FTX Review: The Next Generation Crypto Derivates Exchange has Arrived
Everyone is talking about FTX! Here’s why…
FTX Ratings
FTX has instruments nobody else has with 101x leverage. A good choice for both novice and expert traders.
- Trust 9.6
- Design 9.9
- Fees 9.8
- Markets 9.9
- Support 9.7
Surely by now you’ve heard the hype around the scrappy new exchange with the fascinating contracts nobody else has. Yes, I’m talking about FTX, a relatively new crypto exchange where you can bet on a triple leveraged shitcoin or altcoin index. Sounds interesting right?
In this review I’ll cover what makes FTX unique, the fees, who’s behind the exchange and who should be interested. As always I’ll provide a quick Pros / Cons section at the end if you simply want the TL;DR.
Official Site: FTX (https://www.ftx.com) <– Save 5% on fees for LIFE!
FTX is the brainchild of Sam Bankman-Fried a former student at MIT and eventual power trader who spent 3 years at Jane Street. Sam went on to found Alomeda Research a well-known prop desk trading $100 million in digital assets and $600 million – $1.5 billion per day across thousands of products. Check out some YouTube interviews with Sam, he’s a very interesting character with incredible insight into trading crypto.
I mention Sam because FTX touts itself as a cryptocurrency derivatives exchange built by traders, for traders. And it’s actually true. They’ve managed to build a platform powerful enough for professional trading firms and intuitive enough for first-time users. The user interface is absolute proof of this and probably one of the most pleasing parts of FTX. The minimalist interface has everything you would expect with none of the noisy extras. I absolutely love it.
FTX, like other futures markets, offers the user the ability to use leverage to make trades against the price of many crypto assets like bitcoin and ethereum. FTX offers up to 101x leverage depending on the asset.
Official Site: FTX (https://www.ftx.com) <– Save 5% on fees for LIFE!
FTX Leveraged Tokens
Now what sets FTX apart right out of the gates are the myriad of derivative instruments they offer. They don’t just allow you to trade 30+ tokens on a perpetual futures market with leverage, but they use what’s called a Leveraged Token. These are ERC20 tokens that have leveraged exposure already applied to cryptocurrency assets.
For instance they have BULL and BEAR triple (3x) leveraged contracts for each asset on the exchange. So these triple leveraged instruments will move 3x the amount the underlying asset moves. For instance BTCBULL will move 3% for every 1% bitcoin increases. These types of instruments are popular in the ETF stock world and this is the first time they’ve been offered in crypto. Very cool.
You buy the tokens like you would on a spot market and you can hold them in a wallet like any other ethereum token. One thing to keep in mind is that there are fees with these tokens. It costs 0.10% to create or redeem a token. Tokens also charge a daily management fee of 0.03%. That said, most users will convert them to USD or another crypto like bitcoin once they are done trading them.
Two of the most popular BULL/BEAR contracts are the Shitcoin, Midcap and an Altcoin index. About time something like this was offered!
FTX Futures, Spot, and MOVE
For a while FTX released a new token every Wednesday so the list of assets they cover is always growing. As of today they offer over 30 individual tokens with different contracts for each. You can speculate on gold, dozens of popular altcoins, and even the US 2020 election.
Aside from BULL and BEAR contracts with the leveraged tokens they also offer a standard perpetual contract for each crypto as well as futures contracts. This is typical to what you’d find at other exchanges like Bitmex.
FTX also offers a spot market with a growing number of coins supported including bitcoin, USDT, Ethereum, BNB, and even PAX Gold. By using a stable coin like USDT you can quickly tether up when you want to reduce your exposure to all crypto.
If you are looking for something offering exposure to volatility, FTX innovated again by offering a MOVE contract for bitcoin. This essentially allows you to bet on volatility but because there is an expiry date your exposure to a liquidation is reduced. They are very similar to an options contract. If you think there will be a large move up or down, then this MOVE contract is for you.
FTX Options Contracts
FTX also offers the ability to trade options contracts, something only deribit has offered. This gives you familiar PUT / CALL contracts with strike prices and expiry like you’d see on a conventional options market. Options can be a great way to trade on price movement without facing a liquidation if the price moves against you at some point prior to expiry. As long as the price has reach your strike price by expiry, you’ll be in the money. FTX offers documentation and an API for options, if you’re interested in this I’d start there.
FTX Fees
FTX offers fees just slightly better than most exchanges. As any trader will tell you fees are what eats your profits so this is very important.
If you are willing to hold the exchanges native token (FTT) you can also gain a discount by holding it. See their fees page for more details.
Official Site: FTX (https://www.ftx.com) <– Save 5% on fees for LIFE!
The FTX Trading Interface
I really like how FTX has all of its coins in a menu along the top of the screen. At first I was not a fan but it has really grown on me. Moving between contracts is quick and easy and for anything I can’t see I just quickly type it into the search box.
Another small but ridiculously handy screen I can’t be without now is the simple PnL screen for showing profit and loss. It’s absolutely simple but provides a quick glance into my trading that almost every other exchange requires some math to obtain. A very nice but simple touch.
As mentioned the FTX trading interface is phenomenal. It’s simple but it has everything you would want. On the trading view screen you can move the panels around and once satisfied lock it all in place. And the best part is the entire website works exactly the same on mobile (they have also released mobile apps for iOS/Android).
FTX using TradingView for their charts so all of the great indicators you use with TV are available here as well. Another fantastic must-have feature is the ability to adjust your orders right from within the chart. This is essential for properly setting up multiple bids or asks, so I was super pleased to see this included.
FTX Mobile Apps
FTX now has apps with a unique interface just for for mobile. The FTX app is available for iPhone and Android and worked flawlessly in my tests.
Does FTX Require KYC
Nope not really. You can start trading with just an email address but you’ll be limited to $1000 withdrawals. By finishing KYC with your identity you will be able to trade without restrictions.
What Countries can Trade?
Countries that are banned from trading on FTX due to regulatory reasons include:
- Québec (Canada)
- Cuba
- Crimea
- Sevastopol
- Iran
- Syria
- North Korea
- Sudan
- Singapore
- United States
Official Site: FTX (https://www.ftx.com) <– Save 5% on fees for LIFE!
Pros
- Never has any type of ‘system overload’ issues
- Very competitive trading fees
- Minimalistic interface with an amazing UI
- Really amazing contracts nobody else offers like BEAR / BULL 3x leveraged
- Yes, they have a shitcoin, midcap, and altcoin market!
- Has a leaderboard and a user chat on each contract
- Supports 2FA, an affiliate program, and has a wonderful PnL screen
- Very fast support
- Can reduce fees by holding their FTT token
Cons
- Some might be turned off by the minimalistic interface
- Exchange is growing FAST but there might be liquidity issues on some smaller contracts
- No US customers