What is the FTX Exchange?
The FTX Exchange is a cryptocurrency derivative exchange that allows professional cryptocurrency trading institutions and other users to facilitate trading in cryptocurrencies.
The FTX Exchange also allows for both quarterly and perpetual future trading, exchange of leveraged tokens and OTC for all major cryptos. The FTX Exchange operates with the aim of creating an exchange that facilitates the buying, selling and trading of cryptocurrencies and associated crypto products.
Another interesting point to note is the partnership of the FTX exchange with the much larger Binance exchange.
Can I Use FTX Exchange In The US?
The FTX.com exchange is restricted for US Citizens due to the regulations imposed by the US government on its citizens. But, they have a specialized FTX.US exchange website that caters to Americans and follows all US laws.
Does FTX Do KYC?
Initially KYC Registration is not required for FTX Exchange users. However, in order to be eligible for the tier 2 and tier 3 traders where the users can enjoy unlimited withdrawals a KYC form registration is required.
Where is FTX based?
FTX Exchange is headquartered in Hong Kong.
Who Founded FTX Exchange?
The FTX Exchange was founded in 2019 by Sam-Bankman Fried and Gary Wang who were pioneers in the crypto trading industry. The FTX Exchange is owned by the FTX Trading limited that is incorporated in Barbuda and Antigua.
FTX Exchange Overview
Since its inception in 2019, the FTX Exchange has grown immensely and now counts over 1000% of a growth in user base up to January 2021. The active users have risen by 786% which is quite a growth spurt for a relatively new crypto exchange.
The trading volumes via the FTX Exchange shows a rising trend which hopes to continue into the future. The trading volumes seemed to have hit the ceiling in mid-November 2020 and ever since then it has continued to rise higher than before. For a relatively recent exchange, the FTX exchange seems to be great at concluding trading contracts due to its impeccable features and user-friendly design.
In terms of markets too the FTX Exchange has spread its wings far and wide with its drastic expansion policies. It started off with just 410 listed markets in 2020 which has now reached sky high at 1100 listed markets to date and still counting.
FTX Exchange Review
The FTX Exchange reviews indicate that the FTX exchange has been very receptive in understanding and responding to the needs of the crypto traders which has made it receive excellent ratings.
User Interface and User Experience
The user interface is designed in a very user-friendly manner that allows for simple and easy navigation. It incorporates the trading chart in the middle with all the other details including wallet balance, order details and price performance and history on either side.
This way it is quite easy for the users to get a snapshot of their transactions and track overall performance in one go. The amazingly simple and easy interface makes the FTX Exchange ideal for both experts and amateurs alike.
The design and user interface are quite easy and much loved by the users which leads to enhanced user experience and a lot of positive reviews.
Ease of use
The design and full screen summary layout of the FTX Exchange makes it very easy to use.
All details are well arranged in an organized manner with clear instructions and seamless interlinking into new web pages and portals that makes it to be rated high under the ease of use section of many FTX exchange reviews.
The FTX Exchange ranks high in terms of being the number one exchange that is well placed to handle any customer queries and complaints on a timely basis.
The FTX exchange provides a comprehensive user guide and FAQs section that has solutions to almost every common problem faced by its users.
Apart from that it offers customer support via email and a highly responsive and dedicated customer support team is one of their big plus points to make it a popular exchange among the users.
The Exchange fees of the FTX Exchange is quite competitive with added perks for users who fulfill certain criteria. The FTX exchange operates on a maker taker model with comparatively lower trading fees starting from 0.04% and 0.07% for its futures and spot markets.
For leveraged token there is a daily management fee of 0.03% and 0.10% fee on redemption.
Here’s the perk, FTX users who hold a given amount of the FTX native token are given a trading fee discount of up to 30%.
Pros and Cons of the FTX Exchange
Just like any other Exchange, the FTX exchange also has its own pros and cons.
Firstly, the FTX exchange is globally available in many countries which makes it a globally recognized and popular choice of a digital currency exchange.
However, the FTX Exchange is not allowed for US Citizens which is a drawback since the USA houses quite a large demand and users of crypto and not being open to the USA market leads to a potential drop in users and popularity. Although it has developed a FTX.US site for the US citizens.
Another Advantage of the FTX exchange is that it supports over thirty cryptocurrencies and is quite popularly used. It also has an inhouse OTC counter that allows crypto to be converted to fiat money for withdrawals. This makes it a relatively easy and convenient exchange as opposed to certain other exchanges that do not allow direct conversion of cryptos to fiat money.
The FTX Exchange has also expanded to support DeFi coins and DeFi perpetual futures that gives it a great competitive advantage over other digital currency exchanges. It also offers perpetual swaps for 15 assets.
As a drawback, the FTX Exchange seems to have followed the relatively smooth road and has been less battle tested than its competitors which makes it much harder to gauge and expose its core strengths and weaknesses especially in a crisis situation.
What Features Make FTX Exchange Unique?
Leveraged tokens are unique to the FTX Exchange as these ERC-20 tokens give the users leverage exposure to crypto currency trading.
It also houses an interesting and creative trading option that allows users to trade political futures. This works closely like the prediction markets where the outcomes of the responses of the people are monitored to predict the final outcome. This was quite a popular option during the US presidential election that got many people started on the FTX exchange out of sheer interest.
The FTX exchange program also includes an affiliate program that rewards every referral quite generously by obtaining 30% off on your trading fees for every referral and 5% off for the referee.
In terms of leverage, the FTX Exchange offers the riskier yet lucrative option of offering up to 101 times leverage. This makes it a great exchange for Pro crypto traders.
FTX Exchange Android and iOS Apps
The FTX exchange is accessible and compatible with both the Android and Apple Operating systems.
How Long Does FTX Last?
Since its inception in 2019, the FTX exchange has been creating ripples and waves as it increases dramatically in user numbers and popularity as well as trading volumes.
Most experts forecast that the exchange will continue to remain popular as it has been quite responsive in the past by revolutionizing the cryptocurrency trading platforms with exceptionally high standards and improved customer experience.
Hedging in FTX Exchange
There are three options when it comes to leveraging ERC-20 tokens on the FTX exchange. Tokens that offer 1x leverage are known as hedges, 0.5x long are called half and tokens with 3x leverage are known as bull or bear.
The price of leveraged tokens is based on perpetual futures and since hedge tokens are 1x short. If the price of the futures rises by 10% the value of the hedge falls by 10%.
Hedging in the FTX Exchange using leveraged tokens are great for both amateurs and experts in the cryptocurrency trade.
Is FTX Exchange Legit? Is FTX Exchange Regulated?
The FTX Exchange is a legitimate cryptocurrency exchange that is backed by a high-profile cryptocurrency liquidity provider known as Alamada Research.
The FTX Exchange is presently not regulated and US Citizens are not allowed to use the exchange. US Citizens can however use the FTX.US Counterpart that is especially designed for US citizens.
Is FTX Decentralized?
The FTX Exchange is a decentralized platform that supports over 11 DeFi Tokens. The FTX Exchange also offers DeFi Perpetual futures that does a great job of keeping tabs on prices of the DeFi coins.
What Countries Can Use FTX Exchange?
The FTX Exchange is available for trading for many countries globally except for those located in or resident of the following countries;
- Crimea and Sevastopol
- North Korea
What are FTX Exchange fees?
The FTX Exchange uses a Tiered system where large-scale traders are benefitted from lower trading fees. The trading fees vary from 0.07% to 0.04% for spot and future contracts. Refer the illustration below for the maker-taker fees based on volume.
A redemption fee of 0.10% and a management fee of 0.03% is charged for leveraged tokens. If the leverage is 50x or more, the trading fee rises by 0.05% in which half of the FTX fees are allocated to the insurance fund.
What is an FTX token?
The token offered for trading by the FTX Exchange is called the FTT Token. It is not available for trading in the USA due to US regulations.
FTX Token Supply
The FTX Token has a total supply of 339,381,284 FTT and a circulating supply of 126,907,543 FTT.
How Does FTX Exchange Leverage Work?
The FTX Exchange allows up to 50x, 100x and 101x leverage. The traders can select whatever leverage they want as long as they have no open positions or orders.
0.02% extra fees are required to trade and leverage at 50x.
0.03% additional fees are required for leverages at 100x and 101x.
FTX US 10x Margin
The FTX US platform that is open to US residents allows for margin trading at 10x leverage. In order to margin trade, the users need to enable margin trading on their FTX Profiles or accounts.
Users must post at least 10% collateral on the FTX US Exchange. When the trader’s margin fraction falls below 0.05, the liquidation process will start. If the trader’s margin fraction falls below 0.025, FTX US will close down their account immediately.
Is FTX Exchange Safe?
The FTX Exchange is known for being a very safe and secure cryptocurrency exchange. It has had no security issues reported in the past. Further, it uses cold wallet storage solutions and two factor authentications to strengthen the safety and security aspect.
How do I withdraw money from FTX Exchange?
Follow these simple and easy steps to withdraw your earnings from the FTX Exchange;
Step 1 : Select the withdraw option in the BTC Column
Step 2 : Enter the preferred withdrawal amount
Step 3 : Paste the code of the BTC Address
Step 4 : FTX will request for the traffic code. Make sure to fix it
Step 5 : Set a password for withdrawals and continue with the withdrawal
FTX Exchange Withdrawal Fees
There are no FTX Exchange fees on deposits and withdrawals, except for ETH, ERC-20 tokens, or Omni withdrawals. In the case of withdrawals where the withdrawal volume exceeds the trading volume a fee of 0.10% would be charged.
What Coins Are on FTX Exchange?
There are over 30 crypto coins and tokens that are supported on the FTX Exchange. A few of the common coins and tokens available on the FTX Exchange are;
FTX Vs FTX US Exchange
|FTX Exchange||FTX US Exchange|
|Available for all citizens except those in US and other states that do not allow the FTX Exchange||Made especially for the US Citizens in line with US regulations|
|Allows a leverage of up to 101x||Allows a leverage of only up to 10x|
|No specifications to maintain different order books||Separate order books are maintained for the FTX US users and the FTX exchange users|
|Allows trading of over 30 coins||Allows trading of only six varieties of coins|
How Can I use FTX Exchange from the USA?
The FTX Exchange cannot be used from the USA. The USA citizens can however use the FTX.US Exchange which has been customized and made suitable for US citizens. However, the FTX.US exchange website is not allowed in two states in the USA, namely Washington and New York.
FTX Exchange OTC Trading
The FTX Exchange has a separate portal where the users can get immediate, 24/7 OTC quotes for many popular coins. You can use the same FTX user account to make use of the FTX OTC facilities as well.
You can obtain the OTC quotes by logging in to the portal, filling in the required details and selecting the “Get Quote” option which will give you a live quote to trade against.
These quotes do not last longer and last up to a maximum of 15 seconds. They might change sooner if the market moves.
FTX VIP Program
Being part of the FTX VIP Program has a wide range of benefits in store for you as listed below
- Lower fees for both maker and taker fees
- Additional market maker payments made to the user depending on overall volume
- Flexible API Limit
- Access to an account manager
- The ability to provide insight into the products that FTX Exchange introduces
- Access to VIP user meet-ups
Takeaways – FTX Exchange Review
- The FTX Exchange was founded in 2019 by Sam-Bankman Fried and Gary Wang.
- It is headquartered in Hong Kong.
- The classic is not allowed by the US and other restricted countries.
- The FTX.US allows for USA citizens to trade except in Washington and New York which does not allow this customized FTX exchange either.
- The FTX Exchange allows a leverage of up to 101x.
- The FTX Exchange is a cryptocurrency derivative exchange that allows professional cryptocurrency trading institutions and other users to facilitate trading in cryptocurrencies.
- It supports a wide variety of coins and tokens.
- It is a decentralized finance platform that supports DeFi Tokens too.
- FTX is a legitimate exchange.
- It is safe to use as no safety concerns or security breaches were observed in the past