With the rising popularity of crypto derivatives trading, many crypto exchanges come into the picture, and FTX Derivative Exchange is most certainly one of them. In this article, I’ll walk you through all the features of FTX, and what sets it ahead from the rest of the curve?
First of all, dispite initially being designed for crypto derivatives trading, FTX soon garnered substantial traction in the crypto trading market. Many crypto traders recognize it as the best exchange platform and the high daily trading volume is reminiscent of this fact.
FTX derivates exchange first launched in May 2019. Since its inception, it provides numerous innovative trading products. These products include Bitcoin options, 45 leveraged tokens, 20 perpetual swaps, tokenized stock trading, crypto indices, MOVE contracts, and prediction markets.
In addition, FTX exchange allows its users to capitalize on spot trading. Moreover, it supports transfers in fiat currency and a myriad of other crypto coins such as Bitcoin, Ethereum, Litecoin, and a selection of Stablecoins. Therefore, FTX is well-suited for both retail and institutional traders, and provides a wide range of products and services to a more dedicated traders.
The platform also comes with OTC designed specifically for those traders who are interested in making large crypto purchases. In addition, the state of the art mobile app helps traders to keep an eye on their account’s performance.
Developer of FTX
San Bankman-Fried founded FTX derivatives exchange in 2018. Before establishing FTX, he laid down the foundation of Alameda Research Ltd which is state-of-the-art quantitative and cryptocurrency liquidity provider.
Alameda succeeded in raising $3million in its initial fundraising campaign. Apart from that, he also succeeded in attracting seed investment from the well-known investment firm Liquid Value Capital. Furthermore, leading cryptocurrency exchange Binance, invest heavily in FTX.
Meanwhile, it also succeeded in attracting paid-up capital from leading venture capitalist firms. These include, Greylock Partners, One Block Capital, FBG Capital, Kenetic, and Proof of Capital is amongst the seed investors.
FTX Key Features
FTX has garnered substantial industry acclaim by providing a wide range of advanced trading features. What makes FTX stand out is its unique and innovative trading features predominantly leveraged tokens and MOVE contracts.
FTX derivatives exchange popularity amongst retail and institutional investors can be attributed to its solid trading features. For instance, low fees, tight spreads, OTC desk, extensive customer service support, TradingView charts, Android and ioS mobile apps.
Other Key features of FTX are:
Fiat Currency Transfers
FTX allows its users to transfer fiat currencies such as USD, EUR, CAD, GBP, and AUD. The exchange also allows you to deposit via credit card.
FTX allows its users to visualize the power of compounding via 101X leverage.
Easy Conversions/ Stablecoin Settlement
Leveraging the power of margin wallet, account holders of FTX can trade in all the major crypto derivatives. Apart from that, users can also easily convert their crypto to stablecoins.
Great Customer Support
FTX is equipped with prodigious features and resources designed specifically to help users navigate through the platform. Additionally, in order to address all the queries of the users, their chart support is available in 10 different languages.
Tradable Products on FTX
The development team of FTX derivatives exchange identified specific loopholes in the market. In the pursuit of their efforts to address these inadequacies, they’ve come up with an utterly different exchange with a wide range of trading products.
As a result, some of the innovative tradings feature that the development team of FTX incorporated into the exchange are futures, leveraged tokens, options, MOVE contracts, and prediction markets.
As an account holder of FTX, you have the privilege to perform crypto-based futures trading with more than 20 different assets. Furthermore, users have the option to trade 45 different tokens with leverage.
FTX provides 10X leverage on all accounts, however, 101X leverage is available at this platform. Thus, users can capitalize on the straightforward way of leverage with the help of 45 different leverages.
On the other hand, bull and bear tokens can easily achieve their target. And offset the potential threat of liquidation through managing their exposures automatically.
Tokenized Stock Trading
FTX Exchange in partnership with CM-Equity AG financial services offers revolutionary tokenized stock trading.
As a result, exchange users can buy fractional shares in some of the world’s biggest companies such as Tesla, Google, Facebook, Apple, and Netflicks to mention a few.
What sets FTX exchange apart from traditional exchanges is the MOVE contract which in some cases is similar to the futures and expires according to the raw amount BTC fluctuates within a specific time interval (daily, weekly, or quarterly).
These innovative features allows account holders to trade and book their profits in advance irrespective of the market direction. With MOVE contracts, the contract’s real value can be gauged from the overall volatility of the BTC price over the specific time period.
FTX derivatives exchange also lists their very own crypto based indices complete with leverage. In other words, FTX groups similar cryptocurrencies together with price weighted by marketcap.
Current indices on offer are Altcoin Index, DEFI Index, Exchange Index, Privacy Index, Uniswap Index, Midcap Index and last buy not least the Shitcoin Index (low volume altcoins).
FTX account holders can also trade with Bitcoin options. Traders at this platform are free to choose between open calls or put options contracts which are interpreted as the ‘right to buy’ or ‘right to sell’ positions.
Similar to the futures contracts, options users are free to choose whether they would like to go long or short with the leverage.
Simply speaking, harnessing the potential of options contracts, users can trade the ‘right to’ buy or sell an underlying asset at the specified price and date/time. Apart from that, users can configure strike prices and expiration times according to their preference in a variety of different ways.
Spot markets enable users to buy a variety of different crypto coins and trade in the conventional manner. Besides, FTX allows users can trade a large selection of crypto coins on the spot market such as BTC, ETH, BNB, LINK, FTT, BCH, USDT, PAXG, XAUT, TRYB, and BTMX.
Opening at Account at FTX
Registration process at FTX is pretty much straightforward and intuitive. Here is the complete set by step process:
- At the top right corner of the home page, you’ll find the ‘Register’ tab, just click on it. From here, you’ll be prompted to choose your secure password and to enter your email.
- In order to successfully register your account, click on the ‘sign up’ button.
- After doing that, you can deposit funds to initiate trading. As an account holder of FTX, it must be noted that the maximum withdrawal limit is $1,000 until you comply with KYC verification.
- Lastly, to fully comply with the KYC verification process, go to the settings page.
In a relatively short period of time, FTX derivatives exchange has amassed a substantial market share. Furthermore, it established its reputation as the go-to destination for experienced crypto and derivatives traders. At this platform, retail investors and traders can immerse themselves in a wide range of trading options.