FTX exchange review: Next Generation Derivatives Platform?

FTX.com is a crypto exchange created by Alameda Research, one of the major cryptocurrency liquidity providers. Founded in 2017, Alameda Research manages more than US$100 million in digital assets and trades over US$1 billion in thousands of products every day. The company behind FTX.com is FTX Trading LTD, incorporated in Antigua and Barbuda.

FTX exchange review: Next Generation Derivatives Platform?

General information

FTX.com provides a variety of trading options for experienced traders. More than ten different altcoins can be used for trading with low fees and spread. In-depth orders ensure fast execution, and you can conduct margin trading with up to 101 times leverage. Among the first exchanges on the market, FTX.com also provides index futures with cryptocurrencies settled in stable currencies. Many features, native tokens and mobile apps can help traders make the most of cryptocurrency trading on FTX.com

FTX.com is a crypto exchange created by Alameda Research, one of the major cryptocurrency liquidity providers. Founded in 2017, Alameda Research manages more than US$100 million in digital assets and trades over US$1 billion in thousands of products every day. The company behind FTX.com is FTX Trading LTD, incorporated in Antigua and Barbuda.

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This private company was founded in 2018, and the current CEO and founder is Sam Bankman-Fried. Sam works at the FTX Hong Kong headquarters and is also the CEO of Alameda Research. Before joining the cryptocurrency space, Fried was a trader on Jane Street, a New York-based quantitative trading company focused on technology. He holds a degree in physics from the Massachusetts Institute of Technology (MIT) and graduated in 2014.

The company is active on two social media platforms, and you can find them on Facebook, where they often share pictures and stories of the daily life of the CEO and the office.Or you can subscribe to their channel on YouTube to get a deeper understanding of how the products on FTX.com work and the trading situation in real trading. In their blog, you can read a lot of useful information about cryptocurrency transactions, the overall operation of the platform and the market, and often collaborate with Alameda Research to share interesting research. These articles are also cross-shared on Twitter. If you want to contact FTX.com, you can contact them via Telegram and WeChat.

Advantages of FTX

  1. Preventing returns: Using the three-level clearing model of the clearing engine, FTX greatly reduces the possibility of returns. 
  2. Centralized Mortgage Pool and Universal Stable Currency Settlement: FTX derivative products are settled in stable currency and only require a universal guaranteed money package Innovation.
  3. FTX is constantly developing new products (such as leverage tokens) to meet the changing needs of the market.
  4. FTX exchange platform allows to trade with margin, up to x101 leverage.
  5. Spot-There are 30 USD, USDT, BTC and BRL trading pairs on the spot platform. The most liquid currency pair is BTC/USD.
  6. Various trading indicators, market depth indicator, price charts. This can be used when the activity is carried out on a resource that has a scarce arsenal of analytical tools.
  7. Consistently providing new trading competitions and events.
  8. API key interface, allowing to manage trading from internal desk or trading through bots.
  9. Affiliate system which give your referrals 10% discount on trading fees for 6 months. 
  10. An impressive amount of available training information and useful information.
  11. Consultants of FTX exchange work all days round the clock, besides there are many communication channels available – phone, leading social networks, messengers and email.
  12. Own FTT token through which traders receive discount on trading fees. Gets bought back by exchange itself, so the token value increase in time.
  13. Very good affiliate program letting create your own affiliate company, giving a discount 5% on trading fees for referrals.

List of available trading pairs and leverage

FTX has quarterly and perpetual futures on 29 different cryptocurrencies. These include major cryptocurrencies such as BTC, ETH, ETC, BCH, BSV, USDT, BNB and many others. The maximum leverage on exchange on some pairs goes is up to 101 times the balance.

Moreover FTX got their own leveraged tokens such as BEAR/USD, BULL/USD, ETHBEAR/USD, BSVBEAR/USD, XTZBULL/USD, BSVBULL/USD, ETHBULL/USD, LINKBEAR/USD, ALGOBULL/USD, LINKBULL/USD, TRXBULL/USD and others.

FTX’s leverage tokens free you from micromanaging your collateral or risk. They are ERC20 tokens that have leveraged exposure to crypto (3x and 10x long positions as well as 1x, 3x and 10x short positions). Their BULL and BEAR leverage tokens automatically manage their exposure, rebalancing to maintain their target leverage and prevent liquidations. As they ERC20 tokens, you can withdraw them from the platform and trade them.

Registration

To sign up on FTX.com you will need an email and a password to get started.

To register, you need just need to fill this registration form.

FTX registration form

After registration, you will be prompted immediately to set up 2FA to protect your account. Although it is not mandatory to set 2FA, it is strongly recommended to set it to protect your account in case of password leakage or other security breaches. You can also temporarily ignore this setting and set it later on your profile page.

Deposit

Once the registration is successful, you can start trading. KYC is not mandatory on FTX.com, however, your lifetime withdrawal is limited to 1000 USD, and you can only deposit cryptocurrency without verification.

FTX

KYC, identity verification levels

You can use three different levels to verify your identity. Level 1 authentication allows you to withdraw up to $2,000 per day from FTX.com, and you can also use the platform’s native token FTT for transactions. To pass Level 1 verification, you need to provide your full name and country of residence.

If you want to get a higher limit, you need to complete the authentication process. In addition to providing your name and country of residence, to make unlimited encrypted withdrawals, you are also required to upload a government-issued photo ID and a selfie with your own ID, and indicate that you are in This photo taken on a given date is used exclusively for FTX verification. Fiat’s deposit and withdrawal FTX also requires you to provide proof of residence, which can be proved in the form of a recent utility bill.

An interesting piece of information about FTX’s KYC process. If you want to perform Level 3 verification, which allows you to withdraw unlimited legal and encrypted funds from the platform, FTX requires that a bank statement be issued to the address provided on the utility bill As proof of address, you are also required to provide information about the source of the funds you deposited on the exchange. The usual KYC process of other exchanges does not require disclosure of personal financial status in this way.

After going through any form of KYC process, you can deposit it into your FTX account. Remember, you can use the platform even if you use email and password, but in this case, your total withdrawal amount is limited to $1,000. After providing their name and country of residence, the historical limit for password extraction and legal withdrawal will be increased to $2,000 per day.

You also need to turn on 2FA verification to make deposits and withdrawals. You can use 2FA authentication applications such as Authy or Google at the same time, or you can use SMS authentication on your phone.

Go to your wallet in your FTX account and select the currency you want to deposit. You can deposit US dollars in the form of stable coins, such as TUSD, USDC, PAX, BUSD and HUSD. You can also deposit in Bitcoin and 10 other altcoins, including the platform’s local token FTT. Once you select the coin to deposit, you will get a unique deposit address where you can send funds. If you have passed level 2 verification, you can also use Simplex’s services to buy bitcoins with a credit card.

FTX Fees

Accounts using 50x leverage will be charged an additional 0.02% in maker and taker fees; accounts using 100x or 101x will be charged an additional 0.03%. The additional fees charged will go towards the insurance fund to address the account’s higher risk of liquidation.

Because of this, you can’t change to 50x or higher leverage while you already have a position open; doing so would circumvent the insurance fund additions.  You can either close positions and then switch to 50x +, or you can do it in a new sub account.

FeesDeposit methods
TakerMakerWithdrawalWireCreditCrypto
0.07%0.02%no feesYesYesYes

However, if your trading volume exceeds 1 million and more in 30 days. There are more discounts of fees for you.

FTX commision structure

FTX Security

There is not much information about the security measures adopted by FTX.com.

2FA is essential to increase transactions and deposits and withdrawals on FTX.com.

In addition, FTX encourages anyone to report any incidents and supports “whistleblower” during the investigation.

FTX provides multi-layered security system that includes:

  • FTX systems take advantage of Amazon Web Services;
  • All FTX systems require multiple forms of authentication to access, including hardware wallets. Individual systems are unable to communicate with each other except across approved and monitored channels.
  • SSL encryption;
  • Two-factor authentication;

We running a test  for all cryptocurrency exchange websites in Mozzila’s Observatory (https://observatory.mozilla.org/). This is one of the many tools to test exchange security. FTX got a score B+. This mark is one the highest mark among cryptocurrency exchanges.

Affiliate program

On FTX Each user has a unique affiliate link.  If a new user signs up with your referral code, you will receive 30% of their fees, and they will get 5% of fees back. Users can’t have referrals retroactively applied if any trading has taken place.

You referral code is the last 7 digits number on the affiliate link.

When your referee uses your affiliate link to register, the refer code will be automatically applied. 

What makes FTX affiliate unique, is that it allows you to build your own External Referral Program! These offer a way for you to:

  1. Execute trades on behalf of users that give you permission to do so
  2. Share revenue from those trades; you are paid a fraction of the fees they generate.

Conclusion

FTX.com It is a relatively new cryptocurrency trading platform that provides several exotic crypto products, such as bitcoin options, altcoin futures, and futures in the upcoming presidential election. 

Compared with other exchanges, transaction costs are quite low, and holding the exchange’s own tokens can further reduce transaction costs. Their leveraged tokens make it easier for you to access market trends, but due to the nature of these products, they involve a lot of risk and may not be suitable for novices.

In general, even for beginners, the platform’s features are easy to understand and use, but the product range may not be the most suitable for everyone, but for more experienced traders.

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