FTX exchange has attracted a lot of attention in the past year. FTX digital currency (FTT) is the main token of FTX exchange. FTX Trading Platform is an international Crypto Signal derivatives exchange that offers leveraged tokens, OTC trading and futures, and aims to become the leading Crypto Signal Leaks derivatives exchange in the blockchain world.
FTX Trading Platform is an international cryptocurrency derivatives exchange that offers leveraged tokens
Often described as the "backbone" of the FTX exchange, FTT currency provides many benefits to its holders. The terms "FTX Token" and "FTT Token" are sometimes used interchangeably. By owning the digital currency FTX token, you can pay lower transaction fees and access many benefits in the FTX exchange. Also, you can use FTX token as collateral for future transactions.
In the past year, more and more people started paying attention to FTX, as its value increased in a short period of time. The FTX token went from less than $4 in December 2020 to around $85 on September 10, 2021.
FTX Exchange is a centralized Crypto VIP Signal exchange specializing in derivatives and leveraged trading. This exchange was launched by a group of successful crypto traders in 2019 and aims to provide traders with more trading options and higher security.
As of 2021, more than one million users have registered in this exchange, whose head office is located in the Bahamas, and the volume of its daily transactions is billions of dollars. The platform specializes in crypto futures markets, where traders can create a contract and bet to buy or sell a certain amount of an asset at a certain time in the future.
Since the platform was launched in 2019 by CEO Sam Benkman-Fried, FTX has received funding from leading trading companies. The FTX exchange has a variety of trading tools that are unique. Here are some examples of them:
- Futures: FTX supports futures contracts for more than 80 cryptocurrencies, including many lesser-known currencies. As of this writing, no other trading platform has come close to this figure.
- Perpetual Futures: FTX also offers traders the opportunity to invest in perpetual futures, which do not come with an expiration date. FTX currently offers over 150 permanent futures markets, the most popular of which are ETH-PERP, BTC-PERP and DOGE-PERP. It also offers spot markets in more than 100 cryptocurrency trading pairs such as BTC/USDT, ETH/USDT, XRP/USDT and its main token FTT/USDT.
- Options (trading option): In FTX exchange, you can choose the option you want and receive its trading offer within 10 seconds. If you do not want to trade, you are not obligated to accept the offer.
- Predictions Market: The FTX market allows traders to bet on real events such as the US presidential election.
Founders of FTX exchange
The team behind the FTX trading platform consists of veterans who have worked on Wall Street and at major tech companies such as Facebook, Google, Jane Street, Optiver and Susquehanna. With a diverse background in derivatives trading, FTX token creators are aiming to outdo Bitmex and OKEx, the leading cryptocurrency derivatives exchanges in the blockchain world.
FTX CEO Sam Bankman-Fried (SBF) founded the exchange along with Gary Wang (CTO) and Nishad Singh (Head of Engineering). Before founding FTX, Sam (the creator of FTX token) was an ETF trader at Jane Street Capital. He traded a variety of ETFs, futures, currencies and stocks and designed the company's automated OTC trading system. He graduated from MIT in physics.
Before founding FTX, Gary Wang was a software engineer at Google. There, he built systems to collect prices for millions of flights and reduce flight delays by more than 50 percent. He graduated from MIT with a degree in mathematics and computer science.
Before joining FTX, Nishad was a software engineer at Facebook where he worked on machine learning. He graduated with honors in electrical engineering and computer science from the University of California, Berkeley.
After founding Alameda Research, a crypto trading firm and liquidity provider, the trio began working on FTX, an exchange with the motto "by traders, for traders". SBF felt that the crypto space lacked a professional trading platform for complex products. FTX was originally headquartered in Hong Kong, where SBF is also based. In September 2021, FTX moved its headquarters from Hong Kong to the Bahamas.
The founder of FTX once served as a director at a charity and philanthropy center and donated 1% of FTX trading fees to charity. Also, SBF is an influential figure in the crypto space with over 290k followers on Twitter.
What facilities does the FTX exchange have?
Introducing FTX exchange capabilities
As a trader, when choosing the right exchange and platform for trading, you should pay special attention to the facilities that the exchange or platform of your choice provides to its users. If you have doubts about choosing or not choosing the FTX exchange, getting to know the facilities can clear up the doubts and help you make the right decision.
Some of the most important features of Saraface FTX are:
Futures trading
In this exchange, many currencies are supported, including currencies that usually have futures or permanent transactions. Traders may trade cryptocurrencies using more than 100 quarterly and perpetual futures pairs with up to 101x leverage. Stablecoins such as USD and Tether are used as collateral to open and hold trades.
Spot trading
In FTX exchange, more than 500 trading markets are available to users. In fact, FTX has spot markets whose interface is similar to futures; Trades where you can trade Bitcoin, FTT and other altcoins. In total, this exchange offers more than 100 different spot trading pairs.
Options trading
This functionality is similar to derivatives, except that users are not required to purchase the underlying asset when the contract expires. FTX currently only supports bitcoin options.
Leveraged tokens
FTX offers leveraged ERC20-based tokens with up to 3x exposure to the underlying trading pair (up or down). There are no margin requirements for FTX leveraged tokens. Currently, the FTX exchange has 4 leveraged tokens for futures trading: BULL (+3x), BEAR (-3x), HEDGE (-1x) and HALF.
MOVE
Through the MOVE contract, traders can bet on the movement (movement) of the crypto price in a certain time frame. Each MOVE contract requires a margin with respect to the underlying index price. The higher the volatility of a product, the higher its MOVE will generally be. The fees charged in MOVE contracts are the same as those charged in the main spot market. This feature is one of the most important innovations of FTX and has attracted the attention of many users.
Volatility tokens
FTX Volatility Tokens are exposed to implied asset volatility using FTX MOVE contracts. MOVE contracts (daily, weekly or quarterly) are profitable for those who are waiting to see significant changes in the market or long-term stability. Volatility tokens allow users to long or short their holdings.
Prediction markets
Using this feature, users can trade on certain predictions; although the market is limited, it is tied to real world events.
What are the advantages and disadvantages of FTX exchange?
One of the most important things that is emphasized in the exchange selection guide and helps us to choose a valid and suitable exchange is knowing the advantages and disadvantages of each exchange. In order to know whether the FTX exchange is right for you or not, it is important to know the advantages and disadvantages of this exchange.
Examining the advantages and disadvantages of FTX exchange
Advantages of FTX exchange
Among the most important advantages of FTX exchange, the following can be mentioned:
- The authentication process in this exchange is very simple.
- This platform is specially designed and built for the trading of cryptocurrency derivatives.
- FTX guarantees liquidity for all its users.
- FTX charges a very small fee for its tradable products and services.
FTX has made it possible to buy digital currency with credit cards through the Simplex portal.
Disadvantages of FTX exchange
These two are the main disadvantages of FTX exchange:
- Leveraged tokens on FTX are risky investments.
- FTX is a relatively new platform in the cryptocurrency world.
- Or is FTX exchange a suitable option for Iranians?
In the rules and internal policies of FTX exchange, the name of Iran is explicitly included in the category of countries to which this exchange does not provide any services. Therefore, when a user registers on the FTX site, he practically cannot upgrade his user account from zero level, and as a result, he will not be allowed to make any transactions. The best way is to choose a decentralized exchange like DYDX or trust Iranian exchanges like Valex Digital Exchange.
FTX is a young but well-known exchange
The FTX exchange was primarily developed to trade in derivatives, but it also supports other cryptocurrencies. Diversity in supporting cryptocurrencies and providing unique and abundant features has made this exchange very soon enjoy a high reputation and popularity among traders in the digital currency market.
The reasons for the development of the FTX exchange and the goals of the FTX project
One of the things that really sets FTX apart is the wide availability of blockchain-based derivatives products. Derivatives on the blockchain are tokens that derive their value from other assets, such as stocks. On FTX, users can buy a wide variety of stocks in companies like Apple, Google, Facebook, Netflix, and PayPal, just as easily as they can trade one cryptocurrency for another. This is an exciting development for the future of the stock market on the blockchain and shows the huge potential of the FTX exchange.
One of the main reasons FTX has seen such a high level of success is that it has incredibly talented people on its team, all of whom contribute to its overall growth and development.
In particular, the project's co-founder and current CEO, Sam Bankman-Fried, is well known in the crypto space. He also played a key role in rescuing the decentralized exchange (DEX) SushiSwap when it was not successful enough.
Chef Nomi, the main developer of SushiSwap at the time, cashed out $14 million worth of tokens less than a week after launch, spreading fear of the project and the possibility of fraud. However, after Benkman-Fried came on board, he temporarily took control of the project before forming a group to hold the keys to Sushi Swap.
Forbes has named Sam Bankman-Fried as one of the richest people in the field of digital currencies with a net worth of $17.1 billion. Only 30 years old, he has helped manage FTX to become one of the largest digital currency exchanges in the world.
In August 2020, FTX acquired market-leading mobile and portfolio tracking app Blockfolio for $150 million. Blockfolio gave FTX significant access to the cryptocurrency microtrader space, and the program has since been integrated into FTX's branding. Blockfolio technology now serves as the backbone of the FTX mobile app.
The last piece of the FTX ecosystem is Serum, a decentralized exchange built on the Solana network that plays a large role in the liquidity of this exchange. Alameda Research and Sam Bankman are among its creators.
How does FTX work?
Like any other major online exchange, people can trade cryptocurrencies and other financial instruments on the FTX platform. The exchange offers a user-friendly interface that is powerful enough for institutional traders and convenient for beginners. FTX exchange can be accessed through the website and mobile application.
While FTX is the main holding company, it has two subsidiaries, FTX.com and FTX.us. FTX.com is an exchange with complete and numerous features. FTX.us is a weaker version of FTX.com and offers fewer products to keep within the strict US cryptocurrency regulations. This is similar to the relationship between Binance and Binance U.S. Bahamas-based FTX and its US subsidiary FTX have separate management teams but separate capital structures. US residents can only trade through FTX US.
Recently, the company partnered with LedgerX LLC to improve its operations in the US. FTX's main interface allows users to choose different tools to trade. It even allows users to trade stocks, forex and traditional markets.
Highlights of FTX Exchange
FTX is popular among investors because it tries to solve problems that other cryptocurrency exchanges have not addressed. For example, FTX is the first cryptocurrency exchange to offer derivatives trading while making it easy for everyone to trade such instruments.
Before FTX, liquidity was a huge problem for most cryptocurrency exchanges, as it was often difficult for traders to enter and exit trades at their desired price. However, FTX ensures that traders can always enjoy a high level of liquidity. According to CoinMarketCap, FTX is the third most liquid exchange in the world after Binance Spot Trading Signals and Coinbase.
Also, FTX has reduced the chance of clawbacks that exchanges often report. Clawback, also called socialized loss and auto-deleveraging, is a situation in which money is taken from investors to pay for an investor's bankruptcy. This rarely happens with the FTX exchange because it uses a complex algorithm that gradually liquidates positions before the net value drops below zero.
The purpose of the FTX trading platform is to employ a three-layer liquid strategy that minimizes the possibility of clawback. According to the official website of the FTX platform, the backup liquidity provider scheme is sufficient to avoid any clawback.
Conclusion
FTX exchange has cooperated with the giants of the digital currency field as well as the financial space. For example, the platform partners with Circle, True USD, Paxos, Fenwick and West, Proof of Capital, Galois Capital, Sequoia, Paradigm Capital and many others.
These partnerships will ultimately lead to a high level of trust in this exchange. The exchange's future collaborations will also draw more attention to it, which will eventually lead to an increase in the use of the FTT token and can help its value grow, which is another main reason to be interested in buying this token.
FTX is one of the most innovative creators of new trading products in the crypto space, and more importantly, it focuses on creating a trading platform for both margin and spot traders. In the future, trading volume on FTX will increase exponentially and may take more market share following the regulatory issues faced by centralized competitors such as BitMex and OKEx.
With these factors in mind, FTX Token and FTX Exchange seem to have succeeded in their goal of creating an exchange built by traders and for traders. We suggest you join Persian Elite's VIP channel so that you can use the powerful signals that are analyzed by the biggest traders in the world on a daily basis.
Frequently Asked Questions
1. What is the difference between FTX and FTT?
FTX is the name of a digital currency exchange that has offered FTT digital currency to the market. This exchange has special programs for the holders of this digital currency. Discounts on deals are just one of these features.
2. What special features does FTX exchange have?
If you like to operate in the derivatives market of digital currencies, FTX is the best option for you, but you must do KYC with a non-Iranian passport before using it. The possibility of buying and selling shares in this market is another special feature of this exchange.
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