FTX is a crypto exchange known for its unique, innovative suite of tradable crypto products. These include industry-first derivatives, options, volatility products and leveraged cryptocurrencies.
In this resource, we’ll give you the low-down on FTX exchange. Continue reading to learn about the key features of FTX, how to create and verify an FTX account, and what you need to do to buy and sell cryptocurrencies on the FTX exchange.
Please note: Trading derivatives is highly risky and relatively hard to understand. If you do not know what you are doing, you can lose a lot of money in a short amount of time. It is strongly encouraged that you take the time to understand how derivatives trading works before you place a trade.
About FTX Crypto Derivatives Exchange
FTX is an innovative company offering a robust crypto exchange service including on- and off-ramp services to convert fiat money for cryptocurrencies.
Sub-accounts are a great feature allowing for independent balances, margin and positions, and allows you to trade each sub-account independently. Sub-accounts are useful for isolating positions, margin or access.
People mainly use FTX to trade crypto derivatives. Others find FTX useful because it represents a way for them to deposit fiat money, such as Australian dollars (AUD), which they can then use to buy cryptocurrency directly.
Opening an FTX Account
To register an account with FTX, you’ll need to visit the website and select ‘register’. Enter your email address and a unique, strong password to ensure your account is as secure as possible. You will also have to complete a CAPTCHA to prove that you aren’t a robot.
The terms and conditions are available to review and must be accepted before submitting your registration with FTX.
You will need to activate your account using the verification link, which FTX will email you immediately. (Ensure you check the link emailed to you to confirm it directs to the correct website.)
The next stage of getting an account set up with FTX is to secure it using two-factor authentication (2FA). This is relatively easy if you already have an app or wallet device. If not, learn how to set up with 2FA.
Using your authenticator, scan the QR code on the ‘Set up Authy/GA 2FA’ page to sync the accounts and verify the six-digit code which completes the process. Each time you log in, you will need to enter your username, password and the current 2FA code from the app or device you have set up. Once you complete these steps, you’re ready to start trading.
FTX Account Verification
On FTX, both individual and institutional accounts can be verified through a know-your-customer (KYC) process. To meet your KYC requirements, you need to follow a few simple steps. Visit your profile page and click ‘Verify Identity’ to begin.
The first tier of KYC requires you to enter your full name, country of residence and the state or province where you reside. This tier of KYC enables limited withdrawals. (Do note that some advanced trading products may still be restricted.)
Level 1 KYC entry form for FTX exchange
To satisfy the second KYC tier, you must supply additional details including date and place of birth, proof of address, governmental ID such as a passport, description of sources of cryptocurrencies as well as a selfie of you holding a piece of paper which contacts ‘FTX’ and today’s date.
In order to be able to access the fiat deposits and withdrawals feature, FTX requires you to satisfy the third KYC tier. This involves you supplying a recent address proof and a recent bank statement, which needs to be for the bank account you will deposit or withdraw fiat money to and from.
Buy Cryptocurrency with AUD on FTX
Once your account is funded, you can begin by converting—which is the easiest way to trade on FTX. If you deposited a non-USD fiat currency such as AUD, you must firstly convert it into USD. That’s because USD is the only fiat currency on FTX which serves as a quote currency.
If you are wanting to buy BTC using USD, for example, click ‘CONVERT’ and enter your desired quantity. You’ll be shown a price. If you’re happy with this amount, click ‘CONVERT’. (FTX charges no conversion fees. The price you see is what you pay.)
Conversion form for converting between BTC and USD
FTX offers many innovative trading products which should all be carefully researched and considered before use. FTX has some highly detailed resources on these in both their help centre and YouTube channel. Some of these tradable assets include:
- Hashrate products—tracks the total Bitcoin network hash rate.
- Options—both calls and puts. All options on FTX are European-style (i.e., may only be exercised on the expiration date).
- Leveraged tokens—BULL and BEAR tokens which run on Ethereum.
- Volatility products—includes MOVE contracts and the BVOL and iBVOL bitcoin volatility tokens.
- Futures contracts—includes gold and oil futures with support for up to 101x leverage.
Sell Cryptocurrency for AUD on FTX
To sell cryptocurrency for AUD, you may first need to send it to FTX from the crypto hardware wallet which has been securely storing it. On the ‘Wallets’ page, you can open the deposit options for each cryptocurrency and see the address and QR code which is unique to your account as wallets to your cryptocurrency.
Once your cryptocurrency is on the exchange, you can ‘convert’ it to USD so that it can be converted once more to AUD or another fiat currency of your choice.
FTX Pro App
There is also a free mobile app for FTX which is called FTX Pro. The FTX Pro app supports both iOS and Android.
An app known simply as ‘FTX’ was available before FTX Pro was released. Whilst the FTX app remains available on leading app stores, the FTX team no longer updates it—unlike FTX Pro.
FTX Pro is available on iOS and Android devices
FTX x Nugget’s News
Sign up to FTX to enjoy 10% off trading fees over the lifetime of your FTX account.
FTX Exchange Tutorials by Nugget’s News
The below tutorial is for traders who want to trade cryptocurrencies and crypto derivatives on FTX. In it, Alex demonstrates how to place a trade, explains the various order types supported on FTX as well as its unique leveraged tokens and its volatility products. (Uploaded on September 26, 2019.)
In the below tutorial, Alex breaks down FTX’s bitcoin options and walks through the process of placing an options trade. (Uploaded on March 3, 2020.)