Overview

8.7/10
OVERALL SCORE

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Review Exchange Review FTX Exchange Review with Pros and Cons

FTX Exchange Review with Pros and Cons

Even though FTX is one of the newest cryptocurrency exchange, they’ve managed to gain popularity by offering unique products, such as leveraged tokens.

FTX Exchange Review banner with a dark background.

Breakdown

US Residents AllowedYes, on FTX.US
Exchange TypeCentralized
Exchange TokenYes, FTX Token
Two-Factor AuthenticationYes
Foundation Date2019
HeadquartersAntigua and Barbuda
Withdrawal Limit Without KYC Documents2000 USD Daily
Fiat-to-CryptoYes
Crypto-to-FiatYes
Bank DepositsYes
Bank WithdrawalsYes
Credit/Debit Card PurchasesYes
Trading FeesNot Fixed | See Fees
Margin TradingYes

Start and Founders

FTX started in 2019 by Sam Bankman-Fried (CEO) and Gary Wang (CTO).

They have worked on Alameda Research since 2017, which is a top liquidity provider on multiple exchanges, which made it possible to launch the exchange with volume from day one.

The company behind the exchange is incorporated in Antigua and Barbuda.

Security

You can add two-factor authentication to protect your account — which we highly suggest.

The exchange has an insurance fund to cover losses in case there is a malfunction — please note that this is not used to bail out your losing trades.

The combined total loss could be bigger than the insurance fund can cover, so please do not store your cryptocurrencies on an exchange.

We strongly recommend everyone to use a hardware wallet.

FTX Token

FTX launched its token sale back in 2019 with the ICO price of $0.8, and like many other exchange tokens, came out positive from the bear market while the majority of altcoins have lost most of their value.

The token is used for three things, which are the following:

  • Token Burn: One-third of all fees generated by the exchange will be used for an FTT repurchase until at least half of the FTT supply is taken out of existence. The purchased FTT will be sent to a burner address, so the total supply will keep decreasing.
  • Discounted Trading Fees: Users that hold FTT will have lower fees on the exchange.
  • Collateral: The token can be used as collateral for trading positions.

Unique Products

FTX stands out with unique products, such as leveraged tokens, prediction markets, or the quant zone, where you can build and share trading strategies, and earn fees after other traders when they use yours.

Holding leveraged tokens is usually a bad idea for the long-term, as cryptocurrency markets are extremely volatile, and rebalances — to avoid liquidation — can massively reduce the value of the tokens you are holding.

You should use these to increase your leverage if you are sure that the market is going in one direction.

FTX Presidential candidate voting chart.
One of FTX’s unique products — Presidential election betting

Main Focus

FTX’s main focus is building a platform for professional traders, while also offering products that are unusual in the cryptocurrency space, such as trading gold, or indexes that include multiple cryptocurrencies.

Frequently Asked Questions

They have a separate website for American users with limited functionality, as regulations don’t allow many of their unique products.

You can use the exchange without KYC; however, you have the option to verify yourself if you would like to have higher withdrawal limits or extra features, such as bank deposits and withdrawals, or access to the OTC Desk.

FTX does not have insurance against possible hacks, but they have an insurance fund that could be used to cover losses. However, the losses could be bigger than the funds could cover, so please do not store your cryptocurrencies on an exchange.

No cryptocurrency exchange is fully safe, but the company behind FTX is one of the leading cryptocurrency liquidity providers, so it is on the safer side of the cryptocurrency exchanges.

Pros and Cons

Pros

  • Unique products
  • Backed by the top cryptocurrency liquidity provider
  • Gives you the ability to margin trade
  • Reasonable fees
  • Gives you the ability to trade futures contracts
  • Has an OTC desk

Cons

  • US residents have to use a different site with limited cryptocurrencies
  • Not insured

Fees

MakerTaker30 Day Volume
0.02%0.07%0
0.02%0.06%> $1,000,000
0.015%0.055%> $5,000,000
0.015%0.05%> $10,000,000
0.01%0.045%> $15,000,000
0.01%0.04%≥ $35,000,000

You can also further reduce it by holding FTT; the more you hold, the higher the fee reduction.

Use one of the links in this review to receive 5% off your trading fees.

Review Summary

Ease of Use
8.5
Reputation
9.1
Security
8.5
Fees
9.1
Payment Methods
8.5

8.7/10
OVERALL SCORE

Disclosure: The links in this review are referral links, which means that by registering to the exchange using our links, you are helping this website to keep running, which allows us to pay for hosting and work on quality, fact-based reporting. We did not contact anyone before writing this review, and we rated them to our best knowledge.

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