Is OKX Safe? OKX Exchange Security Overview 2024

When picking a cryptocurrency exchange, the first question on everyone’s mind is often: Is it safe & legit? Platforms like OKX must offer more than just a wide variety of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) — users need reassurance that their assets will be secure. Trading volume and ease of use, such as having a mobile app and integrated wallet, are important features, but they don’t mean much if your funds aren’t protected.

So, is OKX safe and trustworthy? This is a critical point to consider. OKX has established itself as a reliable exchange with 50 million users worldwide, but like all crypto exchanges, users wonder about its track record: Does OKX face hacking issues? While no exchange is entirely immune to cyber threats, OKX takes security very seriously, with industry-standard protocols like two-factor authentication (2FA) and advanced encryption to protect user accounts.

In this overview, we’ll dive deeper into the security features OKX provides, addressing common concerns like whether is OKX prone to hacks, and giving you tips on how to protect your account while trading, buying, or selling crypto.

Key Takeaways:

• OKX is a safe crypto exchange with advanced security measures like 2FA, cold storage, withdrawal address whitelisting, anti-phishing codes, multi-signature wallets, OKX Risk Shield, PoR, and regular external audits.
• OKX also offers a non-custodial wallet for decentralized crypto storage with security features such as multi-party computation (MPC) and biometric authentication.
• The OKX exchange has not faced any hacking breach so far and was given an “AA” rating by CertiK and ranked #3 among the safest crypto exchanges.

OKX Overview

OKX is the best crypto exchange, with a lot more trading features beyond just buying and selling crypto. If you’re interested in diving into all things crypto, OKX covers pretty much everything you need, whether you’re a beginner or an experienced trader.

A Breakdown of What OKX Offers:

1. Trading Variety

They offer spot trading, futures, options, and perpetual swaps. Spot trading is pretty straightforward – you’re buying and selling crypto like Bitcoin (BTC) or Ethereum (ETH). But if you’re into advanced stuff, OKX gives you options of margin trading or using futures with up to 100x leverage. And they’ve got a ton of trading pairs—over 400 different crypto combinations like BTC/USDT or BTC/ETH to choose from.

2. Web3 Wallet

OKX goes beyond just a centralized exchange (CEX). Their OKX Wallet taps into the decentralized finance (DeFi) world. Think of this wallet as your key to interacting with the decentralized universe. It supports over 100 different blockchain networks and lets you access DApps (decentralized applications), buy and sell NFTs, and even participate in DeFi. If you’re into yield farming or staking, this wallet lets you jump in, and the fact that it’s multichain means you can move assets across different blockchains seamlessly.

3. NFT Marketplace

OKX has an NFT marketplace that stands out because of its zero-fee model on secondary sales. This is a big deal, especially if you’re into high-value NFTs (some selling for over $100,000). Most platforms take a percentage cut, but OKX lets you keep all of it.

4. Advanced Trading Tools

They’ve added simple but powerful tools like being able to use stop-loss or take-profit orders right on the charts. They even offer data indicators like open interest and traders’ long/short ratios, which help you keep track of market sentiment.

5. Copy Trading and Bots

If you’re not super experienced or just want to follow someone else’s strategy, OKX has copy trading. This lets you mirror the trades of top traders on the platform. They also offer automated trading bots, which can handle trades for you based on preset conditions.

6. Earn and DeFi

OKX’s Earn feature lets you make passive income by staking your crypto. You can lock up your coins in liquidity pools or participate in DeFi projects like lending and borrowing.

7. High Liquidity

If you’re trading large amounts, you won’t face much slippage. This is essential for traders who want to move big funds without affecting the market too much.

8. Competitive Trading Fees

It charges low trading fees of 0.08% maker and 0.1% taker fees on the spot market, which is lower than the industry standard of 0.1% maker/taker for other cryptocurrency exchanges.

Read our in-depth OKX review for more information.

Is OKX Safe? 10 Security Features Reviewed

95% Cold Storage

In simple terms, cold storage means keeping most of the user funds offline, away from potential online threats like hackers. At OKX, they store 95% of all funds in cold wallets, which aren’t connected to the internet. The reason for this is pretty straightforward: anything online is at risk. Whether it’s hackers, malware, or other digital threats, being online makes funds vulnerable.

But they don’t stop there. Even though cold storage is offline, there can still be threats from things like USB drives or external devices. These could carry malware, so OKX makes sure their cold wallets never come into contact with any of these devices.

OKX also limits how much cryptocurrency can be stored in a single cold wallet address. Each address can hold a maximum of 1,000 BTC, which helps spread out the risk. After the first withdrawal is made from an address, it can no longer receive any new deposits, adding yet another layer of safety.

Private Key Storage Mechanism

Another layer of security comes from how they handle private keys. These keys are created on an offline computer, and as soon as they’re made, they’re encrypted using something called Advanced Encryption Standard (AES). The original, unencrypted keys are then deleted, leaving only the encrypted version. 

The encrypted keys aren’t just left lying around, though. They’re turned into QR codes, which are printed and securely stored in bank vaults. And not just one vault—there are backup QR codes stored in different vaults in multiple countries. This way, if anything goes wrong at one location, the backup ensures that your funds are still safe and accessible.

To make things even more secure, OKX has a system where no single person has complete control over the cold wallet system. The password used to decrypt the private keys is split between two employees who live in different countries. These employees aren’t allowed to travel together or even be in the same vehicle. 

Why? To make sure that if something happens to one of them, the other is still around to maintain security. The employees who have access to the bank vaults where the QR codes are kept are different people entirely, so no one person can access everything.

Online Storage with Multi-Sig Mechanism

You know that quick access to some funds is needed for deposits and withdrawals, so OKX created a semi-offline system of hot wallets to make that happen securely. It uses a special semi-offline multi-sig system to handle transactions safely and quickly. 

What’s different here is that OKX doesn’t use typical internet protocols when processing transactions. Instead, they’ve built their own signature service that reduces the risk of cyber attacks, keeping your funds secure even during deposits and withdrawals.

A key part of this security system is how OKX handles private keys. These keys, which are essential for accessing your funds, are stored in the RAM of semi-offline servers instead of on permanent memory. This might sound technical, but it basically means that even if someone got physical access to the servers, they wouldn’t be able to steal the keys.

What’s also great about OKX’s multi-sig system is that no one person can control the funds. They create 3 private keys, each held by different employees in separate locations. To authorize any transaction, at least two of these keyholders must approve it, ensuring that no single person can act alone.

OKX Risk Shield

The OKX Risk Shield is like an insurance safety net for your assets on the platform. It’s a reserve fund that OKX sets aside from its own earnings, specifically to protect you in case something goes wrong, like a security breach or other unexpected events. 

This fund ensures that if there’s ever a problem, your assets are covered. It’s similar to Binance’s SAFU fund, which adds a layer of trust and security.

Anti-Phishing Code

OKX offers a smart feature called the anti-phishing code. It’s like adding a personal stamp to your emails from OKX, making it easy for you to know whether an email is genuinely from them or a fake. If you get an email that looks like it’s from OKX but the code isn’t there, you can instantly tell it’s not legit. 

This is incredibly useful because phishing scams are sneaky – they’re designed to trick you into giving up your account details or clicking harmful links. Having your own code is a simple and effective way to stay one step ahead of fraudsters.

Withdrawal Address Whitelisting

Imagine having a lock on where your funds can go—that’s essentially what withdrawal address whitelisting does for you. You choose which wallet addresses are allowed for withdrawals, and anything outside of that list is automatically blocked. This means that even if someone tries to hack your account, they can’t move your funds to any random wallet they control. 

It’s a powerful feature that gives you more control over your money and peace of mind knowing that it can only be sent to safe, pre-approved addresses. This makes your funds much harder to steal, even in the worst-case scenario.

Passkeys

OKX is raising the bar with passkeys, which are more secure than traditional passwords. Instead of typing in a password that could be guessed or stolen, passkeys use either your device or biometrics (like a fingerprint or facial recognition) to verify your identity. 

This makes it virtually impossible for hackers to access your account through the usual methods like phishing or password attacks. By embracing passkeys, OKX is ensuring your account remains secure without you having to remember a dozen different passwords. It’s a forward-thinking solution that really prioritizes your account security.

Two-factor Authentication (2FA)

Two-factor authentication (2FA) is one of the most effective ways to protect your OKX account. It requires two steps to verify your identity—usually your password and a code sent to your phone or generated by an app like Google Authenticator. This means that even if someone gets your password, they’ll still need the second factor to log in. 

OKX makes it easy to set up 2FA, and it’s highly recommended if you want that extra layer of security. It gives you peace of mind knowing your account is safe, even in the event of a password leak.

Mandatory KYC

OKX enforces mandatory KYC, which means you need to verify your identity before accessing the full platform features. This process not only ensures compliance with global regulations but also protects against illegal activities like fraud or money laundering. 

Without KYC, you won’t be able to deposit, trade, and withdraw funds. But once you complete it, you can withdraw up to 500 BTC per day. The verification process is straightforward, and while some might find it tedious, it significantly enhances the security of the platform by making sure that all users are legitimate.

Proof of Reserve (PoR)

OKX understands that trust is key in the world of cryptocurrency. That’s why it has put a strong focus on its Proof of Reserve (PoR) system. This initiative allows you to easily verify that every dollar you deposit is backed by real digital assets. 

Right now, OKX holds over $19.4 billion in reserves, which includes some of the most popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins such as Tether (USDT) and USD Coin (USDC). These assets are selected for their strong liquidity and market acceptance.

What’s even better is that OKX’s on-chain wallet holdings are public (Check on Defillama). You can see this for yourself, which gives you a level of transparency that’s hard to find elsewhere. 

The way the PoR works is pretty interesting. OKX uses a transparent Zero-Knowledge Proof algorithm called zk-STARK. This term means that OKX can prove and verify all the assets it holds on the exchange without revealing sensitive details. Essentially, this technology allows OKX to confirm its ownership of its on-chain wallet addresses while protecting the privacy of its users.

Hence, OKX verifies its reserve ratio by comparing the total assets in customer accounts with the total assets in its on-chain wallets.

External Security Audits

OKX doesn’t just talk about security—it proves it through external security audits. The platform holds an ISO/IEC 27001 certification, which is an internationally recognized standard for top-tier information security management. 

Additionally, OKX is highly rated by CertiK with an “AA” score. CertiK is a company that specializes in blockchain security audits. These external audits ensure that OKX’s systems are constantly being reviewed for vulnerabilities, keeping everything secure and up to date. 

It’s one thing for a company to claim it’s secure, but having third-party verification through audits adds a layer of credibility that’s hard to ignore.

OKX Web3 Wallet Safety Measures

You might be wondering is OKX wallet safe? The short answer is yes—it has a lot of solid safety features designed to keep your crypto secure. 

First, the OKX wallet is self-custodial, meaning you – not OKX – hold your private keys. This gives you full control over your crypto, which is a big deal because no one else can access your funds unless you share your private keys. The key phrase you create when setting up the wallet is crucial for recovering your assets if something goes wrong, so keep that safe!

One of the standout features of the OKX wallet is its use of MPC (Multi-Party Computation) technology. In simple terms, MPC makes it nearly impossible for hackers to steal your private keys.

Instead of storing the private key in one place, MPC splits the key into multiple parts and stores them separately. 

This way, no single entity has access to the complete key. Even if one part gets compromised, your wallet remains safe because the attacker would need access to all parts to steal your funds.

Another strong feature of the OKX wallet is that it supports multi-chain functionality. This means you can store, send, and receive assets across multiple blockchains all in one place. Whether it’s Ethereum, Bitcoin, or 100+ supported networks, you don’t need multiple crypto wallets for each blockchain. The wallet also allows for cross-chain swapping, which makes it easy to trade assets across different blockchains without having to leave the wallet or move assets to an exchange.

On top of that, OKX has integrated 2FA (Two-Factor Authentication) and offers biometric login options, such as fingerprint or face recognition, which are available when using the mobile app. This adds an extra layer of security when you access your wallet on the go.

OKX Mobile App Security

OKX app is available for both Android and iOS devices. When using OKX on your mobile device, security is a key focus, just like with its web version. One of the primary security features is biometric authentication, such as fingerprint or facial recognition.

The app also offers two-factor authentication (2FA), where you can link your account to Google Authenticator or receive SMS codes for extra security during login. It also includes anti-phishing codes. You can also whitelist withdrawal addresses.

OKX also uses end-to-end encryption for all data transmissions on the mobile app. Whether you’re trading, depositing, or withdrawing funds, your sensitive information is encrypted, making it harder for hackers to intercept or steal your data.

Top Safety Tips to Protect OKX Exchange

Here are some easy-to-follow safety tips to protect your OKX Exchange account:

1. Two-Factor Authentication (2FA): You can use apps like Google Authenticator or receive SMS codes to add an extra layer of security. This will make it much harder for anyone to access your account, even if they know your password.
2. Create a Strong, Unique Password: You should use a combination of upper and lowercase letters, numbers, and symbols. Make sure to change your password regularly and avoid using easily guessed information like birthdays.
3. Be Cautious of Phishing Scams: Always check that any communication you receive is from OKX by using anti-phishing codes or by going directly to the official OKX website or app. Avoid clicking on links in emails that seem untrustworthy.
4. Regularly Monitor Your Account Activity: You should regularly check your account activity for any unusual logins or transactions. OKX provides notifications for account activities, so make sure to review them to catch anything suspicious early.
5. Use a Secure Internet Connection: You need to make sure that you are using a secure and private internet connection when logging into your OKX account. Avoid using public Wi-Fi networks, as these are more vulnerable to hackers.
6. Always Log Out After Using Your Account: It is important to prevent others from accessing your account when you are finished using it, especially on shared or public devices. 
7. Set Up Security Notifications: You should enable notifications for any important activities on your account, such as logins, withdrawals, or changes to your security settings. 

Final Verdict

So, is OKX safe? Absolutely! This active trading platform takes your security very seriously, with advanced features designed to keep your assets protected. With 95% of funds stored in cold wallets and robust measures like two-factor authentication, users can feel confident in their safety while trading.

 Plus, OKX has a solid track record, with no major hacking incidents to date. Their transparent Proof of Reserve system allows you to see that your funds are fully backed by real assets. Overall, if you’re looking for a secure place to trade cryptocurrencies, OKX is worth considering.

FAQs

Is OKX legit for beginners?

Yes, OKX is quite a legitimate crypto app for beginners, it provides an easy-to-navigate interface and helpful resources to get started. For new traders, OKX offers features like spot trading, which is straightforward, and educational materials to help understand crypto better.

Plus, the highly rate of mobile app making it simple for beginners to trade on the go. The platform also supports a wide range of payment options for easy deposits, and beginners can explore different products like OKX Earn, which allows you to generate passive income without advanced trading knowledge.

Is OKX regulated and licensed?

OKX operates under multiple regulatory frameworks globally. It holds a Virtual Asset Service Provider (VASP) license from the Seychelles Financial Services Authority (FSA) and has been granted a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to operate in the UAE. 

OKX also complies with regulatory standards in regions like Europe and Australia, showing its commitment to working within legal frameworks.

Has OKX ever been hacked?

As of now, OKX has not been involved in any major hacking incidents, which reflects positively on its security measures. The platform emphasizes strong security protocols, including two-factor authentication (2FA), cold storage for funds, and regular Proof of Reserves audits.

Can I use OKX without KYC?

No, you cannot use OKX without completing the Know Your Customer (KYC) verification process. KYC is mandatory on OKX for all users to comply with global regulations on anti-money laundering (AML). You will need to submit identification documents like a passport or driver’s license to fully access trading features and withdrawal options.

Which offers better security, OKX or Binance?

When it comes to security, both OKX and Binance are solid choices, but they have some differences. Binance has a substantial Security Asset Fund for Users (SAFU), totaling $1 billion, which acts as a safety net for users. OKX, while also having a reserve fund, does not disclose the exact amount, which can leave some users curious. 

On the bright side, OKX has never suffered a major hacking incident, which adds to its credibility. In contrast, Binance faced a significant breach in 2019, where a hacker stole over 7,000 bitcoins, resulting in a loss of about $40 million.

How can I withdraw money from OKX?

You can withdraw money from OKX using various methods. The platform allows you to link a bank account or bank card for withdrawing fiat currencies. You can also use third-party payment processors like Apple Pay and MoonPay, depending on your region. OKX is expanding its fiat on- and off-ramp services to include more local currencies and banking options.