Welcome to Linkingo’s FTX exchange review! Most people in the financial field know that despite the COVID-19 pandemic, the alternative financial market of cryptocurrencies was overgrowing in 2020. It is due to the expansion of online shopping and the acceptance of cryptocurrencies across various industries. What’s more astonishing, the beginning of 2021 has marked the first time the total market value of all assets hit $2 trillion.
Ever-growing interests in the digital currency trading scene indeed give many opportunities, but they also pose risks. In this situation, there are plenty of crypto-centric derivative platforms opening up. Thus, it is challenging for new traders to decide which one is safe for them to begin their journey. Linkingo has taken on the mission to help you with that. In today’s article, we check out the FTX – a fairly new crypto derivatives exchange. Let us walk you through all the aspects of this platform and cover how you can use FTX to safely and comfortably start exploring the cryptocurrency world.
FTX Exchange Review – An Overview.
Founded in early 2019, FTX is a cryptocurrency derivatives exchange designed by professional traders. While most cryptocurrency exchange platforms set their target at investors, FTX’s primary goal is to build financial products for short-term crypto traders. So far, it is widely acknowledged as a dynamic exchange for professional trading firms, intermediate traders, and newbies in the field. As you use the platform, you can access numerous innovative trading markets, like derivatives, volatility, and leveraged tokens, for example.
Since FTX is a newly established platform, you might be worried about how fast you can exchange and sell your cryptocurrencies. According to CoinMarketCap, the average daily trading volume of FTX is $36,514,340,012. FTX quickly makes it to the top platforms to buy, trade, and sell cryptocurrencies with this volume. Hence, it secures your chance to sell your digital coins whenever you need to, as quickly as possible.
FTX is not only available to use on desktop, but it also has a professional mobile app so that you can trade anywhere you go. Let’s take a look at the founders and owners of this platform to see why it has gained success in less than three years.
Who Owns FTX Exchange?
The person behind this exchange is Sam Bankman-Fried. He is the CEO and co-founder of Alameda Research, one of the top cryptocurrency liquidity providers. This company manages more than $100 million of digital assets and exchanges $600 million to $1.5 billion daily across numerous products like coins or altcoins through FTX trades. It is also thanks to this company that FTX can access the industry-leading order books.
FTX Exchange Review – Account Registration.
It is very simple to create an account here and start trading with FTX. The registration process initially only requires you to verify your email address. If you wish to unlock more features, there are three tiers of KYC:
- Tier 1: This requires you to provide your email address, name, country of residence, and region/province. Tier 2: This requires you to provide your full legal name, date of birth, place of birth, proof of address, description of sources, assets, passport/driver license, and picture holding your ID. As you complete this tier, you can withdraw an unlimited amount of cryptocurrency to a hardware wallet.
- Tier 3: This requires you to provide your proof of address and bank statement. As you complete this tier, you can cash out unlimited fiat directly to a bank account using a wire transfer. Moreover, you can use the OTC desk as well.
As you see, the most notable advantage of FTX is that you can create an account and start trading right away. All you have to do is go through the email verification process (which only takes less than two minutes!). Still, users are recommended to complete the KYC process to enjoy unlimited withdrawal and the convenience FTX provides.
FTX Exchange Review – User Interface.
Since FTX aims to satisfy both beginners and professional cryptocurrency traders. It offers a very simple, friendly, and intuitive user interface. As users go to the website, they will see a navigation bar to get quick access to all the exchange’s derivatives trading products, positions, wallet to check out account funds, pending orders, and review trade history.
At the center of the home screen, you will see the trading chart. FTX’s chart is robust for its innovative trading features, indicators, drawing tools, and chart pattern overlay. If you want to place a limit and stop orders at a certain price level, all you have to do is right-click the chart.
If users need to check out the volume against the bid and the price, they can view the order book under the charting window. The appearance of this feature is effortless, which I really like, and you can populate the entry prices by tapping the order book. Furthermore, you can adjust the trade volume using the slider. It shall automatically calculate and show you the liquidity price.
Another thing that makes FTX a perfect choice for beginners is that the exchange allows traders to control their positions and exit the trade. It offers a broader range of order types compared to other platforms. Below is the list of available orders:
- Market order.
- Limit order.
- Stop limit.
- Stop market.
- Take profit.
- Take profit limit.
- Trailing stop.
Overall, FTX definitely has one of the most friendly UI. It is potent with many exciting features yet still easy to use and suitable for many types of traders.
FTX Exchange Review – Products & Features.
Now let’s get to the central part. FTX provides users with a significant number of financial products. I’m gonna walk you through each of them so even if you are a new trader, you won’t be overwhelmed.
The exchange possesses an impressive number of future pairs (over 100) that users can freely trade with stablecoin like USD or USDT as collateral. With that, you don’t need a bank account to calculate your profit because it depends on USD prices. Aside from that, users can choose to use the same fiat currency for every contract.
FTX allows traders to exchange future pairs with margins up to 101x. Moreover, it also gives them benefits as they can take advantage of some small price movements. That way, users shall enjoy better flexibility of a portfolio for greater exposure. It also helps the capital go further than traders can fund by themselves.
2. Leveraged Tokens.
Many cryptocurrency traders will find these leveraged token assets innovative. This feature assists you with risk management. As you gain your trade profits, they will automatically be reinvested into the underlying assets. Hence, if your leveraged token position is earning profits, the token shall add on 3x positions to it by itself. On the other hand, if the position is negative, leveraged tokens can decrease the risk.
The most convenient thing about this feature is there is no margin requirement to start trading leveraged coins. Below are some of FTX’s notable leveraged tokens:
- BULL/USD – 3x long bitcoin tokens.
- BEAR/USD – 3x short bitcoin tokens.
- ETHBULL/USD – 3x long Ethereum tokens.
- ETHBEAR/USD – 3x short Ethereum tokens.
This feature is specifically for users who want to trade crypto options long or short using leverage. Those who have gone through the process of future trading will find this process familiar. It settles the contract to an amount in USD at the expiration period corresponding to the expiration price. That way, users can decide to go long or short with a leveraged position.
4. MOVE Contracts.
This is an exclusive feature on FTX. It helps users to trade market volatility. Using this feature, you can see the value of a coin move’s price in USD for some time such as “weekly”. It is beneficial for beginners to take part in the market.
With these, it is safe to say that FTX provides many innovative features for any traders to sell and exchange their cryptocurrencies safely and comfortably. Aside from that, you will be glad to know that it supports 32 types of coins, including unique ones like THORChain or Solana. What’s more, it also supports a wide range of fiat currencies, including HKD, SGD, and ZAR.
FTX Exchange Review – About Trading Fees.
FTX’s trading fee is low, ranging from only 0.07% to 0.04% for future and spot markets. High-volume traders can enjoy lower trading fees. For leveraged tokens, the creation and redemption cost is 0.10%, and you will also pay a daily management fee of 0.03%. A considerable advantage of this exchange is that users won’t have to pay any deposit or withdrawal fee. What’s more, future settlements are free as well.
FTX Exchange Review – Is This Exchange Safe?
Of course, users would like to know about the security of this trading platform before using it. Linkingo can ensure the safety of FTX, as it applies numerous bank-like security features to keep users’ personal information and funds’ security. What’s more, the platform uses methods like cold wallet storage and two-factor authentication to provide an inviolable trading environment. After two years, there haven’t been any reported hacks or security incidents. It proves that FTX possesses a high standard of security.
How To Contact Customer Service?
You can contact the customer service team on several channels such as Telegram, WeChat, and email. If you want to reach them, just go to the FAQ section on the website and click the “Help” link at the bottom of the page. You will find a list of articles that assist you with many common problems like:
- Deposit and withdrawal.
- Account and KYC verification.
- Crypto trading.
- FTT tokens.
- Trading fees,
Our Conclusion – Is It Safe Or Not?
To conclude this FTX exchange review, Linkingo thinks that this exchange really stands out for the fact that it provides many unique and innovative features regarding futures and leveraged tokens. The platform is enough to satisfy both beginners and experienced traders with over 100 trading pairs and many trading options. What’s more, it is 100% safe and comfortable to use.
So if you want to take part in the cryptocurrency world now, we highly recommend you create an account for free at FTX and start trading. As the platform only takes years to establish itself a name in the cryptocurrency field, we are sure that it will keep evolving and give traders many more benefits in the near future.
It comes to the end of our FTX exchange review. Your feedback helps us improve our articles, so if you want to share your thoughts, don’t hesitate to leave a comment below and let us know!
We look forward to seeing you in the next post.