What is FTX?
FTX is a Bahamian-based leading cryptocurrency exchange that specializes in cryptocurrency derivatives and more. Previously headquartered in Hong Kong, the now Bahamian-based FTX Exchange was made in an effort to provide traders with more options and security when trading. The founders used their success in crypto trading to create their own platform with user needs in mind.
FTX Exchange was founded by experienced and successful crypto traders Gary Wang, and Sam Bankman-Fried. Bankman-Fried, an MIT graduate and the CEO of Alameda Research, and Wang, a software engineer who previously worked at Google and Facebook, set out to create a new market for traders to use. The two founded FTX exchange in May of 2019.
What are the main services offered by FTX?
Traders that are making use of the FTX platform have a number of different services available to them. The platform was made to give traders more flexibility with their exchanges, and the services allow for that. Futures trading, Spot trading, Leveraged Tokens, and Volatility trading are all available to FTX traders.
Spot trading is available on FTX, and traders are offered over 100 different spot trading pairs. Users will have the opportunity to spot trade with some of the larger cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Binance coin. Even users of FTX.US will have access to over 50 of the spot trading pairs that are available on FTX. There is no betting or contracts involved with spot trading, as you make the trade with the intention of immediately receiving the underlying asset.
Traders using the platform may also exchange in futures contracts, allowing for long and short bets on some of the leading cryptocurrencies on the market. Investing in futures is a way to diversify your investments by betting on the future value of an asset. Futures will often allow traders access to assets that aren’t typically seen in other markets and increased leverage, making for a much more interesting and engaging investment.
The value of the futures contracts depends on the quantity and value of the derivatives underlying assets. Traders can use futures exchanging for hedging and trading speculation. Investors who are confident in the rising or falling value of a product can use the factors that influence the value of an instrument to make accurate long and short bets.
Traders on FTX will also be able to make bets on perpetual futures, which are a class of futures that will not expire over time. You’ll find that the price of these futures will be updated constantly to maintain its pace with the underlying asset of the derivative.
The highly leveraged nature of futures trading can magnify your returns. They can also magnify your losses. Futures trading is highly risky and should be done with the right experience and risk levels.
Traders on FTX can make use of the leveraged tokens, which are ERC20 based. The leveraged tokens allow traders to gain up to 3x their exposure against trade pairs. Leveraged tokens allow you to gain more, but also could lose you more at the same time. Unlike margin tokens of other platforms, leveraged tokens on FTX have no requirements when it comes to margin.
Margin trading on the other hand brings risks to traders, as it requires you to put up collateral and puts you at a liquidation risk. That’s not to say that leveraged tokens are without downsides, they just offer the holder of the token a leveraged position when trading on certain markets.
Volatility trading allows users to make exchanges based on the volatility of a currency or commodity rather than its actual value of it. Regardless of the value of the financial instrument itself, the trader has bet on its volatility. That means that you only gain money if the value has increased or decreased the amount that you had predicted.
As there are many factors that can influence the volatility of an instrument, it is up to traders to decide how they feel the value in a market will differ and can use that to make valuable trades.
Volatility trading is usually done with options trading. Bitcoin is the primary currency available to traders for options trading on FTX.
What is the FTT Token?
FTX has its own native utility token, called FTT. Traders can use this token as a means of reducing their trading fees when making exchanges. FTT can also be used as collateral for other trades and exchanges, such as futures.
A native utility token can only be used on the said platform but can be very valuable when there is a need for liquidation for buyouts and other fees that need to be paid when trading. The FTT utility token is not something that holds utility off of FTX, and cannot be used for reduced fees on other platforms.
Traders can also use FTT as a means of gaining interest, while also being given the chance to win NFTs. Made by traders, for traders, purchasing FTT benefits both you and the platform, allowing for more innovative changes to FTX in the future.
Is FTX safe to use?
Yes, when compared to other cryptocurrency trading platforms, FTX is safe for investors to use. There are a number of measures put into place to keep buyers and sellers safe during exchanges, and the risk of fraud when trading is very low.
One of the security measures that FTX Exchange uses is 2FA or two-factor authentication. 2FA allows users to tether their account security to more than one device - meaning that logging in requires more than just a password. The authentication can be done in a number of ways, such as Google Authenticator, or Authy. Even if your password were to become compromised, you can feel safe knowing that your accounts cannot be accessed without the second factor.
For traders worried about the security of their passwords, you can have a password generated for each trade or exchange you do, making it impossible for someone else to access your trading activity; due to a password that’s always changing.
Users may have concerns about trading on the platform and in the browser, but FTX is protected by SSL security, promising traders high-level encryption when entering or saving personal information on the website.
For traders who prefer not to keep their trading information online, FTX does make use of its own cold wallet and hardware wallet technology, and it’s built into the application itself. Your safety when trading is ensured, and you don’t have to worry about security if taken seriously.
A cold wallet or hardware wallet allows for users to keep their trading information offline, and on a device such as a USB stick. This allows for traders to keep their hardware wallets on them at all times, completely inaccessible to anyone else.
The platform also features a lock on your withdrawals whenever security information is changed. For example, if your 2FA is removed from your account, you may not be able to withdraw any of your wallets for the next 24 hours. If your account were to be breached, you would have 24 hours to change your password and details once more without losing any of your wallets.
2FA is becoming a standard for security due to its difficulty to bypass. So long as the person accessing the account has the secondary factor available to them, they can use their account freely. The only downside of 2FA is that it requires users to make sure they have the second factor readily available any time they need to log in, withdraw, or make a trade. It helps to make sure you use a convenient device that no one else can access for your 2FA.
Is FTX regulated?
FTX exchange is both licensed and regulated for residents of the Bahamas, where the headquarters is located. Outside of the Bahamas, users may not have access to all of the same services, due to legal and regulatory issues. However, there are separate branches such as FTX US and FTX Japan which offer users full access to the platform. However, using the platform in a location where the platform isn’t fully regulated may mean that you either are not permitted to use it or that you have some restrictions on what you can and cannot do while trading.
Users outside of a regulated area would have a different experience with the platform. Even if you are permitted to make transactions on the platform in your location, you may be limited to just a few of the services that FTX has available. For example, spot trading may be the only form of trading you are able to do when using FTX outside of the regulated locations. In other areas, users may not be able to make transactions at all.
Is FTX Insured?
As far as deposit insurance goes, there are many who believe that FTX is FDIC insured, which is incorrect. There are many security measures put into place to prevent fraudulent activity on the platform. No one should be able to gain access to your wallet if you take care when handling your security measures such as your password and your 2FA.
Customers should take caution when depositing tokens that are not supported by the platform, as it may be difficult to recover all of them. Customers who send their funds to the wrong address will be completely responsible, and FTX states that they will not take accountability for such errors.
In what countries is FTX available?
FTX offers its platform to many different users in different countries. While FTX.com is only regulated for the Bahamas, FTX US and FTX Japan users can make full use of the services offered by the platform.
Residents of other countries may make use of some of FTX.com’s services, however, not all services are permitted to traders outside of the regulated area.
It is stated that FTX does not onboard or provide services to corporate accounts that are located or established in the following locations: United States of America, Cuba, Crimea, Sevastopol, Iran, Afghanistan, Syria, North Korea, Ontario, or Antigua and Barbuda. As for personal accounts, FTX also states that it does not onboard or provide services to the following locations: United States of America, Cuba, Crimea, Sevastopol, Iran, Afghanistan, Syria, North Korea, Ontario, or Antigua and Barbuda.
How do I open an FTX account?
Opening your own FTX Account is easy. Simply head to FTX.com, and locate the register button in the top right corner of the page. You will be required to sign up with your email and a password of your choice. Your account will be registered, and all you need to do is get yourself set up. You can set up your profile by heading to the profile settings page, and navigating through all of the options from there.
Here you will have the opportunity to set up extra security steps like 2FA, and you will need to provide further proof of identity whenever you withdraw.
If you are a resident of the United States, head over to FTX.us to sign up. FTX.us is FTX’s platform for users based in the United States.
Withdraw from FTX
Withdraw to your bank account
If you have US dollars you would like to withdraw to your USD bank account, you can do so through your FTX wallet screen and selecting “Withdraw” on the “USD and Stablecoins” row. USD withdrawals to bank accounts are done via ACH Bank Transfer and take approximately 3 to 5 business days to complete.
Withdraw crypto from FTX
Withdrawing crypto from FTX is fast and easy. You can withdraw any of the assets they support by going to your FTX wallet screen and selecting the asset you wish to withdraw. Because transactions of the blockchain are irreversible, make sure your withdrawal wallet address is correct before confirming.
What sort of customer support does FTX offer?
If customers are having any difficulties with the platform or would like to raise a concern, you can make use of the support ticket function on FTX’s help page, or you can get in touch with the team themselves. Legal inquiries can be sent to email@example.com, and media inquiries can be sent to firstname.lastname@example.org.