Why is FTX the best exchange?
In its simplest form, FTX is a cryptocurrency exchange that gives you access to the derivatives trading markets. However, this is just a small segment of what the platform offers.
FTX is original, inventive, and has several unique features that can take the cryptocurrency trading scene to the next level.
In the short time since its launch, FTX has established itself as one of the top five derivatives exchanges in terms of daily trading volume.
This detailed FTX review will walk you through the different products on offer, supported marketplaces, functionalities, and the fees involved to start trading on the exchange.
As an exchange, FTX seems positioned to perform well in the long run, which bodes well for FTT.
It has a great team and a clear business plan that sets out both the problems it wants to solve and how it proposes to address them. And, unlike many cryptocurrencies, it has a straightforward use case.
What are the benefits of FTX Exchange?
- User-friendly Interface – FTX has a very interactive website interface in which a user can customize chart view based on his or her requirements.
- Mobile App – The exchange has a mobile application for android and IOS devices to keep the user updated on the go. The app is fully functional and if you enjoy trading on mobile, the app will keep you engaged.
- Community and Social Media Presence – FTX has a substantial social media presence.
FTX is a cryptocurrency exchange that has become increasingly popular. The trading platform was founded in 2018 and has become one of the largest Bitcoin & Crypto exchanges in the world by volume.
It was co-founded by Sam Bankman-Fried and Gary Wang with the backing of Alameda Research.
The team at FTX come from top Wall Street quant firms and technology companies.
Some of the main features of the FTX cryptocurrency derivatives exchange include:
- Up to 101x leverage trading
- Prediction markets
- Crypto staking
- Referral program
- Spot and margin trading
- Fiat deposits and withdrawals
- Free withdrawals (when you hold FTT)
- Stock trading with crypto collateral
- Mobile apps for IOS & Android (Google Play)
- Regular trading competitions with huge prizes
What features does FTX Exchange offer?
The major features of the exchange are as follows:
Types of Supported Transactions
Spot and Futures Trading
A user can trade on the spot as well as the futures market through FTX. Further, the futures contracts on FTX are settled in stablecoin i.e. futures contracts are BTC/USD and not USD/BTC. Using stablecoins as collateral vastly simplifies the user experience, and also substantially decreases margin requirements and trading costs.
FTX has Index futures as well through which a user can trade on an entire sector of the cryptocurrency ecosystem. Thus, spreading his / her risk exposure. For Eg: FTX has a Shitcoin Index Perpetual Futures and an Altcoin Index Perpetual Future.
Further, a specific category of futures contract “Move contracts” allows you to trade on the movement of the price of a specific cryptocurrency by risking only a small amount.
Tokenized stocks are the token form of traditional equity stocks. FTX offers many tokenized stocks such as Tesla, Amazon, Apple, Nokia, and many more.
Please note that all these tokens are routed by FTX through a third-party organization CM Equity which is regulated in Germany. Further, CM-Equity provides the custody of the equities to a third-party brokerage firm. In short, these tokenized tokens are provided to you by CM Equity through FTX.
FTX’s leverage tokens free you from micromanaging your collateral or risk. These are ERC20 tokens that have leveraged exposure to crypto.
There are 4 types of leveraged coins:
- BULL (+3x),
- BEAR (-3x),
- HEDGE (-1x), and
- HALF (+0.5x).
Their BULL and BEAR leverage tokens automatically manage their exposure, rebalancing to maintain their target leverage and prevent liquidations. As they are ERC20 tokens, you can withdraw them from the platform and trade them.
These are futures contracts that are similar to conventional betting. A user can bet on a real-world event. If you win, the contract will be settled at 100% and if you lose, the contract will be settled at 0%.
For Example, There is a Trump2024 futures which will mature at USD 1 if Mr. Donald Trump becomes president in the 2024 US elections. FTX also launched futures for SuperBowl teams.
Other Features of FTX Exchange:
Alameda Research has an OTC platform for bulk traders of cryptocurrencies. To give their OTC counterparties easy access to derivatives, their OTC platform has been integrated with FTX Exchange.
FTX.com provides an option to stake your cryptocurrency and earn staking rewards on the same. Currently, this is available only on 4 tokens.
Centralized Collateral Wallet
With existing futures exchanges, collateral is fragmented across many separate tokens and margin wallets. This makes it difficult for traders to rebalance and prevent positions from getting liquidated. To solve these issues, FTX derivatives are stablecoin-settled and require only one universal margin wallet.
Each subaccount has one central collateral wallet and uses cross margining for the account.
With this feature, a user can convert his or her small balances into FTT Token (an inhouse token of FTX Exchange, more on this later).
Note: Users from the USA cannot trade on FTX.com, but residents of the United States can trade on FTX.US (there is a different mobile application for FTX.US)
FTX Mobile app:
I can’t imagine a world class exchange without a mobile trading app. FTX offers a fully functional mobile app which works on iOS and Android. In my testing, the app is blazing fast, and gave better experience than the web version of FTX.