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Category: Exchange Reviews

Review of Cryptocurrency exchanges. Learn which crypto-exchange is safe to use and have high liquidity.

  • OKEx Exchange Review (2020): Is it a good exchange?

    OKEx Exchange Review (2020): Is it a good exchange?

    OKEx cryptocurrency exchange is one of the top-ten global cryptocurrency exchanges by daily volume (over USD$1.68 million) and provides services in over 100 countries. This popular Exchange conveniently offers fiat-to-fiat and crypto-to-fiat trading, futures trading and wallet options all on one site. In this review, we’ll look at OKEx’s features and some controversies that you need to know.

    Key Advantages of OKEx

    • High trade volume;
    • Fiat-to-crypto exchange provides a one-stop shop for entering or exiting out of cryptocurrency trading; and
    • Good track record in terms of security.

    Key Features and Functions

    Name:
    Binance
    Ease of use:
    4.9 Star Rating
    Fees:
    4.5 Star Rating
    Rating:
    4.5 Star Rating
    Full Review:
    HERE
    Sign Up:
    HERE
    Name:
    Coinbase
    Ease of use:
    4.6 Star Rating
    Fees:
    3 Star Rating
    Rating:
    3.5 Star Rating
    Full Review:
    HERE
    Sign Up:
    HERE
    Name:
    Bybit
    Ease of use:
    4.8 Star Rating
    Fees:
    4.4 Star Rating
    Rating:
    4.5 Star Rating
    Full Review:
    HERE
    Sign Up:
    HERE
    Name:
    Phemex
    Ease of use:
    4 Star Rating
    Fees:
    4 Star Rating
    Rating:
    4.3 Star Rating
    Full Review:
    HERE
    Sign Up:
    HERE
    Name:
    OKX
    Ease of use:
    4.2 Star Rating
    Fees:
    4.1 Star Rating
    Rating:
    4.4 Star Rating
    Full Review:

    HERE

    Sign Up:
    HERE

    Here are some of OKEx’s key features and functions on offer:

    • Crypto-to-crypto and crypto-to-fiat trading pairs;
    • Customer to customer (C2C) trading platform;
    • Spot and Margin trading;
    • Futures contracts;
    • Perpetual swaps;
    • Options; and
    • Integrated storage wallet.

    Let’s take a look at each of these features in detail.

    There are only a handful of exchanges out there that offers crypto-to-fiat trading pairs. With OKEx, customers can purchase cryptocurrencies directly on the Exchange. (https://www.curlygirldesign.com/) Most major fiat currencies such as USD, EUR, GBP, CAD etc. are accepted, as are most payment methods.

    OKEx’s C2C trading platform allows users to trade a selection of cryptocurrencies amongst themselves, similar to an Over the Counter (OTC) trading desk. Payment can be made using fiat currency.

    Spot trading allows users to buy or sell cryptocurrencies instantly using the funds they have on hand. Whilst Margin trading lets users use borrowed funds to increase their profits.

    Futures contracts allows trading of the cryptocurrency at a predetermined price at a future date, irrespective of the market conditions at the time the contract expires. OKEx has a peer to peer leveraged trading platform, and does not require traders to top up additional margin. According to OKEx, a trader’s losses are limited to the margin they paid for entering into the futures contract. Learn more about futures trading at OKEx here.

    Perpetual Swap trading allows traders to buy and sell contracts which do not have an expiry date and are essentially bets on the future value of a cryptocurrency. For OKEx’s Perpetual Swap, a traders’ profits and losses are realised and settled twice a day and trading up to 100x leverage is available. However, leverage trading is very risky so extra caution is essential. Learn more about OKEx perpetual swap and its fees here.

    Options entitle the contract holder to buy and sell (depending on what contract they hold) the underlying asset i.e. cryptocurrency on a fixed day in the future. It is different from futures contracts in that the person who holds the contract can choose to exercise the option of buying or selling the underlying asset within a specified time. However options contracts still have an expiration date by which the contract holder must exercise their option.

    One unique feature of OKEx is its integrated storage wallet called OKEx Wallet. Similar to many other exchanges, OKEx has a mobile app available on the App Store and Google Play Store for convenient trading on the go. However with the OKEx app, the OKEx Wallet serves as a software wallet where you can store multiple cryptocurrencies separately from your trading account. This can also give you an extra layer of security by having your assets spread out in different locations.

    OKEx mobile app
    OKEx mobile app

    History of OKEx

    OKEx was founded in 2017 by Star Xu. Originally based in China, the Exchange relocated to Malta in 2018 which has a better regulatory framework for blockchain related activities. OKEx is part of OK Group, which is a blockchain technology company founded in 2013. As at 2018, the Exchange has over 800 employees and serves customers in over 100 countries.

    Supported Countries

    OKEx is available in more than 100 countries. However its unavailability in the US is a huge downside. These are some other countries where the Exchange is unavailable:

    American Samoa Bangladesh Bolivia
    Crimea Cuba Ecuador
    Guam Hong Kong Iran
    Kyrgyzstan Puerto Rico Sudan
    Syria US Virgin Islands

    Supported Cryptocurrencies and Payment Methods

    OKEx supports a wide array of cryptocurrency options for traders and investors to transact. The list numbers in the hundred and include:

    Bitcoin (BTC) Bitcoin Cash (BCH) Ethereum (ETH) Ethereum Classic (ETC) Tether (USDT)
    Litecoin (LTC) EOS (EOS) Qtum (QTUM) NEO (NEO) Ontology (ONT)
    Mithril (MITH) Nano (NANO) FirstBlood (1ST) Ark (ARK) Bitcoin Diamond (BCD)
    Bitcoin Gold (BTG) Zilliqa (ZIL) DigiByte (DGB) Stellar (XLM) Monero (XMR)

    Notably, as mentioned above OKEx accepts fiat currencies including USD, EUR, GBP, CAD etc.

    Traders also have a wide variety of payment methods for purchasing cryptocurrencies. These include:

    • Bank transfer;
    • Credit (Visa and Mastercard) and debit card payments from select jurisdictions;
    • Cryptocurrency transfer from an off-exchange wallet or from a separate exchange to the OKEx exchange;
    • WeChat; and
    • Alipay.

    Deposit and Withdrawal Fees

    OKEx does not charge deposit or withdrawal fees.

    Trading Fees

    OKEx adopts a maker-taker fee schedule to encourage more placements of orders and liquidity. Accordingly, the maker fee is lower than the taker fee. The maker and taker fees start from 0.10% and 0.15% respectively. Here’s the differences between maker and taker fees:

    Maker fees: Payable when the trade order isn’t immediately matched with an existing order on the order book.

    Taker fees: Payable when the trade order is immediately matched with an existing order on the order book.

    Like other exchanges, OKEx has a VIP program to reward users who frequently trade with them. Users who hold more of OKEx’s token-OKB and have a high 30-day trading volume can get progressively more discounts on the maker and taker fees. In particular, higher level VIPs are even given rebates on the maker fees.

    OKEx VIP tiers
    OKEx VIP tiers

    Moreover, traders who satisfied OKEx’s KYC verification process, have at least 20 BTC balance and satisfy the Exchange’s trading requirements are eligible to join OKEx’s Market Maker program. Depending on whether you are joining the program for OKEx’s Spots, Futures or Perpetual Swaps markets, users can get -0.005% (i.e. a rebate) on maker fees and 0.04% on taker fees.

    Accepted Payment Methods  

    The exchange has a number of payment options for customers depending on your location. You are advised to reach out to the support team if unsure that a payment option is not available in your country. These options include:  

    • Bank transfer;
    • Credit and debit cards;  
    • Cryptocurrency transfer from an off-exchange wallet or from a separate exchange to the OKEx exchange; 
    • WeChat network payments; and
    • Alipay system. 

    Controversies

    The Exchange faced several challenges in 2018. In August, after a large wrong way bet by one of its users, the Exchange transferred the losses onto its other traders. Later on in November, the Exchange suddenly change the terms of its Bitcoin Cash contract, forcing an early settlement and leaving traders suffering from losses. The Exchange’s explanation was that it was to protect traders from any volatility which may arise out of the Bitcoin Cash split. Yet some traders lost over USD $700,000, and many were prompted to file complaints with the Hong Kong’s Securities and Futures Commission.

    Further, there was a massive scare in September 2019 when Twitter user Whale Alert found that more than USD $270 million was sent from the Exchange to an unknown account. This prompted OKEx’s head of PR, Jennifer Chow to go on Twitter to confirm that it was only a regularly scheduled wallet maintenance. No one has come forward on that occasion saying they suffered any losses as a result. So it was unlikely to be a hack.

    Tweet from OKEx clarifying the situation

    Is OKEx Safe in 2020?

    OKEx uses distributed storage to safeguard against losses in the event of hacking. This is because the exchange has various cold storage locations across the world to limit asset exposure. Additionally, the network has offline private keys to exchange hot wallets. Therefore, only a minimal amount of assets is held in the exchange hot wallet to boost security. OKex has also gained favorable exchange review ratings from different crypto security agencies.

    OKEx also has a robust system to ensure customer account security. These tools include 2FA verification, mobile verification codes for withdrawals and changing settings, and anti-phishing codes in every OKEx email. They also have a bug bounty program to reward any persons who discover and report security vulnerabilities in the Exchange.

    The Exchange did suffer a hack in August 2017 where one user’s account was compromised and lost 200 Bitcoin (then worth around USD $750,000) as a result. In that case, OKEx blamed the situation on hackers, rather than any issues with the Exchange itself. It is also still unclear whether the Exchange was really hacked in September 2019. Though there are no reports of any users coming forward to say they have suffered losses. So far, unlike some other cryptocurrency exchanges, OKEx has not suffered a confirmed hack involving multiple victims.

    Based on their track record, OKEx seems to be a safe Exchange to use. But some other exchanges have insurance funds to cover any potential losses from hacks, which does not seem to be the case with OKEx. This could be a turn-off for some users. Notwithstanding this, they do have the usual security measures that you’d expect from any reputable exchange. However, it is still advisable to only store assets you will trade imminently in an exchange wallet and store the remainder of your funds in an offline hardware wallet.

    Which hardware wallet should you get? We’ve compared the top 3 hardware wallets on the market. Or check out our individual detailed reviews for the Ledger Nano X, Trezor Model T and KeepKey.

    Conclusion: OKEx Pros and Cons

    OKEx Exchange has a simple and easy to use interface. This makes it a solid exchange option for customers. The exchange features a large number of listed coins with various functions and competitive trading fees. On the downside, the mobile app has room for development. The Exchange also has to be more transparent regarding the veracity of its daily volume figures. This is something certain analysts have looked into. Nonetheless, the fact that OKEx is accessible and fairly liquid keeps it in good standing with most in the crypto economy.

    Pros

    • Good track record with no significant hacks so far.
    • Offers fiat-to-crypto trading so users can easily enter into, and “cash out” their cryptocurrencies.
    • Built-in software wallet in its app means convenient on the go trading and using cryptocurrency.
    • Wide range of functions for traders to choose from.

    Cons

    • Not available to those in the US.
    • Unknown whether they have an insurance fund to cover users’ losses in the event of a hack.

    Final Score

    Services offered: 4.5/5
    Cryptocurrency support: 4.5/5
    Fees: 4.5/5
    Security: 4/5
    Review Score: 4.4/5

    Frequently Asked Questions (FAQs)

    What is OKB?

    OKB is OKEx’s own utility token. On the Exchange, users can hold OKB to enjoy trading fee discounts. OKB however has lots of different functions outside of the Exchange. Such as using OKB to subscribe for BitTorrent’s high-speed ad-free downloading or pledging your OKB for cryptocurrency lending. To learn more about OKB’s functions, click here.

    Is OKex available to US customers

    Currently OKex is not available to US residents or citizens.

    Where can I download the OKEx trading app

    OKEx offers both iOS (iPhone) and Android apps for trading on the go. You can download these apps via the official Apple Store or Google play store

    How to avoid OKEx Fees

    To get the lowest exchange withdraw fees, withdraw with options such as ERC-20 Tether (no Omni). You can also reduce fees by using the OKB coin, which offers trading discounts.

    Is OKEx safe to trade

    Yes. OKEx is one of the top tier exchanges in the world.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Bitfinex News: What’s Happening at Bitfinex? (Updated 19 May 2019)

    Bitfinex News: What’s Happening at Bitfinex? (Updated 19 May 2019)

    Bitfinex

    Bitfinex Legal Troubles

    Bitfinex has been in some trouble since 24 April 2019 when the New York Attorney General (NYAG) obtained a Court Order against iFinex, Bitfinex’s parent firm to stop violating New York law and defrauding New York residents. In the Order, iFinex was accused of covering its $850 million losses by borrowing from Tether’s reserve. The NYAG also obtained a preliminary injunction against Bitfinex or Tether from accessing its reserves.

    This also caused a stir within the cryptocurrency community as it was essentially revealed that Tether is not fully backed by cash. Rather, it is only 75% backed by cash with the remaining through loans or other securities.

    To learn more about Tether (USDT) check out my video below:

    https://youtu.be/2XHYkaSemqc
    Tether (USDT) Explained-is Tether a scam?

    What is the Bitfinex Initial Exchange Offering (IEO)?

    Amid a gaping $850 million hole on Bitfinex’s financial books, Bitfinex has released its official white paper indicating its plan to issue an initial exchange offering (IEO).

    The white paper can be viewed here.

    Bitfinex IEO whitepaper

    The white paper states that 1 billion tokens dubbed LEO will be sold to investors. Notably, LEO tokens will be purchased using USDT, a stable coin issued by Tether Ltd which is also owned by iFinex.

    To appease investors, the LEO tokens will enable them to enjoy discounts when trading on Bitfinex and EOSfinex. Additionally, the same benefits will be available on other platforms operated or owned by iFinex.

    To evade regulations, the tokens will not be available to investors in the United States or any U.S. persons.

    Will the Bitfinex IEO save the exchange?

    Notably, the exchange is conducting the initial exchange offering to stitch the $850 million hole in its balance sheet.

    Whether the amount will be enough to save the troubled exchange is debatable. Firstly, the chance of success is very high since this is not the first time the exchange is raising tokens to cover up for losses. In 2016, Bitfinex pulled a similar stunt to cover losses incurred after a security breach on its platform. As it did then, the exchange is replicating the same scheme; selling ‘temporary tokens’ which it later buys back.

    From the outlook, iFinex has a complex but well thought out plan. Since LEO will be purchased with USDT, raising $1 billion will be enough to reinstate the USDTs 1:1 tether to the U.S dollar, plus some change. iFinex can deposit the change into Bitfinex’s account without going against the court order issued by the New York Attorney General. It will then help settle the loan that Tether gave Bitfinex to cover for the loss.

    The only reason that Bitfinex will be able to get away with this plan is that virtual currency exchanges do not fall under the same regulatory framework as traditional financial institutions.

    Bitfinex CTO confirms rumours that it has raised $1 billion

    Tweet from Bitfinex CTO Paolo Ardoino

    Bitfinex’s CTO Paolo Ardoino has confirmed via social media on 13 May 2019 that the Company was able to raise $1 billion USDT by private sales in 10 days.

    What happens next? Update: new developments in Court case

    The legal proceedings against iFinex by the NYAG are ongoing.

    New Court documents were filed on 13 May 2019 where NYAG and Bitfinex are disagreeing on the terms of the injunction.

    On the one hand, the NYAG wants to prevent Bitfinex or any of its affiliated entities from accessing Tether’s fund reserves and a 90-day injunction.

    On the other hand, iFinex is proposing that its affiliated entities should be able to access the funds, and a shorter period of 45-days for the injunction. However they make this proposal without waiving their previous motion to vacate the NYAG’s previous Court Order entirely.

    As both sides cannot come to an agreement on the terms of the injunction, or at all, it is likely that Judge Joel M. Cohen, who oversees this case would want to schedule a hearing. This is so both parties would have a chance to present their arguments and for the Court to come to a determination on these opposing views.

    However as CoinDesk reports and as seen from the Court documents filed, it is unclear when this hearing will be.

    Court gives Bitfinex room to conduct its business. Bitfinex praises Judge’s decision.

    On 16th May 2019, Judge Joel M. Cohen Ordered that the terms of the preliminary injunction should be tailored so that the legitimate business activities of Bitfinex and Tether would not be interfered with.

    Specifically the Court ordered that:

    • Tether can now loan assets to Bitfinex or other parties in its normal course of business;
    • Tether can only distribute funds from its reserves for payroll, and paying contracts, consultants or vendors;
    • Bitfinex or Tether must provide the documents asked for in the NYAG’s original subpoena; and
    • The injunction will expire in 90 days. BUT the NYAG can request for the period to be extended.

    Bitfinex considers this a victory. In its statement, Bitfinex repeated that the NYAG’s order was made in bad faith, and says the Court’s decision leaves “no doubt” that Tether and Bitfinex are entitled to continue running their business as normal.

    Update: LEO token will list on Exchange starting 20 May 2019

    Bitfinex announced on 17 May 2019 that its LEO token will commence trading on 20 May 2019 at 8:00a.m. UTC on Bitfinex.

    It is considered that LEO token is a utility token similar to Binance’s BNB token.

    The token will be tradable against BTC, USD, USDt, EOS, and ETH.

  • Binance Hacked for $41,000,00 USD – are Funds Safe?

    Binance Hacked for $41,000,00 USD – are Funds Safe?

    An unknown group of Hackers stole more than 7000 BTC ($41,000,000 USD*) from Binance, the worlds largest cryptocurrency exchange. Binance reported that the hacker used a combination of phishing exploits and gained access to a large number of “API keys, 2FA codes, and potentially other info”. This marks the biggest hack for Binance.

    For more information about Binance, check out our Binance Review.

    Funds are SAFU

    https://www.youtube.com/watch?v=JS_JKELYsHo

    Binance was able to immediate respond that “Funds are Safe” – they have an emergency fund that can easily cover the $41 Million that were stolen. In fact, it is reported that Binance made a profit of $446 Million in 2018 alone, so this hack can easy be covered by the exchange.

    As a safety precaution, Binance has halted all deposits and withdraws on the exchange for at least 7 days. The purpose of this suspension is to improve exchange security and reduce the impact of the stolen funds. The exchange still has resumed trading at this time.

    We strongly recommended is to keep funds off exchanges and in hardware wallets such as the Ledger Nano X. Exchanges are large targets for hackers – ironically the bigger and more reputable the exchange, the more hackers they attract. Having a Cold Wallet (such as the Ledger or Trezor) allows for storage of cryptocurrency on devices that are not accessible to hackers.

    CZ formally responds to the hack via Youtube

    Decentralized Exchanges to the Rescue?

    Decentralized Exchanges might be hard to use, but they offer full custody of funds.

    In light of this hack, Decentralized Exchanges (DEX) are becoming more and more promising. With a DEX, users can keep their own funds and be safe from large hacks and suspension in deposit / withdraws. Binance has already been building a Binance DEX, supported by the Binance Chain.

    Inside Job?

    Various theories have surfaced about the Binance Hack, with some accusing the hack possibly coming for Binance Insiders who know the workings of the exchange and security precautions. Previous Binance talked about their “Big Data” AI which was meant to catch unauthorized withdraws and sim swap attacks

    CZ talks about “Big Data AI” security system

    The hot and cold wallet storage of Binance has been extensively analysed by the Hacken Team for any further information.

    Hacken Analysis of the Binance Hack

    The report showed that Binance had Internal controls for amount sent and manual review. However it seems hacker managed to withdraw amounts that were just under the manual review threshold. It might be possible that the hacker had information about the internal workings of the Binance defense system and how to bypass it. However, there is no conclusive evidence that it was done by someone inside Binance.

    No Rollbacks – Bitcoin is Safe!

    There was a proposal to rollback the hacker’s transaction on the Bitcoin Blockchain after the hack was initially discovered. This would reverse the transaction and “thwart” the hacker. This drew the ire of the Bitcoin community is it recognized that even with $41 M bounty to do a reversal, it would be extremely dangerous and near impossible to collude more than 51% of the hash-power.

    Whilst Binance CEO Changpeng Zhao “CZ” initially humored this idea, it was quickly refuted.

    https://twitter.com/cz_binance/status/1125996194734399488

    Many Bitcoin advocates who are familiar the network also pointed to the impossibility of doing a Bitcoin Rollback:

    *Assuming $5883 per Bitcoin as the time of writing.