The FTX Exchange ranks among the world’s most prominent centralized cryptocurrency exchanges and the top five crypto derivatives exchanges in terms of daily trading volume. The FTX crypto derivatives exchange offers its native token FTX, competitive trading fees and innovative features such as derivatives, options and futures trading. There are also more than 300 cryptocurrencies available.
The FTX token can be used in many ways within the FTX ecosystem. It is intended to enhance network effects, increase demand and supply FTT as well as decrease its circulating stock.
Continue reading to find out everything about the FTX blockchain and to purchase FTX tokens in a few easy steps.
Let’s dive right in!
What is FTX?
FTX, a cryptocurrency derivatives trading platform, is based in Bahamas. In 2019, Gary Wang and Sam Bankman Fried founded the FTX cryptocurrency trading platform.
The FTX marketplace offers many options for both commercial traders organizations and skilled investors. It also allows spot trading, which is a great option for those new to crypto. The FTX platform offers a broad range of cryptocurrencies and leveraged tokens. It also provides derivatives services like spot, futures (OTC), prediction trading, and more. The US residents have restricted access to FTX because of strict regulations. They can however access the US section of the international FTX Exchange FTX.US which offers limited offerings compared with the global one.
The FTX derivatives trading platform aims at resolving the forced liquidation issue that many leveraged trading platforms face. This exchange deploys a backstop liquidation program that detects when users have dropped below maintenance margin. It then sends volume limited liquidation orders in order to close positions that are below maintenance margin.
According to CoinStats data, the FTX Exchange has a 7-day trading volume in excess of 11 billion dollars as of this writing.
What’s the FTX token?
The FTX derivatives market has its own token, the ticker FTT. This is an ERC-20 token that can be found on the Ethereum blockchain.
Holders of FTX tokens (FTT) get a discount in trading fees. They can also use FTT for collateral to cover future positions. Active traders can receive a 10% discount on trading fees and a maximum of 60% for future positions. FTT also offers insurance protection that allows traders to trade in volatile markets and not be subject to margin calls. FTT can also be used to make leveraged tokens. Insurance is advantageous when you use leveraged tokens in which profits and losses are multiplied depending on the leverage.
To validate transactions, users can use FTT tokens as a stake. FTT tokens can be staked to receive additional rebates or spin the non-fungible Swag Wheel for a chance at a NFT. Additional benefits include bonus votes, increased airdrop reward, IEO tickets, and higher airdrop rewards.
The FTX token FTT (FTX) reached an all time high of USD 79.68 9 September 2021. Its price then dropped substantially in line with other crypto markets due to inflation and global uncertainties.
Now that you know everything about the FTX derivatives exchange and the FTX token let’s get into how to buy FTX token (FTT). The best place to buy the FTX token is the FTX cryptocurrency exchange, as it offers multiple incentives to investors; however, it’s not available in all countries.
So let’s first look into buying FTX token (FTT) on the FTX exchange and then get into other popular exchanges such as Binance, Coinbase, etc.
Buy FTX token (FTT) at FTX Exchange
The FTX platform is the best place to buy and trade FTT tokens, and most of the token’s use cases are applicable only on the FTX crypto exchange. While FTX crypto exchange is available in the United States and allows users to buy and trade in many major cryptocurrencies, it doesn’t allow US citizens to trade in FTT tokens. For the countries where FTX token (FTT) can be purchased and traded, it’s the best place to do so. FTT tokens can be bought with nearly a third the gas fees collected on the exchange. The tokens then get burned. FTX also claims that FTT token holders will share the profits from its backstop liquidity fund. Every week, FTX distributes three SRM tokens each to all FTX token holders who have more than 500 FTX tokens.
Follow these simple steps to purchase FTX tokens on FTX.
Register for an FTX account
You will need to register on FTX in order to purchase FTT. Then, verify your identity with basic documents and proofs of identity. Personal information such as your name, contact number, email address, home address, social security number, and a copy of your driver’s license, passport, or government-issued ID will be required. To use either a debit card or credit card, you’ll need to be able to identify yourself via a webcam. You can unlock your account by tapping on Account Limits from your settings menu. This will allow you to access greater amounts and credit cards.
The exchange will quickly verify your identity and allow you to trade and buy almost any cryptocurrency, not just the FTT token.
You can deposit funds
Once you’ve verified your account and uploaded all your necessary documents, the next step is to deposit cryptocurrency or fiat currencies into your account. FTX supports several fiat currencies, including USD, EUR, GBP, AUD, etc.
It is possible to use your bank, credit, or debit card as well as crypto coins from another crypto wallet or wire transfer. You may also deposit euros via SEPA.
Fill in the details of your bank account to deposit money into it. Then, transfer the amount you want to your FTX account. The USD, and all other major currencies, are usually processed within one to two days. However, they may take longer for some cases. Credit cards can be used to deposit fiat currencies into your wallet at FTX. This allows you to purchase instantaneously or make recurring purchases. There may be an additional cost when you use your cards to buy crypto. The fees that are associated with debit card use will be displayed. This convenience fee, which is paid by the card processor is equivalent to 2.9% + 0.30USD per transaction. You can trade immediately on your funds deposited with your card as long as you’ve not had any chargebacks. After 7 days, coins purchased using cards can be withdrawn.
You can also deposit cryptocurrency into your FTX App account, and funds will usually be available anywhere between a few minutes to an hour, depending on the speed of the blockchain’s verifications of your transaction.
Buy FTT
Once you’ve deposited funds into your account, the next step is to buy the FTX token (FTT). FTT is available in several trading pairs. The Futures Market trading pair is FTT/PERP. In the spot market trading pairs include FTT/BTC and FTT/USDT. To buy FTTX (FTT), you will need to choose between a pair of trading pairs.
Purchase FTT in Binance
Binance is one the most widely used cryptocurrency exchanges. Although it does have some disadvantages, it is still a great choice to purchase FTT or other digital tokens.
You will need to open a Binance retail investor account and upload identity proof documents in order to purchase FTT. After verification, Binance will allow users to buy the FTX token or other cryptocurrency of their choosing through fiat deposits with a credit card or debit card. You can also transfer funds from a bank account.
You can buy FTT on Binance with four different trading pairs, including FTT/USDT/BUSD/BTC, FTT/BTC/BNB, FTT/BUSD/BUSD and FTT/USDT/BNB. To select the asset against which you wish to trade FTTX token (FTT), you can also use CoinStats’ comparison service. You will need to first select an asset that you would like to trade FTX (FTT), e.g. USDT(TETHER), then you’ll need to spend the USDT necessary to purchase FTT. After you’ve added USDT (TETHER) to your wallet, go to FTT/USDT trade and buy your desired amount of coins. Once the FTT order has been completed, your new coins will be in your wallet.
You have successfully purchased FTX tokens.
Buy an FTX Token wallet
The most critical thing to think about when it comes down to crypto assets is their storage. Although most of the major crypto exchanges like Binance and FTX offer their own wallets for storing your assets, they are susceptible to hacking, online attacks, malware, etc. because they can be connected to the internet 24/7. Binance was hacked in 2019, and Bitcoins worth over USD 40million were stolen.
Therefore it’s advisable for all traders and investors in crypto to store their assets in wallets that they control.
The FTX.US cryptocurrency trading platform offers a custodial wallet for crypto storage, along with the FTX token. But, the exchange also holds your private keys. This means that it can control your crypto.
Transferring your crypto to an external wallet is the best way to keep it in complete control.
There are many types of wallets
Crypto wallets randomly generate a recovery phrase (or “seed phrase”), a list of 12 to 24 words given in a specific order. A recovery phrase is a human-readable form of your wallet’s private key—the unique, secret passcode used to authenticate and encrypt your wallet access. This phrase is used to verify ownership, sign transactions, and retrieve your wallet address (if you have a hardware wallet). It can also be used to recover your wallet’s access code or to authenticate your wallet access.
Note that you’ll see this phrase only once during account setup, and be sure to write it down, take a screenshot, add it to a password manager, or find another way to keep it safe.
You can choose software or hardware wallets depending on how you invest. The latter is more secure.
- Software wallet: Software wallets are flexible and easy to use. Software wallets are the easiest to set up. You can interact easily with many decentralized finance applications (DeFi). However, these wallets are vulnerable to security leaks because they’re hosted online—like your bank accounts. To avoid security problems, ensure you do your research before selecting a wallet. As an additional layer of security, we recommend that you use a platform with 2-factor authentication.
CoinStats Wallet can be used to securely store cryptocurrencies once they have been purchased from an exchange. CoinStats Wallet makes it easy to track all of your assets from different exchanges. It also allows you access the full power and flexibility of DeFi protocol.
Metamask Wallet is another well-known software wallet. It can be used as both an application and a browser extension. - Hardware wallet: Hardware wallets are devices that store the private keys required to send or receive crypto. Because they provide offline storage and significantly reduce the risk of hacking, hardware wallets are often considered to be the best way to keep your crypto. You can lock them with a pin, and they will wipe out all data after multiple failed attempts to prevent physical theft. You can also sign and verify transactions using a hardware wallet, which gives you extra protection from cyberattacks.
These hardware wallets let you trade FTT tokens securely and are considered to be the best. There are two types:
Nano S was designed to be used by crypto novices and only offers a handful of features.
Nano X is better suited to advanced crypto traders, and can hold a greater variety of assets.
Depending on what you prefer, either one of these wallets can be used to store your assets. To securely manage your assets, you can check out CoinStats Wallet.
Final Word
FXT, a legal cryptocurrency exchange offers innovative trading products like leveraged tokens or futures trading. With over 100 trading pairs, leveraged tokens and futures as well as indexes and options available, users will never be bored.
The FTX token (FTT), a cryptocurrency investment option, might make sense.
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