OKX cryptocurrency derivatives
OKX cryptocurrency derivatives trading platform is a big crypto exchange that allows users to buy, sell, lend, and even mine digital assets. The large selection of OKX derivatives trading products and order types will appeal to experienced traders. Over 300 digital assets are supported by the exchange, which can be traded in over 500 different pairs.
Unique features of OKX:
- Extensive database of educational resources
OKX crypto derivatives trading platform has a special section with educational materials, which can be used by both newcomers and professionals. OKX also regularly publishes current articles and market reviews.
- Access to new DeFi projects via liquidity mining
OKX supports the launch of new projects in the decentralized finance space (DeFi) by offering the users to participate in the OKX Jumpstart liquidity mining program. This is a great way to make passive money and be among the first token holders of new projects. To participate in mining with liquidity, you need to be staking an OKB token.
- Earn a share of bitcoin every day
OKX offers a unique loyalty program for using its mobile app. Every day, users are encouraged to perform new tasks, such as watching videos or reading articles. You will receive 50 satoshi for completing the tasks. One satoshi is equal to a hundred millionth of a whole bitcoin. When you earn 10,000 satsoshi, you will be able to convert them into the equivalent amount of bitcoin, and then use them in any way you want.
OKX derivatives trading platform was founded by Mingxin "Old" Xu in 2017 as an offshoot of the older OKCoin exchange. OKCoin was forced to move its head office from Beijing to Hong Kong due to Chinese authorities' hostile policies toward cryptocurrency companies. OKX was located in the Seychelles with a favorable regulatory climate in mind.
The company currently serves users from over 200 countries.
This exchange is regularly among the top 5 exchanges in terms of trading volume, which means that the cryptocurrency orders executed here are worth a significant amount of money (rarely less than $1 billion per day). Thus, this exchange has tremendous liquidity, which is very beneficial for all investors trading here. As of the date this review was first written, July 18, 2019, this trading platform even had the highest 24-hour trading volume in the world at $2.47 billion. Since then, the volume has grown significantly.
If you need your exchange to also be available as a mobile app or downloadable desktop client, then you've come to the right place. This exchange is available for download from both the App Store and Google Play. It is also available as a downloadable client for Mac and Windows.
Withdrawal Fee for OKX crypto derivatives trading
This platform charges a fee of 0.0005 BTC for BTC withdrawals. This figure is significantly lower than the industry average of 0.000812 BTC for each BTC withdrawal. Thus, the withdrawal fees on this exchange are, roughly speaking, 40% lower than the industry average. Overall, OKX has quite competitive fees.
Methods of deposit
Here you can make deposits both via bank transfer and credit cards. This can be especially helpful for new crypto investors, making this platform considered an "entry-level exchange" that allows novice crypto investors to take their first steps in the wonderful world of cryptocurrency.
What are derivatives?
A derivative is a financial contract for the price of a cryptocurrency, stock, commodity, or service in the future.
An underlying asset is the subject of such a contract. Derivatives sellers and purchasers do not hold the underlying assets; rather, they sell and buy the right to execute the contract.
Why are derivatives needed?
To reduce risk and make money on price movements. This is true for both traditional and cryptocurrency exchanges. Let's explain it with examples. If trader John fears that bitcoin will fall to $3,000 by next Tuesday, he can make an agreement with trader Michael to sell him bitcoins when the price goes down to $3,500. That's how derivatives help reduce risk. And if trader Noah wants to buy bitcoins at $3.5 thousand before Tuesday, he can buy a contract from Michael and then John will sell the bitcoins to Noah. John will receive money from Noah without waiting for the agreed price. By selling and buying this contract traders can make money depending on the price of the underlying asset. This is how derivatives are used to make money.
What are cryptocurrency derivatives and how do they earn money?
Traders profit from price fluctuations in the underlying asset. Because the underlying asset's future market price is unclear, all traders take the risk. The seller gets a profit if the commodity is cheaper at the time of execution, whereas the buyer loses money. The buyer wins if the price increased. The trader employs leverage, which is a loan issued by the exchange, to boost his profit. The magnitude of a trader's deposit determines the size of the leverage. As a result, the trader is able to conduct activities involving significant sums of money. The amount of leverage is determined by the exchange. The majority of exchanges offer leverage in exchange for a commission.
Types of OKX cryptocurrency derivatives in South Africa:
OKX crypto derivatives in South Africa are popular among traders.
What are Futures?
A futures is an agreement to sell or buy an underlying asset at an agreed price in the future (hence the name). For example, you order a specific set of cars from a car dealership. It will be delivered in six months, and you will be obliged to buy the car at the agreed price. There are also open-ended futures. They have no settlement or closing date, so you can buy and sell them at any time.
What is a forward?
A forward is an over-the-counter contract for the purchase and sale of a commodity in the future. It is similar to a futures contract, but less standardized. A futures is traded on an exchange, while a forward is traded through the OTC. For example, you commit to translating a book in the future and the publisher commits to pay for the finished work.
What is an option?
An option is a contract that gives the buyer the right, but not the obligation, to buy an item at an agreed-upon price. For example, you ask to hold on to an item until tomorrow because you do not have the money with you.
What is a Swap?
A swap is two contracts: buying and selling the underlying asset and buying and selling the same asset in the future. It is a more complex version of a futures contract. For example, you buy a particular car, but agree with an acquaintance that you will sell him the car at a higher price.
What is a CFD?
A CFD (contract for difference) is a derivative for the price difference of an underlying asset. If the asset becomes more expensive over the term of the contract, the seller pays the difference. If the price falls, the buyer pays it. Often such contracts are open-ended and are closed by the party entitled to do so under the contract. For example, the store promises to pay the difference in price if you find the same product cheaper.
How to start trading OKX cryptocurrency derivatives in South Africa?
To start trading OKX derivatives in South Africa you need to register an account on OKX exchange.
Go to the official site of the exchange. We see a comfortable and pleasant interface, if you want you can immediately change the language of the site interface to another (icon in the upper right corner of the screen).
First you need to decide how you want to use the exchanger: using the web version in the browser or using Android, iOS and Windows applications. You can find the apps by swiping down from the home page of the site a bit.
In this review we will consider the use of the web version as the most popular.
So, now we need to register an account on this exchange. Click on the corresponding button "Registration" at the top of the screen. You will be offered two options for creating an account - by email or phone number.
In either case, enter your data into the line "E-mail address" (or phone number) and then click "Get code". This initial procedure is OKX's protection against spam, and must be followed. On the basis of the initial selection of the method of registration of the account, you will receive a verification code to your e-mail or phone. If it came, enter it into the "Enter code".
Then you must think of a password for the account and enter it in the next two lines "Password" and "Confirm password". For maximum security, create a password that has at least 15 characters (with lower and upper case Latin letters, various symbols, numbers). This strategy will make your account a lot safer than a simple 8-character password.
The next point is agreeing to the rules of the exchange, checking the box "I have read and accept...". In conclusion, check again the data entered and click "Register".
Advantages of OKX cryptocurrency derivatives trading
- Wide selection of coins; high level of trustworthiness.
- Futures and margin trading.
- Wallet has its own identity.
- Mining pool that is owned by the company.
Taking into consideration all the advantages of the platform we recommend not to wait and start experiencing it right now!