Feb 14, 2022 07:10
Tokens are one of the essential features of the digital asset space. You need to own specific tokens for many networks to execute transactions or even get discounts when you hold them. This makes it necessary to understand the FTX exchange and token. When you understand these fundamentals, you can make a better purchase decision.
The FTX token is also called FTT. The latter is the native token of the exchange. So, if you want to support the exchange or benefit from lower gas fees, you should get the token. One of the most fundamental reasons for holding this coin is the benefit attached, especially when using the trading platform.
What is FTT Token?
FTT is essentially the token used on FTX. You can either call it the FTX token or simply FTT. Additionally, there has been a lot of buzz regarding FTT. Despite being an exchange token, it has soared in value over the past few years. While the token was lesser than $4 in 2020, it has skyrocketed, helping holders assure greater profits.
The cryptocurrency space has a lot of projects, making it difficult to know the valuable ones. However, tokens with utilities have a longer lifespan, particularly when exchanging tokens. This is because the platform would need users to purchase the token for efficient use of the blockchain. While FTT's growth came as a surprise to many, experts believe that many great decisions by the exchange helped the token grow.
Is FTT Price up?
First, experts explained that the token had public exposure. Public exposure is crucial for new coins. Without sufficient exposure, people will not buy the coin. This is another avenue that leads to price stagnation for unknown tokens, even with solid use cases. Because FTX prioritized publicity and exposure, it contributed to the asset's price jump.
Fig.1 FTT/USD 1-week chart showing the uptrend of FTT -
TradingView
Another reason for this token's growth is because the exchange partnered with strong industry players. Collaborations and partnerships are some of the best ways to grow as a firm and a brand. Working with other stakeholders in the industry would help you leverage their exposure and fan base to grow your business. These essential steps FTX took for more exposure may help the token skyrocket even more in the next few years.
FTT Token Background
FTT or FTX token is an ERC-20 token that has lots of utilities. While most utilities are connected to the exchange, you can still benefit from it long-term. Whether you plan to use FTX or need it as an investment option, you can easily purchase the token on the exchange or other well-known trading platforms.
The asset has a market cap of around $6 billion, and it currently trades at $45 apiece. So, like Bitcoin, Ethereum, and other digital assets, it can hold value and be traded. It is safe to mention that it runs on the Ethereum networks. Similarly, it would help if you got a suitable wallet for your coin, or you may lose it forever. Fortunately, ERC-20 tokens are very popular, making it easier to access wallets that can hold them.
Use Cases
This token has several uses. Understanding the uses may help you make a better purchase decision. Below are some of FTX use cases:
- Trading fees: Owning or trading with FTT on FTX helps you reduce the amount you spend on the exchange. This is a great opportunity to reduce money spent on transactions while supporting a relatively new project.
- Utility token: Another reason for holding FTT is because it’s the utility token of the FTX platform. Utility tokens are essential because they help the project run efficiently. Without it, it may not be easy to access funds for growing projects.
- Collateral: If you are interested in trading futures on FTX, you need to own the utility token. This token serves as collateral for future trading. This helps it to become more valuable and in-demand within the platform.
What Is FTX Crypto?
While talking about the FTX token is great, you also need to know FTX to understand the platform better. FTX is a cryptocurrency derivatives exchange that has its headquarter in the Bahamas. This centralized trading platform focuses on leveraged products and derivatives. In 2018, Sam Bankman-Fried created the platform, enabling users to access various services, such as volatility products and options.
It is safe to say that derivatives are for professional traders from the outlook. These are people trained to trade risky assets and understand how professional tools can be leveraged for their benefit. While it has a special focus on derivatives, spot traders can still trade their favorite assets thanks to the wide range of options available on the exchange.
Basic Information About FTX
FTX is available for both desktops and mobile devices. You can also access an impressive range of popular digital assets, either as a professional or a beginner. This means that it caters to the needs of both newbies and experienced traders. However, beginners should understand the market before trading to prevent substantial losses.
- Spot: FTX supports over 100 cryptocurrencies and tokens from which traders can choose to buy or sell. Unlike derivatives, spot trading is fairly stable and is suitable for even newbies. Also, professionals can trade spot with advanced tools for greater profit margins.
- Options: Options are also available on FTX if that’s your preferred option. However, due to the risky nature of digital assets, you need to understand the fundamentals. You can speculate on possible price movement and profit from the right speculations.
- Leverage tokens: Leveraged tokens are also available on the platform. In fact, traders can access up to 3X leveraged exposure to their favorite assets. However, leveraging can also worsen your losses when you are at a loss.
Review On FTX
FTX is one of the largest crypto exchanges in the world. This is because it offers competitive trading fees and lots of other benefits. Besides the low gas fees, it also supports a lot of digital assets. Today, FTX has over 100 digital assets, helping users access an impressive range of options. Additionally, there is a separate platform for United States users called FTX.US. While it doesn't have a wide range of cryptocurrencies, you can enjoy advanced tools.
The interface is clean and user-friendly. Graphics is essential when using an application, and FTX delivers in that regard. This can improve user experience and help beginners navigate through the platform. Overall, FTX offers decent features, especially since it has low gas fees, fundamental in asset trading.
FTX token price analysis
The FTX token currently trades around $45 despite the bearish market outlook. Still, it has the potential to grow in years to come. Because of the exchange's influence and a large number of users, it may reach $100 by the end of 2022. However, it's important to consider market conditions, especially since the king coin has not hit new highs in months. Because of Bitcoin’s influence in the digital asset space, many coins follow bearish trends, causing continuous price falls. Still, with the right market conditions, it should reach a new high before the end of 2022.
Fig.2 FTT/USD 1-day chart showing the current price of FTT -
TradingView
How to open an FTX account
Before opening an FTX account, you need to know that the platform has a separate option for US users. So, if you are in the US, you need to open your account by clicking on the right option. Below are the steps you need to follow to create your account.
Step One
The first step you need to click on “start investing.” After this, it brings the option for “US” or “International” users. Here is where you choose the appropriate location.
Step Two
You create an account. This is where you add your email address and a strong password. After adding this, you click on “I agree to the FTX terms of service and privacy policy.”
Step Three
You add your “legal first name," "legal last name," and "date of birth.” The next step is filling in your address options and adding your "phone number." You will get an SMS from FTX to verify the number.
Step Four
This is the final step. You get an SMS from FTX to verify your number. After your verification, you can now trade cryptocurrencies. You can decide to add your card to trade assets or opt for other options, such as transferring USDC or wire transfer.
Should You Buy FTX token (FTT)?
Buying an asset is a personal choice. So, if you believe FTX has potential and could be worth much more in the future, you should buy it. This helps you benefit from price growth. Still, it’s essential to understand the asset before buying it.
On the other hand, based on the current technicals of the FTT token, it looks like it might be a good strategy to buy FTT at the current price, as the token reached an important area of $40. Previously, this price represented strong support. However, placing adequate stop-loss levels is crucial when it comes to long-term investing or even day trading. The cryptocurrency market is known to be very volatile, and severe crashes can occur overnight. So invest responsibly and always do your own research.
Conclusion
FTT token is the utility token for FTX, a derivatives exchange. It helps users benefit from lower gas feeds, assures the smooth running of the trading platform, and serves as collateral for futures trading. The coin has a lot of potentials and has skyrocketed over the past few years. It's safe to mention that the FTX token is an essential part of FTX.
FTX FTT
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