FTX is one of the largest crypto exchanges today, which offers the facility of several order types and many markets where crypto enthusiasts can trade. Read on to know how FTX fares as a crypto exchange.
FTX is a cryptocurrency derivatives exchange and has continuously ranked in the top 10 Cryptocurrency Derivatives Exchanges list on CoinMarketCap. Cryptocurrency derivatives are contracts that allow investors to earn by speculating about the rise and fall in the price of an underlying asset or cryptocurrency. Derivatives include futures, options, leveraged tokens, swaps, forwards, etc.
|Name||FTX Crypto Derivatives Exchange|
|Fees (maximum)||Withdrawal- 0.10% Maker Fees- 0.020% Taker Fees- 0.070%|
|Payment Methods||Cryptocurrency, Wire Transfer, Credit Card, Silvergate & Signature|
|Supported fiat currencies||10+ including USD, EUR, GBP, AUD, CAD, CHF, HKD, SGD, ZAR|
|Mobile Application||Android | iPhone|
|Supported trading pairs||270+|
|Native token||FTX Token (FTT)|
|HQ Location||The Bahamas|
|Company Owner||FTX Trading LTD|
Types of Trading & Order Types Available on FTX
Types of Trading:
Let us explore the advanced trading instruments that the FTX exchange offers:
- Futures: FTX offers futures on cryptos such as BTC, BNB, ETH, DOGE, etc. To learn about futures, you can check out the information given by FTX here.
- Options: At the moment, FTX only offers BTC options. To learn about options, click here.
- Leveraged Tokens: FTX was the first exchange to introduce leveraged tokens. More information on Leveraged Token is given here.
- MOVE Contracts: MOVE contracts are unique to FTX and are offered at daily, weekly and quarterly intervals. FTX has provided a detailed guide on Move contracts.
- SPOT Markets: Although FTX is a derivative crypto exchange, it also allows spot (margin) trading in cryptocurrencies. To learn more, you can check here.
- Leveraged Token Spot Market: BVOL (Bitcoin Volatility Token) is an ERC20 (Ethereum-based) token that speculates the volatility of Bitcoin. You can get more details on this here.
Types of Orders:
- Stop-Loss Market
- Stop-Loss Limit
- Limit Order
- Market Order
- Trailing Stop
- Take Profit
- Take Profit Limit
Is Verification Required – Verification Levels
There are three verification levels at FTX with different levels of KYC compliance for individuals. They are as follows:
Tier 0: This tier provides zero ability for transactions and is only to explore FTX. The only KYC requirement is an email address.
Tier 1: Tier 1 allows a daily trading limit of $2000 with limited ability to trade futures. The KYC requirements are email address, legal name, date of birth, and country of residence.
Tier 2: Tier 2 allows unlimited trading abilities for crypto and fiat. The KYC requirements are a description of source assets, government-issued ID, and facial verification in addition to Tier 1 KYC requirements.
If you represent an institution such as an AMC, you will have to get Institutional KYC done.
The FTX fee structure is simple. They do not charge any deposit fees. As for withdrawal fees, traders are only charged for withdrawals in USD and BRL. Their fiat fees are explained here. Discounts and rebates are described here.
The tiered structure is as follows:
FTX Security Features
FTX uses several security features to protect its users’ interests. FTX uses SSL encryption for its website. It also has 2FA to prevent unauthenticated activities and protect users’ accounts. Since its launch, it hasn’t faced any cybersecurity incidence and has steered clear from any mishaps.
FTX Pros & Cons
The pros and cons of the FTX crypto exchange platform include:
- Low Fees compared to many of its peers
- Wide Range of Financial Instruments
- Mobile Apps are available
- Robust Security Features
- Several Trading and Order Types are available
- Restrictions in the USA
- Difficult for beginners
The FTX cryptocurrency derivatives exchange is a straightforward-to-use exchange without any complications. It has robust security, a wide-ranged offering of financial instruments, and easy to understand order types. The fees are very transparent, and excellent customer support is also available for users. FTX has established itself as a trailblazer in the crypto world with its innovative products and initiatives and is a great place to start trading cryptos. Recently, FTX.US was in the news for adding its Ethereum collectibles to the NFT marketplace. It is believed that the Star Atlas, a gaming platform, based on the Metaverse may be listed on the FTX crypto exchange.