- 1 What is FTX?
- 2 Some information about FTX exchange
- 3 Transaction fees on FTX
- 4 Deposit and withdrawal fees on FTX platform
- 5 Evaluate the advantages and disadvantages of FTX
- 6 Sign Up to FTX.com
- 7 Deposit / withdrawal instructions on FTX trading
- 8 Withdrawing on FTX.com
- 9 Experience trading on FTX trading
- 10 Guide to trading on FTX
- 11 Some questions about the FTX exchange
- 12 Our Verdict
The cryptocurrency market has been in downtrend so far for almost 2 years and the transactional demand of cryptocurrency users is increasing. Therefore, derivative products are continually being created to cater to consumer needs. In today’s article, Tipstrading will introduce everyone to FTX.com – an exchange that focuses on derivative products. So compared to competitors Huobi DM, Binance Futures and SnapEX, what characteristics FTX has, let’s find out with Tipstrading in this article.
What is FTX?
FTX exchange is an exchange founded by one of the most famous makers in the crypto market and providing the largest liquidity in the world – Alameda Research. Because FTX exchange is built by investors and for the investors themselves, so FTX exchange understands the psychology and wants of users.
FTX offers derivatives such as Spot (instant trading), Futures Contracts, Move Contracts, Leveraged Tokens (Margin) and OTC. The FTX has orientations to bring the best user experience such as:
- Solves most of the problems faced by current futures exchanges
- Develop as well as build more new products to meet the growing and transaction needs of users
- The FTX exchange is built for investors and traders. The FTX team will listen to customer feedback as quickly as possible.
Some information about FTX exchange
FTX is launched in April 2019 and is headquartered in Hong Kong
FTX’s owner is Sam Bankman-Fried and he is also a co-owner of the investment fund Alameda Research.
Transaction fees on FTX
Transaction fees on FTX have a fee structure by level as below table:
In which, BLP means Backstop Liquidity Provider Program. People can refer to here.
In addition, FTT holders will receive a discount on FTX transaction fees as follows:
Additionally, the coins used have a 0.1% creation and redemption fee and 0.03% per day management fee. Details here.
If using margin 50 times or more, the FTX exchange will increase the transaction fee by 0.05% per transaction. A quarter of that will be paid to the exchange’s insurance fund. Details here.
Deposit and withdrawal fees on FTX platform
Evaluate the advantages and disadvantages of FTX
- No fee is charged and withdrawn
- Supports multiple languages
- Never been hacked, very rarely and almost no lag or serious errors occur with the system
- There are FTT tokens in the ecosystem
- The amount of coin and Altcoins on the exchange is relatively complete compared to rival exchanges. Among them include: FTT, BTC, XTZ (just listed), MATIC, ETH, TOMO, ALGO, LEO, OKB, EOS, XRP, BTMX, BCH, ATOM, TRX, BNB, LINK, ADA, BSV, LTC, USDT, ETC, HT. DOGE, EXCH.
- In addition, FTX also allows trading indices such as SHIT, MID, DRGN, ALT. This is something only FTX has.
- Less battle-tested than competitors like BitMEX
- UI looks clunky
FTX exchange reviews
Sign Up to FTX.com
Now we’ve explored the features of FTX.com, let’s discover how you can start using the platform. To start trading on FTX.com, you’ll first need to create an account.
Sign Up To FTX Through The below Button to Get A 5% Discount on all TradesSign Up To FTX
The sign-up process is very easy, and to open an account you only need to provide your email address, and create a password. Once you’ve confirmed your email, you can start using FTX.com.
Know your customer, or ‘KYC’, isn’t essential to trade on FTX.com, but if you don’t complete it, you’ll be limited to withdrawing just $1,000.
We strongly recommend that you complete identity verification, as not only will you be able to withdraw more, it will also increase your account’s security.
To complete KYC, you’ll need a form of identification, such as a driver’s license or passport, and some proof of residence, like a bank statement or utility bill to verify your identity.
Deposit / withdrawal instructions on FTX trading
You’ll need to go through a crypto-fiat gateway to purchase a USD-backed stablecoin such as BUSD or USDC. You can get both on Binance for example, or USDC on coinbase.
Once you’ve bought some BUSD, select it from the USD stable coin list on FTX. You’ll see a lightbox appear with your deposit address, and the option to generate a QR-code address – particularly useful if you’re depositing from a smartphone.
Double check the address is correct, and send over your BUSD or other USD-backed stablecoin to this address, and your account will be credited! It’s that simple. For BTC and other cryptocurrency deposits on FTX, this process is exactly the same, however you also have the option to make a purchase for some crypto’s with a credit card.
Credit card purchases on FTX.com are processed through Simplex – just like on Binance – who settle the purchase externally and then send your BTC or crypto to your FTX.com account automatically. Simplex support most major credit cards.
Users should be aware that BTC and other crypto purchases through Simplex are not processed by FTX directly, and are subject to their own fees.
Withdrawing on FTX.com
You can’t withdraw straight to a bank account on FTX.com. Instead, you’ll need to either withdraw a USD stablecoin if you want a USD withdrawal, or withdraw a crypto asset to a wallet you control.
Just like depositing, you’ll simply click ‘withdraw’ next to your chosen asset, and a lightbox will appear where you can enter your wallet address. Make sure the wallet where you’re withdrawing funds supports the asset that you’re withdrawing!
Enter the amount you want to withdraw, then paste in your wallet address. You can save and name this wallet for easy access in the future. You’ll need to generate a 2FA code using the button at the bottom right of the lightbox, after which you can click withdraw.
How quickly the funds arrive in your wallet will depend on the block times of the asset you’re withdrawing.
Experience trading on FTX trading
- Note that the transaction amount cannot be more than the current balance in the account
- Each FTX coin has different leverage
- Fee for order maintenance
- Distinguish and understand MOVE Contracts and Futures Contracts
- Always use Stop-Limit order to minimize risk.
Guide to trading on FTX
Before instructing you to trade, you need to know that FTX has 5 crypto-related products: Spot (instant trading), Futures Contracts (Futures), Move Contracts, Leveraged Tokens (Margin ) and OTC.
FTX also offers European-style options contracts for Bitcoin, which cash-expire in USD. Options contracts give traders the right, but not an obligation, to purchase or sell an underlying asset at a predetermined price, on a set date. Options contracts can be opened as either a call or a put, which is ‘right to buy’ (bullish) and ‘right to sell’ (bearish) respectively.
For example, if a trader opens a call for BTC at a $7,000 strike price, but the price reaches $7,100 by the time the contract expires, the trader would have a right to buy $7,100 worth of BTC for $7,000. This options position would cash settle at $100.
Like futures contracts, users can trade long or short with leverage on options contracts. FTX’s options are highly customizable, with users able to set any combination of strike price and expiration time at contract open.
Once a trader has set their options up, they can request a quote from FTX, who will generate a bid or offer for the option contract in just 10 seconds. Traders can either accept the options contract, or choose not to trade.
Another industry-first trading product developed by FTX are their ‘MOVE’ contracts. As the name suggests, MOVE contracts represent the amount that an underlying asset moves in a set trading period.
For example, if Bitcoin starts trading at the start of the day at $7,000, and closes the day at $7,100, the MOVE contract would expire at $100. Opening a long position on a MOVE contract will pay out for a trader if BTC moves significantly in the day following the contract open, whereas opening a short position will pay out if BTC remains fairly stable.
MOVE contracts can also be opened with leverage, like other futures contracts.
FTX.com offer three types of MOVE contracts, including:
- Daily – These MOVE contracts expire after just one day, making them an interesting trading product for day traders who like positions closed by the end of the day.
- Weekly – Weekly MOVE contracts expire within a 7 day period, although this doesn’t necessarily correspond to a calendar week.
- Quarterly – The Quarterly MOVE contracts expire roughly every 3 month period, which is well suited to long-term traders.
There isn’t any other trading product similar to MOVE contracts available to crypto traders at present, and the feature has brought in a large number of users to the exchange.
Leveraged Tokens (BULL & BEAR)
A unique trading instrument to FTX, leveraged tokens are a trading instrument which allows users to buy a token using USD that tracks the price of an underlying position on a digital asset.
This sounds complex at first, but an easy example is their ADABULL token, which is a 3x long Cardano token. This is a minted ERC20 token which represents a 3x leveraged basket of ADA futures. By buying the ADABULL token, traders are able to easily long or short an underlying digital asset – including a large variety of altcoins as you can see in the screenshot below.
Leveraged tokens which are a 3x BULL token will move each day around 3 times the value of the underlying asset, and vice versa for a BEAR token. This means that over a long time period, buying a BULL or BEAR token can outperform the underlying asset itself.
These tokens represent a simple way for traders to open a position with automated leverage. Each BULL or BEAR token automatically rebalances itself throughout the day to maintain it’s target leverage, which reduces the likelihood of liquidation. This would require time and effort on the traders part to maintain themselves.
FTX believes that letting traders access leveraged tokens will reduce the time they take micromanaging their risk or collateral, and as they are standalone ERC20 tokens, each BULL or BEAR token can be withdrawn from FTX and traded elsewhere or transferred peer-to-peer.
Some questions about the FTX exchange
Should we use FTX exchange for trading?
Like Binance Futures or SnapEX, FTX is a margin exchange, with high leverage for trading. If you have experience in margin trading, you can try using FTX, but if you do not have or do not have experience in leveraged trading, then I think you should practice or learn more carefully to avoid losing money due to leveraged trading (because high returns also come with extremely high risks).
What trading markets does FTX have?
Currently, FTX supports 5 main trading markets: Spot (instant trading), Futures Contracts, Move Contracts, Leveraged Tokens (Margin) and OTC.
Do FTX exchanges have their own tokens?
FTT is an ecosystem token, similar to BNB for Binance, specifically developed for FTX.com and their trading products. FTT holders have access to certain perks on the FTX exchange, including:
- Weekly buying and burning of fees
- Lower FTX trading fees
- Collateral for futures trading
- Socialized gains from the insurance fund
There is a lower fee structure for FTT holders, which we’ll look at in our fee section below. Eventually, FTX will burn at least half of all FTT tokens, including any FTT tokens which are used to pay fees on the exchange, creating a scarce supply.
What country is FTX?
FTX is owned by FTX Trading LTD, a company established in two island countries in the east of the Caribbean Sea, namely Antigua and Barbuda.
Overall, FTX.com is by far one of the most professional and advanced crypto derivatives exchanges in the cryptocurrency industry today.
One of the best features of FTX is the huge range of trading products available. Their MOVE contracts and President 2020 trading instruments aren’t available anywhere else, which provides an opportunity for traders to diversify their exposure away from the traditional crypto markets.
If you’re looking to trade on a crypto derivatives exchange with guaranteed liquidity, an advanced trading interface & underlying infrastructure, and high security, then FTX.com should be your first choice.