Adrian JulianNowadays, most financial investments are done through digital platforms. These offer more and more options to traders, this is the case with cryptocurrency exchanges. In this article, I will tell you about the FTX platform.
Even though it is recent, FTX is one of the most popular and widely used cryptocurrency exchanges in the world. This success is due to its offer, which goes beyond traditional exchange sites. To help you get an idea of this platform, I will share with you the functionalities of FTX, its offer, the fees applied and even its security.
FTX Overview
FTX is a cryptocurrency platform founded by Sam Bankman Fried in 2018. The site was officially launched in 2019 and offers both cryptocurrencies and trading many derivatives products such as options and futures. FTX's competing platform would be PrimeXBTEg. Thanks to its architecture, it allows you to exchange and trade cryptocurrencies, transfer funds with FIAT and stablecoin currencies, as well as a wide range of altcoins.
Its services are suitable for both novice and professional traders, who can take advantage of a range of trading options rarely available on other cryptocurrency exchanges. FTX also offers an over-the-counter trading service that allows for large volume transactions, avoiding market fluctuations. FTX's head office is located in Hong Kong. The exchange is owned by FTX Trading Limited, a company based in Antigua and Barbuda.
Derivatives available on FTX
Derivatives allow traders to speculate on the future value of various digital assets and trade their corresponding futures contracts. This is a different operation from ordinary trading. Indeed, there are short sale options that allow traders to profit from the fall in the price of an asset. Traders can also take averaging positions that allow them to significantly increase their exposure to an asset with leverage.
Derivatives that you can trade on FTX:
- Futures: These are a type of futures contract, a legal agreement to buy or sell an asset at a predetermined price.
- Options: it is a special form of futures contract that gives the holder the right, but not the obligation, to sell at a future strike price. They are generally used to protect against price fluctuations.
- MOVE: These are contracts that are settled based on the absolute change in the price of a coin over time. Periods can be daily, weekly or quarterly.
- Spotlight: Spot trades are matched market orders for an asset.
- Leveraged Tokens : These are special tokens that provide leveraged exposure to cryptocurrency markets without the need to manage a leveraged position.
Supported payment methods and cryptocurrencies
FTX supports over 30 cryptocurrencies. The exchange accepts payments in USD, TRY, AUD, GBP, EUR and HKD as well as most other stablecoins. They also have their own OTC counter so traders can convert their cryptocurrencies to fiat currencies for withdrawals.
How to create an account on FTX?
As is the case with many online platforms, the procedure for creating an account on FTX is simple. Here are the steps to take:
- visit FTX official website. To get 5% off, you can use our code: 24248516.
- On the home page, click “Register”;
- Complete a registration form by inserting certain information such as your email address or password;
- Configure two-factor authentication on your smartphone.
Should you invest in the $FTT token?
The FTX token (FTT) is the native token of the platform. It was created to finance the further development of FTX and to tie customers more closely together. With FTT in your wallet, you benefit from discounts on trading fees. let's remember that FTX therefore offers a 3% discount to customers who hold FTT worth at least $100.
So, for FTTs worth $1, there is a 000% reduction on fees and for FTTs worth $5, a 5% reduction is applied.
The FTX token is among the top 50 largest cryptocurrencies in terms of market capitalization. The FTT token is also traded on other cryptocurrency exchanges such as Binance, BitMax, etc. Therefore, this proves that it is not just considered a loyalty token by many investors. It is also used as an indirect way to invest in the positive business performance of FTX.
What are the fees on FTX
FTX offers discounts for high volume traders and for those who participate in their referral program. Remember that there is also a VIP program for professional traders and a program for market makers. Holders of the FTT native token receive a percentage discount on transaction fees. The percentage is larger depending on the amount of FTT they hold.
Leveraged tokens are charged 0,10% for creation or redemption and 0,03% per day for management. Besides, the use of leverage also increases transaction fees accordingly. Indeed, leverage of 50x increases transaction fees by 0,02% and leverage of 100x or more increases transaction fees by 0,03%.
Security on FTX
I'm not going to lie to you, security is an important aspect when it comes to investing. For this, the FTX platform uses SSL encryption and two-factor authentication. These measures are taken to protect customer accounts against possible hacking. However, in terms of regulation, FTX is still lagging behind because no reputable organization supervises the platform. However, FTX remains a renowned platform with an increasing number of users as well as ever-increasing partnerships. It then seems that in terms of security, the platform will not remain indifferent.
Conclusion and final opinion on FTX
FTX is a crypto exchange that offers a fairly wide range of instruments to invest in. Despite the fact that the platform is quite new, it is experiencing particular interest from traders. To take full advantage of FTX, I advise you to have a solid knowledge of the typical financial instruments offered by my platform and to hold FTT to reap the benefits.
Disclaimer: This is not investment advice. This is general information. Do your personal research before investing. Always.
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