Want to jump straight to how to buy FTX Token (FTT)? You can buy FTX Token on Pionex (available for U.S. investors), Binance and Uniswap.
FTX is in the headlines yet again but this time it's not positive. Far from it, in fact. Rumors of insolvency caused a bank run, causing a massive crash in FTT's price. This volatility is a double-edged sword. This kind of volatility can be incredibly profitable but its ludicrously risky. If you choose the wrong direction (especially if you're using margin) you could lose a lot of money really fast. Only trade with money you can lose trading volatile tokens like FTT because there is a high chance you will lose much of your investment.
Nowadays there seem to be far too many cryptocurrency exchanges to choose from. Most of the top exchanges have so many different features and unique utility tokens that it's difficult to pick out the best exchange for you. FTX Derivatives Exchange is a fantastic option for advanced traders and its utility token, FTX Token, has more functionality than many of its competitors. Most of the token's uses are related to the FTX trading platform, but it can be a great tool for price speculation too. FTX is constantly trying to increase the value of the token through many different methods. It was initially successful, pushing FTT to nearly 5 times the value it was at the beginning of 2021. However, the depegging of Terra in the summer of 2022 pushed back the whole crypto sector, forcing many tokens well below their previous highs
Even if you don’t plan on using the FTX exchange, FTT could be a good investment.
What is FTX Token?
FTX Token is an ERC-20 token on Ethereum and the native crypto of the FTX Derivatives Exchange. If you already use FTX or want to start using it soon, purchasing some FTT might be worthwhile. Holders of the token get significant discounts on trading fees on the platform. They can also stake FTT to get bonuses like further reduced trading fees and more airdrops of FTX’s other token, SRM.
The FTX exchange itself is a leading platform for spot, over-the-counter (OTC), futures and prediction market trading. It is 1 of the largest cryptocurrency exchanges in the world in terms of volume, despite its youth. It offers hundreds of different tokens, and its mission is to fix the abundance of flaws that most leveraged trading platforms suffer from. Forced liquidation, when a leveraged trade must be sold to avoid impossible-to-pay margin calls, can be catastrophic to users and exchanges on a large scale. FTX employs a backstop liquidity program where large traders buy up liquidated trades before they can hurt the market as a whole. Most if not all leveraged exchanges like OKEx have insurance funds for large liquidations but can’t handle dramatic price movements like the FTX backstop program.
When the market makes a drastic move, traders on the other end of massive liquidations on an exchange with inadequate protections could be forced to pay for the losses of other users. This happened to short traders on OKEx in 2018 when the market dropped significantly and a $400 million long position was liquidated. OKEx was woefully unprepared and took 1,200 Bitcoin (worth about $48 million now) of profits from the short traders counter to the liquidated trade to cover the margin call. FTX’s program makes it a much safer exchange to trade on during massive price movements and liquidations.
Most use cases of FTT involve the exchange, but you don’t need to use it to own and benefit from the token. About ⅓ of all fees generated by the exchange are used to purchase FTT, which are then burned (removed from circulation forever). FTX also says its revolutionary backstop liquidity fund will see a net gain from massive price movements in the market, and profits will be socialized among FTT holders. If the list of benefits for holding FTT isn’t enough yet, FTX sends all FTT holders 3 SRM tokens for every 500 FTT they have every week.
Brief History of FTX Token
The FTX Derivatives Exchange was founded in 2017 by Sam Bankman-Fried and Gary Wang Both Bankman-Fried and Wang graduated from the Massachusetts Institute of Technology (MIT) before launching FTX and are the company’s current CEO and CTO, respectively. Bankman-Fried is 1 of the most successful and well-known players in the cryptocurrency community. He is also the founder and CEO of Alameda Research, a quantitative trading company that handles billions of dollars worth of cryptocurrencies. His expertise is priceless and he has led both companies to great success.
The FTX team has been masterful at attracting funding, breaking records on July 21 with a $900 million Series B investment round. More than 60 large investors contributed to the Series B, including Paradigm. Recently even Tom Brady, the legendary National Football League quarterback, made a deal with FTX for equity in the platform and an unspecified amount of cryptocurrency to be a brand ambassador.
FTX Token launched on May 8, 2019, and it has a total supply of about 345.2 million tokens. The supply will decrease over time as FTX burns more tokens week after week. FTT reached its all-time high of $63 around the same time as Ethereum hit its peak and fell alongside the rest of the market. As of October 2022, the token is lingering just under $30, well below previous highs, but recovering value more quickly than some of its contemporaries.
How to Buy FTX Token.
Looking for the easiest way to invest in FTX Token? Look no further than the 3 quick steps below!
- Open an online account.
You 1st will need to find a cryptocurrency exchange with FTT available in your region. Binance Exchange and the FTX trading platform offer FTT and are likely the best options for users in supported regions. Unfortunately, FTX and Binance are both unavailable to U.S. users. FTX has a separate U.S.-based exchange, but it doesn’t offer FTT trading. However, if you are in the U.S. you do still have a great option: Pionex.
After you create your account, you will need to verify your identity to purchase anything. This entails providing your address, Social Security number and a picture of your driver’s license or other valid ID. Once your identity is verified, you can fund your account and start trading. - Buy a wallet (optional).
If you can buy FTX Token directly from a centralized exchange like Binance, you won’t necessarily need to get a wallet. However, if you plan on using a DEX to buy the token, you will need a software or hardware wallet.
Both types of wallets have distinct advantages and disadvantages. Software wallets are usually free and easy to use with decentralized finance (DeFi) applications, but they are less secure because your wallet information is stored online. Hardware wallets can be pricey and a bit clunky, but they are the most secure way to store your cryptocurrencies. Many investors have both to get the best of both worlds, storing most of their portfolio in a hard wallet and using a software wallet for day-to-day transactions. - Make your purchase.
This step is a breeze for investors who can access Binance or FTX. First, you will need to fund your exchange account with fiat currency or another supported crypto. Binance lets you deposit fiat currency with a bank account and even a credit or debit card. Once you have the funds you need available, find the FTT trading pair you want to use and make your purchase.
Purchasing FTT is a bit more complicated for users in regions that aren’t supported by Binance and FTX. You will need to fund an exchange account to buy Ethereum before swapping it for FTT. You will also need a software wallet like Coinbase Wallet to use the DEX. Send your Ethereum to the software wallet, go to Uniswap, enter in FTT in the bottom box and complete the transaction with your wallet.
U.S Based Crypto Exchanges
Right now Pionex is really the only major exchange available in the U.S. that supports FTT. Pionex is a great exchange with all kinds of extremely useful functionality including an incredible variety of supported cryptos, automated trading and much more.
If you choose to use Uniswap to get your FTX tokens, you'll need some Ethereum. You can purchase ETH on any major cryptocurrency exchange; some of the best are eToro, Gemini and WeBull.
Cryptocurrency Wallets for FTX Tokens
Best Hardware Wallet: Ledger
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Ledger is a leading hardware wallet brand offering 2 fantastic models: the Ledger Nano S and Ledger Nano X. Both devices support Bitcoin, Ethereum, Ripple, all ERC-20 tokens (including FTT) and more.
The Nano S is the more basic model with everything you need to keep your cryptos safe. The Nano X adds a larger screen and Bluetooth functionality for easy on-the-go use. Both wallets have the same certified secure chip that randomly generates and encrypts the private key of your wallet. The private key is what lets you access and transact with your wallet, and it never leaves your Ledger device.
If you worry about losing your cryptos from cyberattacks, Ledger is the perfect solution to give you peace of mind.
Best Software Wallet: Coinbase Wallet
Interacting with DeFi applications is made simple with software wallets, and Coinbase Wallet is a contender for the best. It supports Bitcoin, Ethereum, Ripple, Dogecoin, all ERC-20 tokens (including FTT) and more. It is available as a browser extension and a mobile app on iOS and Android.
The application has a myriad of useful features beyond sending and receiving cryptos, including a place to store your non-fungible tokens (NFTs), a crypto-to-crypto trade tab and even a dedicated DeFi browser. You can use the DeFi browser to buy FTT with Uniswap.
This step is a breeze for investors who can access Pionex, Binance or FTX. First, you will need to fund your exchange account with fiat currency or another supported crypto. Binance lets you deposit fiat currency with a bank account and even a credit or debit card. Once you have the funds you need available, find the FTT trading pair you want to use and make your purchase.
Purchasing FTT is a bit more complicated for users in regions that aren’t supported by Binance and FTX. You will need to fund an exchange account to buy Ethereum before swapping it for FTT. You will also need a software wallet like Coinbase Wallet to use the DEX. Send your Ethereum to the software wallet, go to Uniswap, enter in FTT in the bottom box and complete the transaction with your wallet.
Tip:
FTT’s value will depend on a few major factors. The success of the FTX platform and the cryptocurrency market as a whole will likely both be instrumental in price movements in the future. As FTX earns more and more fees, FTT will be burned at a greater rate, possibly driving the price up si
Trade, Sell or Convert Your FTX Tokens
FTX Token is no different from other top altcoins in its volatility. Now you know how to buy FTX token (FTT) you should also know how to trade or sell your FTT in case of further severe price movements in either direction.
Luckily, the process is quick and easy. All you have to do is go back to the exchange you purchased it on, find the trading pair with FTT and the asset you want to receive and make the trade. If you purchased FTT from Uniswap or another DEX just go to the Swap page, enter FTT and the token you want to swap for and complete the transaction.
Current Crypto Prices
The cryptocurrency market is rallying right now, but it’s not anywhere near where it was when Terra was depegged and Do Kwon became an international fugitive. It’s difficult to predict whether this rally will continue and reignite the amazing 2020-2021 bull run or whether the market will continue to grind lower in the coming months.
Is FTX Token a Good Investment?
FTX Token might be a great investment — especially for FTX exchange users. You can speculate on its price, earn SRM airdrops, get a discount on fees and more. FTT will almost certainly follow the general trend of the crypto market, and if the market crashes again, FTT probably will too. However, if Bitcoin and Ethereum rise massively again, there is no assurance that FTT will do the same. The token must remain popular, useful and valuable to investors for it to benefit from the market as a whole rising.
Frequently Asked Questions
Who is the founder of FTX?
The founder and CEO of FTX is Sam Bankman-Fried.
About Henry Stater
Henry is an expert in all things crypto. He stays up to date with all the latest coins, platforms and technologies in the field. He has particular expertise in the burgeoning decentralized finance ecosystem and loves trying out all the new platforms. He also always follows major events in other financial markets and geopolitics as a whole, especially when an event’s effects ripple through the crypto market.