Every day, the world of crypto sees novel innovations that shape the market. From forward-thinking currencies to progressive derivative platforms and exchanges, the crypto industry is constantly evolving. In this article, we will take a closer look at FTX Exchange, a crypto derivatives exchange that has quickly made a name for itself.
Introduction:
If you keep up with cryptocurrency news, you have likely heard about FTX Exchange. As the leading cryptocurrency derivative in the ever-changing world of crypto, FTX Exchange has partnered with Binance, the largest crypto exchange globally. With its headquarters in Hong Kong, FTX Exchange is built with cutting-edge technology and designed specifically for professional or intermediate-level traders. However, it is not suitable for investors who are new to the crypto world, as derivative trading is more complex and carries higher risks. This platform is better suited for experienced traders who are looking for more advanced trading options.
FTX Exchange was created in 2018 by Sam Bankman-Fried, who started as a trader on Jane Street Capital and is now the CEO of the company. The platform was built by a trader, for traders. Before launching FTX, the creators established Alameda Research Ltd in 2017, a prominent liquidity provider for crypto. Alameda Research assists FTX in maintaining order books and providing 24/7 OTP service.
After the initial success of the program, Binance decided to partner with FTX and became the lead investor. This led other prominent companies like FB Capital, Greylock Partners, Kenetic, One Block Capital, and Proof of Capital to join as seed investors. Therefore, FTX exchange is backed by several crypto ventures, making it relatively stable and trustworthy. Thanks to FTX exchange, Alameda now manages over $100 million of digital assets and trades that amount to $1.5 billion per day.
FTX Exchange Ranking:
FTX has made a significant impact in the crypto derivatives market and is highly regarded among its competitors. With over 1497 markets, FTX Exchange is rated ‘A’ for transparency, proving that it is a safe platform for trading activities. In terms of transparency and volume, FTX Exchange is ranked #3 out of 434 different derivative exchanges. With a wide range of fiat and cryptocurrencies available for trading, FTX Exchange is considered one of the best platforms in the market.
Prominent Features and Products:
FTX Exchange offers various remarkable features that attract and engage thousands of users. With derivative trading being a risky endeavor, it is crucial to have a stable and secure exchange. FTX Exchange provides just that. The platform offers chat groups in more than ten different languages, making it accessible to users worldwide. Additionally, FTX Exchange provides premium features that are rarely seen on other platforms, such as an OTC desk and unlimited withdrawals.
Some other notable features and products of FTX Exchange include:
101x leverage: FTX Exchange offers users tremendous leverage of up to 101x, resulting in significant profits in a short amount of time. This feature sets FTX Exchange apart from its competitors.
Leveraged Tokens: FTX Exchange was the first to introduce leveraged tokens in the industry. These tokens provide long and short exposure up to 3x without the need for margin restoration. This feature has been highly appreciated and contributed to the popularity of the exchange.
Quick Fiat Transfers: FTX Exchange allows users to make quick fiat transfers in various currencies such as USD, EUR, AUD, GBP, and CAD. The exchange accepts bank transfers, debit cards, and credit cards.
Easy Stablecoin Settlement: FTX Exchange offers a convenient feature that allows users to convert currencies within their accounts effortlessly. Users can trade all their derivatives with just one margin wallet, settling using stablecoins instead of the traditional USD.
Crypto Collateral: Unlike other exchanges that only accept fiat and stablecoins as collateral, FTX Exchange allows users to use a range of cryptocurrencies such as ETH, LINK, MKR, and YFI. The platform also provides detailed guides and a support team to assist users.
FTX Exchange Fees Structure:
FTX Exchange stands out not only for its innovative features but also for its low trading charges. Most features, including OTC trading and future settlement, are free of charge. Deposits and withdrawals are also free. The trading fee ranges from 0.07% to as low as 0.04%, and traders with higher volumes are offered lower trading fees. In leveraged tokens, FTX Exchange charges creation and redemption fees of 0.10% and a daily management fee of 0.03%. The trading fee increases by 0.02% for 50x leverage and 0.03% for 100x leverage. These fees are paid in the insurance fund and are unique to FTX Exchange.
FTT Token:
Similar to other derivative exchanges, FTX Exchange has its utility token called FTT. Holding FTT tokens provides multiple benefits, including trade discounts ranging from 3% to 60% based on holdings. By staking FTT tokens, users can increase their rewards and receive incentives such as raised referral rates, bonus votes, increased airdrop incentives, and maker free rebates. However, FTT tokens are not available to residents of the USA.
Safety & Regulation of FTX:
Security is a top concern when it comes to a platform that stores and trades millions of dollars worth of assets. Although FTX Exchange has not disclosed its security protocols, it is assumed that the platform utilizes standard bank-like security practices. No security breaches have been reported, indicating that the exchange is secure from external attacks. FTX Exchange conducts regular security checks with the help of third-party companies like Blockchain Consilium.
In terms of regulation, FTX Exchange is not regulated and is not available to users within the USA.
Derivative Products on FTX:
FTX Exchange offers various innovative trading products that set it apart from other platforms. These products can be easily traded using a single-margin wallet. The products include:
Futures: FTX Exchange provides users with quarterly and perpetual future contracts on numerous coins, including BTC, EOS, BNB, and ETH. The exchange allows users to trade various parts of the crypto market conveniently and use fiat currency as collateral.
Leveraged Tokens: FTX Exchange offers leveraged tokens that help users manage risk. These tokens allow users to sell and buy with up to 3x leverage without margin requirements. They are available for prominent cryptocurrencies such as ETH, BTC, MATIC, and XRP.
Options: FTX Exchange provides options for traders to buy or sell underlying assets at the right time for profitability. Experienced traders can use options to hedge their open positions and make use of price volatility in the crypto market.
MOVE Contracts: MOVE contracts allow users to trade based on the future volatility of the crypto market. Users can trade on the volatility of a cryptocurrency, regardless of its direction. This feature is suitable for beginners and fundamental traders.
Spot Markets: FTX Exchange offers a spot market for traditional investors and traders to trade in their preferred assets and cryptocurrencies. Users can trade without margin or collateral.
Account Types and Withdrawal Limits on FTX:
FTX Exchange offers three types of KYC accounts, each with its own requirements and perks. Tier 1 accounts can withdraw up to $2000 daily with basic information. Tier 2 accounts require legal documents in addition to proof of identity and allow unlimited crypto withdrawals. Tier 3 accounts require all previous requirements plus bank statements and allow unlimited withdrawals for crypto and fiat currencies.
Deposit & Withdrawal:
FTX Exchange has a straightforward deposit and withdrawal process. Users can deposit funds using various methods, including fiat, crypto, and stablecoins. The exchange also allows the use of credit cards for purchasing crypto assets. Crypto deposits and withdrawals are free of charge, while fiat withdrawals under $10,000 are subject to a $75 fee. Fiat withdrawals are only available to Tier 3 verified users and are processed through a third-party OTC desk.
Supported Currencies:
FTX Exchange supports a wide range of fiat and cryptocurrencies for trading. Supported fiat currencies include USD, GBP, EUR, CAD, AUD, CHF, SGD, and ZAR. The exchange also supports numerous cryptocurrencies, including BTC, ETH, LTC, DOGE, BCH, USDT, LINK, and many more.
Mobile Trading App:
FTX Exchange provides a mobile trading app for both Android and iOS devices. The app offers market monitors and trading options, allowing users to monitor their profits on the go. With over 100,000 users and an average rating of 4.5 stars, the app has received positive feedback from customers.
FTX US:
FTX US is a partner company of FTX Exchange specifically regulated for US traders. It allows US users to trade and enjoy the benefits of FTX Exchange while complying with strict US regulations. FTX US offers low trading fees ranging from 0.4% to as low as 0.05% based on trading volume. The exchange supports six fiat currencies and approximately 19 cryptocurrencies. FTX US is secure and regulated, providing a safe platform for trading.
Conclusion:
In conclusion, FTX Exchange is a leading crypto derivative exchange that offers innovative features and products. With its secure and stable network, the platform is a go-to for crypto traders. While it is not suitable for beginners, experienced traders can benefit from the low trading fees, wide range of trading products, and secure trading environment. The FTX Exchange mobile app further enhances user accessibility. For US traders, FTX US offers the same benefits in compliance with US regulations. Overall, FTX Exchange is a must-try platform for traders looking for advanced trading options in the crypto market.
