What is FTX and how does it work?

Highlights

  • Headquartered in The Bahamas, FTX is a cryptocurrency derivatives exchange, suitable for both beginners and seasoned investors, with its easy-to-use desktop and mobile phone apps.
  • Providing both futures and options trading, FTX supports 11 fiat currencies, including the USD, GBP, and the AUD on its platform.
  • FTX has declared the launch of Solana NFTs for its US-based customers and is considering expanding to Ethereum-based tokens.

Dealing in leveraged tokens and derivatives, FTX is a renowned crypto exchange, which was launched by Sam Bankman-Fried in 2018.

This cryptocurrency exchange offers innovative financial products, with distinct features. Its simplified desktop and mobile trading apps suit skill levels of all crypto traders, be it a newbie or a seasoned investor.

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On average, its daily trading volume clocks nearly US$17 billion.

Related Read: Should you invest in FTX (FTT) token despite volatility?

Cryptocurrency exchange- FTX supports 11 fiat currencies

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Key product offerings

The FTX crypto exchange deals in an array of products, which include leveraged tokens, futures, options, spot markets, etc.

Also, it supports 11 leading fiat currencies like the USD, GBP, AUD, CAD, EUR, HKD, the SGD, etc., which its users can deposit and withdraw through a wire transfer.

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How does FTX function?

Offering crypto derivatives, FTX provides both futures and options trading. Its utility token, FTT, serves as collateral against futures positions and at the same time, can be used to lower the trading fee on the exchange.

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Moreover, the token can also be staked to win NFTs and earn interest.

It is noted that FTX’s trading fees lie between 0.07% to 0.04% for futures and spot markets, as of Q3 of 2021, while a daily management fee of 0.03% and a creation and redemption fee of 0.10% pertain to leveraged tokens.

Further, no deposit or withdrawal fees are charged for crypto assets, however, a US$75 fee is levied on fiat withdrawals below US$10,000.

Is this crypto trading platform regulated?

FTX was incorporated in Antigua and Barbuda, with The Bahamas as its headquarters. Though the exchange is currently not regulated in the US, its customers from the nation can gain access to FTX.US, a partner entity and a regulated company which is registered with FinCEN.

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FTX.US to launch Solana NFTs for its US customers

Recently, the cryptocurrency exchange announced the launch of the US marketplace for Solana NFTs, thereby allowing its customers to hold, mint, and trade digital assets on the Solana blockchain.

Moreover, FTX is also considering extending its support for Ethereum-based tokens.

Related Read: What is Sri Lanka doing to entice investments in blockchain?

Bottom Line

FTX has distinguished itself from other crypto exchanges by offering competitive trading fees, as well as new and innovative futures trading products.

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