AAX Exchange Review and Tutorial

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Atomic Asset Exchange (AAX) Exchange was launched in November 2019 and is a relative newcomer to the cryptocurrency exchange scene. The Exchange is based in Hong Kong and spent over 19 months in development and testing before launch. AAX offers spot trading as well as derivatives products. In this review we take a look at the key features of AAX Exchange and a tutorial on how to get started.

Key features of AAX

AAX offers an institutional-grade platform for everyone

With stiff competition out there and traders becoming more sophisticated, simple retail exchanges with basic features will no longer be satisfactory for traders. Hence AAX offers an institutional grade trading platform for everyone.

Retail clients have access to an integrated account to view their OTC, Spot and Futures position whilst institutional clients can connect directly with the Exchange using FIX and Binary interface protocols. The Exchange’s aims to set the standard for the next generation of exchanges, and offer higher levels of trust, integrity, performance and security to its clients.

The Exchange does this through having a highly secure and scalable global cloud infrastructure and partnership with Kroll for its security features. The Exchange also features industry-leading KYC/AML procedures and market monitoring capabilities with its partners Refinitiv, a global provider of financial market data and Elliptic, a blockchain analytics provider.

Last but certainly not least is AAX’s “claim to fame”- their use of the London Stock Exchange’s Millennium Exchange matching engine for buy and sell orders.

AAX utilises matching engines used by traditional stock exchanges

AAX’s main selling point is it the first cryptocurrency exchange which utilises the London Stock Exchange (LSE)’s Millennium Exchange matching engine. A matching engine is an electronic system which matches buy and sell orders on the exchange, thus enabling traders to trade. Used by the LSE and the stock exchange in Italy etc., the Millennium Exchange engine has recorded the fastest trade speeds in the world. And at AAX, they have recorded latencies as low as 90 seconds and orders being processed in under 800 microseconds. Thus putting AAX on par with traditional stock markets.

In cryptocurrency trading, particularly for day or swing traders, speed is crucial because even a second delay can seriously affect your profits. So with the Millennium Exchange engine, AAX is making sure it gives traders a huge advantage.

AAX has the most competitive fees in the market

Trading fees

Like many other exchanges, AAX has trading fee tiers. Frequent and high volume traders can join a higher tier which provides lower trading fees. However with AAX, even their lowest tier- Level 1 already has the most competitive trading fees on the market. For spot trading, Maker and Taker fees are only 0.006% and 0.1% respectively, which is even lower than larger rivals like Binance exchange. For futures trading, the fees are a fixed 0.02% for both makers and takers.

Spot trading fees
Spot trading fees

Deposit and withdrawal fees

Deposits and internal transfers are both free. However the Exchange does charge fees for withdrawals and a minimum withdrawal is required, the amount depends on the cryptocurrency to be withdrawn. For example, for Bitcoin the minimum withdrawal is 0.001 BTC and a fee of 0.0004 BTC is charged (versus 0.0005 BTC per transaction for Binance). Hence these fees are still much more competitive than other exchanges on the market.

Click here for a list of AAX’s fees.

Supported Cryptocurrencies

AAX only offers trading in 21 different cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple and EOS. The Exchange also offers more than 50 crypto-to-crypto trading pairs.

AAX Decentralised Finance (DeFi) token trading

AAX Exchange supports trading with the following DeFi tokens: ChainLink ($LINK), Kyber Network ($KNC) and 0x ($ZRX).

Payment methods

AAX exchange accepts cryptocurrency deposits and has recently partnered up with Epay to accept payments in USD, EUR, HKD, GBP and JPY.

Is AAX Exchange safe?

AAX utilises a multifaceted approach to ensure users’ security, their systems are compliant with the Cryptocurrency Security Standard (CCSS). The CCSS is a set of guidelines for security best practices for information systems that make use of cryptocurrencies, including exchanges and storage solutions providers. At the account level, all users are required to use two-factor authentication to access and operate their accounts. As for storage of users’ cryptocurrencies, AAX holds most of users’ digital assets in secure offline facilities and upon request, AAX can offer insured cryptocurrency custody. Meanwhile for transactions, AAX has built its own multi-currency wallet system in compliance with industry standards and is not dependant on a single source of security.

AAX has also engaged Kroll as their security advisor. Kroll is the world’s leading provider of risk solutions and has experience working for financial institutions, government agencies and software and internet agencies across the globe since 1972.

The Exchange also utilises email verification for an extra layer of security. After logging in, you will be sent an email containing a code which you must type in on the Exchange page to log in. This code will automatically expire in 10 minutes

Email verification
Email verification

After logging in, you will also receive another email notifying you that have logged onto the Exchange as well as details of the device used to log in. This is so you are notified if there are unknown devices which have logged into your Exchange account.

What is AAB, AAX’s native exchange token and what are AAB’s functions?

AAB is the native exchange token of the AAX exchange. A total of 20% of the tokens (i.e. 10 million AAB) will be offered to the public.

The AAB token gives users numerous benefits when it comes to trading on AAX. Users get a Baseline Discount of 20% on trading fees if they settle their fees using AAB, and users can settle all their fees using AAB. Also, AAX has a Portfolio Discount where any percentage of a users’ portfolio which is allocated to AAB, a corresponding percentage is added to the users’ overall discount up to a maximum of 50%.

The AAB token also unlocks exclusive features on the Exchange, such as special trading bots and signals. AAB holders also get better lending and borrowing terms on the Exchange, such as a 20% if interest on loans is paid using AAB.

AAB benefits
AAB benefits

Check here for more AAB benefits

Like many exchange tokens, the Exchange would burn its tokens to protect its value. For AAB, the Exchange actually burns them on a daily basis. The Exchange uses 100% of its futures revenue to purchase AAB from the market and burn the tokens. The Exchange will repeat this process until 50% of the total supply of AAB is burned. As at 10th June 2020, the Exchange has already completed its 94th round of buyback and burn, with 277,142.80 AAB (valued over 42,562.27 USDT) having already been burned.

AAX future roadmap- what can we expect?

AAX Exchange already offers Spot, Futures and OTC trading. However further down the road in 2020, AAX has big plans to add more products and services to make them THE one stop shop for traders. For example the Exchange will be offering margin trading and options in Q4 2020. Below is the Exchange’s roadmap for 2020.

AAX roadmap
AAX roadmap

AAX tutorial- How to register?

Registration is really simple, on the AAX page, click “Sign up” and fill in your details to create an account.

Create an account
Create an account

Afterwards you will receive an email asking you to verify your email address.

Verify your email
Verify your email

You will also get an email asking you to complete their identification procedures.

Optional KYC process
Optional KYC process

Although not specified in the email (which we find a little sneaky), their KYC procedures are optional. KYC is not required for using the spot and futures trading features. Although you will not be able to buy cryptocurrencies using fiat on the Exchange, and the amount you can transfer and withdraw is limited if you do not complete the KYC process.

For Level 1 verification, you will need your identity document (e.g. identity card or passport) and address proof (e.g. recent utility bill or home tenancy agreement). Note that the Exchange does not accept mobile phone bills as address proof.

KYC process
KYC process

Welcome Bonus: Get up to 55 USD worth of BTC!

AAX rewards users who trade with them through their welcome bonus. New users who sign up for an account and complete KYC level 1 will get 5 USD worth of BTC. For those that deposit 1,500 USDT or more worth of cryptocurrencies will get 50 USD worth of BTC. That’s pretty good compared to some other exchanges that might only offer a small trading discount!

Summary

AAX is a newcomer to the cryptocurrency exchange game and is in it to win. The Exchange has the lowest trading fees on the market and utilises an institutional grade matching engine to ensure it is the fastest exchange out there. Making it a clear choice for serious cryptocurrency enthusiasts. Yet the Exchange is continuing development and we can all expect some exciting new features and services in the months to come.

Sign up for AAX below and get started!

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