FTX Exchange — What You Need to Know

BLOCK6
BLOCK6
Published in
4 min readJun 19, 2022

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FTX is a cryptocurrency exchange based in the Bahamas. FTX is headquartered in The Bahamas and founded in Antigua and Barbuda. The exchange has nearly one million members and approximately $10 billion in daily trading volume as of July 2021.

FTX is available in several countries of the world. Although, due to some restrictions, FTX has a subsidiary known as FTX.US. FTX.US is a different cryptocurrency exchange platform built under the domain of FTX, particularly for the residents of the United States.

FTX is a cryptocurrency exchange designed for and by traders. The FTX exchange platform provides its users with cutting-edge products such as industry-first derivatives, options, volatility products, and leveraged tokens.

The core team at FTX is working to create a powerful and user-friendly platform for professional trading organizations. FTX has over 50 cryptocurrency pairs on its platform, which users can buy, sell, swap, and invest. Users can also deposit and withdraw fiat and other cryptocurrencies on the FTX exchange and trade non-fungible tokens (NFTs).

Features of the FTX Exchange

1. FTX Wallet: The FTX Exchange platform has a custom in-built crypto wallet that allows users to manage their balances, deposits, withdrawals, and investments in crypto assets. One of the main reasons crypto enthusiasts highly prefer the FTX wallet is that there are no charges for making deposits or withdrawals on the platform.

Also, users can trade their crypto assets for other crypto assets or fiat easily on the FTX wallet at no cost. FTX aspires to be able to accept wire transfer deposits and withdrawals of up to $1 million with no charges, minimal spreads, and timely settlement. To deposit or withdraw fiat currencies on FTX, users must have completed KYC level 2.

2. FTX Market: This key feature of the FTX exchange platform houses all the cryptocurrency assets available on the platform for trading, swapping, and investing. The FTX market has several cryptocurrencies ranging from perpetual and quarterly futures, spot markets with a bit of fiat support, leveraged tokens, and volatile products such as FTT tokens, BTC, and other tokens.

3. The Graph: On its desktop site, FTX employs Trading View graphs. Users can modify the graph appearance, change the graph settings, and place and move orders. Users can change the display by going to the graph settings page by clicking on the gear in the upper right corner of the graph. From there, they can choose from various styles, backdrops, scales, time zones, and trading methods.

Benefits of the FTX Exchange

Clawback Prevention: Socialized losses have taken many consumer funds on other derivatives exchanges. FTX dramatically decreases the possibility of clawbacks ever occurring by employing a three-tiered liquidation approach.

Existing futures: exchanges have a centralized collateral pool, but collateral is scattered over many different tokens and margin wallets. This makes it harder for traders to rebalance and avoid liquidating positions. FTX derivatives are stablecoin-settled, requiring only one universal margin wallet to handle these problems.

Leveraged Tokens: These tokens enable traders to enter short or leveraged trades without using margin. A trader who wants to 3x short Bitcoin, for example, can purchase a 3x short Bitcoin leveraged token on FTX.

The FTT Token

The FTT Token is the native exchange token of the FTX exchange. FTT is the backbone of the FTX ecosystem. The FTX Core team uniquely built the incentive schemes for the FTT token to improve the network effects and demand for the token. As the native token for the platform, here are some use cases of the FTT token.

  • Token Burn/Revenue Share: Approximately one-third of all FTX fees will be utilized to repurchase FTT tokens. Any FTT purchased in this manner will be ruined.
  • Trade fees are reduced, with lower FTX futures trading fees and fewer OTC spreads.
  • FTT can be used as a kind of collateral for futures transactions. As a result, FTT has become more useful and in demand because of this unique ability.
  • Backtests and live simulations for the platform have shown that, instead of incurring clawbacks, the FTX backstop liquidity fund will realize a net gain during major market moves. Furthermore, a percentage of this profit will be shared among FTT subscribers.
  • Fees for creating Leveraged Tokens with FTX: Projects who want to produce leveraged tokens with their coin can use FTX to accomplish it.

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