FTX Review 2022: Should You Use This Crypto Exchange for Trading?
Cryptocurrency exchanges make buying, selling, and trading cryptocurrencies like Ether (ETH) as well as Bitcoin (BTC). We’ll look at one of the most well-known exchanges in the United States (FTX.US), which is both safe and reputable solutions. Not just the US, FTX is available in multiple countries including India (FTX.COM)
FTX allows you access to the Spot and futures trading markets and in the simplest form. This, however, is only a small part of what the platform has to offer. I found the cryptocurrency exchange to be innovative, inventive, and seems to have various unique characteristics that have the potential to revolutionise the cryptocurrency trading industry.
FTX has been successfully established as being among the top five derivatives exchanges in respect of daily trading volume ever since inception. This comprehensive FTX review will take you through the exchange’s various products, supported markets, capabilities, as well as fees for getting started trading.
What we are going to learn?
About FTX: A Centralised Exchange That Can be Trusted Even on Most Volatile Days
FTX is a centralised worldwide cryptocurrency exchange that sets itself apart from the competition by delivering cutting-edge products such as futures, options, as well as leveraged tokens. It also supports over 300 different cryptocurrencies, which is a lot more than some of its competitors.
FTX, a Bahamas-based cryptocurrency exchange, entered the market in 2019 with the aim to become the world’s premier platform for trading tokens. It’s already a top centralised crypto exchange worth over $18 billion, barely a few years after its creation.
FTX has a number of products which may appeal to both newbies to cryptocurrency as well as experienced traders.
On its platform, FTX offers spot trading to new investors. FTX allows skilled traders to trade futures, equities, as well as leveraged tokens.
What I like most about the FTX exchange is that even on high volatile days, when other exchanges halt their trading due to excess traffic, I have always found FTX to be up and ready for the traders.
This is why I recommend FTX over other crypto exchanges, even though their affiliate commission sucks. Haha!
How does FTX Crypto Exchange work?
The FTX cryptocurrency exchange is a centralised cryptocurrency exchange. It provides a web platform as well as a mobile app for buying, selling, and trading cryptocurrency.
There really are two FTX platforms to choose from. Clients outside of the United States can use the primary FTX platform. It has a broader range of coins and much more services, such as crypto derivatives trading. Customers in all states excluding New York can use the more basic FTX.US service.
You can deposit money using an ACH bank transfer or a wire transfer after you sign up for just an FTX account as well as verify your identification. Once the funds are accessible, you can use them to purchase any of the cryptos offered by FTX.
You can also stake your crypto assets on FTX to grow them. You can check which resources are available to stake in your FTX account. After that, you can stake your cryptocurrency to receive up to 8% in rewards.
FTX’s Native Token: FTT
FTX has introduced its native token, which constitutes the core of the FTX ecosystem, to keep up with some other cryptocurrency exchanges.
FTX has quickly risen to be among the top 50 cryptocurrencies in terms of market capitalization. FTX also intends to burn roughly half of the FTT token supply in order to generate scarcity in the marketplace and therefore drive up demand.
Many notable cryptocurrency exchanges, such as Binance, have FTT listed. BitMEX, CoinEx, while others are just a few examples. Spot markets like FTT/USD, FTT/USDT, as well as FTT/BTC allow you to trade FTT.
FTT token holders receive a number of perks in addition to being a trading asset. The token, for instance, offers decreased trading fees and also socialised gains through the FTT insurance fund.
Users can also utilise FTT as a form of futures trading collateral.
FTT Staking: How to Make Money Staking on FTT and other cryptocurrencies on FTX
Traders are also encouraged to stake FTT just on exchange through FTX. There are several unique advantages associated with this, including:
- Stakers have a distinct maker fee structure that takes precedence over the standard fee schedule. This is on top of the existing FTT discounts.
- FTT holders receive bonus votes.
- SRM airdrop prices have been increased, SRM is the Serum ecosystem’s native token. Throughout time, FTX plans to distribute 5% of the entire supply of SRM to FTT holders.
- Improved referral rebate rates, traders who stake FTT gain a greater proportion of their referee fees in FTX’s affiliate programme.
- Stakers also get to participate in IEOs conducted by FTX platform based on their staked volume
- Users can unstake thier FTT after staking for a minimum of 14 days. If someones wishes to unstake before it, they can do so by paying a penalty. Also the interest earned during the period will be nulled.
- FTT Stakers also receive free ERC20 withdrawals daily.
Features I like About FTX Crypto Exchange
Low trading fees is one of FTX’s primary attractions. Fees for both makers as well as takers begin at 0.10 percent and 0.40 percent, respectively.
These starting rates are now lower than the fees charged by several of the top Bitcoin exchanges. With FTX, high-volume traders could also qualify for cheaper costs.
A large number of cryptocurrencies are available.
FTX offers over 300 different cryptocurrencies, significantly more than many other exchanges. FTX.US features a smaller selection of cryptocurrencies, with only 22 available. That’s still a respectable sum, and it comprises Bitcoin, a slew of altcoins, as well as a couple of stablecoins. However, unlike the exchange’s international platform, it is not particularly a strong suit for FTX.US.
Earn at least to 8% on your investments.
Staking is available on FTX. Staking your crypto using FTX earns you benefits depends on the quantity staked, similar to receiving interest on a bank account. If you want to exchange your cryptocurrency, you could unstake it at any time. Staking returns vary, but can be as high as 8%.
Not just FTT, you can also stake SRM, SOL and RAY.
Advanced Order Types
FTX gives the following advanced order types in addition to the normal market order:
- Orders with a stop-loss limit
- Market orders with a stop-loss clause
- Trailing stop
- Take profit
- Take profit limit orders
Margin trading is available to qualified individuals with at least $100,000 on FTX.US. This gives you up to ten times the leverage. Margin trading is indeed a high-risk approach that exposes your account to liquidation, thus it’s not suggested for newcomers.
FTX is a cryptocurrency exchange that specialises on non-fungible tokens (NFTs). These tokens are popular among digital art enthusiasts because they prove ownership of digital items. You could bid on and buy NFTs on FTX and FTX.US. You could also mint (produce) your own NFTs as well as sell them on the secondary market. FTX is my favourite exchange for trading Solana NFTs.
The exchange provides the FTX Card, which is a virtual debit card. It could be used to pay for online transactions utilizing your FTX.US balance. If your balance in US dollars is insufficient, FTX would convert your other coins to fulfill the purchase. FTX.US currently only provides a virtual debit card, however this could change in the near future.
FTX Trading Fees: Are they providing the lowest trading fee?
When utilising FTX, you should be aware of a number of trading fees as well as commissions, which we go over in greater detail here.
When you purchase and sell bitcoin on FTX.US, you will be charged trading fees. Certain sorts of withdrawals and deposits are also subject to fees.
FTX.US provides a tiered fee structure for cryptocurrency trading. The amount you pay in fees is determined by your 30-day trading volume in US dollars. A maker-taker model is also used in the exchange. That really is, if you make a market order that is instantly filled, then you pay the taker fee, and if you make a purchase that is not even instantly filled, you get the maker fee.
|30-DAY TRADING VOLUME||MAKER/TAKER FEES|
|$0||0.10% / 0.40%|
|Over $100,000||0.08% / 0.30%|
|Over $500,000||0.06% / 0.20%|
|Over $1,000,000||0.05% / 0.15%|
|Over $5,000,000||0.04% / 0.10%|
|Over $10,000,000||0.03% / 0.08%|
|Over $15,000,000||0.02% / 0.07%|
|Over $30,000,000||0.01% / 0.06%|
|Over $50,000,000||0.00% / 0.05%|
Fees for deposits and withdrawals vary. Wire deposits as well as withdrawals are currently free, however FTX.US retains the right to apply a 1% wire transfer fee (with such a $5 minimum as well as a $35 maximum).
With several exclusions, the normal ACH bank transfer charge with FTX.US is $0.50:
- FTX renounces the fee when you’ve never properly deposited through ACH before.
- FTX renounces the fee for transfers over $10 even if you’ve never deposited through ACH in the last week.
- If you’ve made an ACH deposit in the previous week, FTX will eliminate the fee for transactions over $100.
FTX VIP Account
Professional traders get access to a special VIP programme at FTX. This contains a number of benefits, including:
- Lower trading commissions
- Account managers that are dedicated to their clients
- API limits that are flexible
- Direct contact with senior programmers
- A way to provide feedback on new FTX products
How to Set up an FTX Account?
It’s straightforward to open an account with FTX. From start to finish, the exchange takes you through the process from beginning to end. To get started, you’ll need to double-enter your email address as well as establish a secure password.
In terms of trading crypto or making deposits, FTX needs new clients to authenticate their identities after creating an account. Individuals who have not been verified can just sign in to your accounts and browse the platform.
Those that supply some basic information, such as their complete name, birthday, as well as country of residence, are granted limited access to the system and therefore are restricted in their withdrawals. Entire platform access, and also limitless deposits and withdrawals, are available to users who complete FTX’s full verification process, which involves giving proof of address, presenting a government-issued ID, as well as completing facial recognition.
Requirements for KYC Verification
KYC is a must for trading on FTX.COM entity.
However, for FTX.US, there are three levels of account verification have been established by the exchange.
To begin trading on Tier 0, you only have to give an email address. Your daily limits, however, would be set at $1,000.
Tier 2 requires you to provide your country of residence and grants you a daily trading limit of $2,000 USD per day.
Tier 3 requires photo identification, proof of address, as well as evidence of income.
As a result, trade volumes as well as withdrawal requests would be infinite.
FTX Insurance Fund
Given that FTX permits for leverage of up to 20x, it’s only natural that perhaps the platform has adequate insurance funds in place to protect customers.
This insurance fund would be used to compensate traders who have been forced to terminate their positions at a loss if the FTX liquidation brakes fail. For example, the deployment of this insurance fund might be triggered by an unanticipated as well as unexpected drop in the price of Bitcoin.
There in event that the this insurance fund is inadequate to compensate clients, FTX had set aside about 5% of non-FTX held FTT tokens as a backup.
Traditionally, the FTX insurance fund has grown in size during periods of extreme volatility. ‘Socialized gains.’, these higher profits are distributed to FTT token holders.
5 Reasons why I use FTX and how it saves me money
Save money on withdrawals
If you stake 25 FTT, you can a free ERC 20 withdrawal everyday. Long term, you can save a lot of money. You can send crypto to your friends, any other exchange or your private wallet for free.
Earn Interest on your Crypto
You can loan out your crypto and earn interest. You can earn around 10 percent per annum on your stable. The rate keeps changing, however, anything is better than nothing.
Using Sub Accounts, I can save Keep My Transactions Private
You can create sub accounts and deposit tokens to new addresses everytime. This way, you can keep your holdings private from someone who knows your wallet address.
Save Money on Trading Fee
Depending upon how much FTT is staked, you can save and even earn money by taking a trade on FTT.
Stablecoins are same
Many a times, since I invest in private rounds, I am required to send a particular stablecoin. Let’s say I have 10000 BUSD. And I am needed to send 10000 USDT, then all I need to do is to deposit the USDT on FTX and withdraw in BUSD without actually taking a trade. This way I save a lot of money, and you can do it too.
Is FTX a safe place to keep your cryptocurrency?
On both its international as well as domestic exchanges, FTX maintains rigorous security standards. Neither has always been the subject of a security issue, including a data breach or a theft, as of yet.
With FTX, two-factor authentication is required. The Authy or Google Authenticator apps are recommended by the exchange, but there are also other 2FA solutions as well. For all withdrawals on your account, FTX additionally enables you to need 2FA and a different password.
To even further protect accounts, FTX provides IP as well as wallet whitelisting. Only IP addresses on your whitelist will be able to log in to your account. You can also whitelist crypto wallet addresses such that withdrawals are limited to those on your whitelist.
Plaid, a technology that securely transports data from banks to FTX, is used to make bank transactions on FTX. 11,000 financial institutions in North America and Europe use Plaid as their preferred method of transmission.
Although it is one of the safest crypto exchanges, I would only use it to trade cryptocurrencies. I will not hold majority of my cryptocurrency in FTX or any other centralised crypto exchanges.
For that, I always use my private wallet.
But for anyone who holds very small amount of crypto, FTX is a safe bet.
For both newbies to cryptocurrencies and seasoned traders, FTX is a fantastic choice of crypto exchange. They’ve done an excellent job of developing an advanced trading platform, featuring a wide range of investment markets including futures, currency, volatility products, as well as leveraged tokens. Fees start at just 0.02 percent for makers as well as 0.07 percent for takers, with savings available for significant trading volumes and sometimes just holding FTT coins.