Is FTX a Good Crypto Exchange for Beginners?

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It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether FTX is a good crypto exchange to start trading with. In this article you will learn whether FTX is good for beginners, what its pros and cons are and what a novice trader needs to know.

Short summary about the broker FTX

The FTX exchange is a cryptocurrency trading platform. Spot trading, futures, and stock trading are available. The maximum leverage is 1:100. Bitcoin, Etherium, Litecoin, Tether, and other assets are traded on the exchange. In total, more than 100 cryptocurrencies and tokens are represented, some are paired with fiat funds. Money on the account can be stored in fiat currencies like USD, UAD, CAD, SGD, etc. Keeping funds is cold (staking). The trading commission is from 0.020%. There are stop loss and take profit functions, scalping. All major methods of depositing and withdrawing funds are presented, including bank cards. This cryptocurrency exchange has a convenient proprietary trading terminal with a mobile version.

💰 Account currency: Cryptocurrencies, some fiat currencies
🚀 Minimum deposit: USD 50
⚖️ Leverage: Up to 1:100
💱 Spread: Market
🔧 Instruments: Cryptocurrencies, currencies, futures, stocks
💹 Margin Call / Stop Out: No

FTX Pros and Cons

👍 Advantages of trading with FTX:

easy and quick registration with AML verification;

more than 70 assets are available for trading;

low fees, especially when using the site's own cryptocurrency (FTT);

profitable referral program with a good rate;

extended functionality of available orders;

convenient proprietary trading terminal with a mobile version;

service for developing Quant Zone trading strategies.

👎 Disadvantages of FTX:

without verification, there are serious restrictions on the limits;

there is little legal information about the company on the official website.

What is a Good Crypto Exchange for Beginners?

In order to choose the right broker for a beginner, you need to consider several aspects.

Here are the main ones:

  • Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.

  • Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.

  • Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.

  • Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.

  • Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.

  • Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.

In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.

Trading Conditions for FTX Users

Before you start working with an exchange, it is important that you evaluate its trading conditions. FTX offers traders the following conditions.

💻 Trading platform: Proprietary platform
📊 Accounts: Standard
💰 Account currency: Cryptocurrencies, some fiat currencies
💵 Replenishment / Withdrawal: Bank cards, cryptocurrency wallets, e-wallets
🚀 Minimum deposit: USD 50
⚖️ Leverage: Up to 1:100
💼 PAMM-accounts: No
📈️ Min Order: From 0
💱 Spread: Market
🔧 Instruments: Cryptocurrencies, currencies, futures, stocks
💹 Margin Call / Stop Out: No
🏛 Liquidity provider: No
📱 Mobile trading: Yes
➕ Affiliate program: Yes
📋 Orders execution: No data
⭐ Trading features: Many assets and instruments, advanced order functionality, a wide range of indicators are available for the trading terminal chart, Quant Zone strategy development service
🎁 Contests and bonuses: Yes

Commissions and Fees

The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of FTX commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.

Information

Like most other crypto exchanges, FTX has a fee system, according to which the amount of fees depends on the trading level. The trading level is determined by the volume of trades over the last 30 days. There are six levels. At the first level with a trading volume of USD 0+, the maker/taker commission is 0.020/0.070%. At the sixth level, with a trading volume of more than $50,000,000, the maker/taker commission is 0.00/0.040%. Staking using the crypto exchange's coin allows you to further reduce the commission on the futures and spot markets where up to 60% discount is applied to FTT holders.

Account type Spread (minimum value) Withdrawal commission
Standard From 0.020% per market order No

Investment programs of FTX

It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. FTX offers the following passive income options.

Investment Programs, Available Markets, and Products of the Crypto Exchange

Users of the FTX exchange can only earn by trading cryptocurrency, tokens, and fiat. There are no full-fledged investment programs on the site. The only option for passive earnings besides the referral affiliate program is staking. To do this, it is necessary to keep the variable volume of the crypto exchange's own coin —FTT—on the account in your personal cabinet. Holding FTT yields a steady 4% annual growth in funding. The coin can be deposited and withdrawn at any time.

Important!

If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.

Affiliate programs from FTX

The FTX crypto exchange has a standard affiliate (referral) program. Its peculiarity is that the amount of payments for referrals is tied to the volume of FTT (platform cryptocurrency) being held in traders’ wallets.

  • After registration, you will receive a referral link. If another user registers on the exchange through it, then from each of his commissions on transactions you will receive 25-40%. The advantage of the attracted user is that by registering using your link, he receives a 5% discount on all commission fees.

  • For you, referral payments depend only on the number of FTTs that they use in staking. There are seven levels in total. At the minimum level, a referral may not invest in FTT at all, and at the same time, you are guaranteed to receive 25% of the commissions on his transactions. At the seventh level, the referral must have at least FTT 1,000,000 in staking, then you will receive 40% of his commissions.

Referral payments are daily displayed in the Referrals section of your personal cabinet. If the total trading volume of your referrals exceeds $25 million, the site will offer you individual terms of cooperation.

Conclusion. Is FTX good for beginners?

The FTX cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, FTX could be considered as a good cryptocurrency exchange for a start.

FAQ

What do I need to know about the fees charged by cryptocurrency exchanges?

The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.

How do I choose a reliable cryptocurrency exchange?

Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.

How many cryptocurrencies could a crypto exchange offer?

The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.

What are the risks of investing in cryptocurrencies?

Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.

Team that worked on the article

Mikhail Vnuchkov
Author at Traders Union

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

Olga Shendetskaya
Author and editor at Traders Union

Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.