FTX Exchange Review: 8 Pros and Cons
FTX exchange is an Antigua and Barbuda-based cryptocurrency broker that began operating in 2019 and allows users to purchase and trade more than 51 cryptocurrencies. One of the biggest cryptocurrency exchanges available is FTX. They provide sophisticated trading choices such as futures trading, leveraged trading, and derivatives trading. An NFT marketplace and staking options complete this cryptocurrency exchange’s features. It is readily accessible, but regrettably not in the United States.
Is FTX Exchange Legit?
You have FTX Staking, where you can stake FTX Token (FTT), the exchange’s native and governance token, at the FTX Exchange. By staking this token, you can influence exchange choices and have access to a host of additional advantages, such as lower trading costs.
The following 8 advantages of staking FTT are listed on the website:
- Increased referral rates: FTT referrers receive a larger share of their references’ fees.
- Maker fee rebates: In addition to the regular FTT fee savings, stakers also receive maker fee rebates. These refunds are combinable with maker rebates based on MM levels.
- Free swag NFTs: Swag NFTs are available to stakers who spin the non-fungible swag wheel for a chance to win a free NFT that can be exchanged for FTX-themed stuff or sold on the NFT marketplace.
- Bonus votes: In our polls, stakers receive bonus votes (in addition to the standard number of votes, based on FTT held and trading volume)
- Airdrop rewards: Stakeholders receive more airdrop benefits thanks to enhanced SRM payouts (and potentially later other airdrops and yield)
- Waived blockchain fees: Several free ERC20 and ETH withdrawals are available to stakers each day thanks to waived blockchain fees.
- Fiat withdrawal costs are waived, giving stakers one extra free withdrawal each week.
- Stakeholders can purchase tickets for IEO events held at FTX.
With FTX, you can stake more tokens as well. To substitute all of these gains, you can just earn an APY (applied percentage yield). The three cryptocurrencies you can stake and the APY you will get are listed below.
Ray (RAY): 20%
Serum (SRM): 4%
Solana (SOL): 6%
For both spot and futures trading, the FTX exchange uses the same fee schedule. In other words, whether you trade in the present (spot) or arrange a contract to acquire a cryptocurrency at a specific price, you pay the same. We appreciate the straightforward cost structure they provide.
Maker fees and taker fees are the two types of trading expenses. The maker fee in this instance is 0.02%, and the taker fee is 0.07%. If you trade a lot, you can reduce this to 0.0% and 0.04%, respectively.
By staking just 25 FTX tokens, you can stake FTT, the exchange’s native token, and get your maker’s costs waived (FTT).
According to our Q1 2022 Empirical Fee Study, which determined the average industry contracts trading fee to be 0.0594% for takers and 0.0242% for makers, these fees, considered together, are closely in line with the industry average.
Fees for Withdrawals on FTX Exchange
This exchange itself does not impose any withdrawal fees. However, there are network fees associated with every transaction. This means that the network fees paid to the miners are the only fees you need to be concerned about when withdrawing from this platform. This withdrawal cost, or rather the absence of a withdrawal fee, is exceptionally competitive and below the industry average.
Overall, this place has very reasonable and consumer-friendly fees.
A Climate Commitment has been made by FTX Exchange
Fighting climate change is a priority for FTX exchange. They have a four-part strategy to both lessen their impact and actively work to improve the environment.
They have four stages to their climate plan:
- By the end of 2022, achieve its objective to become carbon-neutral.
- Spend money on research that will significantly affect the environment.
- Support strategies for storing and removing carbon
- Support additional initiatives that don’t fall within the other headings, with an emphasis on marine environments.
It is encouraging to see some specific attempts from the FTX exchange given that some cryptocurrencies, particularly those that use the more demanding proof-of-history verification system, have received attention for being a strain on the environment. They have contributed at least $1,500,000 thus far to environmental/ climate projects.
Additional Donations to Charities by FTX Exchange
FTX participates with a variety of charities. One per cent of all fees is set aside for charitable donations. They had set aside close to $21 million as of the time of writing (May 2022) for donations to a number of charities. These nonprofits consist of:
i. Air for India
ii. Good Food Institute
iii. Clean Energy Innovation
Tokens Available on FTX Exchange Website
There are lots of tokens accessible on FTX.com. They currently have more than 200 and are regularly adding new tokens. It’s great to have this kind of first-hand knowledge so you can join the trendiest trend as it gains traction. This is unquestionably among the priciest cryptocurrency exchanges.
There is now a substantially lesser selection of tokens available on the US edition of this market. However, they are also adding new cryptos for their American clientele.
Over-the-Counter (OTC-desk) Trading on FTX Exchange Website
Imagine you own a sizable amount of a particular coin. You wish to market that sum. Should you carry out that activity on the same trading platform as everyone else? possibly not Huge trades may have an impact on the market price of the relevant cryptocurrency, which is only one of many reasons to carry out large trades outside of the typical marketplace. Another factor related to the aforementioned is that the order book may not have enough space to perform the necessary deal. OTC trading is what we refer to as a remedy for these issues (Over The Counter).
OTC trading is a service provided by FTX that might be advantageous to all the “whales” and “dolphins” out there.
Leveraged Trading on FTX Exchange
Users of FTX can also engage in leveraged trading. However, according to what we understand, 3x is the highest level of leverage (i.e. three times the relevant amount). There are various exchanges where you might have a leverage level of 100x or even higher.
Anyone considering trading with leverage may find it helpful to hear a word of warning. Leveraged trading has the potential to provide enormous gains, but it may also produce enormous losses.
For illustration, suppose you have $10,000 in your trading account and you place a $100 long bet on bitcoin (i.e., increasing in value). With 100x leverage, you do so. If you had only held Bitcoin and it rose in value by 10%, you would have made $10 if you had only staked $100. As a result of your $100 USD wager and 100x leverage, you have now made an additional $1,000 USD (990 USD more than if you had not leveraged your deal). On the other side, if the value of BTC drops by 10%, you lose $1000. (990 USD more than if you had not leveraged your deal). As a result, there is potential for enormous upside but there is also for huge downside and vice versa.
Who Can Sign Up on the FTX Exchange website?
Almost place in the world allows new users to register. However, as of right now, investors from the United States and a few other nations are unable to register.
New users from the following regions are not accepted by FTX:
The United States of America
Sevastopol and Crimea
However, it should be mentioned that FTX has a US branch (FTX.us) that only accepts US investors from certain states. For instance, New York State residents are However, it should be mentioned that FTX has a US branch (FTX.us) that only accepts US investors from certain states. For example, New York State residents are not allowed to conduct business there. not allowed to do business there either.
Why are US citizens unable to open accounts with so many exchanges? Only three letters make up the solution. an S, E, and C (the Securities Exchange Commission). The US does not permit international corporations to recruit US investors unless those foreign companies are also registered in the US, which is why the SEC is so terrifying (with the SEC). The SEC may take legal action against overseas businesses that nonetheless recruit US investors. The SEC has filed lawsuits against cryptocurrency exchanges numerous times, including one against EtherDelta for running an unlicensed exchange. Another instance is the lawsuit they filed against Bitfinex, alleging that the stablecoin Tether (USDT) was deceiving investors. There will almost certainly be more cases after this.
US investors are not permitted on FTX’s exchange. Therefore, if you’re from the US and want to trade cryptocurrencies, you’ll need to seek elsewhere. You can register as a US investor on the Kraken Exchange website, which is fortunate for you.
NFT Support on FTX Exchange
FTX exchange offers excellent non-fungible token (NFT) support. On its internal market, NFTs are available for purchase and sale. On FTX, you may even create and sell your own NFTs. Furthermore, if you stake enough FTT, you qualify for free NFT drops that you may afterwards resell on the market.
Is FTX safe?
FTX is a reputable and well-known company. It is one of the biggest cryptocurrency exchanges in the world and has a lot of liquidity. One of the most reliable and safe cryptocurrency exchanges is it.
Some of its safety measures are listed below:
Two-factor authentication is necessary
A particular withdrawal password or limiting withdrawals to wallets on a whitelist can both be used to secure withdrawals.
IP addresses can be whitelisted so that only specific IP addresses can access your account.
Functions of a hot and cold wallet
Complete outside backing of the money in hot wallets
You can obtain the FTX app from the Apple Store or the Google Play Store.
FTX review Trustpilot has 4.8/5 stars to the EXCHANGE APP as of right now in the Apple Store.
Who Can Benefit from FTX Exchange?
FTX exchange is a fantastic exchange. Here, spot trading by new users is secure, and sophisticated investors can engage in derivative trading, the NFT market, and other activities.