UPDATE 1 September 2020: To our understanding, Orderbook.io is no longer a crypto exchange. Rather, it offers trading in "fractional shares" of various companies, such as AirBNB, SpaceX, Robinhood etc. Under such circumstances, we no longer feel that it is correct to list Orderbook.io in our Crypto Exchange List and have thus moved it to our Exchange Graveyard.
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A crypto exchange guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of Orderbook.io consists of four parts: general info, fees, deposit methods and security.
Orderbook.io is an exchange from Singapore that launched in 2017. There are numerous other exchanges from Singapore. Singapore has really established themselves as one of Asia’s largest crypto hubs.
This trading platform works with something they call “Pre-IPO offerings”. IPO stands for Initial Public Offering and normally refers to share issues on regulated stock markets. In the crypto world, the corresponding terms would be Pre-ICO or Pre-IEO. At Orderbook.io, they “tokenize”, meaning that they create tokens that gives you the same exposure that you would have had if you had instead had direct ownership in the relevant asset. For instance, if you have a “tokenized interest in SpaceX IPO”, you hold a token whose price correlate to the price of the SpaceX share following its IPO (very roughly described).
This picture explains the tokenizing process quite nicely:
As this is a DEX, it is also open to citizens or residents from the United States. Or rather, the citizenship or residency is of less importance for DEXs seeing as they never hold their users’ assets.
General information on DEXs
DEXs are becoming increasingly more popular, mostly due to the following factors:
- They do not require a third party to store your funds, instead, you are always directly in control of your coins and you conduct transactions directly with whoever wants to buy or sell your coins.
- They normally do not require you to give out personal info. This makes it possible to create an account and right away be able to start trading.
- Their servers spread out across the globe leading to a lower risk of server downtime.
- They are essentially immune to hacker attacks.
However, DEXs normally have an order book with lower liquidity than their centralized counterparts.
As mentioned above, the DEXs are definitely gaining market shares against their centralized counterparts. You have probably heard of at least one of the following exchanges that are all DEXs: Binance DEX, EtherDelta, Bibox, Bitshares Asset Exchange, Waves DEX, Bancor Network, OpenLedger DEX, IDEX, Token Store, Bisq, Counterparty DEX, Burst Asset Exchange, AirSwap.io, Fcoin Exchange, Barter DEX, Switcheo Network, DEx.top, Ethermium and Newdex.
Orderbook.io Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at Orderbook.io:
Orderbook.io Trading fees
The one thing we can’t stress enough is that you must always ascertain the trading fees at any exchange you are interested in. Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. Makers make the liquidity in a market and takers remove this liquidity by matching makers’ orders with their own.
The global industry average taker fee has for a long time been 0.25% of the value of the order. Today, we see a shift towards even lower industry averages. Many new exchanges now charge 0.15% or 0.10% instead.
At Orderbook.io, both takers and makers pay 0.20%. This fee is in line with industry average.
Orderbook.io Withdrawal fees
Another fee to consider before choosing which exchange to trade at is the withdrawal fee. The withdrawal fee is usually fixed (regardless of the amount of cryptocurrency units withdrawn), and varies from cryptocurrency to cryptocurrency. The global industry average withdrawal fee is 0.000812 BTC when you withdraw BTC.
Here, at Orderbook.io, you pay 0.0015 BTC when withdrawing BTC. This withdrawal fee is roughly double the industry average and not a competitive advantage in the market for this platform.
DEXs normally does not accept any deposits of fiat currency. According to info that we have received, Orderbook.io does however accept deposits of fiat currency (USD). But only via wire transfer and not via credit card.
If you need to deposit fiat currency to an exchange, or need to deposit any other fiat currency than USD, then this platform is not for you. But don’t worry, you can use our Exchange Finder or the filters in our Exchange List to find an exchange matching your demands.
The servers of DEXs normally spread out across the globe. This is different from centralized exchanges that normally have their servers more concentrated. This spread-out of servers leads to a lower risk of server downtime and also means that DEXs are virtually immune to attacks. This is because if you take out one of the servers, it makes little to no difference for the network of servers in its entirety. However, if you manage to get into a server at a centralized exchange, you can do a lot more harm.
Also, if you make a trade at a DEX, the exchange itself never touches your assets. Accordingly, even if a hacker would somehow be able to hack the exchange (in spite of the above), the hacker can not access your assets. If you make a trade at a centralized exchange, however, you normally hold assets at that exchange. That is, until you withdraw them to your private wallet. A centralized exchange can therefore be hacked and your funds held at such exchange can be stolen.
As this exchange is a DEX, we feel that it is appropriate to award it a security score of A+ (regardless of its score in the Mozilla Observatory-test).
Finally, as mentioned above, this is a DEX. DEXs are still a minority on the crypto exchange market, with the centralized exchanges still dominating the field (mostly due to their better liquidity). In any event, if you’re looking for a DEX, you could also check out the following quite popular ones: