The cryptocurrency-based derivatives niche has quickly impacted the industry, establishing itself as one of the foundational cornerstones of the digital finance scene. FTX is a relatively new platform, launched one year ago (May 2019), which offers crypto investors a vast range of trading possibilities such as token leveraging, perpetual swaps, prediction markets, and BTC options. Keep reading as we’re going to provide you with in-depth FTX review, its pros and cons, and reasons why you should use it.
How Does FTX Work?
FTX is a platform that allows users to make transactions using crypto derivatives, featuring advanced trading products and a wide range of profitable possibilities.
The goal is to provide retail and institutional traders with reliable products and services to open new possibilities for more profitable trading strategies and maneuvers.
After identifying several gaps in the market, the project’s team started looking forward to differentiating their services by offering new ways to negotiate in the blockchain ecosystem, which includes futures, leveraged tokens, crypto options, prediction markets, and the exclusive MOVE contracts.
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Main features include the possibility to use fiat currency for transfers, leveraging contracts to exploit profit, cryptocurrency conversion, derivatives trading, deep liquidity, unlimited withdrawals, and extensive customer support. Also, it has low fees, which is always the best thing in the world for any trader.
Other unique features include Over-the-Counter (OTC) services, for traders who opt for larger cryptocurrency purchases.
It also has mobile apps available for IOS and Android, so any trader who wants an on-the-go solution for keeping up with his trading account has the perfect solution right in his hands.
The platform has both quarterly and perpetual futures covering over 20 well-known crypto coins like BTC, ETH, and others.
An important feature is that it also lists Index Futures, allowing customers to trade seamlessly across several crypto markets including ALT-PERP, MID-PERP, SHIT-PERP, EXCH-PERP, PRIV-PERP, and DRGN-PERP. It lists available trading for Oil contracts, as well.
Customers can also take advantage of Bitcoin options, which are also available to be traded here. The user can open call or put option contracts, opting to go long or short with leverage (similarly to future contracts).
There are also available spot markets, so users can purchase and trade several cryptocurrencies. So far, available digital currencies for spot trading are BTC, ETH, BNB, LINK, FTT, BCH, USDT, PAXG, XAUT, TRYB, and BTMX.
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FTX’s interface has a professionally designed interface, which mixes Wall Street-like financial graphics with crypto numbers, sided by an extensive and reliable database.
User experience can be described as intuitive, as all buttons and functions are displayed all over the dashboard, with plenty of information available as well.
Unfortunately, FTX services are not available for US inhabitants, and also has other prohibited jurisdictions.
Supported Cryptocurrencies
FTX stands out from other derivative trading platforms amid the industry. So far, the platform supports several different perpetual swaps, with futures trading available for BTC, ETH, LTC, LINK, XTZ, XRP, BNB, and EOS, just to name a few.
The platform also supports the deposit, trading and withdrawal using a wide range of fiat currencies, including major currencies like USD, EUR, GBP, AUD and CAD, as well as CHF (Switzerland), HKD (Hong Kong), SGD (Singapore) and ZAR (South Africa).
Innovative MOVE Contracts
Another unique feature is the FTX MOVE contracts, which are contracts that represent the absolute value of the amount a specific product moves in a period. Let us say a daily BTC moves $50 from the beginning to the end of a day. Hence, the BTC-MOVE contract will expire to $50, whether BTC went up or down.
Traders can choose between three types of these: Daily MOVE contracts, Weekly MOVE contracts, and Quarterly MOVE contracts (the last covers 3 months).
Who is Behind the Idea?
Founded in 2018, the company resulted from efforts of Sam Bankman-Fried (current CEO) and Gary Wang (current CTO).
The two started working together when they founded Alameda Research Ltd in 2017. The project figures between the leading trading initiatives in the crypto industry, also acting as a liquidity provider. Alameda stills remarkably important for FTX, as it helps to maintain deep order books and OTC services.
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The team managed to raise a total of $8 million over three different funding rounds. Backed by leading players in the industry, the investors’ hall includes Binance, Liquid Value Capital, FBG Capital, Greylock Partners, and Proof of Capital, just to name a few (this list includes both seed and corporate round investors).
The project’s launch took place in May 2019.
Final Words
FTX is a platform specialized in crypto derivatives trading, which aims to provide crypto investors with a unique experience empowered by a wide range of profitable possibilities. It includes options, token leveraging, perpetual swaps, MOVE contracts, spot markets, and also prediction markets, crypto indexes, and even Oil future contracts.
Empowered by deep liquidity and OTC services, it allows users to make fiat currency transfers and unlimited withdrawals