Cryptocurrency is a popular field for investing big and earning big simultaneously. The crypto world provided people a quick and easy way to play their luck and turn it into a fortune overnight. But the process is more twisted than it sounds because you must take it seriously to avoid causing a hefty loss.
One needs the help of a crypto exchange platform for buying or selling cryptocurrency if they already have the crypto coins. There are many exchanges, and the FTX exchange is one of them. With the help of the FTX exchange, you can buy or sell your crypto assets at a fair trading rate as an FTX crypto derivatives exchange.
Although the world’s leading FTX crypto derivatives exchange has a shocking history of how it failed to stay afloat in the cryptocurrency market and went through bankruptcy, however, earlier it was considered one of the largest exchanges in the crypto world. Below, let’s take a quick peek at what it is and how it works for knowing detailed information about the world-recognized platform, FTX.
What Does FTX Stand For?
Now, before knowing what the FTX platform does and how people can use it to make a profit, you should know what does FTX stand for in reality. In the word ‘FTX,’ FTX meaning is Future Exchange.’ The crypto exchange company offers certain facilities to its users, such as linking their crypto wallets with it for availing easily accessible trading features, transferring crypto coins, tokens, etc., to other crypto accounts, buying various types of cryptocurrencies, and many more.
The FTX company is now third in position in terms of leading cryptocurrency exchanges and is a widely preferred and used Exchange over the whole world. Using the FTX company, one can access over three hundred popular cryptocurrency pairs, for example, “ETH/USDT,” “BTC/USDT,” etc.
Who Owns FTX Crypto?
The world first heard about FTX in 2018 when an MIT graduate introduced it to the crypto world. Soon after its launch, the Bahamas-based company got a good popularity response and secured its place as one of the largest exchange companies in the crypto industry. The renowned ‘ETF’ (Exchange-Traded Funds) trader Sam Bankman-Fried founded the company along with Gary Wang.
The FTX trading limited Gary Wang was a common name back in 2018 as he co founded the cryptocurrency exchange FTX. He contributed to a significant scale in making the company reach its pinnacle in the FTX crypto stock and introducing the widely-liked crypto market features like leverages, derivatives, etc. He again rose to fame and became one of the billionaires in the ‘Forbes’ World’s Billionaires’ (2022).
How Does FTX Make Money?
Like any other crypto exchange company, FTX also runs on the decentralized policy of the crypto world. So what made it different and so popular within a brief period since it was launched in the crypto market? Well, it provided more than what others could ever offer to the users, a platform for all, from a seasoned crypto investor to a beginner who does not know the basics of the crypto world.
With its emergence into the European market, FTX Europe is gradually becoming stronger with its wide range of digital services in the crypto world. Further, you can hint at the exchange company’s popularity by glancing at the logo of FTX on umpires during the MLB matches, as the global partnership made FTX the official crypto exchange brand of MLB.
At the FTX platform, everyone can use and benefit from making payments through digital assets by availing of its debit card option. Apart from this, one can use it as a trading platform for making transactions in fiat, options, NFTs, tokens, etc.
FTX makes most of its revenue through its involvement in various trading sectors, for instance –
Loans: FTX’s sophisticated traders benefit from taking loans from the company. And when a user avails of its loan facility, the FTX company then proceeds with charges in the form of interest from him as fees.
NFTs’ Fee: Through FTX’s own NFT market, launched in 2021, it generates profit every time users trade their crypto assets. Built on the robust Solana blockchain technology, the marketplace is ideal for trading because of its multi-support NFTs facility.
Payment Fee: FTX also converts physical money like USD into crypto coins by availing its debit card option. For example, if a user owns an FTX debit card and, while spending, gets short in USD, then FTX provides him with the option of converting crypto coins into USD and thus matches the required amount. And for this full service, the platform applies charges.
Trade Fee: FTX gains most of its revenue through this trading fee feature. Whenever a user trades their crypto assets using the FTX platform, it earns a profit. The user can also save some of the expense by choosing options where he becomes a part of the FTX blockchain supporters.
The FTX price varies depending on its tiers (1 to 6 tiers). To choose between exchanges like FTX vs Binance, FTX is always the better option for solid security and privacy. Users of FTX can transfer FTX tesla tokenized stocks by checking the FTX price for high returns and the opportunity to use the FTX Blockfi, the crypto lender.
What Are The Basics Of FTX Exchange?
FTX offered its users direct exposure to the crypto market through its several facilities and services. Its user-friendly feature, for instance, users can access the FTX crypto exchange platform both from their desktop and mobile through an app. And this multi-version design of FTX attracted crypto investors from all categories (long-time investors to newbies) to explore it more.
With its own FTX coinbase system, traders can use FTX crypto coins for making transactions and avail of a low-cost transfer facility. FTX is in a top position regarding supporting currencies; for instance, it supports fiat currencies like the euro, Swiss franc, Canadian dollar, Ghanaian cedi, Australian dollar, etc.
Under FTX’s KYC (‘Know Your Customer’) system, users must provide the required details to access all the features and facilities fully. The users are marked by tiers depending on their provided KYC details and enjoy facilities. A tier 2 user can avail of more services than a tier 1 user.
What Are FTX Key Products?
When Sam Friedman FTX launched, it came with several essential products, such as,
- Spot markets (with FTX users enjoying the best of the crypto world as it supports more than 100 crypto pairs, including bitcoin, Binance coins, and many more)
- Leveraged tokens (FTX’s leveraged tokens offer traders to earn leverage as much as 3X)
- Futures (with pairs like USD/USDT futures, traders can stake or bet on other cryptocurrencies as per their set duration)
- Options (traders can have several options regarding their assets like they can predict the future price of a currency and decide to stake their assets without the obligation of selling or purchasing),
- MOVE, etc.
What Are FTX Regulations?
FTX’s regulation lies with “the Securities Commission of the Bahamas” after it shifted its base operating area (headquarters) from Hong Kong to the Bahamas.
While the world enjoys the FTX services, the FTX US stock marketplace does not provide services to personal accounts of current residents of New York State (US), Ontario (Canada), Cuba, Crimea and Sevastopol, Iran, Afghanistan, Syria, North Korea, Luhansk People’s Republic, Donetsk People’s Republic, or Antigua and Barbuda.
Your age needs to be a minimum of 18 years and has not been suspended earlier or excluded from the Exchange or any other service or product provided by FTX Trading or its affiliated entities to register to use the Services as an individual.
If you deposit funds to the incorrect address, FTX is not liable for any losses, and they may not be able to recover them at all. They may also charge a recovery fee if the funds are recoverable.
If a user has an FTX Line of Credit, their funds are always regarded to have been used first in terms of ownership; if you are below your line of credit, you are not permitted to withdraw.
Some Examples Of FTX Security
FTX users get strong security protection as the platform uses three different security systems-
Exchange: FTX has tied up with ‘Chain analysis’ for marking out suspicious or unusual funds transactions.
Personal Account: This feature asks users to add a minor character and set up a standard complex level whenever they try to open a new FTX personal account. The feature also includes a ‘two-factor verification’ method every time a user performs transactions.
Others: FTX also provided its users the feature of using join accounts under the main account. Using this feature, more than one person can access the “sub-account.” The accounts have several restrictions depending on the customizations by the primary account owner.
Now that you know what FTX is and how having access to FTX crypto can help you multiply your crypto assets, you can explore the platform more. During its time, the FTX earned a top place for its good crypto services with easy-to-use features for its customers. The FTX crypto scam tarnished the exchange’s image. Now whether it is a repairable damage or beyond redemption, remains to be seen.