What Is FTX Exchange?

UTC by John Caroline · 6 min read
What Is FTX Exchange?
Photo: Shutterstock

There are a lot of crypto exchanges in the industry. However, some of them feature certain unique use cases which have triggered massive interest in them. Let’s dive into the details of the FTX exchange and how it works.

Cryptocurrency exchanges are often classified as being either centralized or decentralized depending on how they operate and their use cases. FTX Exchange is one of the centralized crypto exchanges and a highly ranked one due to its exclusive use cases that enable it to outperform other similar exchanges.

Basically, FTX is a centralized cryptocurrency exchange that specializes in derivatives and leveraged products. It provides support for cryptocurrencies with high trading volumes like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and the likes. The exchange is powered by Alameda Research, a top cryptocurrency liquidity provider.

The FTX platform offers a wide range of trading products including derivatives such as options and futures, volatility products, and leveraged tokens. Moreover, the exchange provides trading opportunities in the spot market for over 100 cryptocurrency trading pairs such as BTC/USDT, ETH/USDT, XRP/USDT, etc. The FTX platform also has an over-the-counter desk that trades around $30 million per day without any fees.

Basics of FTX Exchange

As said earlier, FTX has managed to attract the interest of crypto investors including crypto veterans and newbies with the wide range of products including the easy-to-use desktop and mobile trading apps it features.

The FTX platform offers a comprehensive range of order types. These orders range from basic market orders to more complex trailing stop orders.

As a centralized crypto exchange that enables fiat to crypto trading pairs, FTX supports nine fiat currencies that investors can deposit and withdraw via a wire transfer. These fiat currencies include the US dollar, euro, British pound, Australian dollar, Hong Kong dollar, Singapore dollar, Canadian dollar, Swiss franc, and Brazilian real.

FTX is known for charging little or no deposit or withdrawal fees for most crypto assets. All Bitcoin withdrawals greater than 0.01 BTC are free. Withdrawals of less than 0.01 Bitcoin per day are charged a fee of 0.1% after the first one, which is apparently free.

Fiat currency withdrawals valued at more than $5,000 USD are free, as is one withdrawal per week below that amount.

Origin of FTX Exchange

FTX exchange was founded by MIT graduate and former Jane Street Capital international exchange-traded funds trader, Sam Bankman-Fried in the first half of 2019.

The exchange is incorporated in Antigua and Barbuda and headquartered in the Bahamas. Over the few years, the exchange has grown to become a top-ranked exchange offering varieties of products.

FTX Products and Services

The key products and services featured by the FTX exchange include futures, leveraged tokens, MOVE contracts, options, and spot markets.

  • Futures

Futures provide the opportunity for users to buy and sell at a predefined price based on their agreements. Here, traders can take both long and short bets on leading cryptocurrencies using over 100 quarterly and perpetual futures pairs with margins of up to 101x.

  • Leveraged Tokens

FTX offers ERC20-based tokens that provide traders up to 3X leveraged exposure against the underlying trading pair. The FTX leveraged tokens have no margin requirement.

  • MOVE Contracts

With MOVE Contracts, traders on FTX can bet how far the price of a cryptocurrency will move over a time period, regardless of which direction it moves, essentially making them a play on volatility.

In other words, it provides a betting platform where profits can be generated when the price of an underlying cryptocurrency moves over a specific dollar amount.

  • Options

This product allows users to speculate on the future price of a pair and hedge against their open positions using call or put options.

  • Spot Markets

As said earlier, the FTX exchange offers over 100 different spot trading pairs of the leading cryptocurrencies including Bitcoin, Ethereum, Binance Coin, Chainlink, and Ripple’s XRP. Users have the opportunity to purchase cryptocurrencies and then trade them using traditional techniques using market-matched orders.

Fees on FTX Exchange

FTX does not charge any fee on deposits and withdrawals. However, the case is not exactly the same for ETH, ERC-20 tokens, or small BTC withdrawals. Users are required to pay the blockchain fees for all ETH, and ERC20 tokens unless they have FTT staked.

All BTC withdrawals greater than 0.01 BTC are free. Withdrawals of less than 0.01 BTC per day are charged a fee of 0.1% after the first one, which is free. Fiat currency withdrawals valued at more than $5,000 USD are free, as is one withdrawal per week below that amount.7FTX US trading fees for market takers ranged from 0.05% to 0.4% as of January 2022. Non-fungible token (NFT) fees are $1 to list an NFT using its self-service tool and 2% charged to the seller from each sale or trade. Wire transfer fees are 1% of U.S. dollar deposits and withdrawals, with a minimum of $5 and a maximum of $35. Meanwhile, there are no deposit fees for blockchain transfers.

FTX Security

FTX uses two-factor authentication to effect proper security. It also enables the use of Authy, Google Authenticator, or SMS for the same. Furthermore, users are allowed to protect their withdrawals with a separate password.

The FTX is connected with huge names in the cryptocurrency space. It has partnering companies incorporating firms like Circle, FBG Capital, and True USD, which by supporting the trade vet for its dependability. This guarantees reliability for users.

The FTX Token (FTT)

The native token of FTX Exchange is called FTT. It features several use cases on the platform while also giving certain perks to the users.

FTT enables users to pay lower FTX trading fees. Moreso, holders of FTT can receive socialized gains from the insurance fund while also earning the opportunity to buy and burn their fees weekly.

Furthermore, the FTX token can be used as collateral for futures trading. It is available for trade on Spot/Futures of the exchange, and on the world’s largest cryptocurrency exchange, Binance.

Conclusion

Crypto traders are saved from the stress of looking too hard for a platform that is capable of providing liquidity, all thanks to the FTX exchange. The exchange is regarded as one of the best crypto trading platforms as of the time of writing due to its exclusive use cases. Aside from cryptocurrencies, FTX is also listing a lot of DeFi tokens thereby extending its services. Its native token FTT offers users a discount on its fee.

Share:

FAQ

What is FTX exchange?

FTX is a centralized cryptocurrency exchange that offers a wide range of trading products including derivatives such as options and futures, volatility products, and leveraged tokens.

When did the FTX exchange launch?

The FTX exchange was launched in 2019.

What are the products offered by FTX exchange?

The key products and services featured by the FTX exchange include futures, leveraged tokens, MOVE contracts, options, and spot markets.

Is FTX secure?

FTX guarantees security as it uses two-factor authentication and also allows users to protect their withdrawals with a separate password.

What is the FTX token?

The FTX token is the native currency of the platform and it is dubbed FTT. It is available for trade on Spot/Futures of the exchange, and on the world’s largest cryptocurrency exchange, Binance.

guides
Crypto Slang: WAGMI and NGMI December 4th, 2022

This guide will explore the use of two new slangs named WAGMI and NGMI. These slangs are in direct contrast to each other. The fir...

What Is Proof of Replication (PoRep)? December 4th, 2022

There are so many consensus mechanisms enabled on the blockchain. This guide is based on the one called Proof of Replication (PoRe...