FTX: what it is and how it works

FTX is a centralized crypto exchange that offers spot exchanges for hundreds of cryptocurrencies. It was founded in the year 2018 by an MIT graduate, Sam Bankman-Fried. FTX Token or FTT is the native cryptocurrency token of the FTX exchange. Here are some facts about FTX:

What Is FTX?

  • According to the official FTX website, FTX is a cryptocurrency exchange built by traders, for traders.
  • FTX is incorporated in Antigua and Barbuda and is headquartered in the Bahamas, so the FTX exchange does not support trading in the United States, but FTX US provides the trading structure in the United States.

  • FTX offers both spot and perpetual trading. FTX has over 100 spot markets and over 250 perpetual and quarterly markets.
  • FTX offers trading in 11 fiat currencies that include USD, EUR, GBP and others.
  • FTX Token or FTT is the native token of the FTX exchange. It serves as a guarantee on the exchange and is used to power the FTX exchange.
  • FtX Token can be used to lower trading fees on the FTX exchange.

What are FTX uses and FTX use cases?

FTX is the 3rd largest cryptocurrency exchange in terms of volume and has about 290 coins listed on it. Here are some uses of the FTX exchange and the FTT token:

  • The FTX exchange offers both long and short exchanges of cryptocurrencies and offers both spot and perpetual trading.
  • FTX through its mobile app offers an advanced trading structure of over hundreds of coins.
  • FTX allows users to link their portfolios, make trades, trade digital currencies, enter into derivative contracts or buy/sell NFT.

Using FTX Coin or FTT

FTT is the backbone of the FTX exchange which offers holders trading on the FTX exchange multiple advantages. Here are some uses of TTF:

  • FTT is an ERC-20 token and is widely used to take advantage of discounts or trading fees on the FTX exchange. In order to maintain the price of FTX tokens, the FTX exchange regularly buys back and burns its tokens.
  • THE ITF can be used for staking on the FTX exchange, which means that an ITF holder can take part in the process of validating a transaction on the FTX exchange.
  • The FTT acts as a cushion or insurance for traders on the FTX exchange. During the volatile market, the ITF provides a net gain to holders and helps traders continue their business.

FTX Use Cases

The cryptocurrency market is expanding, and more crypto exchanges have been developed that offer profitable benefits to users. In this process, each exchange is trying to increase its partnership. Here are some FTX exchange use cases:

  • In September 2021, FTX and FTX US in September signed Steph Curry from the Golden State Warriors for a long-term promotional partnership.
  • In August 2021, FTX entered into a long-term promotional partnership with “Shark Tank” host Kevin O’Leary.

How is FTX different and who are FTX’s competitors?

  • Compared to the rest of the exchanges, FTX offers reasonable trading fees. In addition, FTT holders will have more leverage on the FTX exchange.
  • FTX also offers affiliate incentives for new membership.
  • FTX allows users to create custom logins through the use of subaccounts.
  • In terms of security, a user has the right to define their own security permissions.
  • FTX also tracks the activity of suspicious users on its platform.

FTX Competitors

FTX is the third largest cryptocurrency exchange in terms of trading volume. However, there is always the threat that some other exchange will take over. Here are some competitors of FTX:

Binance: Binance is the largest cryptocurrency exchange offering over 1600 active markets. FTX has 427 active markets.

Coinbase Exchange: Coinbase is the 2nd largest cryptocurrency exchange in terms of volume traded.

Kraken: Kraken is just below FTX in terms of trading volume. Kraken has 212 coins while FTX has 290 coins.

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