1.
(1) Introduction to FTX
The FTX Exchange is owned by FTX Trading LTD of Antigua and Barbuda, a trading platform for cryptocurrency derivatives created for and by traders. FTX Exchange is dedicated to building a robust platform that can be used intuitively by professional trading firms as well as first-time users.
FTX is a project incubated by Alameda Research, one of the leading liquidity providers in the digital currency community. Thanks to Alameda Research, FTX's liquidity has been on par with the industry leaders from the start.
(2) Founder of FTX
FTX was founded on May 1, 2019, at a time when the cryptocurrency bear market was in full swing and the price of many cryptocurrencies was sluggish, with even Bitcoin averaging just $5,000 that month; so it was not easy for FTX to grow from then to the billion-dollar average daily trading volume it has today. This success is largely due to its founder, Sam Bankman-Fried (hereinafter referred to as Sam), who is one of the most popular figures in the cryptocurrency world.
After graduating from MIT with a degree in physics, Sam Bankman-Fried first worked as an international ETF trader at Jane Street on Wall Street, and this experience allowed him to become familiar with various financial instruments and trading systems. In September 2017, Sam took the plunge and left his job as a professional trader at Jane Street to devote himself to the cryptocurrency financial system and founded Alameda Research, the world's leading cryptocurrency market maker.
Today Alameda Research is one of the top market makers in the cryptocurrency market, providing accurate quoting services, arbitrage, quantitative trading and more to many cryptocurrency exchanges. However, Sam is not content to be the technical backer behind cryptocurrency exchanges, and on May 1, 2019, he founded the financially innovative cryptocurrency derivatives exchange FTX, which is once again bringing a new vision to the cryptocurrency financial market, and to date, FTX's average daily trading volume has exceeded billions of dollars.
(3) FTX Features
Unlike traditional cryptocurrency exchanges that focus on spot trading, FTX has from the outset targeted financial instruments derived from cryptocurrencies and offers many underlying instruments that are not currently available on cryptocurrency exchanges, such as leveraged tokens, equity pass-throughs, predictive commodities...etc.
①Participate in the cryptocurrency market from a holistic (broad market) perspective: the Cryptocurrency Broad Market Index
FTX offers a number of cryptocurrency-derived broad market commodities, such as cryptocurrency indices, and two-way option contracts.
A cryptocurrency index implies the overall cryptocurrency broad market movement, and traditional traders can use this commodity to predict the next broad market movement, avoiding the influence of a single currency.
Indexed investing: Warren Buffett's recommended passive investment for novices, challenging the performance of active funds to win big
The two-way option contract, on the other hand, is similar to the Panic Index VIX that I mentioned earlier.
Panic VIX The complete lesson: why I don't recommend investing in this product for the long term
These products allow traditional investors to buy in anticipation of a potentially volatile future and profit from the level of volatility in cryptocurrencies.
②Trading political situations with cryptocurrencies: US presidential election futures contracts
Not only the crypto market itself, but FTX has also turned various political issues into trading content, attracting people who were previously uninterested in cryptocurrencies and traditional finance to invest in them. For example, in February 2020, FTX put up the futures contract TRUMP-2020, which allows investors to predict whether Trump will be re-elected or not to trade, helping FTX to attract many people interested in politics to open accounts and trade. All the current general election contracts, "except TRUMPFEB", have been settled according to the delivery rules of the original election).
Overall, FTX has introduced innovative commodities that can help investors who are otherwise unfamiliar with, or uninterested in, cryptocurrency trading to enter the market, allowing them to engage in cryptocurrency trading through the eyes of traditional finance and politics, and without decoupling from the logic of their original investment. For example, FTX has launched a commodity equity pass for "cryptocurrency trading in US stocks", which even allows you to buy pre-IPO share price commodities.
Ways to invest in US stocks with cryptocurrencies: FTX Equity Passes and Tokenised Shares
(4) Strong partners
FTX, as an exchange, has a fairly wide strategic network of partners including well-known cryptocurrency exchanges, stablecoin issuers, cryptocurrency market makers, angel investors and more. Take cryptocurrency exchanges as an example, FTX has partnered with Cryptocurrency, BITFINEX and FireCoin. FTX has also partnered with US dollar-linked stablecoin issuers Circle, PAXOS, HUSD and Trusttoken, allowing different stablecoins to be converted on its platform, making it possible to buy spot cryptocurrencies and contracts in US dollars, and to settle in US dollars.
Overall, FTX has worked with various sectors to expand its strategic circle and achieve a more liquid and investment-friendly exchange positioning, which has also placed FTX in the Top 7 for cryptocurrency derivatives and Top 10 for cryptocurrency spot.
(5) FTX exchange products
①Contracts
Quarterly contracts and perpetual contracts are the most important products on FTX, which has designed a revolutionary contract engine that brings a new dimension to the industry.
FTX's forced liquidation and liquidity federation mechanisms bring a "three-tier clearing model" to the platform, handling margin calls and preventing the possibility of triggering assessments. In addition, FTX has gone live with USDT, BNB, and LEO contracts, which are still lacking in the market.
FTX is also live with index contracts, allowing users to trade all segments of the cryptocurrency ecosystem simultaneously, including mainstream cryptocurrency indices, platform coin indices and the Dragon Index.
②Leveraged Tokens
FTX's Leveraged Tokens provide an easy and automatic way to trade with leverage. Our CBBCs automatically adjust their exposure and automatically save targets to avoid blowouts.
Leveraged tokens eliminate the need to monitor your margin and risk at all times. They are ERC20 tokens that you can trade and withdraw anytime, anywhere in your favourite scenario.
MOVE Contracts
FTX offers options trading through the industry's first volatility (MOVE) contract, which is a contract that delivers the original amount of the BTC movement over a typical period of time, allowing users to trade the amount of the bitcoin movement without knowing the direction of the movement.
④Over-the-counter OTC
FTX has an OTC platform that originated from Alameda Research without a break. Customers can receive quotes and transfers of 20 coins or more immediately. No delivery fees are required.
⑤ Platform coin FTT
FTT is the application token of the FTX ecosystem. Traders who hold FTT are offered a number of benefits.
Weekly repurchase burn-in
FTX trading offers
OTC counter commission
Margin on contract trades
Social profitability of guaranteed funds
(6) FTX Exchange Core Team
Sam Bankman-Fried: Co-founder and CEO
Prior to founding Alameda, Sam was a Jane Street Capital International ETF desk trader. He has traded many types of ETFs, futures, currencies and equities, and designed automated OTC trading systems for Jane Street. He graduated from the Massachusetts Institute of Technology with a major in Physics.
Gary Wang: Co-founder and CTO
Gary was a software developer at Google before founding Alameda and FTX. He developed the price aggregation and servicing system for Google Flights, which reduced latency and memory capacity by over 50%. He graduated from the Massachusetts Institute of Technology with a degree in mathematics and computer science.
Nishad Singh: Head of Engineering
Prior to joining FTX, Nishad was a software engineer in the Applied Machine Learning team at Facebook. He graduated summa cum laude from Berkeley University with a double degree in electrical engineering and computer science.
Dan Friedberg: Legal Counsel
Prior to joining FTX, Dan was a partner at Fenwick & West LLP. There, he led the cryptocurrency practice and was chair of the payments systems team, advising entrepreneurs and startup clients from public companies in a variety of industries, including manufacturing, consumer goods and services, biotechnology, gaming and software, specializing in regulatory dispute resolution. dan received his J.D. cum laude and M.B.A. from the University of Wisconsin.
Jen Chan: CFO
Jen has over ten years of executive experience at global financial institutions including Deutsche Bank, BlackStone, KPMG and Alter Domus. She joined FTX in October 2018 from Alter Domus where she was head of the Hong Kong office. She graduated from the Hong Kong University of Science and Technology with a bachelor's degree in accounting and is a CPA certified public accountant.
Constance Wang: COO
Constance worked at UBS in private banking AML/KYC, and investment banking compliance risk control. She then joined Huobi Global as Business Development Manager, focusing on expanding the institutional business of the FireCoin Global Station exchange in Asia Pacific, and developing and managing strategic partnerships in the region. She graduated from the National University of Singapore with a degree in Finance.
Darren Wong: CMO
Darren was an early software engineer at Simility. Simility was an anti-money laundering fraud detection startup that was acquired by PayPal. He audited smart contracts for projects like Wabi. He was also an early investor in many ICOs. He graduated from Johns Hopkins with a degree in Applied Mathematics and Economics.
Michael Burgess: Head of Partnerships
Michael joined FTX from a diversified energy company where he was a project management consultant. Michael graduated with a Master of Applied Finance from Sydney Business School.
(7) FTX Security
As the definition and regulatory regime for cryptocurrency exchanges is currently incomplete in each country, we need to look at the security mechanisms and regulations it has put in place, as well as researching extensively about the exchange, to determine whether it is safe and trustworthy.
The FTX exchange currently has a good record in this area of security, and the following are three of the measures and records of the FTX exchange to maintain the security of its platform and the credibility of the exchange.
①Proactive restriction of regulations regulate countries
FTX's terms of service on its own website state that
FTX does not currently support the opening of accounts for institutions/businesses registered, established or resident in the following countries or regions: the United States, Cuba, Crimea, Sevastopol, Iran, Syria or North Korea. FTX also does not support the opening of accounts for establishments/businesses incorporated or resident in Antigua and Barbuda.
FTX does not currently support the opening of individual accounts for residents of the following countries: USA, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Antigua and Barbuda, etc.
In order to prevent users and the platform from falling foul of the law, FTX Exchange has taken the initiative to restrict user registration in these regions due to the strict control of cryptocurrencies, and to maintain the security and credibility of the platform by setting its own regulations.
②STO trading and leveraged token trading are regulated by a third party review
The STO security-based tokens launched by the FTX Exchange work with CM-Equity, a financial institution regulated in Germany for STO products, and require KYC certification by CM-Equity for STO trading on the FTX Exchange.
Leveraged token transactions on the FTX exchange are audited for security and data reporting by Blockchain Consilium, a provider of institutional trading and risk control tools for the cryptocurrency market, and the FTX exchange has set legal compliance specifications for the services it provides and seeks partners that meet its needs. The FTX Exchange also has its own Alameda Research, which makes the data provided by the FTX Exchange more stable and accurate, allowing users to trade through the FTX Exchange with confidence.
(iii) No hacking losses on the platform
FTX exchange currently has no record of hackers causing loss of assets, there is no negative news about the platform misappropriation of user assets, and FTX exchange also prepared a risk reserve fund containing U.S. dollars and FTT, to prevent sudden losses.
- The content introduced above is only about the basics of cryptocurrency, which is related to whether we can make money through cryptocurrency. Cryptocurrencies make money not only by scientific methods to increase income, but also by finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms.
(1) Lowering Binance's fees
Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT.
Example.
You place an order for 10Ethereum at a price of USD3,452.55 per share.
Transaction fee = 10Ethereum0.1% = 0.01Ethereum
Or you place an order to sell 10Ethereum at 3,452.55 USDT per share.
Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT
What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC".
https://accounts.binance.com/en/register?ref=Q022W7SC
(2) Reducing OKX fees
OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced.
Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day.
When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level.
First method: OKX has an official maximum saving of 20%. Use the link below to register with OKX and save 20% on fees.
https://www.ouyi.business/join/BTC1ETH
Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom.
Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage.
(3) Reduce FTX fees
FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register.
https://ftx.com/referrals#a=121031692
3, trading road is long, together with forward
Want to know more about how to reduce the commission?
telegram: btcethcool
We have set up a community dedicated to researching trading, add telegram friends to pull you into the community.