These days, most financial investments are made through digital platforms. These platforms offer traders an increasing number of options, as is the case with cryptocurrency exchanges. In this article, I'm going to talk about the FTX platform.
Despite being relatively new, FTX is one of the most popular and widely used cryptocurrency exchanges in the world. This success stems from its offering, which goes beyond that of traditional exchanges. To help you get a better understanding of this platform, I'll outline FTX's features, its offerings, fees, and security.
FTX Overview
FTX is a cryptocurrency platform founded by Sam Bankman-Fried in 2018. The site officially launched in 2019 and offers both cryptocurrencies and trading in numerous derivatives such as options and futures contracts. A competitor to FTX is PrimeXBT , for example. Its architecture allows you to exchange and trade cryptocurrencies, transfer funds using 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 currency 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 platform's native token. It was created to fund the continued development of FTX and to foster closer customer relationships. Holding FTT in your wallet grants you access to discounted trading fees. FTX offers a 3% discount to customers holding at least $100 worth of FTT.
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 cryptocurrencies by market capitalization. FTX is also traded on other cryptocurrency exchanges such as Binance and BitMax. Therefore, this demonstrates that it is not only considered a loyalty token by many investors but is also used as an indirect way to invest in FTX's positive trading performance.
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. It is general information. Do your own research before investing. Always.
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