FTX Review 2022
FTX is a centralised digital assets platform that specialises in trading volatile products, such as derivatives and leveraged goods. The platform was founded by Sam Bankman-Fried, an American entrepreneur who also founded Alameda Research, a crypto trading company. These two crypto initiatives have placed him on the Forbes list of the world’s wealthiest crypto CEOs.
About the FTX Exchange
The FTX Trading LTD was established in Antigua and Barbuda, and it’s based in the Bahamas. This crypto project was initiated by Bankman-Fried and developed by a team of professional traders who have refined their expert skills at Google, Facebook, Susquehanna, and Jane Street before combining their forces on this project.
As a joint result, Bankman-Fried and his team developed the FTX crypto derivatives exchange in 2019 with the goal of providing traders with ‘A cryptocurrency exchange built by traders, for traders, says FTX’s tagline.
Supported Cryptocurrencies and Payment Methods
The FTX exchange supports more than 300 popular cryptocurrencies, among which you can most certainly find your favourite token, altcoin, or stablecoin. Some of the cryptocurrencies available for trading include Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), Litecoin (LTC), Tether (USDT), and many more altcoins combined in numerous trading pairs.
FTX also supports 11 fiat currencies, including the US Dollar (USD), Australian Dollar (AUD), Euro (EUR), and Pound Sterling (GBP), to name a few.
FTX users can enjoy some of the most popular payment methods to fund their accounts or purchase cryptos, including wire transfers, credit card/debit card deposits, or bank transfers. Crypto traders can also make a deposit to their FTX account through a third-party payment provider service, like Signature SIGNET or Silvergate SEN, for instance.
The FTX Token (FTT)
The FTX native token FTT is valued at $9.535 billion expressed in market cap. For the most part, the FTT tokens are utilised by FTX clients to get additional benefits when trading on this exchange.
For instance, FTT holders can vote on cryptocurrency listings, enhance airdrop prizes, and more. Higher referral incentives and daily free ERC20 and ETH withdrawals are also available to users who stake FTT tokens.
Also, the FTX users who have more than $1,000,000 USD in FTT on their balance are eligible for a free tier upgrade that brings them additional discounts on the transaction fees.
Trading Fees and Limits
At FTX, all spot and futures markets are subject to a maker fee/taker fee structure. As each trader falls into one of the 6 tiers depending on the amount of 30-day trading volume each trader has produced, the fees for the market makers vary from 0.000% to 0.020%, while the liquidity takers are charged from 0.040% to 0.070% trading fee per transaction.
Moreover, the FTT holders receive a rebate on these fees that range from 3% to 60% per transaction.
Withdrawal Fees and Limits
Except for ETH, ERC-20 tokens, and modest BTC withdrawals, there are no blockchain fees on deposits or withdrawals. Users of FTX will have to pay the blockchain fees for all ETH and ERC20 tokens unless they have FTT staked in their account.
Regarding the free withdrawals, the FTX exchange maintains the right to levy a withdrawal fee of roughly 0.10% if a user’s withdrawal or deposit volume in fiat currency or stablecoins surpasses their trading volume.
Here’s some friendly advice: do keep in mind that stablecoin withdrawals could be limited by how quickly they are rendered and how quickly they are sold. For instance, if you want to withdraw a significant bunch of stablecoins, these transactions could take up to 6 hours of processing time during workdays, and up to a whole day on Saturdays and Sundays.
FTX offers two trading platforms to its traders. One of the platforms is dedicated to US users (www.ftx.us), while the other one targets the international users of the FTX services (www.ftx.com). Both platforms are intuitive enough to help beginners in crypto trading feel safe and supported while also offering a rich array of innovative and advanced trading products to meet the needs of experienced traders.
When you first visit any platform, FTX will take you on a quick tour to familiarize you with its features. Among them, you’ll find many advanced trading instruments for OTC trading, including leveraged tokens trading, spot trading, perpetual futures contract trading, Bitcoin options trading, NFTs, collaterals, staking, and more, alongside the traditional crypto exchange where you can trade crypto.
To access FTX’s services, you must either create an individual or institutional account or sign in with Google using a valid email address and a secure password. But, to start trading or fund your FTX account, first you’ll need to go through the KYC process.
The FTX Referral Program
The referral links, which you can use to welcome new traders to the platform, are the first thing you’ll see on the exchange’s dashboard, following the features overview. If any of them establish an account with FTX using your shared link and start trading, you can earn 25.00% of their trading costs while they’ll receive a 5.00% fee discount.
Leveraged Tokens Trading
FTX takes pride in being the first crypto derivatives exchange to offer leveraged token trading. Because leveraged tokens are a relatively new addition to the market, as well as a very volatile one, let us first try to understand the premise behind them.
The term leveraged tokens refers to ERC20 tokens that multiply your exposure to a given crypto asset without the risk of liquidation, collateral, or deposit fees that exists in margin trading. Basically, this financial product lets you get into a leveraged trading position without having to deal with the complicated parts of tackling a margin deal.
There are various strategies for trading leveraged tokens successfully, but we found that the most popular technique is buying a leveraged token on its spot market or directly from your wallet tab via a conversion.
Additionally, you have the option of issuing or redeeming leveraged tokens on your own, but keep in mind that doing so will have an effect on market prices. By far, the least recommended choice for trading leveraged tokens on FTX is this particular one.
With FTX’s OTC gateway, you can get free, no-fee OTC quotes on the most prominent cryptocurrencies at any time of day or night, and have your transactions settled quickly.
Before you use the OTC trading service on this site, you should first create an authenticated FTX account by going through the whole AML/KYC procedure. Then you can trade your digital assets from the FTX OTC platform to the FTX futures market in a click.
FTX’s MOVE Contracts
On FTX, there is another distinctive volatility product labelled as the MOVE contract. The MOVE contracts display how much an asset’s value fluctuates over a certain timeframe. So, if you believe the asset will move considerably, you can go long on a MOVE contract. Conversely, if you believe the asset will remain steady, you can sell it short.
Is FTX Safe to Use?
Despite being a relatively new addition to the crypto sphere, FTX enjoys the trust of a vast number of users. In order to provide a secure trading environment, the FTX platform implements a vast number of the industry’s best security protocols in its architecture, such as the two-factor authentication protocol (2FA), whitelisting of wallet addresses and IPs, an insurance fund to compensate the user’s losses in the event of unexpected losses, etc.
An extra layer of security is provided for both the user’s account and their funds by FTX’s rigorous AML/CFT practices.
KYC Account Verification
There are three levels of KYC (Know Your Customer) requirements at FTX for the individual accounts:
- Unverified Level – For this level, all you need is a verified account and to be a resident of a supported country supported by FTX. A user with this level of KYC verification can only browse the platform’s features but cannot use any of them, nor do any trades.
- First Level – The first level of KYC verification requires a confirmed email, full name and surname, address and country of residency, valid phone number, and birth date. A user with this level of KYC verification is limited to 2,000 USD (or an equivalent) in crypto withdrawals per day and can only make crypto deposits, as there’s no option for fiat withdrawals or deposits with this level of verification.
- Second Level – The second level of KYC verification requires all of the above, plus a government-issued document as proof of your identity and residence, as well as facial identification. Users with a fully verified account can enjoy unlimited deposits and withdrawals in both crypto and fiat currencies as an added benefit.
When it comes to the institutional accounts, these are the requirements imposed by the KYC protocol:
- Legally enforceable name of the company;
- The main location of the company;
- Organisational jurisdiction;
- A diagram of the company’s structure;
- A description of the company’s activities;
- A description of the assets’ origins;
- Bank statement;
- Legal papers of the company;
- Proof of address and legal identification document, etc.
If you have an issue with your trading process or one of the platform’s functions, you should first visit the FTX help centre. This is a form of indirect customer assistance that provides answers to practically any inquiries you may have for the support staff.
If you still have a pressing issue that requires the attention of a professional, you can contact the FTX support staff via a ticket. You can also reach the exchange by sending them an email or a direct message through their social media accounts (on Facebook, Instagram, Twitter, or Telegram, for instance).
Pros & Cons:
- Innovative trading features;
- More than 300 cryptocurrencies to choose from for your trading strategy;
- FTX services available to US residents through a dedicated platform;
- Various rewarding programs for the FTX users and FFT holders;
- Low fees.
- Slow processing time on large stablecoin withdrawals;
- Only a handful of fiat currencies;
- You can’t trade with real assets through this exchange, as it primarily focuses on derivatives;
- The FTX.COM and FTX.US sites have been separated because of stringent financial guidelines for providing crypto financial services, leading to a division of liquidity between the two platforms;
- No live chat support.
Does FTX have a mobile app?
Yes. FX Pro mobile app enables FTX users to execute and monitor their financial transactions, open positions, and holdings. Over 10,000 different digital assets can be tracked with the FTX app, ensuring that crypto investors have access to the most up-to-date and trustworthy market information possible.
The FXT Pro mobile app is compatible with both iOS and Android operating devices, and you can download it for free from the respective online app stores.
What countries are supported by the crypto exchange?
Despite the fact that FTX is a cryptocurrency exchange that offers financial services all over the world, some regions and jurisdictions (such as Crimea, Syria, North Korea, and others) are barred from using this trading platform due to legislative restrictions and security precautions.
Does FTX provide a cryptocurrency wallet?
Yes. FTX clients have the FTX’s custodial wallet at their disposal to house their digital assets. What may be a turn-off for some privacy concerned traders is that in the case of a custodial wallet, the exchange has access to your private keys. However, this isn’t a reason not to use these forms of crypto wallets since the reliability of the trading platform can make a positive difference.
The Bottom Line
Both the professional brokerages and cryptocurrency trading newbies can securely place their faith in FTX since this is a safe, reliable, professionally developed, and most importantly, user-friendly trading platform.
FTX is more geared towards experienced traders, despite its offering of trading goods for traders of all levels of expertise, since this exchange specialises in derivatives trading, which is regarded as one of the most volatile products in the market. Furthermore, FTX is a pioneer in this industry because it was the first crypto exchange to launch leveraged cryptocurrency trading.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.