Review: FTX Exchange
FTX Exchange is one of the top five derivative exchanges in terms of daily trading volume. It offers competitive trading fees and hundreds of coins at the disposal of its users. Over 130+ cryptocurrencies are supported on FTX, and more tokens are added regularly.
What Is FTX Exchange?
FTX is a derivatives exchange, which means that it focuses on derivatives and leverage trading. Generally, the derivative price is based on the value of another asset such as stocks, bonds, commodities, etc.
In the cryptocurrency world, derivatives, just like the general definition, derive their values from the prices of specific cryptocurrencies. On FTX exchange, you can engage in derivatives trading, which is connected to around 20 different cryptocurrencies.
The exchange has over 100 different trading pairs, such as BTC/USDT, ETH/USDT, XRP/USDT, etc.
Its native governance token is FTT which users can use to get discounts on trading fees. FTX’s key products include futures, leveraged tokens, options, MOVE, and spot trading. It also has an NFT marketplace for creative artists.
History of FTX Exchange
Registered in Antigua and Barbuda in 2019, it was founded in 2018 by MIT graduate and former Jane Street Capital international ETF trader, Sam Bankman-Fried, who is now the current CEO of the company. Sam was joined by the current CTO of the company, Gary Wang who provided his expertise as a Google software engineer. The duo collaborated on a project known as Alameda-research in 2017, a research company that provides quantitative trading analysis relevant to every cryptocurrency liquidity provider.
Alameda also provides services to FTX to protect its order books and also integrated the 24/7 OTC services by FTX, which is closely responsible for incubating and launching FTX. This centralized exchange has been able to raise $8 million successfully from three funding rounds. Liquid Value Capital made a major investment in the FTX exchange in March 2020.
What Is FTT Token?
FTT is the native token governance token of the FTX exchange platform and was launched in 2019. The team behind the token is made up of top crypto traders who intend to solve most crypto issues, such as clawback prevention, by using the three-tiered liquidation model.
There are also other features that makes the FTT unique like the leveraged tokens which permit traders to put leveraged positions without trading on margin. Other things that make the token unique includes: covering multiple services — from collateral to maintenance margin to liquidation processes and product listing.
The FTT is an ERC 20 token which can be purchased in its native FTX exchange, Binance, Huobi Global, HitBTC, etc. Its Ledger Nano X/S hardware wallet permits users to manage and store their tokens through its Ethereum app.
The coin is currently ranked #31 in Coinmarketcap with a marketcap of over $7 billion. There are over 120 million FTT tokens in supply.
How Does FTX Work?
FTX is known for its transparency in its operations. The business model has every detail spelled out. FTX supports fiat currency; hence its users can settle their futures trading in US dollar fiat currency. The exchange still has its cryptocurrency denominations on every trade. It is one of the things that helps the platform remain operational and profitable as a crypto exchange. Traders on FTX can access the best spot trading practices. In addition, they can transfer funds through fiat and stable cryptocurrencies, such as Ethereum, Bitcoin, Litecoin, and altcoins.
Retail and institutional traders can explore their crypto trading portfolios as they are opened to multiple options and trading products. The trading exchange, which runs an OTC service, also provides services to both experienced and newbies; a service that helps interested traders make large crypto purchases. The exchange is available in both mobile and website formats; the FTX mobile app provides traders with flexibility which allows them to manage their trading accounts on the go.
What Makes FTX Exchange Unique?
FTX has a selection of a wide range of products and easy-to-use desktop and mobile trading apps. Crypto investors of all skill levels, from beginners to seasoned professionals, can use the FTX platform that offers a comprehensive range of order types, from basic market orders to more complex trailing stop orders. FTX is supported by Almeda Research, one of the biggest liquidity providers in the cryptocurrency world.
Based on the maker and taker model, as of the third quarter of 2021, competitive trading fees start from 0.07% to 0.04% for futures and spot markets. Leveraged tokens also carry a daily management fee of 0.03% and a creation and redemption fee of 0.10%. FTX supports ten fiat currencies: USD, EUR, GBP, AUD, HKD, SGD, ZAR, CAD, CHF, and BRL.
FTX’s investors can deposit and withdraw via a wire transfer. Trading via cryptocurrencies doesn’t charge deposit or withdrawal fees for crypto assets. In contrast, fiat withdrawals below $10,000 attract a $75 fee.
The Key Features of The FTX Exchange
The exchange is increasing in popularity because of its key features. It is widely known for its impressive rate by providing a variety of advanced trading products. It also brought unique and innovative trading products that were absent in existing cryptocurrency trading platforms. Examples of such innovations are leveraged tokens and MOVE contracts, which have given FXT unique features.
This exchange platform incorporates features that are relevant to both small-scale traders and investors. The features include low fees and tight spreads, an OTC desk, extensive customer service support and trading view charts.
In addition to the features mentioned earlier, it also supports fiat currency transfers. Its users can make transfers in currencies such as USD, EUR, CAD, GBP, and AUD. It also supports payment features via credit card deposits. FTX provides generous leverage up to 101x, which allows for maximizing profit potential while trading.
FTX provides users with an easy means to convert currencies within their accounts and trade all derivatives products with one margin wallet. FTX incorporates top-class features to provide institutional traders with services such as deep liquidity and order books, unlimited withdrawals, a liquidation fund and an OTC desk. These resources aim to help its users to navigate the platform. It also tried to bridge the communication gap by providing chat groups in over ten languages which include English, Spanish, Italian, Chinese, Portuguese, Korean, Russian, German, French, Turkish, Dutch, and Vietnamese
How Do You Use FTX Exchange?
STEP ONE- The registration process for creating an account is free and is also quite easy. Log on to the FX trading address. Then click on the “Register tab” below the sign-in form.
STEP TWO: After clicking on “Register,” you’ll be asked to supply certain information like email and password.
STEP THREE: The “verification process”. On the FXT platform, the higher your security clearance, the higher your withdrawal limit. There are three levels from level 0–3. Each stage has different features and limitations attached to them. The platform also uses the Know Your Customers (KYC) process for the documentation of its users. All these features increase the security of the exchange.
The levels are seen below. There are also two types of verification; individual and institution.
STEP FOUR: It’s a two-way authentication process, and this step is important because it provides adequate security to your account against cyber theft. Go to your profile corner on the top and click on “Settings,” then scroll till you see the Two Factor Authentication.
The Pros and Cons of FTX Exchange
The Pros of FTX Exchange
- There are over 130+ different cryptocurrencies.
- It supports transactions in 10 fiat currencies.
- It provides a platform for quick and easy exchange of coins and fiat currencies.
- There are plenty of markets — perfect for derivatives traders.
- It has a mobile app for both iOS and Android.
- It provides an opportunity for staking on a few coins, including its native token, FTT.
- Its native token provides additional benefits.
The Cons of FTX Exchange
- It is not available in the USA because of restrictions.
- It has high USD withdrawal fees.
- There is no live chat support.
Is FTX Exchange Secure?
The exchange integrated a lot of security measures like the KYC, 2 factor authentications, which protects user accounts from hackers.
FTX exchange is good for both experienced and newbies venturing into the crypto space. It has varieties of features such as margin trading and competitive trading fees and it’s also a good platform for earning rewards by staking your cryptocurrency holdings.