A few years ago, people were talking about the “year of the blockchain” and wondering what year that would be. But the crypto world has really been supercharged this year, as we look at new ways to handle digital assets and various types of virtual money. In some ways, this is the year of the blockchain – and the graphchain, and web3 and a whole host of other innovations that promote on-ramps to things like crypto coins and NFTs.
One of the most popular exchange platforms for crypto is FTX, a place where traders can leverage assets, buy crypto futures, and engage in other kinds of related trading.
Let’s look at how this works on a practical basis, and review FTX as an ecosystem for crypto transactions.
History of FTX
First of all, a little history – FTX was started in 2019, and headquartered in the Bahamas.
When it comes to establishing thought leadership and dominance in crypto, name recognition is a big component of success.
FTX has that prominence, partly because of the involvement of Sam Bankman-Fried and Alameda Research. Backman-Fried is unmistakably known as a VIP in the crypto world, with his outspoken ideas on money and prior innovations in finTech and beyond.
FTX, therefore, is a pretty big name in crypto, but it’s important to point out that U.S. traders still can’t use the main platform. They are relegated instead to using FTX.US, where a more restricted list of opportunities is available. That doesn’t mean, though, that FTX isn’t rapidly innovating on the vanguard of the crypto world, and enthusiasts believe that there is lots more to come.
FTX and Cybersecurity
In order to help prevent hacking and other kinds of problems, FTX uses multifactor authentication and wallet backup strategies to make sure that transactions are secure, and that the platform remains stable and protected from bad actors.
Certain kinds of transparency on the platform also help with anti-fraud and anti-money laundering situations. The whitelisting of wallets is one example. Targeted MFA is another.
FTX: Types of Cryptocurrency
When it comes to what you can trade on FTX, lots of the big names are represented.
The platform supports trades in both Bitcoin and Ethereum, the two biggest and most familiar blockchains to most average investors.
At the same time, there are also new altcoins supported like Solana and Dougie coin
Another crypto currency supported by the platform is XRP, the token for the Ripple company which is now fighting the SEC over claims that it sold unregistered securities. News on the street is that Ripple is likely to win this court battle and emerge as a major token in the future.
Along with the ability to trade the most famous coins, there’s the sheer number of trade opportunities represented on the FTX platform. Extras like an FTX Visa card also help to entice traders and users who want a safe place to conduct crypto business.
Notes on Margin Trading
Although there are a lot of tools and resources on FTX to help traders, nothing will substitute for a good grounding and training in the risks of margin operations.
As a result, FTX has a policy of forced liquidity beyond a certain amount of leverage. When it looks like a trader is getting in too deep with money that they don’t have, liquidation will be automatically triggered on the platform.
Minting and Staking
Along with all of the above, there is also the opportunity to mint NFTs with Ethereum or Solana, and to move an NFT into an FTX wallet. Using appropriate KYC and other functions, the platform accommodates “makers” who want to offer their own assets on the market. There are also staking opportunities presented on the site.
The Bottom Line
All in all, this is a very appealing cryptocurrency exchange. It helps that FTX has its U.S. arm for doing business stateside, and all of the other safeguards and protections for cryptocurrency transactions and processes. The versatility of the platform is part of the draw: so is the derivative market that is attracting more savvy investors as crypto continues to mainstream, as a payment medium, as a capital reserve for big companies, and as a new market that invites the intrepid trader to pursue gains. Look to FTX for practical accommodation of a crypto strategy that takes advantage of the zeitgeist, to get involved in crypto and NFTs confidently and in a profound way.
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