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Benson, currently operating the trader data platform Coinkrama, mainly analyzes market reversal timing from a liquidity perspective. He is also a secondary market trader and previously worked in data analysis at a large financial holding company in Taiwan. He was noticed by an exchange for his articles published online, which led him to enter the blockchain industry.

OKX has specially invited him as a guest speaker for the "Friends of OKX" series, hoping that his past experiences and observations of the industry can inspire everyone.

The "Friends of OKX" series is a specially planned column by OKX, hosted by OKX official community ambassador Mercy (@Mercy_okx), aimed at uncovering the career stories, industry insights, and lessons learned from KOLs of different backgrounds for new users to learn from and reference.

1. Memories of Entering the Crypto Space

Mercy: What prompted you to enter the cryptocurrency industry? Did you start trading right away?

Benson: I officially entered this industry in March 2018. Before that, I was working in data analysis at a large financial holding company. I published articles online, which caught the interest of an HR from an exchange. At that time, I was also looking for new opportunities, so I joined that exchange.

At that time, the vision of the exchange was to become the "Goldman Sachs of the crypto space," both operating as an exchange and conducting ICOs, hoping to underwrite quality projects like Goldman Sachs does with IPOs. However, I entered at a less than ideal time, right at the end of the 2017 bull market.

When I first entered the industry, I wasn't really "trading" in the true sense; I was buying spot. Many people advised me to buy Bitcoin and Ethereum, thinking it was a low point. I also invested in some ICO projects, including a logistics-related ocean project, where the issuer claimed the ICO was very successful and would rise 60 times after listing. I invested about $7,000, and in the end, it all went to zero. I kept adding positions as Bitcoin fell from $9,000 to $6,000, and ultimately lost confidence when it dropped to over $4,000, cutting my losses for a total loss of over $10,000.

Mercy: After leaving the exchange, you chose to write articles. How did this transition change your understanding of the industry?

Benson: After leaving, I was indeed quite disappointed and even considered going to more mainstream web2 companies like Amazon or Google. During my job search, I started writing articles on Dongqu, mainly criticizing blockchain technology. I remember writing an article titled "Six Major Challenges for Blockchain Implementation," and interestingly, these issues seem to remain unresolved to this day.

The real turning point in my career was when I discovered a stable way to profit—BitFinex's lending business. At that time, I wrote an article explaining how to lend USDT to others for leverage on exchanges. After the article was published, it garnered widespread attention in the Chinese-speaking community, and many people entered the market because of it. One group member, feeling that the lending bots available were not good enough, developed one himself. This was actually the origin of FundingBot.

2. Establishing a Personal Trading System

Mercy: Why did you choose to focus on the derivatives trading market? How did you establish your methodology?

Benson: To be honest, I initially had no trading methodology at all. People might think I was good at trading from the start, but I was actually more familiar with product structures, such as the design logic of perpetual contracts and the formation mechanism of market depth.

Later, I found that due to the lack of fundamental analysis in crypto, most people relied on technical analysis. However, this market has a strong reflexivity—because too many people use the same technical analysis methods, it often leads to their failure. For example, when many people are focused on the head and shoulders pattern, the market often breaks that expectation.

As for why I chose the derivatives track? It was because in July 2019, while paying attention to FTX, I discovered that although the spot market had formed a three-way competition, there were still significant opportunities in the derivatives space. At that time, the daily trading volume of BitMEX's Bitcoin perpetual contracts alone reached $10 billion, which made me realize that product innovation is the key to success in this field.

Mercy: You mentioned an experience of making hundreds of thousands to millions of dollars. What was the process like?

Benson: In 2021, I started with $300,000 on a certain platform and eventually grew it to over $6 million. It was during a bull market, so this return wasn't particularly exaggerated. Looking back, I mainly judged market sentiment by observing the funding rates on BitMEX. When the funding rate dropped below 0.01%, the market was relatively sluggish, and from a bull market perspective, I could set my stop-loss points closer when going long.

In terms of spot trading, platform tokens were my biggest source of profit. At that time, Coinbase was about to go public, with a market cap close to $100 billion, while the valuations of platform tokens in the crypto space were only in the tens of billions. This valuation mismatch created a huge opportunity, and various platform tokens saw significant increases.

However, as the Federal Reserve began to raise interest rates, the entire market environment underwent a fundamental change. It wasn't until the first half of 2022 that I realized my previous trading methods had become ineffective, so I chose to pause trading. This also made me understand that I must constantly think about under what conditions my trading system is effective and when it will fail.

Mercy: What is the daily routine of a derivatives trader like? What kind of person is more suited to become a derivatives trader?

Benson: I think every trader has different habits, and there is no fixed pattern that can encompass all traders' behaviors, but I can share my daily habits.

Every morning, I first check the price of Bitcoin to see whether the market is up or down, then I look at the situation of the top 10 altcoins. Next, I analyze market liquidity and decide whether to trade based on that information. My trading decisions are mainly based on two factors: one is whether the price reaches a specific level, and the other is whether the market shows specific signals.

I am not a frequent trader; I prefer left-side trading, which means waiting for the right moment. Also, because my trading system is relatively strict, I usually only have 1-2 trading opportunities per week, and sometimes I might not open a position for 2-3 weeks because I haven't seen a suitable opportunity.

3. Entrepreneurship and Current Market Environment

Mercy: What prompted you to decide to create your current trading platform? Can you introduce what your platform is doing now?

Benson: The initial idea was simple; as a data-reliant trader, I often needed to look at many different sources of data. Some were on-chain, some came from spot exchanges, and others from the derivatives market. I originally just wanted to integrate these APIs into a dashboard for my own use.

Later, when discussing this idea with friends, they suggested I could productize it. Although progress was slow at first, after the FTX incident, I realized I needed to take this project more seriously.

Our platform mainly provides liquidity analysis of the order book in the spot market, and this system performs particularly well in volatile markets. We have also developed some special indicators, such as tracking meme token dominance and Coinbase app rankings, and combined various indicators into one called the "Come Index" to judge long-term trends.

Currently, the platform has over 3,000 users, nearly 600 of whom are paid members. We use a subscription-based charging model, aiming to provide users with more professional market analysis tools.

Mercy: How do you view the current market environment?

Benson: The most significant feature of the current market is the lack of new capital inflow. Although Bitcoin is close to its historical high, the gains of other altcoins are limited. Many exchanges are launching Telegram projects to attract new users, but these users mostly come to claim airdrops and quickly leave after obtaining tokens, bringing little actual increment.

The industry's difficulties are also reflected in some phenomena: second-tier exchanges are continuously laying off employees, and the parent companies of DYDX, Prekin, and MetaMask have recently announced layoff plans. Although Bitcoin is performing well, its positive effect on other crypto assets is very limited. If we exclude Bitcoin and look at the trends of other altcoins, it is hard to say that we are in a true bull market. It is particularly evident now that there is a lack of external capital entering, and the market has become a purely zero-sum game. Many VCs hold large amounts of low-priced chips and are continuously selling, leading to long-term pressure on many projects.

Mercy: If new growth points are not found, how do you think the market will develop?

Benson: If we cannot create new narratives or find a growth point recognized by external capital in the next one to two quarters, I will be very pessimistic about the future market. Bitcoin may develop independently of altcoins. If it can establish its position as digital gold, there might be a slow bull market. However, I hold a relatively pessimistic view on altcoins, including Solana. Even Solana, after the meme coin craze, will face similar issues as ETH.

Many people think my views are contradictory—I am optimistic about Q4 but sometimes seem pessimistic. The key is that a true bull market requires external capital to recognize the narrative of Bitcoin and cryptocurrencies, with new funds continuously flowing in. The current market mainly relies on Trump's hedging trades and expectations for ETFs, and such a bull market may be hard to sustain.

Mercy: Considering the larger market environment, what advice do you have for new players?

Benson: My advice is to always stay clear-headed. Don't blindly follow others just because you see them making money; the rules of the game can change at any time.

Regarding trading strategies, I now lean more towards a defensive mindset. Although the market may continue to rise, I will think ahead about under what circumstances I need to retreat, rather than blindly pursuing higher returns. Especially when the market is overly optimistic and even mocks those who point out risks, it is essential to remain vigilant.

In this rapidly changing market, those who can promptly detect changes in the market environment and continuously adjust their strategies will achieve long-term success. Remember, there is no forever correct strategy; the key is to be ready to respond to market changes at any time. As for myself, I will continue to focus on developing and improving the data platform to provide better market analysis tools for users. I believe that in this market, timely and accurate data analysis and rational judgment are always the keys to success.

4. First Impressions of OKX

Mercy: When I met you offline in Dubai, I noticed that your collaboration with OKX has actually been quite deep. Can you share your impressions of OKX?

Benson: After the collapse of FTX, I began to reassess various exchanges. I found that many of OKX's products are very in-depth, especially in the derivatives space. I was particularly impressed by your options products, which have received a significant amount of resources and exhibit a high level of professionalism. Because OKX is primarily perceived as an exchange for retail users, I was surprised by the substantial investment in professional products like options, which are mostly B2B.

Additionally, I believe OKX is a company that places great emphasis on products. For example, your signal trading and various API interfaces may not be frequently encountered by general retail investors, but they are extremely important for professional users. Your attention to detail in these areas has left a strong impression on me.

I particularly noticed that OKX's professional tools are very comprehensive. Many exchanges may only superficially address product offerings, but OKX takes each function to the extreme. For instance, in the options products, not only are the basic functions well-developed, but even features that only professional traders would use have been considered. This focus and refinement in product development are relatively rare in the industry.

Another point that impressed me is that you have many "under-the-table" features, which are not displayed on the homepage but are actually very practical professional tools. These features may not be known to general users, but they are essential for professional traders. This also reflects OKX's investment in product depth.

Mercy: Let's talk about the opportunity for collaboration with OKX?

Benson: Actually, during the process of developing the data platform, I found that only OKX's API architecture best met our needs and could be used directly. At that time, we needed to integrate various data while building the quantitative trading platform, and OKX's interface design and documentation support were very professional. This was one of the important reasons we chose to collaborate deeply with OKX.

Through the collaboration process, I increasingly felt that OKX is a truly product-oriented company. The professional user needs we raised are usually taken seriously and responded to quickly by the OKX team. This focus on products and attention to user needs make me feel that OKX is an exchange worth long-term cooperation with.

Risk Warning and Disclaimer

This article is for reference only. The views expressed in this article are solely those of the author and do not represent the position of OKX. This article does not intend to provide (i) investment advice or recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; (iii) financial, accounting, legal, or tax advice. We do not guarantee the accuracy, completeness, or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may experience significant volatility. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals regarding your specific circumstances. You are responsible for understanding and complying with applicable local laws and regulations.

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