Review of FTX
FTX is a cryptocurrency exchange that is expanding rapidly and provides sophisticated trading options such as margin trading and futures trading. Despite the fact that people living in the United States are prohibited from using it due to stringent regulations, a separate exchange known as FTX.US is available, albeit with fewer crypto assets for trading.
Pros
• Allows for the trading of margin
• Access to a variety of advanced markets including futures, stocks, and forex
Cons
• U.S. residents can’t trade on FTX’s global platform
There is no option for live chat support available.
The Positives Exposed
• Allows for margin and futures trading: Among the many advanced features offered by FTX is the ability to engage in margin and futures trading. Speculators who are experienced and knowledgeable enough to handle the risks may find this attractive.
• Access to more advanced markets: FTX is distinguished from other exchanges in that it provides a greater number of advanced features than are typically found on other exchanges. Access to a variety of markets, such as stocks, leveraged tokens, volatility, and forex, is included in this.
Defining the Drawbacks
• Residents of the United States are unable to trade on FTX’s global platform because of stringent regulations governing the cryptocurrency space in the United States Residents of the United States have limited access to FTX as a result of these regulations. The exchange has a partner in the United States known as FTX.US; however, the offerings on this platform are significantly less extensive than those on the global platform.
• FTX does not provide live chat support, and the option to use live chat support is not available. Even though it offers a comprehensive help center, searching through it to find the information you require can be a time-consuming process.
Introduction
FTX is a centralized cryptocurrency exchange that operates on a global scale. It distinguishes itself from its rivals by providing cutting-edge services and products such as derivatives, options, and leveraged tokens. In addition to this, it supports more than 300 different cryptocurrencies, which is a significantly higher number than some of its rivals offer.
However, FTX comes with risks that are inherent in the cryptocurrency space, such as token volatility and even losses due to hacks of exchanges. These risks cannot be avoided in the cryptocurrency space. On the other hand, as more businesses enter the market for cryptocurrencies, an increasing number of individuals are feeling more at ease with crypto investing and trading.
Speculative investments, such as those made in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs), come with a high degree of risk, and the markets themselves can be highly unpredictable. Before making any decisions regarding your finances, you should discuss your options with a knowledgeable expert. This article does not constitute a recommendation to invest in cryptocurrencies on the part of Crypto Reviews or the author, nor can the accuracy or timeliness of the information contained herein be guaranteed.
An Overview of the Company
FTX, which has its headquarters in the Bahamas, emerged onto the cryptocurrency scene in 2019, with the intention of becoming the most prominent platform in the world for the trading of tokens. After only a few years since its inception, it has quickly become one of the leading centralised cryptocurrency exchanges and is currently valued at over $18 billion. 1
FTX provides a variety of products, some of which may be of interest to crypto newcomers as well as experienced traders. On its platform, FTX provides spot trading as an option for new investors. Futures, stocks, and leveraged tokens can all be traded on FTX by experienced traders who have access to the platform.
FTX Now Accepts the Following Cryptocurrencies
More than 300 different cryptocurrencies are available for spot trading on FTX. The following is a selection of the assets that can be purchased on this exchange:
• What is Bitcoin? (BTC)
• Ether (ETH)
• Solana (SOL)
• Litecoin (LTC)
• Undulation (XRP)
• Dogecoin (DOGE)
You should make it a point to read the articles on FTX that are related to fees because there are a number of factors that could affect the amount of money you have to pay out of pocket.
Exchanging One’s Knowledge
FTX provides users with a large number of features, and the company is aware that new users may have trouble locating some of these features. In response to this, the exchange offers a guide that provides an overview.
In addition to that, crucial information is presented in a comprehensible manner all throughout the FTX website. For instance, the exchange provides a clear explanation of the guidelines to follow in order to stake FTX’s token, which is denoted by FTT. It is mentioned that unstaking requires a period of 14 days and that tokens that have been allocated for unstaking will not be counted toward staking rewards. It also mentions that users who want to unstake quickly have the option of paying a fee, which they can choose to do.
There is a wealth of content posted on FTX’s website under a variety of categories that explains the platform’s many services, rules, and terms. Consider the example of trading on margin. FTX regards this item as a crucial component of their business. Considering how complicated margin trading can be, FTX does a good job of explaining how its terms apply to transactions of this kind. People who dabble in trading on margin want to know a lot of different things, but one of the most important ones is what causes a margin call.
It is made abundantly clear by FTX that a user’s account may be liquidated if the user’s “Margin Fraction” drops to a level lower than their “Maintenance Margin Fraction.” As an illustration, FTX will use the case of a customer whose maintenance margin fraction is 6%. If the customer has 16.66 times more debt than equity, the liquidation process will start.
Fees
FTX has a tiered maker/taker fee structure, and trading fees vary depending on the total volume of trades conducted over the previous 30 days. Those who hold FTT tokens are eligible for fee reductions on the platforms they use.
The following is a breakdown of what users can anticipate in terms of maker and taker fees.
The fee chart can be found on FTX.com.
Those who hold FTT tokens are eligible for fee reductions on the platforms they use. The following is an explanation of the tiered discounts:
The FTX fee discount chart can be found here.
In addition to the fees associated with trading, users of the FTX may also be subject to fees associated with trading leveraged tokens or withdrawing funds from their accounts.
Security
FTX provides security features that are standard for the industry, including the following:
• A solution for both hot and cold wallets that is custom-built;
• Completely independent third-party backing for all funds stored in hot wallets;
• Implementation of two-factor authentication (2FA) for every account;
• An optional two-factor authentication and password for cryptocurrency withdrawals;
• Relationships with the most reputable custodians in the industry
Establishing a Trading Account with FTX
Creating an account with FTX is a straightforward process. The conversation guides you, step by step, all the way through the process, all the way from the beginning to the end.
To begin, you will have to create a robust password and enter your email address twice. Additionally, you will be required to enter your email address.
In order to trade cryptocurrencies or make deposits on the FTX exchange, new customers must first verify their identities after creating an account on the exchange. Logging in to one’s own account is the only requirement for exploring the platform for unverified users.
Those who do not provide some fundamental information, such as their full name, date of birth, and country of residence, are granted restricted access to the platform and are subject to withdrawal limits. Users who go through FTX’s full verification process, which requires providing proof of address, sharing a government-issued ID, and undergoing facial recognition, are rewarded with the benefits of full platform access, including the ability to make unlimited deposits and withdrawals.
Assistance to Customers
FTX does not provide phone support that is available around the clock, nor does it have a live chat feature. Customers who have questions or concerns and who require assistance are encouraged to submit support tickets through the platform. There is no information provided by FTX regarding the typical amount of time required for a member of the company’s support team to respond to a request for assistance.
You have the option of contacting FTX via Telegram in addition to submitting a support ticket if you would prefer.
Because FTX Telegram groups are open to the public, users should exercise caution before sharing any personal information.
Again, FTX has an extensive library of articles that cover a variety of topics related to the exchange and answer many of the questions that new users might have.
Satisfaction of the Customer
Customers of FTX, much like customers of many other cryptocurrency exchanges, generally have negative things to say about the company. The customer service department at FTX is the primary focus of most user complaints. The length of time it took for customer service to respond to support tickets was a recurrent issue that was the subject of many of the complaints.
As was just mentioned, FTX does not provide any particular information regarding the amount of time it takes to respond to customers who submit these tickets. Some customers reported very serious problems, such as having to wait for their withdrawal requests to be approved, which sometimes took as long as a few months.
The user-friendliness of the FTX platform, as well as its relatively low withdrawal fees, have received positive reviews.
Management of Client Accounts
Traders have the option of completing their business on FTX’s web platform, or they can use the company’s mobile app. The user experience provided by the online dashboard is comparable to that provided by the FTX mobile app. Users are able to review the markets, buy, sell, and trade cryptocurrencies, as well as check their holdings and view information about their accounts.
The mobile application for FTX.
How FTX Stacks Up Against the Competition in the Cryptocurrency Industry
Coinbase, Bitfinex, and Binance are some of FTX’s most significant competitors. According to CoinMarketCap’s list of the “Top Cryptocurrency Spot Exchanges,” FTX is in third place.
Here is how FTX stacks up against one of its most significant global competitors, Binance.
FTX Exchange vs. Binance
Both FTX and Binance are examples of cryptocurrency exchanges that provide customers with relatively low fees in comparison to other similar services. Binance also has a partner exchange for people living in the United States called Binance.US, much like FTX does.
Nevertheless, there are also a number of significant distinctions between the two platforms, including the following:
• In 2021, as part of an upgrade to its customer service platform, the cryptocurrency exchange Binance introduced a live chat feature. The live chat feature is not available through FTX.
• The fees charged by Binance are only marginally higher than those charged by FTX. On Binance, users should anticipate paying maker/taker fees in the range of 0.02% to 0.10%, whereas FTX maker/taker fees range from 0.00% to 0.07% of the amount being traded.
• While FTX supports more than 300 different cryptocurrencies, Binance supports just under 400 of them.
Read this comprehensive analysis of Binance.
FINAL VERDICT
FTX is now one of the largest and most well-known cryptocurrency exchanges on the market, and this rapid growth occurred in just three short years. This exchange has also emerged as a prominent voice in favour of regulating cryptocurrencies, and FTX officials have stated that the company is dedicated to continuing to comply with applicable regulations. Additionally, FTX provides low trading fees in addition to features that are appealing to both inexperienced investors and seasoned traders.
Because of all of these factors, FTX is an excellent option for cryptocurrency traders who are looking for a high-quality and value-driven exchange to satisfy their requirements.
Methodology
Crypto Reviews is committed to assisting individuals interested in investing in cryptocurrencies to make decisions that are well-informed and secure. Our team is dedicated to offering our readers objective assessments of the most reputable cryptocurrency exchanges, catering to investors of all experience levels.
Exchanges were evaluated based on a variety of criteria, including safety, fees, the range of cryptocurrencies they support, and more. We also took into consideration whether or not the exchange is governed by an appropriate agency or is completely decentralised. You are welcome to look over our complete method for trading cryptocurrencies, which includes the review process and the data points that were given a weighting.
