FTX exchange is one of the newer exchanges. They offer a wide range of products, like perpetual contracts, futures, options and their popular BULL and BEAR tokens. It was founded in May 2019 and in December 2019 Binance purchased shares in the company.
FTX exchange offers a few deposit methods for their clients but it requires verification level 3.
- Credit and debit card deposits via Simplex
- SEPA bank transfers
- Swift bank transfers
- Wire transfers
FIAT currencies supported
You will be able to deposit and withdraw with a long list of FIAT currencies at FTX exchange:
USD, EUR, GBP, AUD, HKD, SGD, TRY, ZAR, CAD and CHF.
Be aware that FTX charges a fee of $75 for withdrawals under $10,000.00.
FTX has really low fees and with the FTT holders you get even better fees.
Trading fees are divided in 6 tiers and calculated over your running 30 day trading volume. Tier 1 which will probably be the tier most users are in provides maker fees starting at 0.02% and taker fees at 0.07%. If you trade more than 1 million USD then you will advance to the next tier.
|Tier||30 day volume USD||Maker fees||Taker fees|
|2||> 1 million||0.02%||0.060%|
|3||> 5 million||0.015%||0.055%|
|4||> 10 million||0.015%||0.050%|
|5||> 15 million||0.010%||0.045%|
|6||> 35 million||0.010%||0.040%|
But even if you don’t trade that much you can still get an additional fee discount by holding FTT tokens.
If you hold FTT which is FTX own token you can get additional fee reduction depending on how much your current holding of FTT tokens are worth in USD.
|FTT holding USD||Fee discount on FTX|
Holding more than $100.00 worth of FTT tokens gives you a fee discount of 3%. This means that you get a 3% discount on the already low maker and taker fees.
This fee structure makes FTX exchange one of the cheapest exchanges in the world to trade cryptocurrencies.
FTX exchange requires their users to verify also for small crypto deposits. This includes uploading identification documents and selfies etc. That being said, the verification process is pretty simple and straightforward.
Assets on FTX
How does leveraged tokens work? Leveraged tokens are ERC20 tokens which have a 3x multiplier. If you for example buy ETHBULL tokens and Ethereum goes up by 5%, the ETHBULL will go up with 15% due to the 3x multiplier. Because of the 3x multiplier the token gets rebalanced every 24 hours. This means that if the BULL token has been going up, the gains from the day before will be reinvested. However be aware that if it falls the exposure increases as some of the underlying assets will be sold to rebalance.
The leveraged tokens are designed so that when you buy ETHBULL, FTX will buy ETH perpetual futures contracts with 3x leverage.
The leveraged tokens are interesting because they provide leverage on tokens that you can buy as spot trading, meaning that you actually buy a token and not a contract like other leveraged products. If other exchanges are providing trading for the same leveraged tokens you will be able to transfer them to this exchange.
However there is a catch! If a BULL token falls with more than 33% in a day the underlying future contracts will be liquidated.
FTX offers options, they call them MOVE. A MOVE contract is a future that expires to the amount of dollars that an asset moves in 1 day. You basically have to bet in which direction a given asset moves.
You can bet on the move in four different time frames: The move today, tomorrow, this week or next week.
A MOVE contract can be beneficial to invest in if you believe that a given asset will move in one a specific direction today.
Bitcoin volatility token is a token that you can trade if you believe that there will be a big move, but you don’t know which direction the price would go. Then you can trade BVOL as it is going up when the volatility is high.
FTX adds oil futures to their platform as the demand soars after the oil futures drop below 0 on the 20th of April 2020. In order to trade oil on FTX users need to pass the verification level 1.
However most countries are still restricted from trading the oil futures. Users that have done KYC or used IP addresses from Cambodia, Canada, China, Hong Kong, Singapore, Turkey, United Arab Emirates, United Kingdom and United States will not be allowed to trade oil. So the main targets are the Asian countries not listed above.
In the futures FTX are looking to add oil tokens based on oil futures contracts just like they do with their BULL and BEAR tokens, which are also based on future contracts.
President election 2020
You can also trade the presidential election 2020 in the United States. If you believe that either, Trump, Biden, Warren, Bloomberg, Pete or Bernie will win then you can basically go to a market corresponding to the name of the candidate.
If you take a look at the Trump market for instance, then you will see that the price of the market is between $0.001 and $1. The price of the market is reflecting the odds of him going to win. So if the price would be around $0.500, that reflects a 50% chance of Trump winning the elections 2020.
FTX offers normal perpetual futures markets for all of their listed crypto coins. Head over to FTX to learn more about the future contract.
FTX has opened up a Quant zone for users that like to build simple trading bots. It is all free and even though the interface is quite simple, they are continuing to add more and more functionality.
They also have a growing quant zone community which is very active in the dedicated Telegram channel, FTX Quant Room.
Currently, the Quant Zone is only for creating trading strategies for individual purposes, but in the long run, FTX wants to make it possible for the users to share their strategies with other users and earn commission on trading fees when others use them.
Investors in FTX
Besides Binance and Consensus Lab, also private investors had the opportunity to buy equity in FTX. In March they opened up for users with KYC level 2 to be able to purchase FTX_EQUITY token, with a minimum purchase of $250,000.00 (125,000.00 FTX_EQUITY)
FTX issued 500,000,000 FTX_EQUITY tokens, putting them at a valuation of $1 billion.
Bitpanda is the leading crypto exchange in Europe with more than 1 million users. You can trade more than +30 cryptocurrencies, gold, silver and other metals.