Are you looking for FTX reviews?
Continue reading to find out my experiences with FTX exchange.
In the past, I have reviewed and used many crypto exchanges. But, only a handful of them make me happy with their offerings. Every crypto user should use Binance and Bybit. If you’re based in the U.S., you can use Coinbase and CEX, which are two of the most popular exchanges.
Today, we’re doing a deep dive and reviewing FTX, a popular cryptocurrency exchange. It is interesting to read about the history of FTX and the innovations they bring into the crypto space. This detailed review will cover all of these and more.
Sign up using the special link below to get 5% off your trading fees for life.
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You should also consider purchasing their native FTT token. This will help you save even more on trading fees. Investors may also find it interesting that I have included a section on the FTT token.
FTX Exchange was developed by FTX trading Ltd., a company that was established in Antigua-Barbuda, in the Caribbean, in May 2019. Its headquarters are located in Hong Kong.
The FTX exchange is relatively new compared to established exchanges such as Binance and Bitmex. However, I understand that it could potentially become a new Binance.
About FTX Exchange: A Brief History
Alameda Research was founded by the founders in October 2017, before FTX. Alameda Research operates as a liquidity provider and a quantitative cryptocurrency trading company. It manages more than USD 100 million digital assets and trades USD 600million to USD 1.5billion per day across thousands products. This includes all major coins and altcoins as well as derivatives. More information about Alameda Research can be found here.
The following explanation can be found on their website explaining why Alameda founders entered into a new venture together with FTX:
“Over the last 1.5 years, we’ve been one of the biggest traders in the futures markets. We encountered many issues with the current futures markets that we believe prevent the space from maturing enough for institutions to trade in. We have written numerous white papers and provided hours of feedback to these exchanges in an attempt to improve the ecosystem. However, this has not worked. We finally decided to do it ourselves and build FTX.
Compelling story. It’s a compelling story.
FTX Team and Foundation
The FTX team is made up of top Wall Street quant funds and tech companies such as Jane Street, Optiver and Susquehanna. This team is well-versed in the traditional secondary market. The team members have extensive experience in equity derivatives trading. They seem to be able to explain how derivatives are traditionally constructed and which types of derivatives are most in demand.
The following are the leaders of the organization:
Sam Bankman-Fried CEO and Co-Founder
Sam worked as a trader for Jane Street Capital’s international ETF desk before he founded Alameda, then FTX. He designed the automated OTC trading system and traded many ETFs, futures and currencies. He graduated with a degree from MIT in physics.
Gary Wang, CTO and Co-Founder
Before founding Alameda, FTX and FTX, Gary worked as a software engineer for Google. He created systems that aggregated prices from millions of flights, reducing latency and memory usage by more than 50%. He graduated from MIT in Mathematics and Computer Science.
What are the features of FTX Exchange?
These are the main features of the exchange:
Types of supported transactions
Spot and Futures Trading
FTX allows users to trade both on the spot and in the futures markets. The futures contracts on FTX can be settled in stablecoin, i.e. Futures contracts can be settled in BTC/USD, not USD/BTC. Stablecoins can be used as collateral to greatly simplify the user experience and reduce trading costs and margin requirements.
FTX also offers Index futures, which allow users to trade across any sector of the cryptocurrency ecosystem. This allows the user to spread his/her risk exposure. For example, FTX has a Shitcoin Index Perpetual futures and an Altcoin Index Perpetual futures.
A specific type of futures contract, called “Move contracts,” allows traders to trade on price movements of specific crypto currencies with a very small risk.
Tokenized stocks represent the token form for traditional equity stocks. FTX offers tokenized stocks like Tesla, Apple, Nokia and Amazon.
All tokens are routed by FTX through CM Equity, a third-party organization that is regulated in Germany. CM-Equity also provides custody to a third-party brokerage company. These tokenized tokens can be accessed by CM Equity via FTX.
FTX’s leverage tokens allow you to stop micromanaging your risk or collateral. These tokens are ERC20 tokens with leveraged exposure to cryptocurrency.
There are four types:
BEAR (+3x), BEAR (+-3x), HEDGE (+-1x), and HALF (+0.5x).
The BULL or BEAR leverage tokens manage their exposure and rebalance to ensure they maintain their target leverage. They also prevent liquidations. They are ERC20 tokens that can be withdrawn from the platform and traded.
These futures contracts are very similar to traditional betting. You can place a bet on any real-world event. The contract will settle at 100% if you win and at 0% if you lose.
A Trump2024 future, for example, will mature at USD 1, if Donald Trump is elected president. Futures were also offered by FTX for SuperBowl teams.
Additional Features of FTX Exchange
Alameda Research offers an OTC platform to bulk trade cryptocurrencies. Their OTC platform was integrated with FTX Exchange to make it easy for OTC counterparties to access derivatives.
FTX.com allows you to stake your cryptocurrency and receive staking rewards. This is currently only available for 4 tokens.
You can manage multiple accounts with one sub-account
FTX-sub-account-featureFTX has subaccounts that allow you the option to split up your positions. you can create new subaccounts, switch which subaccount you’re using, and transfer funds between subaccounts.Therefore, you can create separate accounts for your trading and investing activities.
Centralized Collateral Wallet
Existing futures exchanges have a lot of collateral spread across multiple tokens and margin wallets. It is difficult for traders to rebalance their positions and prevent them from being liquidated. FTX derivatives, which are stablecoin-settled, require one universal margin wallet to solve these problems.
Each subaccount is assigned a central collateral wallet that uses cross margining to protect the account.
This feature allows users to convert their small balances into FTT Token (an internal token of FTX exchange). More details later.
Click here for more information about FTX’s features.
Notice: US residents cannot trade on FTX.com. However, US citizens can trade on FTX.US. There is a mobile app for FTX.US.
FTX Mobile app:
A mobile trading app is essential for any exchange to be a top-class one. FTX has a mobile app that is fully functional and works on both Android and iOS. The app runs faster than the web version and provides a better user experience.
Download Mobile app
What are the advantages of FTX Exchange
Mobile App – FTX offers a mobile app for IOS and android devices that allows users to customize charts view according to their needs. The app is fully functional and if you like trading on mobile, it will keep you entertained.
Link to FTX social media sites
BlogMedium BlogTwitter – @FTX_OfficialSBF Tweet – @SBF_AlamedaYouTube channel
FTX Security and Safety
FTX database is kept cold in secure storage. Blockchain Consilium conducts security audits for FTT and Leveraged token. The FTX website has the most recent security audit report. FTX Insurance Funds offer insurance against cyber threats.
What are the transaction fees for FTX
FTX charges no fees for withdrawal or deposit of funds.
FTT holders can also enjoy fee discounts Based on your FTT holdings, the current discounts:
FTT holdings can not decrease taker fees below 0.015%.
Click here to find out more about fees for other products or other fees-related information.
FTT Token: Everything you Need to Know
FTT is the native currency of the FTX Exchange, just like BNB is Binance’s native currency. Click here to view the FTT Token whitepaper.
FTT’s Market Cap is USD 1.9 billion with a total supply supply of 340 million and a circulating supply supply supply of 89 million (26%).
FTT is the foundation of the FTX system. Token Burn / Revenue share – Approximately one third of all fees on FTX are used to purchase FTT repurchases. FTT can also be used as collateral to secure futures positions. This will increase the utility and demand of FTT. A discount on trading fees – Customers who have a certain amount FTT over a time period will be eligible for a discount in form of lower transaction charges. This will increase the demand for FTT.OTC rebates – Customers who have enough FTT will get a discount on all their OTC trading on FTX.OTC burn – FTT can be repurchased and burned based on OTC volume and revenue from FTX OTC portal.
Are there concerns about FTX?
FTX’s leveraged tokens carry a high risk. Customers have complained about FTX’s customer service.
Conclusion: FTX Review
FTX offers a wide range of benefits and features. It is a wholesome exchange which provides nearly every traditional service (spots, futures, stakings, 2FA, etc.). FTX also offers many new services, such as tokenized stocks, leveraged tokens and prediction markets. Its users.
Register for an FTX Account to Get a 5% Discount on Fees
The exchange’s native token FTT has a significant upside due to its growth potential.
Are you familiar with FTX exchange? How did you rate FTX exchange? Are they safe and secure enough for traders and investors? Comment below to let me know what you think.