Today’s article will talk about FTX Exchange ( FTT ) Token, an exchange that is already quite well known, but many people told us to make a guide, and here we have made it, we will also explain how to buy FTT Token.
In 2019, the number of cryptocurrency derivatives exchanges listed on CoinGecko grew from 3 to 25 exchanges. Derivatives are gaining traction among crypto traders because they allow one to manage their risk, trade at a lower cost, less capital, and easily short sell.
Derivatives are financial instruments (contracts) whose values are derived from an underlying asset. When someone trades derivatives, they deal with buy/sell contracts that represent the actual assets. They are primarily used for hedging purposes, specifically when traders want to protect themselves from price fluctuations.
“Built for merchants, by merchants.” A brief history of FTX.
Launched in May 2019, FTX ( https://www.ftx.com ) is a derivatives exchange based in Antigua and Barbuda, offering access to over 204 trading pairs. Over the next three CoinGecko posts, we will delve into its platform and various product offerings.
FTX offers perpetual futures contracts, leveraged tokens, MOVE contracts, and OTC trading. The team behind the exchange, Alameda Research, is one of the biggest market makers in the crypto sphere. They have experience managing over $100 million in digital assets and trade between $600 and $1.5 billion per day across thousands of products.
Recognizing that there are many flaws holding space back, the team developed FTX with a mission to provide a “platform powerful enough for professional trading firms and intuitive enough for first-time users.” FTX was the first in the crypto market to introduce Index Futures.
FTX recently announced its strategic partnership with Binance, its first and only outside investor. FTX has partnered with Binance to provide liquidity across its full suite of products, including Binance .com, Binance OTC, and Binance. The US. This underscores their efforts to continue working together on the Binance and FTX markets, which are already the world’s most liquid spot market and the world’s most liquid derivatives market.
about the team
The FTX team has years of experience working at Wall Street quant funds and technology companies, including Jane Street Capital, Optiver, Susquehanna, Facebook, and Google. The equipment is distributed to employees from all over the world. FTX, along with Alameda Research, has committed to donating a substantial fraction of its profits to the world’s most effective charities.
Sam Bankman-Fried, CEO
SAM WAS an MIT Physics graduate trader on the international ETF desk at Jane Street Capital. He traded a variety of ETFs, futures, currencies, and stocks and designed his automated OTC trading system. Sam left Jane Street Capital at the end of 2017 to start Alameda Research. After trading on dozens of exchanges and identifying multiple issues, he decided to launch FTX in early 2019.
Gary Wang, CTO
Before co-founding Alameda and FTX, Gary was a software engineer at Google, where he built systems to aggregate prices across millions of flights, reducing latency and memory usage by 50%. He has a bachelor’s degree in Mathematics with Computer Science from MIT. Gary took overwriting the first trading systems for Alameda and then moved over to the FTX side and took the lead in building the exchange product.
Although relatively new, FTX’s unique products have helped fuel its rapid growth:
FTX has quarterly and perpetual futures on 29 different cryptocurrencies. These include major cryptocurrencies like BTC, ETH, ETC, BCH, BSV, USDT, BNB, and LEO.
FTX’s unique liquidation engine and supporting liquidity provider system provide a three-step solution to handle margin calls and prevent clawbacks. Visit here for more information: Settlement Engine.
Centralized collateral portfolio
Unlike other derivatives exchanges, FTX offers a centralized collateral wallet that makes trading on their platform efficient and straightforward.
A first to market, FTX allows you to trade entire sectors of the cryptocurrency ecosystem, from large-cap coins to trading tokens in regional baskets.
FTX Leverage Tokens free you from micromanaging your collateral or risk. They are ERC20 tokens that have taken advantage of cryptocurrency exposure (3x and 10x long positions, as well as 1x, 3x, and 10x short positions). Your BULL and BEAR Leverage Tokens automatically manage your exposure, rebalancing to maintain your target leverage and avoid liquidations. Since they are ERC20 tokens, you can withdraw them from the platform and exchange them.
FTX’s industry-first MOVE contracts are futures that expire at the gross amount BTC moves over a period of time. This allows users to trade the amount that BTC will move without having to know the address. FTT is the utility token of the FTX ecosystem. FTT holders receive numerous benefits, including:
- Buy and burn weekly rates
- Lowest FTX trading fees
- OTC refunds
- Guarantee for futures trading
- Socialized earnings of the ins
- insurance fund
We will take a deeper look at FTX Leverage Tokens, Move Token, and FTT in Parts Two and Three of this series.
FTX is easy: you can access the platform from your computer or mobile browser using your iOS or Android app. In this guide, we will share with you how to set up your account using your computer. As with all transactions, we recommend that you use incognito mode in your browser of choice for best performance.
Set up an FTX account image
Click ‘Sign Up and enter your email and password. It’s that easy!
Set up two-factor authentication
Know Your Customer (KYC) Requirements
FTX is beginner-friendly as it does not require KYC verification to get started. Without KYC, you can withdraw up to 1,000 USD. With basic Level 1 KYC (email, name, country of residence, and region/province), you can withdraw up to 2,000 USD per day. If you plan to trade more, we recommend that you complete Level 2 KYC verification for unlimited cryptocurrency withdrawals.
The following are the KYC forms:
Level 1 KYC form image (withdrawal of USD 2000 / day)
Level 2 KYC Form (Unlimited Cryptocurrency Withdrawals)
Note: FTX contracts with Chainalaysis to monitor suspicious cryptocurrency transactions. All deposits and withdrawals are subject to inspection by Chainalaysis, and FTX reserves the right to request additional information.
FTX’s interface is similar to other trading platforms but with additional features geared towards derivatives traders.
1) Cryptocurrency Selector
When you hover over a particular cryptocurrency, you will be able to select the various Futures, Moving Contracts, Spot or Token products related to it.
2) Candlestick chart
The candlestick chart represents the price movements of the trading pair, showing how far and in which direction the price of an asset moves over a specified period of time. Each “candlestick” shows a day. For more information, here is our recommended reference: Introduction to Japanese Candlesticks
3) Crypto and wallet information
This section shares relevant information depending on the asset you are interested in trading.
When you select a perpetual, moving, or future product, you will be given an option to select the maximum account leverage ranging from 1x to 101x.
4) Order book
An Order Book refers to the list of open orders arranged at different prices. This also refers to the depth of the market, which can give you an idea of the liquidity of the market, i.e., how much you can buy before your orders start to affect the market price of the asset.
5) Place order
FTX allows you to execute 6 types of orders:
- Limit order (an order to buy/sell at a specific price)
- Market order (a buy/sell order at market price)
- Stop Market Order (an order to execute a market order once an asset reaches a price)
- Stop Limit Order (an order to execute a limit order once an asset reaches a price)
- Trailing Stop Order (set the stop price at a fixed amount below the market with a ‘final’ amount attached)
- Take Profit Order (Like for a Stop-loss order, you directly enter the trigger price when creating a Take Profit order. The order will be submitted when the market price drops below your trigger price if you are buying. The order will be sent when the market price exceeds the trigger price).
6) Market operations
Market Trades displays all trades that occurred within the asset’s market by traders in the FTX user base.
7) Check balance, open orders, trigger orders, and trading history
As in other trading interfaces, you can check for open orders (orders that are currently active and not executed), order history (orders that have been executed), as well as a summary of all the assets you currently own. What is unique to FTX is that you can also view your Activation Orders. When an activation order is activated, it is possible that the order it sends will fail. The account may not have enough margin, price bands during sharp market movements may prevent market orders from matching other orders, etc. In these cases, it may be preferable to retry submitting the triggered order until the overall triggered order size is filled.
There are two types of fees for leveraged tokens:
Free Creation and Redemption: 0.10% (Note: You only pay this if you create/redeem, not if you buy from a spot market or convert)
Management Fee: 0.03%/day on Leveraged Tokens. This is simply taken out of the net asset value of the leveraged Token.
Click “Withdraw” which allows you to withdraw balances to an ERC20 wallet address
Unique strengths of FTX
As one of the largest cryptocurrency market makers, the team behind FTX has used its trading experience to build a comprehensive platform. Some of their unique offerings include:
- Repossession Prevention – Using its settlement engine (a three-tier settlement model), FTX significantly reduces the likelihood of retaliation.
- Centralized Escrow Fund and Universal Stablecoin Settlement – FTX derivatives are settled in stablecoins and only require a universal margin wallet.
- Innovation: FTX constantly develops new products (such as Leveraged Tokens) to meet the market’s changing needs.
Conclusion: professional and intuitive
Ideal for budding and experienced traders alike, FTX offers a new spin on the nascent but promising cryptocurrency derivatives markets. As the market forces behind cryptocurrency become more advanced, the derivatives market is only set to grow and mature. Given the complexity of derivatives, we recommend that you exercise caution when trading.
How to buy FTX Exchange (FTT) Token?
You can buy FTT on all major cryptocurrency exchanges, including FTX Exchange. The exchange with the highest volume and lowest slippage are Binance. You can buy REEF using BTC, ETH, USDT, or BNB.
In our case for the tutorial we are going to buy it with USDT
STEP 1 To buy FTT Token on Binance
Once inside Binance, we have to buy USDT. We can do it with a Credit or debit card in the “Buy Crypto” section.
STEP 2 To buy Reef Finance $FTT Token on Binance
- Once with our USDT in Binance, we have to buy an FTT token, and for that, we are going to go to “TRADE” to choose then “CLASSIC.”
- Once inside, we go to the right side of the page, look for the FTT Token, select the PAIR “FTT/USDT,” and click on it.
STEP 3 To buy FTX Exchange (FTT) Token on Binance
- Once inside the Classic Market and selecting the FTT/USDT Pair, we put the amount of USDT that we want to exchange for FTT and give it to buy.
- And ready, we already have our FTT Token in Binance.
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