FTX, a centralized, global cryptocurrency exchange, is unique in that it offers innovative products such as derivatives, options and leveraged tokens. It supports over 300 cryptocurrencies, which is quite a large number when compared to some of its competitors.
However, there are risks associated with cryptocurrency investing, such as token volatility and losses due to exchange hacks. As more companies become involved in crypto trading and investing, more people feel comfortable.
Cryptocurrencies on FTX
FTX offers spot trading with more than 300 cryptocurrencies. This is a partial listing of the assets that are available on this exchange.
FTX has many features and acknowledges that it can be difficult for new users to find them. The exchange offers an overview guide to help with this problem.
The FTX website also clearly outlines important information. The exchange provides clear instructions for anyone interested in staking FTX token FTT. The exchange notes that unstaking takes 14 working days and that tokens used for unstaking will not be counted towards staking rewards. Users who wish to quickly unstake can pay a fee.
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73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
You will find many articles explaining FTX’s terms and regulations. Margin trading is one example. This product is important for the exchange. It is able to clearly explain the terms of these transactions, given the complexity of margin trading. What triggers a margin trade is one of the most crucial things for those who are interested in margin trading.
FTX clearly states that a user’s account may be liquidated if the Margin Fraction falls below the Maintenance Margin Fraction. It takes the example of a customer with a maintenance margin fraction of 6%. Liquidation will be initiated if the customer’s leverage is 16.66x.
This exchange’s trading fees are extremely low. Discounts are available for high-volume traders as well as those who hold the FTX native token.
|Transfer to Bank Account||0.020%-0.070% (Maker-Taker)|
|USD Wallet Transfer||0.020%-0.070% (Maker-Taker)|
|Purchase of a Debit/Credit card||$0.3 + 0.29% (Deposit Fees)|
|ACH Transfer||No deposit fees|
|Wire Transfer||No deposit fees|
|Crypto Conversion||There are no fees|
FTX Trading Fees
FTX offers a tiered pricing structure for trading fees. This allows traders who trade in greater volumes to receive discounts. The price is based on a Maker Taker fee assignment.
Users who place orders at the market price and get filled immediately are called “takers.” However, if an order is not immediately matched, it goes into the order book until a match is made. The fees below illustrate the differences between takers and makers.
|30 Day Volume||Maker||Taker|
Users who hold the native FTT token can also get discounts. For $100, you can get a 3% discount and up to 60% for $5,000,000.
FTX provides the most advanced crypto exchange security. It requires two-factor authentication, allows you to lock your accounts and can even set up passwords to withdraw.
Here are a few security features that FTX offers:
- Two-factor authentication: FTX requires two-factor authentication (2FA) via an authenticator app like Google Authenticator. You can also use 2FA for Hardway keys.
- Withdrawal lock: FTX locks withdrawals for 24 hours following major account changes such as the removal or modification of a password.
- Subaccounts can be created with FTX. They have restricted permissions. This feature is ideal for users who want to restrict access to their accounts from multiple people.
- Whitelisting approved addresses is required by FTX. This allows access to only those withdrawal wallet addresses that have been approved to be whitelisted.
- Third-party monitoring: FTX works with Chainalysis in order to monitor suspicious activity on the exchange and transactional activities; Chainalysis immediately alerts the security staff.
Futures trading can be done using FTX. These futures can be traded as either quarterly or permanent trades. Futures trading is possible with more than 20 popular cryptocurrency. It is now listed in the Index Futures, which allows users to easily invest in different sections of the market.
The platform allows for 101x leverage. This maximum leverage is set for each trading account. As a precaution, a default leverage of 10x is applied. The trading platform supports more than 45 leveraged tokens. These tokens are easy to use, allowing users to leverage the BEAR and BULL techniques.
BTC Options is a special trading segment on FTX. This service allows users to trade various Bitcoin options via smart contracts. FTX, a cryptocurrency derivatives platform, allows traders to receive cash in USD if they invest large amounts in BTC options. Users can instantly make profits shorting Bitcoin options by taking advantage of the ‘right-to-buy’ and ‘right-to sell’ positions.
MOVE is a groundbreaking smart contract developed by FTX. This contract allows users to trade futures with raw BTC. It also moves funds within a specific time period, such as quarterly or monthly, weekly or daily.
Pros and Cons
|This platform allows you to easily complete KYC and increase your trading limit.||Leveraged tokens on FTX can be risky investments|
|This platform is a leader in trading crypto derivatives||As a relatively new platform in crypto space, it is a risky option.|
|Guarantees liquidity for all of its users|
|FTX charges very low fees for all its tradable services and products|
|Through the Simplex gateway, cryptocurrency can also be purchased via credit cards.|
FTX is one of the most well-known and largest cryptocurrency exchanges on the market. It has been around for three years. This exchange is also a prominent advocate for cryptocurrency regulations. Officials at FTX say that they will continue to comply with regulators. FTX offers both novice and advanced traders low trading fees as well as features that are attractive to them.
All this makes FTX a great choice for crypto traders looking for a quality, value-driven cryptocurrency exchange that meets their needs.