Ftx.com (Bitcoin Mercantile Exchange) is a Peer-to-Peer crypto-products exchange platform that allows investors to buy and sell Bitcoin and other digital currencies. The platform offers its traders leveraged contracts that they can use to buy and sell Bitcoin-centric derivatives.
Launched in 2014 in Seychelles, Ftx.com is the brainchild of three finance gurus with over 40 years of experience in the industry. Ever since its launch, the platform has experienced tremendous growth in the last 5 years to become one of the largest Bitcoin exchange platforms in the world.
As of 2019, Ftx.com’s annual trading volume hit the $1.10 Trillion mark making it the go-to option as far as crypto trading is concerned.
Getting started with Ftx.com
Ftx.com is a free-to-join platform, open to traders from all over the world, except the United States. The platform does not accept applicants from the US due to financial laws enforced by the state. Considering this, you should make sure that you are eligible before joining.
The process of signing up, however, is very easy. You only need to fill out your name, email address, country and password. Alternatively, you may create an anonymous account by not using your real name and address.
Ftx.com does not have Known Your Customer (KYC) policies, allowing investors to open anonymous accounts and trade discretely. However, you are advised to use your real identity, given that your ID may be required in case you have a problem with your account.
User interface
The Ftx.com user interface is quite impressive and easy to use. Whether you want to see your contact details, access security options or check your trading history, the Ftx.com interface makes it easy for you to navigate through the various options.
Moreover, you may re-arrange the widgets with the site to any position ranging from basic to advanced display, depending on your preferences. This gives users maximum control of their accounts’ display.
What is more intriguing is that the Ftx.com interface is available in multiple languages. Given that international traders normally access the platform, you can select your preferred language at the top bar near the menu options. Available languages include English, Chinese, Russian, Japanese and Korean.
How Ftx.com works
Ftx.com works by combining margin trading and crypto derivatives for Bitcoin and Altcoin traders.
Margin trading is the concept of borrowing additional cryptocurrency by leveraging the number of coins you already have in order to buy additional currencies. For instance, if you want to trade $500 in Bitcoin but you only have $250, you can borrow the additional $250 through the margin of 2.1 to acquire the amount that you want. Ftx.com offers up to 100X leverage on Bitcoin contracts, meaning that you can trade up to $50,000 if you only have $500
Crypto derivatives, on the other hand, are trading products, instruments or contracts between a buyer and a seller. The value of the derivative is based on the agreed-upon underlying financial asset such as bonds, currencies, and stocks. In this case, the derivative is Bitcoins and other Altcoins traded on Ftx.com.
Ftx.com offers different types of contracts, all paid in Bitcoin. These contracts offer guidance on when to open or close in order to make profits. Here are the types of contracts offered by Ftx.com.
Futures contract
A futures contract is simply a traditional contract. It is an agreement to purchase or sell an asset (crypto) at a fixed price and specified time in the future. The price of the financial asset and the date of the transaction are predetermined in the contract.
Perpetual contract
A perpetual contract or a swap is similar to a futures contract. However, in this case, the parties involved agree to transact the underlying asset at any time in the future without a predetermined settlement date. Perpetual contracts essentially do not have expiry dates.
Ftx.com Upside contract
A Ftx.com Upside contract allows traders to participate in the prospective upside of the underlying asset. In essence, the trader may pay a premium on the agreed trade date for which he or she is eligible to receive the difference between the settlement price and the strike price upon maturity of the contract.
Ftx.com Downside contract
A Ftx.com Downside contract is the complete opposite of the upside contract. This contract permits a buyer to participate in the probable downside of the underlying financial asset. The buyer pays a premium on trade date and is entitled to receive the difference between the settlement price and strike price at maturity of the contract.
Deposit, withdrawal and trading fees
One of the reasons why Ftx.com has been receiving rave reviews is because they do not charge deposit fees or withdrawal fees. You only have to pay trading fees on every completed trade. The amount depends on the type of contract.
Security
With so many cases of traders losing money to cyber-attacks and scammers, the safety of crypto exchange platforms has come into question several times. However, this is not the case with Ftx.com. This platform has one of the best defense systems in place. In their short history, Ftx.com is one of the few exchange platforms that have never been hacked.
Firstly, you may secure your account using 2-factor authentication. Moreover, Ftx.com uses a cold multi-signature wallet to store all funds. This means that 2 of 3 partners must sign any transaction before funds are released from your account. The platform also uses multi-signature addresses to prevent theft and secure customer funds.
Help and support
Ftx.com has an efficient support team, available on a 24/7 basis. You may contact support at any time using the following channels:
- Telegram
- IRC
- Email ticketing
Pros
High volume and liquidity
Ftx.com boasts of 1500% more liquidity than any other Bitcoin exchange platform on the planet. This assertion may not be 100% accurate, but its high trading volume speaks for itself. The exchange platform is widely acclaimed for setting a record of trading over $11 billion in just 24 hours.
Free tutorials
If you are new to crypto trading, and you want to make your first trade via the Ftx.com platform, then you are in luck. Ftx.com offers impressive starter guides and tutorials that you may use to learn how to trade safely and securely. The guides are quite intricate, ensuring that you get a grip of things faster than expected.
Excellent support
Ftx.com has invested heavily in customer support to ensure that all traders enjoy a memorable trading experience. The support team is available around the clock (24/7) and you may reach out to them via various communication channels including Weibo, Wechat, IRC, Telegram and email ticketing.
Industry-leading security
In terms of security, Ftx.com has one of the best defense mechanisms in this space. Some of the top security measures put in place by Ftx.com includes multi-signature addresses, two-factor authentication, cold storage, and kdb+ trading engine, among others
Supports anonymous trading
One of the reasons most people opt for crypto trading is the fact that most transactions are anonymous. Unfortunately, most exchange platforms require some form of identification before one can trade. This takes away the anonymity aspect. However, Ftx.com supports anonymous trading. The exchange does not have KYC or AML policies.
Reasonable trading fees
Ftx.com charges fees for every complete transaction. The good news is that the fees are reasonable compared to what other exchange platforms charge their members. In fact, deposits and withdrawals are free. This means that you can trade confidently without worrying about your profit margins.
Takeaway
Ftx.com is without a doubt one of the best crypto-products trading platforms available today. The exchange boasts of high trade volumes of up to 2.74 billion every 24 hours, making it ideal for Bitcoin traders who want to make huge profits. Moreover, Ftx.com offers traders a wide range of unique products, for an exceptional trading experience.
As if that is not enough, the platform has one of the best security mechanisms in the crypto space. Despite the numerous hacking attempts, the company has never lost money to cyber attackers. All funds are safely kept in cold storage, allowing users to trade in confidence without worrying about losing their money.
Considering all these factors, it is easy to conclude that Ftx.com is a crypto exchange platform worth joining.
