How to choose the appropriate tool under different market conditions?

Although October is not a fixed month of growth for the cryptocurrency market, some years have indeed shown outstanding market trends. For example, in October 2020, Bitcoin rose by about 28%, laying a solid foundation for the subsequent bull market. In October 2021, Bitcoin was even more impressive, with its price hitting a historic high of around $66900 on the 20th. In October of this year, Bitcoin once again gained momentum and broke through $71000. Many analysts point out that the cryptocurrency market often performs well in the fourth quarter, which may be closely related to factors such as active trading at the end of the year and high market sentiment.

With the rising momentum of Bitcoin, the narrative of Meme coin and "Golden Dog" is in full swing, from goats to geese, with new narratives emerging constantly; VC supported projects have also made a strong comeback, with major products such as Worldcoin, Uniswap, ApeCoin, etc. being launched one after another. At the same time, the continuous inflow of funds from Tether and Bitcoin ETFs has provided more liquidity and volatility to the market, enhancing the overall vitality of the market... A series of positive market trends have paved the way for the arrival of new market trends.

However, regardless of the stage of the Bitcoin bull market, it is crucial for users to respond to different market conditions. For example, understanding which tools can achieve stable returns, which tools are suitable for all market trends, which tools are more suitable for short-term trading, which tools are suitable for on chain trading, which tools support redemption at any time, and so on, rather than relying on intuition to predict market trends. To help users better understand and use the tool, this article will sort out the top 10 CeFi products of OKX and their applicable market trends, hoping that users can respond more flexibly to the changing market environment and establish their own tool system.

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Strategic products

OKX trading strategy product is a set of tools that help users achieve automation and customized trading, suitable for different market trends and trading needs. Its core feature is to reduce manual operations and improve trading efficiency, and it is gradually becoming a popular trading mode among users. OKX provides dozens of strategy products such as network, Martingale, Tun Coin Treasure, Chao Di Treasure, arbitrage orders, iceberg orders, time weighted orders, etc. It is one of the most mature platforms on the market that offers multiple sets of strategies, with low transaction fees and easy operation. Next, select a few strategies to briefly describe.

Spot Grid

Buy low and sell high in a specific range, suitable for fluctuating and rising market conditions

Investment amount

The user invests 2 BTC as the initial capital for the grid strategy. Part of the funds are used to purchase BTC and the other part is used to sell USDT.

Strategy operation

As the price of Bitcoin fluctuates between 25000 USDT and 30000 USDT, the system will automatically buy BTC below a certain price and sell BTC above a certain price. For example, when the BTC price drops to 26000 USDT, the system will automatically execute a buy order; When the price rebounds to 27000 USDT, the system will automatically sell to achieve price difference returns.

Operation results

If the price of Bitcoin continues to fluctuate within this range, the strategy will continuously buy low and sell high, and users will gain profits through the fluctuations of each grid. For example, assuming that the BTC price drops from 26500 USDT to 25500 USDT and then rebounds to 28000 USDT during the execution of the strategy, the system will engage in buying low and selling high in different grids to capture multiple small profits.

Extract income or adjust

Users can extract profits from grid arbitrage at any time during strategy execution, or manually stop or adjust strategies based on market changes. If the market begins to experience a unilateral decline, users may consider adjusting grid parameters or pausing strategies to avoid losses.

Summary of Advantages

The spot grid strategy can sensitively capture small fluctuations in the market, reduce manual intervention by users, enable the system to automatically execute trading plans, and support users to customize parameters and select intelligent grid configurations recommended by the system, meeting the needs of users at different levels.

usage method

After logging into OKX, enter the trading page and select "Spot Grid" in "Strategic Trading Mode". Enter the highest and lowest prices of the price range and the number of grids on the trading page, or select intelligent parameter recommendation. Then determine the amount and create a grid strategy. The invested funds will be isolated from the trading account and used independently for this strategy. After the strategy is successfully created, users can view and manage the running grid strategies in the strategy bar at the bottom of the trading page. In addition, during the operation of the strategy, users can extract the profits brought by grid arbitrage at any time or manually stop the strategy.

Tool Direct

Contract Grid

More suitable for bull market's ups and downs or up and down insertion, with higher flexibility and fault tolerance

Strategy Introduction

Contract grid strategy is a trading strategy specifically designed for contract trading, which involves automated execution of buy low, sell high (or sell high, buy low) trades within a specific price range. Users only need to set the highest and lowest prices for the interval, and determine the number of grids. The strategy will automatically calculate the buying and selling prices for each grid and automatically place orders. When market prices fluctuate, the strategy will buy or sell based on the set price range to capture the returns brought by the fluctuations.

Applicable scenarios

The core of contract grid lies in volatility arbitrage, making it particularly suitable for predicting volatile market trends over a longer period of time. On this basis, the contract grid strategy can also be set according to the user's market tendency: long grid only performs open and flat long operations, suitable for volatile upward market trends. Short selling the grid only involves opening and closing positions, suitable for volatile downward market trends. The neutral grid strategy performs open/flat trades above the price range and long/flat trades below, which is suitable for situations where the market direction cannot be clearly determined.

For example, refer to the spot grid and do not elaborate further.

However, it is worth noting that the contract grid allows users to use leverage, which means they can gain more trading power with less capital. This means that users can obtain larger profits through smaller price fluctuations, but at the same time, they also face higher risks. Generally speaking, contract grids require users to provide margin and face the risk of liquidation (i.e. when prices fluctuate significantly, positions may be forced to close), while spot grids do not have this risk. Trading is entirely based on users' assets and will not be forced to close due to market fluctuations.

Summary of Advantages

This strategy is automatically executed without the need for manual monitoring of the market. Compared to spot grids, contract grids can timely buy low and sell high in the face of rising, falling, or fluctuating market trends. Users can choose suitable long short operation strategies based on their judgment of market direction, so this strategy is more suitable for bull markets with large rises, falls, or ups and downs, and has higher overall flexibility and fault tolerance. The spot grid is more robust and suitable for users who are unwilling to take on leverage risks.

usage method

Open the PC or APP of OKX, enter the "Trading" page, select the "Contract Grid" under "Strategy Trading Mode", and enter the parameters such as the highest price, lowest price, and number of grids on the trading page, or directly use the intelligent parameters recommended by the system. After confirming the amount, click on 'Create Grid Strategy'. Once created, the funds invested will be segregated from the trading account and used exclusively for that strategy. Users can view, manage, and extract the profits generated by grid strategies in the "Strategy" option at the bottom of the trading page, or stop strategies at any time.

Tool Direct

Intelligent arbitrage

More suitable for long-term capital rate positive, high liquidity currency pairs, low-risk earning capital fees

Strategy Introduction

Intelligent arbitrage strategy is a method aimed at obtaining stable returns by hedging market price fluctuations. The core principle is to use Delta neutral strategy to hedge the risk of price changes by holding positions of opposite direction and equal size in the spot market and contract market. Users mainly realize profits through the fund fees collected during the holding period (such as returns under the positive fund rate). After the strategy is implemented, it can stably help users earn the fund fees paid by multiple parties to the bears in the contract. This strategy is particularly suitable for bull markets. OKX's intelligent arbitrage strategy includes two modes: first, custom mode, where users can choose high annualized return strategies based on their own judgment to open positions and set their own profit taking points. Secondly, in the intelligent mode, the system will automatically recommend better strategies for users and intelligently perform take profit, stop loss, and increase/decrease positions, but this feature has not yet been launched.

Applicable scenarios

The intelligent arbitrage strategy is particularly suitable for mainstream currencies with positive funding rates in the long term. This is because under the design mechanism of funding rates, many mainstream currencies usually maintain positive funding rates, which means that users can earn long-term funding fee returns by holding positions in these currencies. In custom mode, users should choose coin pairs with positive long-term funding rates and high liquidity as much as possible, in order to reduce slippage costs and improve overall returns. So, this strategy is suitable for users who want to achieve steady returns in high volatility markets, especially those who do not have the time or experience to manually manage strategies.

For example, suppose a user plans to use BTC intelligent arbitrage strategy on the OKX platform. Simply enter the amount to create and execute the strategy, which is very simple.

But in terms of the strategy itself, taking BTC as an example, if a user uses 2100 USDT for spot arbitrage, when the BTC spot price is 65000 USDT, the system will perform the following operations:

Put 2000 USDT into the spot market to buy BTC (0.03077 BTC). Put 100 USDT into short BTC/USDT perpetual contract (20 times leverage).

Assuming the current funding rate is 0.01% and the BTC price is 65000 USDT:

A fund fee is charged every 8 hours, three times a day, and can be charged 2000 * 0.01% USDT * 3 * 365=219 USDT per year. The annualized return is 219/2100=10.43%.

Summary of Advantages

Users can better utilize intelligent arbitrage strategies to hedge price risks while obtaining stable returns on capital costs. However, it is worth noting that although the long-term operational risk of intelligent arbitrage strategies is relatively low, there are still risks such as closing slippage, Delta inconsistency, and strong liquidation risk of contract short positions.

usage method

After logging into OKX, enter the trading page and select the strategy trading mode, then choose intelligent arbitrage in the strategy options. Select the currency for the transaction, enter the amount, and then click on 'Create Strategy'. Once the strategy is successfully created, users can view and manage the running grid strategies in the strategy bar at the bottom of the trading page. In addition, users can stop the policy at any time during its operation.

Tool Direct

Bottom Picking Treasure&Top Escaping Treasure

No need to constantly monitor the market, suitable for users who want to sell high or buy low

Strategy Introduction

Chao Di Bao is a strategy that guarantees the purchase of a certain percentage of currency at a discounted price upon expiration. When using the Chao Di Bao strategy, users can choose from three system modes or custom modes: high discount rate, short lock up period, and guaranteed ratio. Top Escaping Treasure is a strategy that guarantees the sale of a certain percentage of currency at a high price upon expiration. When using the Top Escaping Treasure strategy, users can choose system mode or custom mode with high premium rate, short lock up period, and high guarantee ratio. Both strategies offer free transaction fees, but the funds will be locked in until the expiration date after placing the order.

Applicable scenarios

Top Escaping Treasure is suitable for users who expect the market to peak and hope to automatically sell at high prices to avoid asset losses. If the market price on the maturity date is less than the breakout price, the user's currency will be traded at the breakout price, but only the guaranteed proportion of the position will be sold, and the remaining funds will be returned to the user's account; If the market price on the expiration date is greater than the breakout price, the user's currency will be traded at the breakout price, and the quantity sold equals the quantity ordered. Bottom fishing treasure is suitable for users who are optimistic about market rebound and hope to automatically buy at low levels to achieve bottom fishing layout. If the market price on the maturity date is greater than the base price, the user's currency will be traded at the base price, but only a guaranteed proportion of the position will be purchased, and the remaining funds will be returned to the user's account; If the market price on the expiration date is less than or equal to the base price, the user's currency will be traded at the base price, and the purchase quantity=the order quantity.

for instance:

Top Escape Treasure Case: Assuming the current price of BTC is 20000U, a user chooses a card with BTC 22000, a guarantee ratio of 20%, and a term of 3 days for trading; The user has locked in 1 BTC for sale. When the delivery is due:

If the BTC price is 21000U upon expiration, the user will trade at a price of 22000U, sell 0.2 BTC at the top, and the remaining locked funds will be returned to the user's account. If the BTC price is 23000U upon expiration, the user will complete the transaction in full at a price of 22000U and sell a quantity of 1BTC.

Case study of bottom fishing treasure: Assuming the current price of BTC is 20000U, a user chooses a card with BTC 19000, a guarantee ratio of 20%, and a term of 3 days for trading; The user has locked the purchase quantity to 1 BTC. When the delivery is due:

If the BTC price is 21000U upon expiration, the user will trade at 19000U, with a minimum order quantity of 0.2 BTC, and the remaining locked amount will be returned to the user's account; If the BTC price is 18000U upon expiration, the user will make a full transaction at 19000U, with a minimum order quantity of 1 BTC.

Summary of Advantages

The advantages of top flight treasure: Top flight treasure helps users automatically sell cryptocurrencies when the market price reaches a set high point, achieving profit locking, preventing asset shrinkage caused by subsequent price corrections, and avoiding the risk of price decline. Moreover, there is no need to constantly monitor the market, as the system will automatically execute scheduled operations to optimize fund management. The advantage of bottom fishing: Bottom fishing helps users automatically buy cryptocurrencies at a set low price when they expect the market to hit bottom and rebound. This helps users capture market lows and prevent missing opportunities. Users do not need to keep an eye on the market to seize opportunities, but can accumulate more assets through bottom fishing, seize the opportunity of market bottoming out and rebound, and effectively increase their holdings.

Usage: 1) After logging in to OKX, enter the trading page. 2) Then select the strategy trading mode - bottom fishing treasure or top jumping treasure. 3) Then select the currency, strategy mode, and amount to complete the setting.

Tool Direct:

Bottom copy treasure, top escape treasure

Tun Coin Treasure

Intelligent warehouse adjustment, capturing opportunities brought by hot spot rotation

Strategy Introduction

The Tun Coin Treasure strategy is an automated strategy for intelligent dynamic position adjustment in the currency combinations specified by users. Dynamic position adjustment will help users maintain a constant proportion of each currency in their portfolio. Users can choose two adjustment modes to trigger position adjustment, namely proportional balance and timed balance, based on a fixed time period and the proportion of currency market value changes.

Applicable scenarios

There is often a rotation between currencies or sectors in the market, where several currencies start to rebound after rising, while others start to rise. If you just hold the coin and don't move, it is very likely to miss out on most of the profits due to a price correction. But if profits are cashed out in a timely manner when the first few currencies rise, while buying other potential currencies, it not only locks in profits, but also increases the position of potential currencies. By repeating this process, one can obtain additional returns for this combination.

for instance:

Proportional balance case: Suppose a user chooses this mode

1) Set parameters

Currency configuration: BTC 丨 50%; ETH 丨 30%; SOL 丨 20% Balance Mode: Proportional Balance 丨 10% Investment Amount: 10000 USDT

2) Strategy operation

Phase 1- Exchange the target currency. The 10000 invested will be exchanged in the form of intelligent trading for BTC worth 5000 USDT (market price ₮ 1000, i.e. 5 BTC), ETH worth 3000 USDT (market price ₮ 500, i.e. 6 ETH), and SOL worth 2000 USDT (market price ₮ 100, i.e. 20 SOL). The second stage - triggering equilibrium. Assuming the BTC market price rises to 1500 and the ETH and SOL prices remain unchanged, the market value ratios of each currency are 60%: 24%: 16%. If the BTC ratio deviates by ≥ 10%, equilibrium will be triggered. At this point, the strategy will use intelligent trading to sell 0.83334 BTC and buy 1.5 ETH and 5 SOL, bringing the market value ratio back to the target ratio. After the balance is completed, hold 4.16666 BTC (market value 6250 USDT), 7.5 ETH (market value 3750 USDT), and 25 SOL (market value 2500 USDT)

Timed Balance Case: Assuming a user chooses this mode

1) Set parameters

Currency configuration: BTC 丨 50%; ETH 丨 30%; SOL 丨 20% Balance Mode: Time Balance 丨 4-hour investment amount: 10000 USDT

2) Strategy operation

Phase 1- Exchange the target currency. The 10000 invested will be exchanged in the form of intelligent trading for BTC worth 5000 USDT (market price ₮ 1000, i.e. 5 BTC), ETH worth 3000 USDT (market price ₮ 500, i.e. 6 ETH), and SOL worth 2000 USDT (market price ₮ 100, i.e. 20 SOL). The second stage - triggering equilibrium. Assuming that after 4 hours, the BTC market price rises to 1500 USDT, while the ETH and SOL prices remain unchanged, the market value ratios of each currency are 60%: 24%: 16%, with BTC deviating by ≥ 3%, triggering equilibrium. At this point, the strategy uses intelligent trading to sell 0.83334 BTC and buy 2.5 ETH and 5 SOL, bringing the market value ratio back to the target ratio. After the balance is completed, hold 4.16666 BTC (market value 6250 USDT), 7.5 ETH (market value 3750 USDT), and 25 SOL (market value 2500 USDT)

Summary of Advantages

Help users avoid missing opportunities to earn coins due to fixed positions in hot rotating market trends. The advantage of this strategy is that it can utilize the exchange rate fluctuations between different currencies to earn and store coins.

usage method

After entering the OKX web or app, select "Strategic Trading Mode" on the "Trading" page, and then choose Tun Coin Treasure. Enter the parameters on the transaction page, confirm the amount, and you can create Tun Coin Treasure. After the creation of Tun Coin Treasure, the funds invested will be isolated from the trading account and used independently in the strategy. Once created, you can view and manage the strategy in the "Strategy" section at the bottom of the trading page.

Tool Direct

Coin earning products

Earn Coins is a one-stop service platform created by OKX to help users discover various coin holding product opportunities, including simple coin earning, structured products, and on chain coin earning, providing users with a wide range of product choices. Among them:

Simple Coin Earn is a product created by OKX to help idle digital asset users earn coins at a low threshold. It is easy to get started and offers two options: current and fixed-term. Structured products include Double Coin Win, Seagull, Shark Fin, Snowball, Tun Coin Snowball, etc. They are innovative financial instruments that earn profits from the derivatives market. Users can choose products based on current market conditions and risk preferences. Currently, OKX does not charge any fees for all structured products. OKX Chain offers selected staking and DeFi protocols to help users earn on chain rewards.

Double Coin Win

Suitable for users who are unsure of the market direction but hope to earn profits

Product Introduction

Double Coin Win is a non guaranteed structured product created by OKX, which can help users earn additional profits while buying or selling digital currencies at the target price. Currently, OKX has launched the ETH/BTC coin based dual currency win, supporting BTC and ETH investment and subscription, achieving low buy and high sell. Compared to the USDT based dual currency win, it provides a new way to earn profits, zero fees for converting between the two major cryptocurrencies, continuous interest generation, and the core highlights of not fearing to miss the market by converting to USDT, helping users to hold their coins worry free.

Applicable scenarios

This product is more suitable for volatile or sideways market trends, that is, when the market trend is relatively stable and the price fluctuates within a certain range, but users are unsure of the future price trend direction, they can choose to win with dual currency. As long as the price does not reach the preset trigger price at maturity, regardless of the rise or fall of the underlying asset price, users can lock in the yield at maturity.

For example, suppose a user plans to use ETH/BTC dual currency to win on the OKX platform. The main advantage in a bull market is that they can earn profits without worrying about the risk of being washed out of the market.

1) Market judgment:

The user believes that the ETH/BTC price may slightly decline in the short term and hopes to use the dual currency winning product to earn profits while increasing their holdings of BTC. However, they are not willing to miss out on holding opportunities due to market fluctuations (i.e. they will not be "washed out").

2) Product selection: Users choose OKX's coin based dual currency win - high selling ETH/BTC

Current ETH price: 0.03 BTC Target price: 0.02 BTC Term: 1 day Expected return: Reference annualized 21.40%

3) Two possible outcomes:

Maturity price ≥ 0.02 BTC: If the ETH/BTC price does not fall below 0.02 at maturity, the user's ETH will be sold at the target price (0.02 BTC) and receive the corresponding amount of BTC. At the same time, he can also receive expected annualized returns. Maturity price<0.02 BTC: If the ETH/BTC price falls below 0.02 at maturity, the user will hold ETH and receive a return in the form of ETH (reference annualized 21.40%).

4) Result analysis: One advantage of this strategy is that regardless of how ETH/BTC prices fluctuate, users can steadily earn annualized returns through dual coin win products. In a bull market, users will not miss the opportunity to hold ETH because even if the ETH price does not reach the target price, users still maintain their holdings. In addition, if the ETH price reaches or exceeds the target price, users will be able to sell ETH smoothly and obtain more BTC in the bull market. When the market is expected to decline or fluctuate, users can use the low-risk strategy of dual currency winning to earn profits and flexibly respond to market fluctuations, without missing out on opportunities to increase holdings due to sharp rises or falls.

Summary of Advantages

OKX Dual Coin Win supports users to exchange between different popular cryptocurrencies without any slippage. This means that users will not be affected by market fluctuations when exchanging, ensuring price stability for currency conversion while also earning annualized returns. In addition, regardless of market fluctuations, as long as the expiration price reaches the target price set by the user, OKX will ensure the purchase or sale of digital currencies as agreed, helping users lock in profits. In addition, users can freely customize dual currency winning products according to their own needs, choose different currencies, terms, target prices, etc., and flexibly control the direction of fund usage, thereby obtaining a more personalized experience.

usage method

After logging into OKX, enter the financial page and select Structured Products - Double Coin Win to confirm the currency, term, target price, etc., then enter the subscription quantity.

Tool Direct

Tun Coin Snowball

Product Introduction

Tun Coin Snowball is a single currency structured product that helps users trade their chosen digital currencies and earn profits in rising market conditions. Users will have three possible settlement scenarios: early take profit, maximum profit, and warning, which can provide certain risk protection while achieving position growth.

Applicable scenarios

OKX Coin Snowball is more suitable for users who hold coins in the medium and long term. It helps to ensure returns and avoid risks caused by extreme declines in volatile market conditions or stable growth expectations.

for instance:

1) Market judgment: Suppose a user believes that the price of BTC will remain relatively stable in the next few days, but there is a high probability that it will fluctuate and rise.

2) Product operation: When the user enters OKX's coin trading snowball product, they select the 7-day, annualized return rate of 25.25%, initial price of $64997, target price of $65007, take profit price of $68393, warning price of $62300, and then enter the subscription quantity to participate immediately.

3) Operation result: After subscribing to this product, there will be three possible situations

Scenario 1: When the coin price exceeds the take profit price on any given day, the user's order will be settled in advance and payment will be received.

The repayment amount is: subscription quantity x (1+annualized rate of return x term/365)

Scenario 2: If the coin price remains between the take profit price and the warning price, the user will earn the maximum profit and receive payment on the settlement date.

The repayment amount is: subscription quantity x (1+annualized rate of return x term/365)

Scenario 3: When the coin price breaks below the warning price on any given day, the user's order will be settled in advance

The repayment amount is: subscription quantity x [(settlement price/target price)+(annualized rate of return x term/365)]

Summary of Advantages

No currency conversion: Users can invest BTC or ETH, and regardless of market fluctuations, the currency for receiving payments remains unchanged, simplifying operations and eliminating the need to worry about the complexity of currency conversion. Guaranteed annualized returns: Regardless of the settlement situation in the market, users can earn returns in all settlement scenarios, providing stable annualized returns and reducing risks. Daily early profit taking opportunity: Users can observe market trends every day, track profit taking prices, and flexibly take profits based on market conditions to lock in profits. Coin price drop protection mechanism: When the coin price drops significantly and exceeds the warning price, the system will automatically settle the order, providing users with additional security protection. Low threshold: The minimum investment threshold is very low, and users only need 0.0004 BTC or 0.005 ETH to participate, suitable for all types of users. Zero transaction fee: Users do not need to pay any additional fees except for the invested capital, ensuring maximum returns.

usage method

After logging into OKX, enter the financial page and select structured products - Tun Coin Snowball. After determining the currency, term, target price, etc., enter the subscription quantity, which is very simple and convenient.

Tool Direct

Disclaimers

This content is for reference only and does not constitute or should be construed as (i) investment advice or recommendation, (ii) offer or solicitation to purchase, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness, or usefulness of such information. Digital assets (including stablecoins and NFTs) are subject to market volatility, involve high risks, and may depreciate or even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation and risk tolerance. For your specific situation, please consult your legal/tax/investment professionals. Not all products are available in all regions. For more details, please refer to the OKX Terms of Service and Risk Disclosure&Disclaimer. OKX Web3 mobile wallet and its derivative services are subject to separate terms of service. Please be responsible for understanding and complying with applicable local laws and regulations on your own.

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