures.
Key Features of OKX
- Spot Trading: Buy and sell cryptocurrencies directly with available funds.
- Margin Trading: Trade using borrowed funds for higher leverage and potential gains (or losses).
- Futures Trading: Trade contracts based on the future value of cryptocurrencies, without actually owning the underlying asset.
- Mining Pool: Join a collective of miners to increase mining power and share in rewards, with real-time profit tracking.
- Copy Trading: Automatically replicate the trades of top-performing traders on the platform.
- Earn: Lock up crypto for a set period to earn interest, similar to a savings account.
- P2P Trading: Direct person-to-person trading with no middleman involved.
OKX Operations in Russia
While many exchanges have imposed restrictions on Russian users due to sanctions, OKX has maintained its services for Russians, with some limitations, such as restrictions on P2P trading introduced in late 2023. Despite external pressures, OKX has resisted freezing or blocking Russian accounts, according to former CEO Jay Hao. However, caution is advised, as these conditions may change, and users are encouraged to store their assets in cold wallets for added security.
Challenges with Deposits and Withdrawals in 2023
Russian traders face difficulties with deposits and withdrawals due to the exit of Visa and Mastercard from the Russian market, limiting the ability to fund OKX accounts via traditional banking methods. The platform’s P2P services, which once allowed ruble transactions, are also restricted. Users must now rely on cryptocurrency transfers for deposits and withdrawals.
OKX Fee Structure
- Standard Fees: Competitive fees for both spot and futures trading.
- Reduced Fees: Available for higher-tiered users and those holding OKB tokens.
OKX offers one of the most competitive fee structures in the industry, especially when compared to other major exchanges like Binance.
Trading Volumes
OKX consistently ranks high in global trading volumes. As of late 2023, it reported $771 million in daily spot trading and $6 billion in futures trading. Bitcoin (BTC) and Ethereum (ETH) account for the majority of trading activity, with 44.23% and 35.5%, respectively.
OKX Token (OKB)
Launched in 2019, the OKB token plays a vital role in the OKX ecosystem. Holding OKB can reduce trading fees, and it can also be staked for passive income or used in new project launches via Jumpstart. OKX buys back and burns OKB tokens quarterly, creating deflationary pressure that has increased its value over time.
Final Thoughts
OKX has established itself as a leading cryptocurrency exchange, providing a wide range of tools and services for traders. With its global reach, competitive fees, and strong security protocols, it is a top choice for many crypto enthusiasts. However, users should remain vigilant and consider the potential risks of keeping assets on exchanges, particularly in light of geopolitical uncertainties.
OKX is a powerful platform, but always ensure you manage your assets wisely by storing them securely.
