OKEx shared insights on trading, regulation, DeFi and more during recent Markets Pro AMA

Among many features, OKEx staff demonstrated how users could automate their trading process with no required coding knowledge on the namesake platform.

Founded in 2017, OKEx is a centralized cryptocurrency exchange based in Seychelles. According to CoinGecko, OKEx is the world’s third-largest cryptocurrency brokerage, with nearly $12 billion in trading volume within the past 24 hours. The exchange lists 312 coins and 518 cryptocurrency trading pairs.

It’s often difficult for new cryptocurrency enthusiasts to navigate the complex world of trading and finance. OKEx seeks to bring such sophisticated trading methods to everyday users’ disposal by providing a simple interface. During an exclusive ask me anything (AMA) session with Cointelegraph Markets Pro Users, OKEx staff discussed trading tools, financial regulation, the OKExChain (OEC) blockchain, meme coins, and DeFi offerings on the OKEx platform.

Cointelegraph Markets Pro User: How can someone benefit from bots / API [Application Programming Interface] trading with no coding experience? Does OKEx have any partnerships fully integrated?

OKEx Staff: TLDR [Too Long, Didn’t Read], you do NOT need to have any coding experience to automate trades with the trading bot on OKEx. We make it really easy for you to set the trading bot up — it’s integrated into the OKEx trading dashboard. You can basically go fully automated by choosing the AI option and just setting the order amount in Tether (USDT) or you can manually set your parameters, including the upper and lower price limits, for the asset you want to trade.

So the bot is essentially an auto-trading tool with pre-set parameters. Trading bots can maximize profit potential, especially in times of a range-traded market. So with a trading bot, like the one we have on OKEx, it will be more profitable if the market you choose goes up (selling), then down (buying), then up, down, etc., rather than just up, up, up. The trading bot on OKEx is available for all spot trading pairs, which means you can buy and sell Ether (ETH), in and out of Bitcoin (BTC), for example. A trading bot video tutorial is coming soon! Next week, likely, but here’s the written tutorial. And here’s what it looks like in the user interface (UI). You don’t need to [have] API/coding experience in order to execute such a powerful and automated strategy. 

OKEx trading interface | Source: OKEx

Trading bot profit and loss | Source: OKEx

CT Markets Pro User: How do you think the India crypto ban will impact the crypto space?

OKEx staff: I think, for India, the regulator would like to have a more comprehensive framework in regulating crypto instead of banning it. History told us when crypto is allowed and regulated — it can even be stronger. The India ban is unlikely to have any major impact on the market. Crypto has become quite resilient to such news developments over the past couple of years. 

CT Markets Pro User: Cryptocurrencies have a pretty high beta [volatility]. Do you guys use the same financial model (i.e., Black Scholes) as stocks to price crypto derivatives?

OKEx staff: Our option market uses the Black Scholes model to compute mark price (fair value of the specific contract). And for risk management, we are using a SPAN-like scenario stress-tester (like the Chicago Mercantile Exchange) to calculate the maximum loss of the client’s portfolio.

CT Markets Pro User: I recently heard [of] some developments with the OKExChain. What’s going on with that?

OKEx staff: Yes, the rumors are true! [The trading chain] It’s called OEC. The mainnet was launched this summer. A little bit about OEC: it’s an EVM [Ethereum Virtual Machine] compatible public blockchain that uses Cosmos / Tendermint architecture. OKEx has been quietly developing OEC for several years to make it as robust as possible and to address the blockchain trilemma. As opposed to being an Ethereum clone, it’s being built from the ground up. For more in-depth info on OEC, you can read this, but it’s not light reading.

CT Markets Pro User: What is the OKEx DeFi Hub? What products and services are currently offered and the best staking opportunities?

OKEx staff:  DeFi is a new mode on OKEx. You can toggle between the “Exchange” and “DeFi” modes on okex.com or in the app. It’s basically like a bridge between the worlds of CeFi and DeFi — OKEx brings DeFi to you in one cohesive interface. First of all, you don’t have to have an OKEx account to use the DeFi mode. You connect your Web 3.0 wallet, you can track wallets and see all your DeFi assets in one place. At the moment, the DeFi mode (which launched this fall) currently consists of our very own NFT marketplace, GameFi center, and dashboard, where you can view all of your decentralized assets, including your NFTs. But there’s more coming soon! OKEx provides a bespoke Web 3.0 wallet that you can conveniently use via the browser extension (Chrome or Firefox) or directly in the OKEx app. Currently, staking, savings and yield-farming offers are only available on OKEx Earn via our centralized platform. That’s all I can say for now. 

CT Markets Pro User: I’d appreciate your views on multi-billion dollar meme coins and whether they serve as a viable source of inflow to crypto, or are they ticking time bombs ready to destabilize the market if and when they pop; meaning, is there truly room in a rational crypto market for these coins?

OKEx staff: Good question! Yes, meme coins are definitely acting as gateways for non-native crypto investors/traders due to their accessibility. There is a definite possibility of these coins sliding sharply in the future, but I wouldn’t go so far as to say they can destabilize the market at this point. Their speculative nature is out there for all to know, and these coins don’t take themselves too seriously, which means investors are somewhat aware of the risks. Moreover, the top meme coins, such as DOGE and SHIB, have actually cemented themselves reasonably well by now. We actually did an episode on meme coins on our podcast. Here is a link to that for the full discussion.

CT Markets Pro User: How does OKEx integrate with the play-to-earn games? 

OKEx staff: At the moment, the GameFi center on okex.com is a play-to-earn game aggregator. So you can find all the latest and most popular blockchain games there. You can easily filter by blockchain network and we feature games on over 20 different networks, including games exclusively built on OEC (the public blockchain developed by OKEx, which I explained above). Each game listed on OKEx GameFi has its own page that tells you all about the game, the price history of the in-game assets and other key info. We also include the link directly to the game’s site so you can go play it — most play-to-earn games are played in-browser. Here’s a fun spacey game built on OEC.

CT Markets Pro User: How would you comparecontrast Okex with, say, Coinbase? What makes OKEX stand out in a world with so many exchange choices?

OKEx staff: OKEx is an advanced trading platform that offers derivatives (options, futures, perp swaps), trading bots, margin trading and a vast number of tokens. Plus, we recently launched a DeFi mode with decentralized offerings, such as NFTs and crypto games, and a handy dashboard to manage all your DeFi assets. Our line of services, ranging from highly liquid trading markets to staking/farming options, are aimed at catering to traders and investors of all levels.

Other than the DeFi mode, the trading bot mentioned earlier and our new portfolio margin mode are a couple of examples of how we continue to push forward with services and tools that facilitate [the success of] crypto market participants. OKEx is the first platform to offer true portfolio margin with multi-currency collateral risk offset — this is a huge plus for professional traders trading large portfolios, specifically options/other crypto derivatives because it lets them heavily reduce margin requirements.

CT Markets Pro User: Where do you see the total crypto market cap going in one year, five years? What market segment is undervalued right now? Identity? Meta? Layer one?

It’s hard to say any exact numbers, but it seems like the charts go up and to the right! However, market participants will do well to keep tabs on monetary policy changes in the next year. Personally, I think that Web 3.0/digital identity/metaverse projects are undervalued compared to where they (or at least some) will be in a few years. We talked a lot about this with some great guests on last week’s episode of our podcast.

Disclaimer: The following market predictions were made before of the onset of news of a novel coronavirus variant negatively impacted capital markets worldwide on Nov. 26. They may not be applicable in the current environment and should not be regarded as investment advice.

CT Markets Pro User: Do you guys think that [Bitcoin price] $69 thousand was the top? Is there still a chance for another alt season in the next couple of months?

OKEx staff: $69 thousand is the top or not is a matter of time frames, in my opinion. On-chain metrics, such as exchange flows and balances, indicate that the last all-time high ($69 thousand) is very unlikely to be the top for this cycle. That being said, BTC is also not likely to move straight up, even if most metrics are bullish. This is because of the way the market has matured and the increasing diversity of market participants as well. Matured in the sense that there is a difference in market composition from 2013 to 2017 and 2021. A lot more “serious” investors and institutional involvement and futures from CME, for instance, and the exchange-traded funds (ETFs). 

The bigger a market gets, the slower it moves and the less volatile it becomes. However, the next few months, especially Q1 2022, should be interesting to observe as we may see this bullish cycle extend into the next year instead of ending in December. If that happens, we will definitely see another alt season.

I think we are already starting to see something of a meme season/metaverse season at the moment. Obviously the news from Facebook going all-in with the metaverse spurred on that side of things, but the decentralized metaverse is definitely seeing new capital inflow. In my view, the market cycles through sectors; for instance, we are currently seeing metaverse trending but could see other lagging categories start catching up as long as BTC remains bullish/doesn’t slide too sharply. Generally, if the market looks strong, everything is going to rise sooner or later. We can see there is a consistent inflow from institutional money. Equity balance on institutional flow is steadily increasing. Hard to tell with regards to buying Ethereum, though, since they trade everything and all have different types of strategies.

The BTC exchange net position change metric, for instance, is still not showing signs of the current price, or the last ATH [All Time High], being a top like the one we saw in May.

Bitcoin net trading position change | Source: OKEx

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Top 5 cryptocurrencies to watch this week: BTC, ETH, SOL, MATIC, FTM

Bitcoin’s shallow pullback increases the prospect of a new all-time high in the short term and altcoins like ETH, SOL, MATIC and FTM could move higher while BTC prepares for its next move.

On Oct. 15, news that a Bitcoin (BTC) exchange-traded fund (ETF) could start trading as early as next week sent Bitcoin price to $62,933 but the rally has cooled off since then.

Some market participants believe that traders who bought the rumor of approval for a Bitcoin ETF product may sell on the news. Crypto trading firm QCP Capital said in an update that the approval of futures-based ETFs is unlikely to provide a long-term boost for Bitcoin prices similar to the one seen in the fourth quarter of 2020.

While high volatility cannot be ruled out in the near term, investors should focus on the major trend and not get caught in minor corrections that are part of the path to new all-time highs.

Crypto market data daily view. Source: Coin360

According to Foxbit founder João Canhada, his daughter has earned a 6,500% profit on the one Bitcoin gift she received when she was born in 2017. Although she couldn’t have traded the coin at such a young age, the returns show that patient investors who are not perturbed by a minor fall can end up with huge returns.

Could Bitcoin’s rally to a new all-time high pull altcoins along with it? Let’s study the charts of the top-5 cryptocurrencies that could outperform in the short term.

BTC/USDT

Bitcoin soared above the $58,000 resistance and the psychological mark at $60,000 on Oct. 15. The bears are attempting to stall the up-move at $62,933 but the positive sign is that bulls have not given up much ground. This suggests that traders are not closing their positions after the recent up-move because they anticipate another leg up.

BTC/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the relative strength index (RSI) is in the overbought zone, indicating that bulls are in control. If the price turns up from the current level and breaks above the $62,933 to $64,854 resistance zone, the BTC/USDT pair may rally to $75,000.

The immediate support to watch on the downside is $58,000. A break and close below this level could prompt short-term traders to book profits, pulling the price down to the 20-day exponential moving average ($54,336).

A bounce off the 20-day EMA will suggest that sentiment remains positive and traders are buying on dips. The bulls will then make one more attempt to resume the uptrend. On the contrary, a break and close below the 20-day EMA will suggest that the bullish momentum has weakened.

BTC/USDT 4-hour chart. Source: TradingView

The pair has been rising in a steady uptrend on the 4-hour chart. The bears have not been able to sink and sustain the price below the 50-simple moving average since the pair broke above the symmetrical triangle.

If the price rebounds off the 20-EMA, the possibility of a break above $62,933 may increase because it will suggest that traders are not waiting for a deeper correction to buy. This bullish assumption will invalidate if bears sink and sustain the pair below the 50-SMA. Such a move could open the doors for a drop to $54,000 and then to $52,290.

ETH/USDT

Ether’s (ETH) break and close above the neckline on Oct. 14 completed the inverse head and shoulders pattern. The long wick on the Oct. 16 candlestick suggests that bears are attempting to stall the up-move in the $4,000 to $4,027.88 zone.

ETH/USDT daily chart. Source: TradingView

If the price turns down from the current level, the ETH/USDT pair could drop to the breakout level at the neckline. This is an important support for the bulls to defend. If the price rebounds off this level, the bulls will again try to clear the overhead hurdle.

A breakout and close above $4,027.88 could clear the path for a rally to the all-time high at $4,372.72 and next to the pattern target at $4,657. Conversely, a break below the moving averages could sink the price to $3,257. The bears will gain the upper hand if this support is breached.

ETH/USDT 4-hour chart. Source: TradingView

The bears are defending the psychological resistance at $4,000 while bulls are trying to keep the price above the 20-EMA. The RSI has dropped close to the midpoint and the 20-EMA is flattening out, suggesting a possible consolidation in the near term.

A break and close above $4,000 could signal the resumption of the up-move. Conversely, a break below the neckline of the setup will be the first sign that the momentum may be weakening. The pair could then decline to $3,400.

SOL/USDT

Solana (SOL) broke out and closed above the downtrend line on Oct. 15 which is the first sign that bulls are attempting a comeback. The bears tried to pull the price back below the downtrend line on Oct. 16 but failed.

SOL/USDT daily chart. Source: TradingView

If bulls sustain the price above the downtrend line, the SOL/USDT pair could rise to the 61.80% resistance at $177.80. This is an important level for the bears to defend because if bulls clear this hurdle, the pair could rise to the 78.6% retracement level at $194.60 and later retest the all-time high at $216.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that traders are closing their positions on pullbacks. The pair could then drop to the critical support at $116.

SOL/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been trading between $156.36 and $165.61 since breaking out of the downtrend line. If buyers propel and sustain the price above $165.61, the uptrend may resume.

The first target is the overhead zone between $174.86 and $177.79. Alternatively, a break and close below $156.36 could open the doors for a decline to $147.11. Until then, the pair may continue to consolidate in the tight range.

Related: Why HODL for 48 hours? Because your altcoin wallet will thank you

MATIC/USDT

Polygon (MATIC) has been trading in a large range between $1 and $1.80 for the past few days. The 20-day EMA ($1.32) has started to turn up and the RSI has risen into the positive territory, indicating that bulls are attempting to gain the upper hand.

MATIC/USDT daily chart. Source: TradingView

The MATIC/USDT pair could rise to $1.80 which is likely to act as a tough obstacle. If the price turns down from this resistance, the pair could drop to the 20-day EMA.

A strong rebound off this support will suggest that sentiment has turned positive and traders are buying on dips. That will increase the possibility of a break and close above $1.80.

If that happens, the pair could start a new uptrend to $2.40 and then retest the all-time high at $2.70. Conversely, if the price turns down from the current level and breaks below the moving averages, the pair could slide to $1.20 and then to $1.

MATIC/USDT 4-hour chart. Source: TradingView

Both moving averages are sloping up and the RSI is in the positive zone, suggesting that bulls have the upper hand in the short term. The bulls pushed the price above the overhead resistance zone at $1.45 to $1.50 but selling at higher levels has pulled the price back into the zone.

If the price rebounds off the 20-EMA, the bulls will make one more attempt to resume the up-move. A breakout and close above $1.63 could clear the path for a rally to $1.80. This positive view will invalidate if the price turns down and breaks below $1.45.

FTM/USDT

Fantom’s FTM token is in a strong uptrend. The bulls successfully defended the breakout level at $1.94, indicating that sentiment remains positive and traders are buying on dips.

FTM/USDT daily chart. Source: TradingView

The upsloping moving averages indicate advantage to buyers but the negative divergence on the RSI is warning that the bullish momentum may be weakening. If bulls push the price above $2.45, the uptrend may continue, with the next target objective at $3.20.

On the other hand, if the price turns down from $2.45, the FTM/USDT pair may drop to $1.94 and consolidate between these two levels for a few days. A break and close below the 20-day EMA ($1.85) may signal the start of a deeper correction.

FTM/USDT 4-hour chart. Source: TradingView

The bulls are currently attempting to sustain the price above the descending channel. If they manage to do that, the pair could rise to $2.45. This level may act as stiff resistance but if bulls overcome it, the uptrend may resume.

Alternatively, if the price fails to sustain above the channel, it will suggest that demand dries up at higher levels. The pair may then continue to trade inside the channel. A break and close below the channel could pull the pair down to $1.50.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Start-up Raises $2 Million to Pioneer Cryptocurrency Usage in Francophone Africa

A Cameroonian fintech start-up, Ejara, has raised $2 million to pioneer the usage of crypto and investment services in French-speaking African countries. Coinshares Ventures and Anthemis Group led the funding round in which they were joined by Mercy Corps Ventures, Lateral Capital, Lofty Inc Capital, and Netx Fund. Using Crypto to Protect Savings in Francophone […]
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“What Goes Up Must Come Down” — Economist Steve Hanke Foresees Massive Bitcoin Price Drop

Analyst Cites Massive Bitcoin Short Squeeze As Short Piling Begins

Key takeaways Prominent Economist Steve Hanke predicts a Bitcoin market crash. His sentiment is shared by ‘CryptoWhale’ who expects Bitcoin to fall to as low as $10,000. Market sentiment however seems to be bullish even as Plan B reaffirms that the S2F model is still in play.  Amidst the current swell in Bitcoin’s price, Steve […]

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Shanghai Man: China retains mining control? Alipay’s ancient NFTs and Amber’s big raise

A look at miners shifting hardware overseas, Amber raises $100m, and Bitmain temporarily shuts down sales among dropping hashrate sales.

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

So low you’ve got to reach up to touch the bottom

This week in China felt like one giant mining-farm sized pile of FUD. This is usually a pretty good indication that a bottom is close to being in, but one can never be too sure when it comes to downwards volatility in cryptocurrency. Canaan, one of the largest mining companies in China, announced it was setting up shop in neighboring Kazakhstan. This is an ideal compromise for Canaan as it can remain close to China, while mitigating their regulatory risk. Reading between the lines, it seems like the plan is to mostly continue administration of the company from China while sending the machines overseas.

This would put a wrench in the works of the Bitcoin purists who believe that the crackdowns are a good way to break up China’s dominance in the mining industry. Just this week, a professor at a university in Singapore wrote in Chinese that the shift to a more decentralized network would be a good thing. This raised some eyebrows for the use of a made up word that translates roughly to ‘de-China-ization’, but the article holds even less weight when large mining companies like Canaan are able to shift physical equipment overseas but still remain in control of the governance.

Too big for postage stamps

On June 21, CNBC’s Beijing Bureau Chief Eunice Yoon posted on Twitter that a logistics company in Guangzhou was shipping 3,000 kilograms worth of mining hardware to Maryland, US. According to her claim, the price was $9.37 per kilogram. Some quick math reveals that the total cost would be less than the price of one Bitcoin, at least at the time of writing.

Bitmain lends a helping hand

Cointelegraph reported on June 23 that massive mining company Bitmain was suspending sales of mining hardware in a move to support the over-supplied secondhand markets. According to the article, sales of hashing power in China has seen a decrease of around 75% since the Spring. Bitmain is reportedly moving operations abroad as well, which would be a major move for the hardware manufacturing giant.

Mine-ami

Francis Suarez, everyone’s favorite Bitcoin-friendly mayor, was at it again on June 18 when he announced that all Chinese Bitcoin miners were welcome in Miami. The announcement was translated and posted on Sina Finance’s Blockchain Weibo account, which attracted over 53 comments from surprised netizens. Most of these user comments were negative in nature however, both towards Suarez and Bitcoin in general. A large portion of Weibo users hold cryptocurrencies in ill-regard, especially those that have been investing in the stagnant Chinese stock market.

Amber is the color of your energy

Amber, a cryptocurrency service provider based in Hong Kong, completed a Series B funding round worth $100m. Amber is well known among institutions for their financial services that include asset management, OTC services and lending.

Alipay’s foray into NFTs

Top payment processor Alipay continues to push its AntChain technology by partnering with the Dunhuang Research Academy to release 8,000 NFT skins. Dunhuang is famous for being an old silk road outpost and is home to Mogao Caves, a Unesco Heritage site. The NFTs featured artwork inspired by the cultural site and quickly sold out. AntChain is a private blockchain developed by Alibaba’s Ant Group.

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