A lot of people enter the cryptocurrency space looking for ways to expand the ability of their idle assets to generate further profit. This exact same motivation has moved people to entertain the option of participating in derivatives exchanges today. FTX is one of these projects providing that service.
Right now, FTX shows a promising future with the backing of a lot of crypto and trading personalities and consistently high daily trading volume. FTX is a novel addition to the derivatives exchanges space and is still unavailable to traders in the United States.
Sam Bankman-Fried, CEO of FTX, founded the team behind the platform back in 2018. Sam had acquired a lot of trading experience from his stint as a trader at the Jane Street Capital’s ETF desk. He also founded Alameda Research, a prominent quantitative trading and liquidity provider. Alameda is working with FTX in keeping its order book and 24/7 OTC services running.
The exchange was launched in May 2019, and it was backed by big investors such as Binance, FGB Capital, One Block Capital, and Proof of Capital, among others.
Alameda Research also happens to be behind the new high-throughput decentralized exchange Serum.
Introduction to FTX
FTX is a crypto-derivatives exchange platform offering its users access to popular trading products like leveraged tokens, perpetual swaps, prediction markets and Bitcoin options.
Along these offerings, FTX also links traders to opportunities for spot trading. To promote liquidity and ease of access, the platform also enables transfers from fiat-to-cryptocurrency, such Bitcoin, Ethereum, and a select set of stablecoins.
The target of the platform is pretty inclusive as well. A user does not have to be an above-average or exceptionally-experienced trader to get started. Any retail and institutional trader can access the platform and the range of products and services that are tailored fit for them.
Apart from all these services, FTX has an Over-The-Counter (OTC) service that allows users to buy digital assets listed on the platform conveniently.
Main Features of FTX
FTX has gained a lot of support from the crypto community as well as traders because of its advanced trading offers.
Among its most popular products are leveraged tokens and MOVE contracts. These are all available to any type of trader at low fees with very low spreads.
- Cryptocurrency Swaps – The platform can convert supported fiat currencies like USD, EUR, CAD, and others, to cryptocurrencies. For added convenience, the platform can process credit card deposits as well.
- High Leverage – Traders can access up to 101x leverage for their transactions, allowing them to generate the best profit from their assets.
- Stablecoin Conversion – The platform supports the conversion of fiat or digital currencies, such as stablecoins, using a single margin wallet.
- Advanced Trading Services – Traders can enjoy the platform’s deep liquidity and orderbook, limitless withdrawal, access to liquidation funds, and its OTC desk.
- Customer Service – To support traders throughout their transactions and usage of the platform, FTX established a customer support system designated to assist users for their concerns.
FTX’s Main Trading Products
FTX offers a wide range of products and services for all kinds of traders. Users can access futures and leverage trading, as well as spot trading. Most of these products can be customized by traders according to their own risk appetite and desired exposure.
FTX provides a quarterly and perpetual futures product covering the biggest cryptocurrencies in the space today. It also includes Index Futures that lets traders access more markets conveniently.
FTX offers access to 101x leverage to traders. Users can tap more than 45 leveraged tokens, including BULL and BEAR tokens. Traders can easily manage their portfolio through rebalancing and maintaining their target leverage.
MOVE contracts are futures that mature depending on the change in BTC prices within specified time periods. FTX offers the service to those who want to trade based on the volatility of BTC, as the contract’s value is primarily determined by the movement of BTC’s value.
FTX provides BTC options to users as well. Traders can access this product if they want to long or short positions on BTC with leverage. Users can configure strike prices and expiration times according to their own assessments.
The traditional way of purchasing and trading cryptocurrencies is also available on the platform. Most cryptocurrencies in the space are available in FTX’s platform, such as BTC, ETC, USDT, BNB, LINK, and others.
FTX also launched a prediction market pegged on the outcome of the US Presidential Election this coming 2020. Futures contracts tied to the product will mature and start to open for trading as soon as the results are out.
FTT Token is FTX’s native, utility token. FTT can be used to pay for trading fees, and they are also given to holders as a reward in the form of fee discounts and redistributed returns from FTX insurance fund.
FTT can also be used to join FTX’s Battle Royale (BR) trading competition. It is a month-long competition consisting of five rounds that last one week each. Traders must hold FTT and earn high returns on the platform. Stakers can also just stake their FTT on the most profitable traders if they prefer to.
The competition rewards the biggest traders, stakers, and staked traders with their share in FTT prize pool.
In the crypto space, there are a lot of products that claim to offer huge profit for accessing their services. But what actually separates these exchanges apart from each other is the quality of service they are offering. FTX, founded by a team of traders, belongs to one of the platforms which is actually made for traders.
No one has to be an expert trader to use the FTX platform. And because of it, mass adoption is not a distant objective that the team behind it can reach. Above FTX’s liquidity and its wide range of products, its support for customers make it an ideal platform for any trader who just got into the trading space.