FTX is a popular platform that helps in trading cryptocurrencies at affordable rates. The platform supports several cryptocurrencies and features suitable for veteran crypto traders. One can also trade cryptocurrencies with other currencies operating in different countries.
Let’s now look at the platform’s features and pros and cons for a better understanding.
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Pros
FTX became widely popular in many countries owing to its low transaction fees. The platform offers an affordable option to trade cryptocurrencies for new investors. Thus, it serves to be the best platform for new crypto traders. Some do not have to pay any transaction fee, and the transaction costs depend on various factors. Thus, traders can carry out their trade without extra cost, especially on the company’s mobile app.
While FTX is a popular crypto trading platform for new traders or investors, it offers several advanced features like derivatives and margins. These features are beneficial and suitable for experienced crypto traders with a high-risk tolerance. Features like over-the-counter trading can help increase the trader’s income.
However, only traders having a good understanding of the crypto market should sign-up for such features. For instance, derivatives help traders trade at future prices based on estimation. However, owing to the unpredictable nature of the market, these features are best suited for traders capable of handling risks.
FTX is known for its wide range of crypto trading pairs. Though the platform offers only 26 cryptocurrencies, it has several options to trade cryptocurrencies with other national currencies. For instance, users can trade their crypto tokens with the American Dollar, Euro, etc. Thus, the platform offers a lot of ease and options for crypto trading.
Unlike most crypto trading platforms, FTX offers several rewards that multiply with your trade volume. Such a feature adds to the benefits of the traders as they can not only trade cryptocurrencies at affordable rates but also get rewards on each transaction. Users also receive free crypto tokens for specific transactions. Thus, investors might get extra crypto tokens without spending on them, which can initiate more trades.
FTX offers high security for crypto transactions. However, one must note customers questioning the robustness of the company’s security policies, considering Binance, Kucoin, and other crypto trading platforms to have better security measures.
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After all, with the expansion of the crypto market, the nature of cyber threats and scams also increased. Thus, crypto trading platforms must guarantee top-notch security to investors. Here are some security features of FTX.
- Customized hot and cold wallet for storing cryptocurrencies
- A two-step authentication process for all users
- Additional passwords and authentication for withdrawing cryptocurrencies
Cons
The lack of diverse cryptocurrencies is a significant drawback in FTX. The platform only offers 20 crypto options, limiting investors’ trading options. However, with the downfall of the crypto market and the dropping prices of cryptocurrencies, the limited choice adds to the investors’ problem. Most investors shifted from trading on FTX because of its lack of cryptocurrencies amidst the testing times, as they failed to look for alternative cryptocurrencies when the price of one dropped. Though FTX helps traders trade crypto tokens with other fiat currencies, the range of choices is limited, especially for experienced investors.
FTX faced wide customer dissatisfaction owing to its lack of efficient customer support. Most customers reported a lack of professional support, making it challenging for new traders and investors. Though FTX offers various ways to reach out for help in case of any issue, customers can seldom reach out to their customer service team and only receive responses through chatbots. The platform could be more efficient in tackling customer complaints, queries, and issues, which is a major disadvantage.
FTX has an easy-to-use interface, perfect for new investors. The simple process of creating an account further adds to the ease of crypto trading.
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The users must enter their email addresses and create a strong password to create an account on FTX. Though the platform has a two-step verification process, users who want to explore the platform’s basic features can skip this step. Thus, one can only access a few features by entering basic details like their name, date of birth, country, etc. However, skipping the two-step verification process can limit the nature and amount of crypto transactions.
Users can access the site’s full features only after the two-step verification that involves submitting their address proof and government IDs and undergoing facial recognition.
Though the verification process might seem tedious to many, it enhances crypto transactions’ security and protects your account from cyber hacks. Thus, it would be best to go through the two-step verification process and provide all the required details for a secured crypto trading experience.
Conclusion
FTX, a crypto trading platform launched in 2019, is a relatively new platform growing in popularity among investors owing to its features. Thus, the company has a current market value of $ 18 billion, and one can only expect it to rise with time.
However, while the company received several positive reviews on its feature and operations, it has yet to overcome a few hurdles, including the limited number of cryptocurrencies and security. Additionally, the platform only offers customer help through tokens without specifying the estimated time for reaching back to the customers. Such an approach can be a major disadvantage for new crypto traders, who are unaware of the nitty-gritty of crypto trading. Thus, FTX is best suited for experienced investors who can sustain the self-service nature of the platform.
It would be best to weigh the pros and cons of this platform with other leading crypto trading platforms before one starts investing in cryptocurrencies through it. Remember, the platform received mixed reviews on its features. While some features are quite efficient, it has a long way to go in achieving the rest.
