How To Short FTX Token (FTT)
- James Page
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Author: James Page - Last Updated on June 28, 2022
Summary: Shorting FTX Token is pretty straightforward, all you need is a crypto exchange that allows for short selling. While there are a few exchanges out there that have added the ability to short crypto, our recommendation is to use eToro. They’re well-known, have a global presence, and are trusted by millions of users from 100+ countries.
We’ll be using eToro in our guide, you can sign up with one of the sign-up buttons below.
Before we get started, let’s quickly explain what shorting is (for those that are new to it). Shorting is the practice of selling a cryptocurrency hoping it will drop in price so you can buy it back later for cheaper… which, if successful, will give you a net profit.
It might sound a bit complex but don’t worry, it’s a lot easier than you might think.
How to Short FTX Token
Shorting FTX Token can be done in 4 steps:
- Find a cryptocurrency trading platform
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short FTX Token
1. Find a cryptocurrency exchange
As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.
You can, of course, use any other cryptocurrency trading platform that allows for short selling.
2. Sign up with the crypto exchange
Let’s start with creating an account on eToro.
The sign-up process is very quick, as is the verification that needs to be completed afterwards so you can get started.
3. Funding your account
Next is funding your account. You have several deposit methods to choose from when depositing funds into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.
4. Short FTX Token
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find FTX Token by entering the name.
- On the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
- At the top of the trading interface: Click on sell to short the crypto.
- Enter the amount for which you want to sell FTX Token and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of FTX Token has dropped, go to your Portfolio, find the FTX Token trade, and click on the red cross to close the trade.
If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.
Congratulations, now you know how to short FTX Token!
Disclaimer:Â Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.
Affiliate Disclosure:Â This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.
Where to Short FTX Token (FTT)
Aside from eToro, the other major exchange you can use is Binance.
While Binance tends to be a bit more advanced when compared with eToro, they do have a lot more digital assets to trade with.
Frequently Asked Questions
Can I short FTX Token on Binance?
Yes, you can short FTX Token on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
About FTX Token
FTT, the native cryptocurrency token used by the crypto derivatives trading platform FTX was launched May 8, 2019.
FTX was founded by some of the largest cryptocurrency traders in recent years. FTX claims that its features, such as clawback prevention and a centralized collabor pool, make it stand out.
As regards clawback prevention, socialized losses have claimed significant amounts of customer funds on other derivatives exchanges. FTX reduces these losses by using a 3-tiered liquidation system.
The collateral on crypto futures exchanges can be fragmented across several token wallets. This can cause problems for traders, as it prevents positions being liquidated. FTX derivatives can be settled with stablecoin and only one universal margin account is required.
A leveraged token, another FTT feature, allows traders to open leveraged positions and not need to trade margin. A 3x leveraged token can be purchased on FTX by a trader who wants to short Bitcoin. These tokens are ERC20 compliant and can be listed at any spot exchange. Currently, FTX provides XRP (BNB), TRX (BTC), TRX (BTC), ETH, EOS and USDT leveraged tokens.
Almeda Research supports FTX. They are a leading company in crypto trading as well as the largest liquidity provider.
FTX is a product that has been developed by industry experts. They provide many services, from collateral to maintenance margin to liquidation process and product listing. FTX also claims that they focus on speedy development, enabling them to deploy cryptocurrency trading systems at a rapid pace.
FTT is an ERC-20 compliant exchange token. Ledger NanoX/S Hardware wallet allows users secure storage and management of FTT tokens via its Ethereum App.
The Blockchain Consilium is an auditing firm that conducts both security audits of the FTT and leveraged tokens.
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