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FTX Review: The full review

What is FTX Exchange?

FTX Exchange is a leading central cryptocurrency exchange, focusing on leveraged and derivatives products. The company was established in the year 2018 by MIT graduates and ex- Jane Street Capital international exchange-traded funds trader, Sam Bankman-Fried. FTX offers a wide range of trading options that include derivatives and options, volatility products as well as leveraged tokens. They also offer market prices for spot markets that span over 100 trading pairs of cryptocurrency, such as BTC/USDT or ETH/USDT. the XRP/USDT pair, as well as its own native token FTT/USDT.

Bahamian-based FTX as well as the FTX US affiliate have the same management teams but different capital structures. U.S. residents can only trade with FTX US.

Key TAKEAWAYS

  • FTX is a central cryptocurrency exchange, specializing in leveraged and derivative products as well as derivatives. It is able to support the majority of traded cryptocurrencies.
  • The primary products offered by FTX are Futures, leveraged tokens MOVE contracts, options, and market prices in the spot market.
  • FTX is located in the Bahamas and does not serve U.S. residents, who are able to trade with FTX US.
  • FTX as well as FTX US both are affiliated with each other with similar management teams, but with distinct capital structures.

The fundamentals of FTX Exchange

The wide variety of FTX’s products and simple-to-use desktop and mobile trading apps attract investors of all levels, from novices to experienced professionals, or, as in the case of crypto the whales, from beginners to whales. The FTX platform has a broad assortment of different types of orders including basic market orders to more complicated stop orders with trailing.

FTX competitive spot and futures trading fees varied between 0.04 percent to 0.07 percent for market takers, according to the model of maker and taker in June 2022. Additionally, leveraged tokens had an annual creation and redemption fee of 0.10 percent and a daily administration fee of 0.03 percent.

FTX can support nine currencies that investors can transfer and deposit using wire transfer: U.S. dollar, euro, British pound, Australian dollar, Hong Kong dollar, Canadian dollar, Swiss franc, Brazilian real along with Argentinian peso.

FTX does not charge withdrawal or deposit fees for the majority of cryptocurrency assets. Bitcoin withdrawals of greater than 0.01 bitcoin are free, as is a withdrawal of less than 0.01 bitcoins per day. Small bitcoin withdrawals will be subject to an additional 0.1 percent fee.

Fiat currency withdrawals of greater than $5,000 USD will be granted for free and only one weekly withdrawal lower than the amount.

FTX US trading fees for market takers varied between 0.05 percent to 0.2 percent at the time in June 2022. NFT or non-fungible token (NFT) costs are $3 for listing an NFT through its self-service tools and 2% of the cost to the seller on every transaction or sale. Fiat currency deposits can be made using wire transfer ACH and debit/credit card as well as Silvergate Exchange Network, all of which (except for credit and debit cards) are able to withdraw fiat currencies. Wire transfer withdrawals that exceed $5000 USD are completely free. A withdrawal every week less than the amount is free, however, any subsequent wires will incur an additional $25 charge.

There aren’t any deposit fees for blockchain transfers. FTX US pays the withdrawal blockchain fees for all tokens, with the exception of ERC20/ETH, and bitcoin withdrawals of a small amount.

FTX US customers need to verify their identity to be eligible for full access under the know you client (KYC) regulations. KYC Tier 1 customers are restricted by single deposit limits of $2999, ACH deposits of $500 in any 10-day rolling period and a lifetime limit on withdrawals of $300,000. KYC Tier 2 customers are restricted to one-time deposits of $20,000 and ACH deposits of up $30,000. per 10 days of rolling They are not bound by daily or lifetime withdrawal limits.

Key Products

The primary products offered by FTX are the leveraged token, futures, MOVE, options, and spot markets.

Futures: Traders are able to take both short and long bets on top cryptocurrency markets with over 100 perpetual and quarterly futures pairs, with margins as high as 101x. Stablecoins like USD and Tether (USDT) are used as collateral for opening and maintaining positions.

Leveraged Tokens FTX offers tokens based on ERC20 which offer traders 3x leveraged exposure in relation to the trading pair that is used to create the leverage. For example, when a trader purchases the BULL/USD 3x lengthy Bitcoin token and Bitcoin rises by 10% within 10 days of purchase the leveraged token will gain 30 percent. The leveraged tokens of FTX have no minimum margin requirement.

Options: Traders may speculate about the direction of future prices and hedge their open positions using the option of calling and put options. These options provide the holder with the option, but no obligation to purchase or trade at a later strike price.

MOVEMENT: They permit traders to wager on the extent to which the price of a cryptocurrency is likely to change over a certain time regardless of direction, which is basically an attempt to play the volatility. So long as the value of the cryptocurrency is traded over a certain dollar amount, either upwards or downwards–the contract earns an income.

Spot Markets: FTX provides more than 100 spot trade pairs, giving access to the most popular cryptocurrency, like Bitcoin, Ethereum, Binance Coin, Chainlink, and Ripple’s XRP.

FTX US offers nearly 60 spot trading in currency and cryptocurrency pairs, as well as options contracts based on 0.01 Bitcoin, 0.1 Ether, cryptocurrency swaps, and Bitcoin mini-futures. It also runs an exchange for non-fungible tokens.

FTX offers futures-based pairs with margins that go up to 101x when it comes to the short or long-leading cryptocurrency that allows traders to profit from relatively small price fluctuations.

Regulation

FTX is registered in Antigua and Barbuda and headquartered in the Bahamas after it relocated away from Hong Kong in September 2021. The FTX Digital Markets Limited. unit is controlled through the Securities Commission of the Bahamas. The exchange doesn’t offer the services of U.S. residents.

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U.S.-based cryptocurrency traders have access to FTX US, which is a registered financial services company that is affiliated with FinCEN. In the month of October 2021, FTX US completed its acquisition of LedgerX and rebranded it under the name FTX US Derivatives. FTX US Derivatives is licensed as a Derivatives Clearing Organization, Swap Execution Facility, and Designated Contract Market by the U.S. Commodity Futures Trading Commission (CFTC).

Management and Capital Structures

FTX as well as FTX US have overlapping management teams. Both companies have Sam Bankman-Fried as their chief executive officer, and the co-founder Gary Wang as chief technology officer.

FTX has closed an investment of $400 million in its Series C venture capital round of funding in January 2022. It is valued at $32 billion. Participants comprised Temasek, Paradigm, Ontario Teachers Pension Plan Board, NEA, IVP, SoftBank Vision Fund 2, Lightspeed Venture Partners, Steadview Capital, Tiger Global, and Insight Partners. All investors in that round also took part in a series of funding rounds for FTX US valuing that company at $8 billion.

FTX Exchange is not regulated in the United States. U.S.-based traders are able to access only an entity that is a partner of FTX US.

Celebrity Affiliations

As part of their advertising strategies in the course of their marketing, both the companies that own FTX along with FTX US in September 2021 signed Golden State Warriors point guard Stephen Curry to a long-term promotional agreement, which will grant the NBA star an interest in FTX.

The company announced that in August of 2021 these companies announced a multi-year promotional partnership with venture capitalist Kevin O’Leary. TV personality Kevin O’Leary provides the “Shark Tank” host with equity stakes FTX as well as FTX US as well as payment in cryptocurrency.

Cryptocurrencies are available on FTX

FTX provides more than 300 different cryptocurrencies available to trade on the spot. Here’s a brief listing of the available assets on the exchange:

  • Bitcoin (BTC)
  • Ether (ETH)
  • Solana (SOL)
  • Litecoin (LTC)
  • Ripple (XRP)
  • Dogecoin (DOGE)

Trading Experience

FTX has a broad range of features. It also acknowledges that novice users might have a difficult time finding the features they need. To help the exchange offers an overview of the features.

Important information is also laid out in detail on all of the FTX websites. For instance, anyone who is who are interested in staking the token of FTX, or FTT, the exchange clearly outlines the requirements. It states that the process of unstacking can take up to 14 days and tokens that are used to unstake won’t be considered in staking rewards. Additionally, users who wish to withdraw their stakes fast can pay fees.

There’s a wealth of written articles on diverse topics that provide FTX with an explanation of its diverse offerings, terms, and guidelines. Consider margin trading as an instance. It is a key product offered by FTX. Due to the complex nature of margin trades, FTX performs a good job of explaining its terms for the transactions. A very crucial thing individuals who have a go at margin trading need to understand is what triggers the call to margin.

FTX clarifies that an account owned by a user could be liquidated if the Margin Fraction is below its maintenance Margin Fraction. FTX makes use of an example of a customer’s maintenance margin percentage of 6 percent. If the customer’s leverage ratio is 16.66x leveraged the liquidation process will start.

FTX Exchange: pros and cons

Pros Explained

It supports margin trading and trading in futures: FTX offers several advanced options, including futures trading and margins. This is a great option for experienced traders who are prepared to take the risk.

Access to markets with advanced features: FTX offers many advanced features that aren’t available with other exchanges. This allows access to markets like shares, leveraged tokens volatility, and forex.

Cons Explained

U.S. residents can’t trade on the global platform of FTX: Due to the strict regulations that govern the crypto market within the United States, residents of the U.S. have limited access to FTX. The exchange operates with one U.S. partner, FTX.US However, the offerings of FTX.US are less extensive than those of its global counterpart.

There isn’t live chat support available: FTX does not offer live chat support. While it does have the most comprehensive help desk but finding the information that you need could take time.

Fees

FTX offers a tiered maker/taker structure. The fees for trading depend on 30-day trading volumes. FTT token holders are eligible for discounts on their platform fees.

What can users expect in terms of fees for maker/taker.

FTX maker/taker fee structure

FTT token owners can get discounts on their platform fees The following discounts are offered:

Fee discount chart at FTX.com

FTX users might be charged withdrawal fees as well as fees for trading or creating leveraged coins.

Security

FTX features industry-standard security features including the following.

  • A custom-built hot/cold wallet system
  • All hot wallet money has complete external backing
  • For each account, two-factor authentication (2FA).
  • Optional 2FA or password for crypto withdrawals
  • Relationships with industry-leading custodians

Opening an FTXAccount

Opening an FTX Account is easy. The exchange will guide you through the entire process, step-by-step, starting at the beginning and ending at the end.

To begin, you will need to enter your email address two times and create a strong passphrase.

FTX requires that new customers create an account in order to make deposits or trade crypto. Users who have not been verified can log into their accounts and explore the platform.

Users who provide only basic information (e.g. full name, birthday, and country of residency) are limited to access the platform. They also have to limit their withdrawals. FTX’s full verification process allows users to access the platform without restrictions. This includes providing proof of address, a government-issued photo ID, and facial recognition.

Customer Service

FTX does NOT offer 24/7 telephone support or live chat. Customers who require assistance should submit support tickets via its platform. FTX does NOT provide an average response time for support requests.

In addition to submitting a ticket for support, you can also reach out via Telegram to FTX.

FTX Telegram groups can be accessed by anyone, so it is important to guard your information.

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FTX’s extensive library of articles addresses many of the questions that new users may have regarding the exchange.

Customer Satisfaction

FTX, like other cryptocurrency exchanges, receives mostly negative reviews. FTX’s customer services are the main reason for most user complaints. The most common complaint was about the response time of customer service to support tickets.

As stated above, FTX doesn’t give a specific timeframe for responding to customers who submit tickets. Some customers reported very serious problems, including the need to wait for months before their withdrawal requests were approved.

Positive reviews praise FTX’s ease-of-use and low withdrawal fees.

FTX Exchange compared

FTX vs. Binance

FTX vs. Binance at a glance

AreaBinanceFTX
HEADQUARTERSNo headquartersNassau, Bahamas
COMPANY TYPECryptocurrency exchange, derivatives, NFTs, Earn, DeFiCryptocurrency exchange, NFTs, TC
FEES0.01% to .5%0.00% to 0.4%
SECURITYHighHigh
BEGINNER FRIENDLYYesYes
VERIFICATION REQUIREDYesYes
AVAILABLE CRYPTOCURRENCIES300+250+
PROPRIETARY TOKENYes (BNB)Yes (FTT)
ON-SITE WALLETYesYes
BUY/DEPOSIT METHODSACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit cardACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit card
SELL/WITHDRAW METHODSACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit cardACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit card
YEAR ESTABLISHED20172018
FIAT TRADINGYesNo
GOLD OR PRECIOUS METALSNoNo
Binance vs FTX table summary

Beginner Friendliness

Both platforms are quite user-friendly and it’s easy to start with both. For the novice, the interfaces on both platforms could be to be a little intimidating since some graphs and charts come with an extremely steep learning curve.

Intermediate users will be able to find a way to navigate both platforms. Binance has an advantage because it has Binance Academy which provides an abundance of training for complete beginners who require some assistance getting started with all things related to crypto.

The Margin as well as Derivatives Trading

Binance, as well as FTX both, provide options for derivative trading and margin for their customers. It involves borrowing funds from lenders such as banks, traders, or brokers that are on the platform to maximize the possibility of earning profits through leverage.

Binance has a smaller variety of cryptocurrencies that can be borrowed for margin trading along with a limited number of trading pairs. FTX however, the contrary has a larger selection of options and trading pairs for those who wish to benefit from these options. For example, FTX goes as far as offering derivatives like permanent contracts and MOVE contract,s and even futures contracts.

Fee Structure

For charges, both platforms offer almost identical options. Binance charges 0.1 percent on any spot trade regardless of the currency you are using.

FTX also has an additional 0.1 percent charge for all transactions in spot trading however, this time it is contingent on the cryptocurrency being traded since each has its own fee schedule. But, Binance has a significantly lower fee for withdrawals than its competitor, because they are calculated on the currency being transferred from or deposited into your account.

The two Binance and FTX have fee structures that are which are based on monthly volume of trade. Makers and takers on Binance pay fees that range from 0.02 percent up to as much as 0.1 percent, while FTX makers, as well as takers, will pay anywhere from 0% and 0.4 percent.

Trust and Security

Binance, as well as FTX both, come with security systems, which help to ensure that your money is secure. Binance holds around 10% of its trading costs in a safe fund, which is used to provide an insurance policy in the event in the event of an attack. This was done in response to an attack on phishing that occurred in the year 2019 and resulted in the company losing $40 million.

Since the beginning, Binance has worked to rebuild trust among its users using tools, such as 2-factor authentication, and whitelisting of wallets and IPs for all accounts.

FTX employs a variety of security measures to safeguard the money of its users. The platform utilizes SSL encryption for every data transfer, meaning the information you exchange is secure by encryption. It is also possible to whitelist certain addresses as well as wallets on FTX.

Sign-up Procedure

In either case, signing up is fairly simple as there are no strict know-your customer (KYC) conditions. This means you don’t have to give them your identity card or proof of address and other vital personal information.

They just require you to sign-up using an e-mail address that is valid and then choose a password with security. To be eligible for more generous withdrawal limits, your account needs to be checked manually, particularly on Binance. It may take a few days before your account is cleared.

Available Cryptocurrencies

Both platforms provide a broad variety of digital currencies and tokens that can be traded with users of all. Binance has more than 300 coins, whereas FTX can go as far as providing 275 coins that can be traded.

But in terms of trading pairs that are available for both platforms Binance is the superior edge since its list of trading pairs is quite extensive in comparison to FTX. Below is a list of the most popular cryptocurrency that you can find across both platforms.

Binance

  • Bitcoin
  • Ethereum
  • Binance Coin
  • Litecoin
  • Cardano
  • Uniswap
  • Dogecoin
  • Ripple XRP
  • Solana
  • Polygon
  • Chainlink

FTX

  • Bitcoin
  • Litecoin
  • Chainlink
  • Solana
  • USD Tether
  • Dogecoin
  • TRON
  • SushiSwap

Highlight Specifications

One of the best things you’ll discover at both Binance and FTX is their low fees for transactions for standard transactions.

Users also have access to greater withdrawal limits on accounts that have been manually verified according to the exchange they choose to use. FTX specifically, has the option of a debit card that permits you to make use of your cryptocurrency with a variety of merchants on the internet. Binance On its own is a launchpad that gives holders of crypto an early opportunity to invest in upcoming crypto – and NFT-associated projects.

Our Verdict Too close to call

While they’re relatively new to the scene and despite being relatively new, the two companies Binance along with FTX have shown high levels of efficacy in their business. They have a broad selection of cryptocurrencies that you can trade as well as various security measures to help protect your funds. But in terms of the charges charged by both Exchanges Binance is a bit ahead of FTX.

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The difference is that Binance offers a more affordable withdrawal fee than FTX since they are calculated on the amount of money you withdraw from or deposited into your account. The two Binance and FTX have fairly similar fees and interfaces generally are similar.

To determine the best option for both it is important to be aware of your requirements as a trader. If you’re looking for low costs, then Binance is the best way to take. If you’re looking for greater limits on withdrawals, with more derivatives available to deal with, FTX might be better suitable for your trading needs.

FTX Vs Crypto.com

FTX and Crypto.com summary

FeatureCrypto.comFTX
HEADQUARTERSSoutheast AsiaNassau, Bahamas
COMPANY TYPECryptocurrency exchangeCryptocurrency exchange
FEES0.036% to 0.144%0.02% to 0.07%
SECURITYHighHigh
BEGINNER FRIENDLYYesYes
VERIFICATION REQUIREDYesYes
AVAILABLE CRYPTOCURRENCIES100+250+
PROPRIETARY TOKENYes (CRO)Yes (FTT)
ON-SITE WALLETYesYes
BUY/DEPOSIT METHODSACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit cardACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit card
SELL/WITHDRAW METHODSACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit cardACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit card
YEAR ESTABLISHED20162018
FIAT TRADINGNoYes (Not in USA)
GOLD OR PRECIOUS METALSYes (PAXG)Yes (PAXG)
Binance vs FTX table summary

Beginner Friendliness

The two exchanges FTX both FTX and Crypto.com are user-friendly for beginners. Both exchanges feature easy-to-use interfaces, making it simple for novice users trading digital currency. They also provide an array of products and features which are not common within the crypto market.

Both exchanges can be accessed for both Android and iOS devices, which is great for novice traders who need to be on the go. Additionally, both exchanges have mobile application and API that is available to third party platforms. Of the two exchanges, Crypto.com’s mobile interface is the most user-friendly and they have more customer service tools for users in the event that users get stuck.

Fees

Both FTX and Crypto.com have fairly low costs. They offer fees that are usually less than other major cryptocurrency exchanges. Crypto.com has commissions that range from 0.036 percent to 0.144 percent, while FTX has fees that are based on a tiered fee structure that can range from 0% up to 0.07 percent.

But, Crypto.com does have advantages when it comes to the fees for withdrawal and deposit. Crypto.com doesn’t charge fees for deposits, and there are no minimum deposit requirements. However, FTX charges a 0.0004 BTC fee for BTC deposits.

When withdrawing funds, FTX will charge a small fee on BTC withdrawals less than 0.01BTC and for all ERC-20 tokens as well as the ETH. For withdrawals over 0.01 BTC are free. Crypto.com only charges the 0.0005 BTC fee for express withdrawals. Overall, Crypto.com is the better option for charges.

A caveat one caveat is the Crypto.com application tends to have higher spreads which mean you’re paying more for cryptocurrency.

Supported Payment Methods

FTX does not support bank transfers as well as wire transfers for withdrawals and deposits. For withdrawals and deposits in crypto, FTX supports BTC, ETH, LTC, XRP, BCH, LINK, DOT, and TRX.

Crypto.com offers a wide range of payment options, including credit and debit cards, bank transfers, wire transfers, as well as withdrawals and deposits of crypto. The company also lets customers to purchase crypto using the fiat currency of their integrated exchange.

Overall, Crypto.com is the better choice for accepted payment methods.

Trust and Security

Each FTX as well as Crypto.com are renowned for its security at the highest level. They employ state-of-the-art security measures to safeguard the user’s funds and personal information.

Some of the security options that both exchanges share include 2FA security, cold storage along with SSL encryption. Additionally, both exchanges have put in place KYC procedures to be in compliance with the anti-money laundering laws.

One area in which Crypto.com is distinct is the insurance policy it offers. It has insurance coverage for user accounts up to $500m. This means that customers can be assured that their money is safe even in case of hacking or other security breaches.

Overall, Crypto.com is the better option when it comes to security and trust.

Variety of Products

The two exchanges FTX and Crypto.com provide a variety of services and products. They offer spot trading and margin trades derivatives trading, and much more. Additionally, they offer many options and services that are uncommon in the crypto market.

One area in which Crypto.com stands apart is its customer service. Crypto.com offers 24/7 live chat support while FTX offers only email assistance. This makes it much easier for users to reach out for assistance if they require assistance.

The FTX offering of more advanced spot markets, futures, alternatives, leveraged tokens, and more are supported by Crypto.com’s DeFi-ready suite of products that allow you to earn high returns through their stake program.

Both platforms are also equipped complete with NFT markets.

Overall FTX and Crypto.com provide a broad range of services and products. Thus, they are in an equal position in this area.

Supported Cryptocurrencies

FTX offers a variety of cryptocurrencies, including BTC, ETH, LTC, XRP, BCH, LINK, DOT, and TRX. It also permits users to trade a range of fiat currencies, including USD, EUR, GBP, and JPY.

Crypto.com offers a broad variety of cryptocurrencies, such as BTC, ETH, LTC, XRP, BCH, and many more. The company allows its users to purchase crypto using the use of a fiat currency through its integrated exchange.

But, while FTX offers over 300 different cryptocurrencies in comparison the Crypto.com’s 250 currencies, the selection of coins is vastly different from what you will find on Crypto.com and the other FTX competitors. For instance, certain sought-after coins such as Cardano or Polkadot aren’t included on the list of FTX’s cryptocurrency options.

Here’s a brief overview of some different coins that you can find on each platform.

Crypto.com

  • Bitcoin
  • Ethereum
  • Cardano
  • Dogecoin
  • Vechain
  • Solana
  • Terra
  • Polkadot

FTX

  • Bitcoin
  • Tether
  • Ethereum
  • Dogecoin
  • Solana
  • BNB
  • XRP

Unique Characteristics

The standout features of FTX outweigh those of Crypto.com.

The platform includes an option for margin trading with as much as 20x leverage. The platform also provides a broad variety of derivatives, including options, futures, and leveraged tokens.

However, Crypto.com offers a built-in exchange that lets users buy crypto using the fiat currency. Its most well-known feature, apart from the possibility of earning returns with cryptocurrency is that its users can avail insurance coverage of up 500 million dollars.

Finally! Crypto.com offers an incredible crypto-based credit card offering advantages such as complimentary Netflix as well as up to 8 percent cash back in CRO.

Conclusion: FTX Better for Serious Traders

In terms of the ultimate winner, it is all about the type of prize you’re searching for. If you are looking for sophisticated traders who be equipped with all the tools needed to trade in crypto, FTX is the better option. The exchange provides a broad array of features and services that are not common in the crypto world.

But, Crypto.com offers the most complete option because it doesn’t just have low costs, but has a user-friendly interface as well as an array of DeFi features.

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