What is FTX Exchange? How to Use FTX Review & Full Guide Of 2023

What is FTX? FTX is the U.S platform of one of the world’s largest crypto exchanges. It’s fantastic for aggressive traders because it has reasonable trading commissions. You may maintain all your assets in one spot because it provides a superb range of NFTs and equities.

See if FTX is the right cryptocurrency exchange for you by reading our comprehensive evaluation.

What is FTX Exchange?

What is FTX

FTX is a cryptocurrency exchange that was launched in 2019 and is headed by Sam Bankman-Fried, the CEO of Alameda Research. FTX offers a wide range of services and products, including spot and derivative trading, ICO listing, and OTC trading.

Additionally, it offers spot markets for more than 100 cryptocurrency trading pairings, including BTC/USDT, ETH/USDT, XRP/USDT, and FTT/USDT for its native token.

FTX stands for Futures Exchange. There are traders who buy and sell commodities, currencies, and other assets on this worldwide market.

Users can invest in commodities and foreign exchange on the digital platform FTX. FTX offers analyses of international markets in addition to real-time data on asset pricing.

The exchange supports many cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, EOS, Ripple, NEO, and more.

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Company Overview

Company Overview FTX

MIT (Massachusetts Institute of Technology) graduates Sam Bankman-Fried and Gary Wang founded FTX in May 2019. The company is headquartered in The Bahamas, with the goal of becoming the world’s leading platform for trading tokens. Leading centralized cryptocurrency exchange FTX is known for its expertise in derivatives and leveraged products. The company provides a variety of trading products, including derivatives, options, volatility products, and leveraged tokens to buy, sell and store cryptocurrencies.

On January 14, 2023, FTX announced a $2 billion venture fund named FTX Ventures.
In January 2023, FTX raised $400 million in Series C funding at a $32 billion valuation.
On February 11, 2023, FTX.US announced that the company would soon begin offering stock trading to its US customers.
In February 2023, it was reported that FTX was reportedly creating a gaming division that would help video game developers add cryptocurrency, NFTs and other blockchain-related features to video games.
By inking a worldwide agreement with the International Cricket Council in October 2021, FTX entered the cricket market, beginning with the T20 World Cup hosted in the United Arab Emirates.
MLB Home Run Derby X, an international home run competition, began its debut season in 2023 with FTX as its title sponsor.

Now, just a few years after its founding, it’s a top centralized crypto exchange valued at over $18 billion.

The platform is designed for both professional and retail traders. It offers a wide range of features and tools, including FTX margin trading, derivatives, and spot trading. FTX also has its own token, FTT, which can be used to get discounts on trading fees.

Pros Explained

FTX is a well-funded and reputable company that is backed by some of the biggest names in the industry.
The exchange offers a wide range of features and trading pairs to buy, sell Bitcoin and other top crypto.
FTX has a user-friendly interface that is easy to use.
The exchange offers a mobile app available for Android and iOS devices.
FTX is one of the few exchanges that offer derivatives contracts on a variety of assets.

Cons Explained

FTX does not offer a demo account.
The exchange does not accept fiat currencies.

Reviewing of FTX

In this blog, we will be reviewing FTX in terms of its crypto wallet options and security, trading fee, customer service, and customer satisfaction.

Products and Services

Spot Trading

Spot is the main feature of FTX exchange that provides a wide range of crypto pairs with popular stablecoins like USDT, USDC,… . It also regularly upgrades their listed coins in order to make sure that the service will meet the requirements from its traders.

Futures Trading

Futures trading on FTX is a little different than most exchanges. The order book is based on liquidity, which means there are no “exchanges” for each future contract. This can be confusing for first-time traders, but FTX does a great job of explaining how the futures market works.

Futures on many currencies, including BTC, ETH, EOS, XRP, and USDT, are listed on FTX. A contract that expires this quarter, a contract that expires next quarter, and a perpetual future are all available for each currency. An there is no FTX futures fees.

Margin Trading

On the spot markets on FTX US, qualified customers have access to leverage of up to 10x. To be eligible for margin trading, a person must attest to the requirements listed below and have $100,000 USD or comparable assets in their FTX US account at the time of qualifying.

Tokenized Stocks

Users who hold tokenized equities on FTX are entitled to dividends and other benefits of the underlying stock. FTX will make every effort, including stock splits and dividends, to ensure that the tokens on FTX represent the corporate activities of the underlying stocks. Although it is not anticipated that the shares would vote, FTX Switzerland reserves the right to do so.

Leveraged Tokens

For every future on FTX, there are now four leveraged tokens: BULL (+3x), BEAR (-3x), HEDGE (-1x), and HALF.

Typically, if ETH increases by 1% in a day, ETHBULL increases by 3% and ETHBEAR decreases by 3%. While ETHHALF increases by 0.50%, ETHHEDGE decreases by 1%. If ETH decreases by 1% in a given day, ETHBULL decreases by 3%, ETHBEAR increases by 3%, ETHHEDGE increases by 1%, and ETHHALF decreases by 0.50%.

There might be leveraged tokens with different margin ratios in some futures.

Volatility

Similar to other ERC-20 tokens, FTX volatility tokens may be stored, exchanged, and transferred just like any other token (though holding volatility tokens for long periods of time is not recommended).

With volatility tokens, the fundamental distinction is that they provide traders exposure to the implied volatility of digital assets.

BVOL and IBVOL are the two FTX volatility coins available at the moment. The daily returns of being 1x long the implied volatility of Bitcoin are tracked by BVOL targets, whereas the daily returns of being 1x short the implied volatility are tracked by IBVOL targets.

Staking

Staking FTT gives the following benefits beside FTX staking rates:

Increased referral rates: referrers that stake FTT are paid a higher fraction of their referees’ fees
Maker fee rebates: stakers get maker fee rebates (in addition to the standard FTT fee discounts) . These rebates stack with MM-level based maker rebates.
Free swag NFTs: stakers can spin the non-fungible swag wheel for a chance to win a free NFT, redeemable for FTX-themed swag or resellable at the NFT marketplace.
Bonus votes: stakers get bonus votes in our polls (in addition to the standard number of votes, based on FTT held and trading volume)
Increased airdrop rewards: stakers get increased SRM airdrops (and potentially later other airdrops and yield)
Waived blockchain fees: stakers get a number of free ERC20 and ETH withdrawals per day
Waived fiat fees: stakers get an extra free fiat withdrawal per week
IEO tickets: stakers get tickets for IEOs hosted in FTX

Digital wallet options and security

An FTX Token wallet is a wallet that enables you to interact with the blockchain so you can send and receive FTX tokens. Crypto wallets are software and come in many different forms. You can find them online, on your desktop, on your mobile apps, or even on hardware, physical devices. The point is to look at the various features each wallet has to see which one is best for you.

FTX offers a variety of electronic wallet options for its users. These include:

A desktop wallet that can be downloaded and installed on a computer.
A mobile wallet that can be downloaded and installed on a smartphone.
A web-based wallet that can be accessed through a web browser.
FTX also offers a cold storage option for its users. This is a type of storage that is not connected to the internet and is therefore considered to be more secure.

Industry-recognized security measures that FTX provides include the following:

A custom-built hot and cold wallet solution.
All hot wallet funds have full external backing.
Each account requiring two-factor authentication (2FA).
Password and optional 2FA for cryptocurrency withdrawals.
Relationships with top-tier custodians in the business.
High FTX identity verification levels.

Trading Fee

FTX has a trading fee of 0.02%. The exchange also charges the following fees:

Deposit Fee: The FTX exchange does not charge any deposit fee.
FTX Withdrawal Fee: FTX charges a 0.0004 BTC withdrawal fee.
FTX spot Fees: The platform charges a 0.02% trading fee.
OTC Exchanging Fees: The trading platform charges a 0.02% trading fee for OTC trades.
Margin Lending Fee: FTX exchange charges a 0.02% margin lending fee.

Maker fees and taker fees are the two types of exchanging fees. The maker fee in this instance is 0.02%, and the taker fee is 0.07%. If you trade a lot, you can reduce this to 0.0% and 0.04%, respectively.

Trading Fee — *Benefit of trading fees for FTT Holders*

Customer Service

The customer service of FTX is excellent and is highly appreciated by the customers. The service is efficient and provides a fast response to all the queries of the customers.

The user service of FTX is very helpful and provides all the necessary information to the customers. IT is also available 24/7 and is always ready to help the customers.

Customer Satisfaction

The customer satisfaction of FTX is quite high. The company has a Trustpilot score of 8.3/10, which is very good. However, there are some complaints about the client service of FTX.

Some customers have said that the customer support is not very responsive and that they have had to wait a long time for a response.

Account Management

FTX provides an account management interface that is designed to give users full control over their account settings and preferences. The interface includes a variety of features that allow users to manage their account settings, preferences, and security settings.

The account management interface also provides a variety of tools that allow users to monitor their account activity, view their account history, and manage their account passwords.

How to use FTX: A beginner’s guide

How to use FTX A beginner’s guide

If you’re a beginner in the world of cryptocurrency, you may have heard of FTX. FTX is a crypto exchange that offers a wide range of features and trading options.

In this guide, we’ll show you how to use FTX and what you can do on the platform.

How to open an FTX account?

Opening an FTX account is easy. Just follow these steps:

Step 1: Go to the FTX website and click on the “Sign Up” button.
Step 2: Enter your email address and create a password.
Step 3: Click on the “Create Account” button.
Step 4: Verify your email address.
Step 5: Deposit funds into your account.

Once you have followed these steps, you will have successfully opened an FTX account.

How to buy and sell cryptocurrencies on FTX?

Buying and selling cryptocurrencies on FTX is simple and straightforward. Just follow these steps:

Log in to your FTX account.
Go to the “Markets” page.
Select the trading pair that you want to trade.
Enter the amount of cryptocurrency that you want to buy or sell.
Click on the “Buy” or “Sell” button.

Your trade will now be executed.

Trading Experience

FTX is a top-tier cryptocurrency trading platform that offers a seamless trading experience. FTX is the native token of the platform and it is used to pay for trading costs. The platform is designed for both professional and retail traders. It has a wide range of features, including a user-friendly interface, low fees, and advanced order types.

The customer supporting has been excellent, and I have not had any problems with the platform. Overall, Cove Markets would definitely recommend FTX to anyone looking for a good online trading experience.

FAQs

Is FTX right for you?

This is a tough question to answer, as it really depends on your specific needs and goals. However, we can say that FTX is a great choice for experienced cryptocurrency traders who are looking for a reliable and feature-rich platform.

FTX also offers a variety of unique features, such as leveraged tokens and a futures market.

Does FTX require KYC?

Yes. In order to deposit and trade, you’ll need to complete KYC identity verification.

Is FTX Exchange safe?

Yes, FTX is a safe and secure cryptocurrency exchange.

We take security very seriously at FTX, and team has built a world-class platform with industry-leading security features. Your account is protected by two-factor authentication, and all funds are stored in offline cold wallets.

Can you use FTX in the US?

Residents of the United States can’t use FTX due to strict regulations in The US. But you can choose FTX.US instead with fewer crypto offerings.

What cryptocurrencies does FTX support?

FTX supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Additionally, FTX offers a number of unique digital assets, such as FTT (the native token of the FTX exchange).

What happens if I lose my FTX account information?

If you lose your FTX account information, you will not be able to access your account or any of the funds in it. However, you can contact FTX customer support and they may be able to help you recover your account.

Conclusion

FTX is a digital currency exchange that offers a variety of features and services. Overall, FTX is a safe and reliable exchange with a good reputation.

If you’re looking for a cryptocurrency exchange that offers a wide range of digital assets, then FTX is a great option. Sign up today and start trading!

Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.

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