OKX Security Overview: Is OKX Safe?

When choosing a cryptocurrency exchange, there are multiple factors to consider. You want an established platform that provides a good range of coins, such as Ethereum (ETH) and Bitcoin (BTC), and trading markets with liquidity. After that, it's helpful if the platform has a crypto wallet and a downloadable app.  

However, above all, you want to know that the crypto exchange is trustworthy and that your digital assets are safe. This article overviews the OKX crypto exchange, exploring how the platform addresses security and ensuring that you understand how to secure your account before you start trading, buying or selling cryptocurrencies. 

Note: Users located in the US and UK are not supported.

Summary of OKX Cryptocurrency Exchange

The table below provides a quick summary of OKX. 
 

The Key Features of OKX Security Measures are:

• Offline Storage: Cold wallet
• Online Storage: Hot wallets are generally considered riskier than cold wallets
• OKX Risk Shield: An asset risk reserve fund.
• Mandatory 2FA
• Semi-Offline Multi-signatures
• Secure Private Key Storage
• Emergency Backups
• Anti-phishing code

We will go into more detail about each security measure later in the article.

What is OKX Exchange?

OKX is a reputable cryptocurrency exchange based in Seychelles and a subsidiary of OKCoin (owned by the OK Group). The platform officially launched in 2017 and was formerly known as OKEx but rebranded in 2022 to OKX with a new roadmap.  

The rebrand intent was to become more than a crypto exchange. OKX wanted to expand its user base by venturing into the world of NFTs, DeFi products, the metaverse and gaming.  
CoinMarketCap ranks OKX in the top ten cryptocurrency exchanges in trading volume.

The OKX exchange provides users with multiple services, such as the following: -

• Options
• Mobile App
• Spot Trading
• Trading Bots
• Crypto Loans
• Futures Trading 
• Excellent Security
• Native Blockchain
• Native Token: OKB
• Jumpstart Launchpad
• Demo Trading Account
• OKX Earn (stablecoins, DeFi, staking etc.)
• Self-Custody, Multi-Chain Crypto Wallet
• OKX Academy: Excellent Education for Beginners

OKX is available in over 200 countries, with over 340 coins and 700+ trading markets and over 50 million registered users. Users get 24/7 customer support and a hotline for urgent enquiries. 
Read OKX Review 2023: Powerful All-In-One Crypto Exchange for a deep dive into OKX.

“Faster, better, stronger than your average crypto exchange.” (Source: OKX)

In addition, we also have articles that dive into other aspects of the OKX Exchange: 

• OKX Trading Bots: Automated Trading on OKX
• OKX Earn: Earn interest while Hodling at OKX
• OKX Mobile App: Mobile Trading on the Go
• OKX Lending: Crypto Lending Made Easy!
• OKX Wallet: The Portal to Web3 
• How to Sign-Up on OKX
• OKX NFT Marketplace

How Does OKX Secure Crypto?

OKX has a robust security framework in place to protect user funds and data, so let's explore the comprehensive approach to security. 

How to Secure Your Cryptocurrency Exchange Account on OKX

The below list of account protection exceeds levels beyond many other cryptocurrency exchanges. Here is a mix of the measures deployed by OKX on the back end and what users can do on the front end to protect their crypto and accounts.

OKX Key Security Features

1. Offline Storage: The security program has transparent protocols for protecting user funds. It encompasses the platform, data, assets and access security. Cold wallets are offline and less risky than online wallets (note less risk, not 100% risk-free). OKX takes multiple backups and has storage limits and bank vaults for additional protection.  
2. Online Storage: Though online wallets are considered riskier than cold wallets, OKX takes essential measures to make them as secure as possible. 
3. OKX Risk Shield: To safeguard user assets from crypto security risks, OKX continually allocates a percentage of earnings to an asset risk reserve fund.
4. Mandatory 2FA: Many platforms offer two-factor authentication as an option, but OKX make it compulsory for extra security. You can opt-in for an SMS notification or use Google Authenticator.
5. Semi-Offline Multi-signatures: OKX has semi-offline and multiple-signature mechanisms for secure deposits and withdrawals. 
6. Secure Private Key Storage: OKX stores “private keys in RAM instead of permanent memory.”
7. Emergency Backups: OKX has multiple backup procedures to prepare for potential emergencies fully.
8. Anti-Phishing Code: OKX adds a code to every email you receive. If you do not recognise the code, you know the email is from an illegitimate source. 
    

Another essential security feature is proof-of-reserves. After the shocking FTX incident in 2022, many exchanges realised the importance of proving that users' funds were safe. OTX now has Proof of Reserves (PoR) which means it can verify that customer assets correspond to assets held by OTX in reserve.

The OKX Security page provides a deeper dive into the impressive lengths undertaken by the exchange.

OKX Wallet Security

The OKX self-custody wallet is popular with millions of users. You can transfer and secure your digital assets, trade NFTs for free across 11+ networks, swap crypto, and stake supported coins to earn a yield. The earn platform enables you to build a portfolio easily by saving, vaulting, staking, and pooling. 

The user-friendly dashboard enables a "holistic overview of digital assets, portfolio performance, and transaction history." In addition, the OKX DEX and Bridge aggregator allows you to swap crypto across more than ten networks, three cross-chain bridges and 100+ DEXs. 

If you don't already have an OKX Web3 wallet, create a new one or restore your existing wallet. You can download the extension from Google Chrome or Firefox browser.

At this stage, you must create a twelve randomly generated word seed phrase, which helps protect your account because you will need it if you ever need to recover it. After that, set a strong password.

Write down your seed phase somewhere private but where you can access it quickly. After that, select backup to verify the seed phrase. Store the private key securely, and never give that address to anyone, not even your gran. 

Once you have set up your OKX wallet, you can connect it to the mobile app.  

To add extra security to your new OKX wallet, you can choose face ID or fingerprint authentication to log in. Choose a strong password using upper and lower case, digits and special characters and write that down somewhere safe. 

Always double-check a recipient's public wallet address before sending crypto. Avoid logging in to your crypto wallet using public Wi-Fi. 
One helpful tip is to have several secure wallets so "all of your crypto eggs" aren't in one basket. However, You will learn a lot from reading the in-depth article to learn how to protect your crypto.

"One wallet for all your needs. Enjoy access to the multi-chain DEX, NFT marketplace, Earn, and thousands of DApps — all from one secure and easy-to-use wallet." (Source: OKX)

OKX Mobile App Security

If you want to trade or monitor trades on the move, the OKX app is a handy and robust mobile feature that enables you to trade on all OKX markets, such as Margin, spot, and futures trading. In addition, the app also allows you to explore the OKX NFT marketplace, DeFi and GameFi apps and stake your favourite cryptos. 

Unlike many crypto apps, the OKX mobile app has interactive charts, so you can do technical analysis for cryptos you want to trade or buy. However, a brief warning from someone who traded on a mobile app it's not a great idea. Why? Primarily because it feels too much like a game. Impulsivity takes over, and very soon, you've lost a big chunk of your account funds. We go into more detail on why professional traders don't use mobile apps as primary trading tools in our Coinbase Review. 

I advise analysing and trading on a desktop and using the app for monitoring only. You can download the mobile app for Android or iOS. Once downloaded, establishing security settings is essential to protect your account.

Top Six Tips to Protect Your OKX Mobile App

1. Use Password Protection: Or set up biometric access to your mobile. Suppose someone stole your phone. They could open the app and access your account. You could lose all your money.
2. Install Network Protection Software: Many leading security software applications help protect your mobile from other attacks.
3. Avoid using Public Wi-Fi: Never trade on the OKX app using public Wi-Fi in places like coffee shops, trains, airports etc. If hackers are on the same Wi-Fi, it puts your account at risk. 
4. Avoid Cloned and Phishing Sites: Don't click on a website without the HTTPS protocol. Check the senders' email address because although the external address may look genuine, a deeper dive shows a random spam address. Likewise, please don't click on links in emails unless you are 100% sure it is from a trusted source.
5. Use a Strong Password: It's common sense, but avoid using the same password for all your phone applications. Update your password regularly.
6. Don't Share Information With Others: Not even with those you trust. 
    

As mentioned before, OKX prioritises user security and makes it easier for you to protect your account. 

So, is OKX Safe?

Though there is no guarantee of safety in crypto exchanges and life, OKX is one of the more secure exchanges. For example, how often have you forgotten to set up 2FA for a new online account? It's easy to put things off until later, when it is too late, and your account gets hacked.

Compulsory 2FA might seem directive, but we believe it's a positive move that maybe all companies would better adopt.

In addition, instead of the usual TCP/IP protocol. OTX has the semi-offline multi-signatures feature, adding another security layer to network communication. Phishing is commonplace nowadays, and the OKX anti-phishing code is necessary for account protection.  

You can do a lot to help yourself secure your crypto wallet and OKX mobile app by choosing maximum security settings. Much of it is common sense. In addition, OKX has 24/7 support and a hotline. So, if something goes wrong with your crypto assets, customer support is available to help. 

Not all cryptocurrency exchanges are created equal, and OKX protocols support their commitment to account security in a way that far surpasses many of the competing exchanges.