FTX Cryptocurrency Exchange Review 2021

GOBankingRates Score

4.1
Quick Take: FTX is the leading cryptocurrency and derivative exchange in the U.S., offering several products including futures, spot markets, options and other innovative products like leveraged tokens and MOVE contracts. The platform is easy to use and offers different market orders, from basic to advanced ones. Plus, there's no fee to deposit and withdraw funds. However, you might incur up to a $75 fee for withdrawals below $10,000.
  • Products
    4.5
  • Fees
    3.5
  • Cryptocurrencies Supported
    4.3
  • Security
    4.0
How did we calculate this?

Pros

  • Intuitive interface and mobile app
  • Broad selection of trading products
  • Built-in automated trading
  • Ability to stake in the exchange using FTT

Cons

  • FTX platform is comparatively new
  • No demo account
  • Has KYC rules

The world is becoming an entirely digitized financial marketplace where computing power and internet speed enable instantaneous transactions. This is accomplished through digital platforms called currency exchanges.

Currency exchange is where you can trade different currency pairs in anticipation of a profit. This is where the FTX exchange comes in. Here’s a quick overview of the FTX cryptocurrency exchange and its key products.

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What Is FTX Exchange?

FTX is a centralized cryptocurrency exchange offering leveraged tokens, MOVE, options, futures and spot markets as some of its services. It’s the leading cryptocurrency exchange in the U.S., enabling users to trade many innovative products, including trading pairs.

The user-friendly interface and mobile app appeal to cryptocurrency investors of different experience levels because of its ease of use. Whether you’re a novice or professional trader, you can be sure to benefit from the variety of available order types. It supports multiple order types, including market orders, limit orders, stop orders and more .

When using the FTX platform, you do not get charged to deposit or withdraw the funds. However, a flat fee of $75 is typically set for withdrawals below $10,000. If you verify your email and identity, you can make unlimited crypto and fiat withdrawals. Otherwise, you can withdraw a maximum of $2,000 a day for email verification only.

You can deposit and withdraw funds via wire transfers in up to 10 fiat currencies, including USD, EUR, AUD, SGD, CAD, BRL, CHF, ZAR, HKD and GBP.

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Key Products

In seeking to create a diverse and innovative cryptocurrency trading platform, the FTX platform was the first to launch innovative products. Here are some of the essential products the crypto exchange offers.

Futures

FTX offers quarterly and perpetual futures on over 20 popular cryptocurrencies, including bitcoin (BTC), Ethereum (ETH), Ripple (XRP), EOS.IO (EOS) and Tether (USDT). The exchange also lists Index Futures, allowing you to invest in various market sectors with ease. This can include large-cap, mid-caps and small-cap coins. You can leverage up to 20x on most of the derivatives offered by FTX.

Leveraged Tokens

Even though a 10x leverage is the default for safety reasons, the FTX platform allows you to get 20x leverage. Leveraged tokens, also called bull and bear tokens, are ERC-20 assets that will automatically manage your exposure to the crypto markets and rebalance daily to maintain the target leverage.

With leveraged tokens, you increase your potential profit up to 3x while avoiding the liquidation risk. What’s more, there is no margin requirement for the leveraged tokens provided by FTX.

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Options

If you’re new to options trading, options are open positions — typically calls and puts — that give the right but the obligation to buy or sell a contract a future strike price. Like Futures, you can go long or short with options using leverage.

Currently, FTX only supports Bitcoin options. Bitcoin options contracts offer you the chance to reap profits even in volatile markets. You can configure strike prices and expiration dates as you see fit.

MOVE Contracts

MOVE contracts allow you to estimate the volatility of assets over a period of time. Volatility is the measure of how far the price of an underlying security will move. The upside is that provided that the price of the digital asset moves in either direction, you earn a profit.

Spot Markets

The FTX exchange offers more than 100 spot trading pairs. This enables you to trade in some of the leading cryptocurrencies in the world, including Bitcoin, Ethereum, Ripple, Chainlink, Solana and more.

Regulations

The FTX cryptocurrency exchange is not regulated in the U.S. However, you can access the FTX.US, registered with Financial Crimes Enforcement Network as a money service business.

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Celeb Affiliations

The FTX platform has several celebrity affiliations, including the famous NBA player Stephen Curry. The company recently signed a partnership with Curry, who now owns a portion of the platform. FTX incorporates philanthropic management and aims at serving the community, which helps boost the trust of its clients and investors.

How Does FTX Exchange Work?

FTX is a digital exchange platform where you can trade cryptocurrencies and crypto derivatives. The platform supports many different cryptocurrencies including Bitcoin, Ethereum, Litecoin, Chainlink, Ripple and more.

If you’re looking for a trading platform that will offer you both retail and institutional level diversity, FTX is the way to go. On top of providing a variety of different innovative trading products, FTX also focuses on professional high-stake traders.

Additionally, the FTX platform runs the OTC service concurrently. This aims to allow you to make cryptocurrency purchases that are as large as you can handle. The fact that you can use the FTX mobile app to trade as you wish in large volumes of cryptocurrency was once every trader’s dream.

Final Take

Whether you are a beginner or a professional trader, FTX exchange is a great platform you can stand to benefit from. With several innovative trading products, FTX is likely going to lead the way into the future of cryptocurrency trading. Plus, it’s continuously evolving to come up with new products.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Lydia Kibet has been writing professionally since 2017. Her passion for helping brands in all aspects of content marketing flows through in the expert industry coverage she provides — personal finance, investing and healthcare. Her work has been featured in The Motley Fool, Investor Junkie, Green Market Report, and Medical News Today. When she’s not writing, she’s either reading, playing guitar or catching up with nature. Follow her on Twitter.

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