What is Indodax
Indodax, also known as the Indonesian Digital Asset Exchange, is a cryptocurrency exchange based in Indonesia. It was founded in 2014 and is one of the largest cryptocurrency exchanges in Indonesia. Indodax allows users to buy, sell, and trade a variety of cryptocurrencies, as well as several Indonesian Rupiah trading pairs. The exchange provides its users with a simple and secure platform to trade cryptocurrencies and Indodax has grown in popularity in recent years as interest in cryptocurrency has increased in Indonesia and other Southeast Asian countries.
The history of Indodax
Indodax, formerly known as Bitcoin.co.id, was founded in 2013 by Oscar Darmawan and William Sutanto. At the time, there were very few options for Indonesians to buy and sell cryptocurrencies, and the founders saw an opportunity to create a secure and easy-to-use platform for trading Bitcoin.
The exchange officially launched in January 2014 and quickly gained popularity among Indonesian cryptocurrency enthusiasts. In its early days, Bitcoin.co.id only supported Bitcoin trading, but it later expanded to include other cryptocurrencies such as Ethereum, Ripple, Litecoin, and Bitcoin Cash.
In 2018, Bitcoin.co.id rebranded to Indodax, which stands for “Indonesian Digital Asset Exchange.” The rebranding was done to reflect the exchange’s growing focus on digital assets beyond just Bitcoin. As of 2021, Indodax is the largest cryptocurrency exchange in Indonesia, with over 3 million registered users.
Indodax has also been actively involved in promoting cryptocurrency adoption in Indonesia. In 2018, the exchange launched an education platform called Indodax Academy, which offers courses on blockchain technology and cryptocurrency trading. Additionally, Indodax has been working with Indonesian regulators to establish a regulatory framework for cryptocurrency trading in the country.
How Indodax works
Indodax uses a trading algorithm to match buy and sell orders from its users. When a user places an order to buy or sell a cryptocurrency, the order is added to the exchange’s order book, which lists all the open orders on the platform.
The algorithm then works to match buy orders with sell orders that have a corresponding price and quantity. The algorithm uses a price-time priority system, meaning that the oldest order at a given price is matched first.
Once a match is found, the trade is executed, and the cryptocurrencies are exchanged between the two users. Indodax charges a small fee for each trade, which varies depending on the trading pair and the user’s trading volume.
The exchange also offers margin trading, which allows users to borrow funds to increase their trading position.
Overall, Indodax’s algorithm is designed to provide a fair and efficient trading environment for its users, while also ensuring that the exchange generates revenue through trading fees.
Does Indodax charge a fee
Yes, Indodax charges fees for trading cryptocurrencies on its platform. The fees vary depending on the trading pair and the user’s trading volume. The fee structure is designed to encourage higher trading volumes and to reward users who hold Indodax’s native cryptocurrency, called IDK.
For trading pairs that involve Indonesian Rupiah (IDR), Indodax charges a maker-taker fee model. Makers are users who place limit orders that are added to the order book and are not immediately executed, while takers are users who place market orders that are executed immediately at the best available price. Makers are charged a lower fee than takers, which encourages users to add liquidity to the order book.
For trading pairs that do not involve IDR, Indodax charges a flat trading fee that varies depending on the trading pair and the user’s trading volume. Users who hold IDK receive a discount on trading fees.
Indodax also charges withdrawal fees for users who want to withdraw their cryptocurrencies from the exchange. The withdrawal fees vary depending on the cryptocurrency being withdrawn.
Overall, Indodax’s fee structure is designed to be competitive with other cryptocurrency exchanges while also generating revenue for the platform.
How to use Indodax
Here is a step-by-step guide on how to use Indodax:
- Sign up for an account on Indodax’s website by providing your email address, password, and personal information.
- Verify your account by completing the KYC (Know Your Customer) process. This involves providing identification documents such as your national ID card, passport, or driver’s license, as well as a selfie for identity verification.
- Deposit funds into your Indodax account by clicking the “Deposit” button and selecting your preferred payment method, such as bank transfer or e-wallet.
- Once your funds are credited to your Indodax account, you can start trading cryptocurrencies. To do this, click the “Market” or “Trade” tab and select the trading pair you want to trade, such as BTC/IDR or ETH/BTC.
- Place an order to buy or sell cryptocurrency by specifying the price and quantity you want to trade. You can choose between a market order, which executes at the best available price, or a limit order, which only executes when the price reaches a specified level.
- Once your order is executed, the cryptocurrency will be credited to your Indodax account. You can withdraw your cryptocurrencies by clicking the “Withdrawal” button and selecting the cryptocurrency you want to withdraw, as well as the destination wallet address.
- Finally, it is important to keep your Indodax account secure by enabling two-factor authentication (2FA) and using a strong and unique password.
That’s it! This guide should help you get started with using Indodax to buy and sell cryptocurrencies in Indonesia.
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