How to Buy FTX Token (FTT) [The Ultimate Guide 2022]
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The FTX Exchange ranks among the world's most prominent centralized cryptocurrency exchanges and the top five crypto derivatives exchanges in terms of daily trading volume. The FTX cryptocurrency derivatives exchange has its own native token FTX and offers competitive trading fees, innovative features like derivatives, options, OTC trading, futures trading, leveraged tokens, and more than 300 cryptocurrencies.
The FTX token has several use cases in the FTX ecosystem and is designed to increase network effects and demand for FTT and decrease its circulating supply.
Read on to learn everything you need to know about the FTX ecosystem and how to buy FTX token in a few simple steps.
Let's dive right in!
What Is FTX
FTX is a cryptocurrency derivatives exchange based in the Bahamas. Sam Bankman-Fried and Gary Wang founded the FTX cryptocurrency exchange in 2019.
The FTX marketplace provides many advanced options to skilled investors and commercial trading organizations and also simple spot trading for newbies to the crypto industry. The FTX platform is an extensive international FTX crypto derivatives exchange, offering a wide range of cryptocurrencies, leveraged tokens, and derivatives services such as spot, futures, over-the-counter (OTC), prediction market trading, etc. Residents of the US have limited access to FTX due to strict regulations; however, they can access the US division of the international FTX exchange FTX.US, which has limited offerings compared to the global platform.
The FTX derivatives exchange aims to fix the issue of forced liquidation that most leveraged trading platforms have. It deploys a backstop liquidity program to detect when a user has dropped below the maintenance margin and sends volume-limited liquidation orders to close down positions that drop below the maintenance margin.
As of writing, the FTX exchange has a seven-day trading volume of 11.1 billion USD, according to data from CoinStats.
What Is FTX Token
The FTX derivatives exchange has its own native token with the ticker FTT, which is an ERC-20 token on the Ethereum blockchain.
FTX token (FTT) holders get a discount on the trading fees and can use FTT as collateral for future positions. Active traders on the FTX exchange can get a percentage difference as high as 60%. In addition, using FTT comes with insurance protection, which enables traders to continue trading during volatile markets without triggering margin calls. FTT can be used to create leveraged tokens, and the insurance is beneficial when using leveraged tokens where profits and losses are multiplied according to the leverage.
Users can stake FTT tokens to validate a transaction. Staking FTT comes with many benefits, such as getting additional rebates and spinning the non-fungible swag wheel to win a free NFT. Other benefits include increased airdrop rewards, bonus votes, and IEO tickets.
The FTX token (FTT) attained an all-time high of USD 79.68 on 9th September 2021, and the price dropped significantly afterward, in line with the entire crypto market, due to global uncertainties and inflation.
Now that you know everything about the FTX derivatives exchange and the FTX token let's get into how to buy FTX token (FTT). The best place to buy the FTX token is the FTX cryptocurrency exchange, as it offers multiple incentives to investors; however, it's not available in all countries.
So let's first look into buying FTX token (FTT) on the FTX exchange and then get into other popular exchanges such as Binance, Coinbase, etc.
Buy FTX Token (FTT) on FTX Exchange
The FTX platform is the best place to buy and trade FTT tokens, and most of the token's use cases are applicable only on the FTX crypto exchange. While FTX crypto exchange is available in the United States and allows users to buy and trade in many major cryptocurrencies, it doesn't allow US citizens to trade in FTT tokens. For the countries where FTX token (FTT) can be purchased and traded, it's the best place to do so. Almost one-third of the gas fees collected by the exchange are used to buy FTT tokens, which are then burnt. Also, FTX claims that the gains made due to its backstop liquidity fund would be distributed amongst the FTT holders. On top of that, every week, FTX gives away three SRM tokens to every FTX token holder that has over 500 FTX tokens (FTT).
To buy FTX token directly on FTX, follow these easy steps:
Create an FTX Account
To buy FTT, you need to create an account on FTX and verify your identity by providing basic identity proofs and documents. Personal information such as your name, contact number, email address, home address, social security number, and a copy of your driver's license, passport, or government-issued ID will be required. You will also need to identify yourself through a webcam or smartphone in compliance with Know Your Customer (KYC) rules if you plan to use a debit or a credit card. Tap on Account Limits in your settings menu to fully unlock your account for greater limits and the ability to use debit/credit cards.
The exchange would verify your identity quickly, and you should be able to buy and trade in almost any cryptocurrency of your choice, including the FTT token.
Deposit Funds
Once you've verified your account and uploaded all your necessary documents, the next step is to deposit cryptocurrency or fiat currencies into your account. FTX supports several fiat currencies, including USD, EUR, GBP, AUD, etc.
You can use your bank account, credit or debit card, crypto coins from a different crypto wallet, or make a wire transfer. You may also deposit euros via SEPA.
To deposit funds from your bank account, you must fill in your bank account details and transfer the desired amount into your FTX wallet. Typically, the USD and other major currency transfers from bank accounts take one day to process, but they can take longer in some instances. You can also deposit fiat currency into your FTX wallet using credit cards to make an instant purchase or set up a recurring purchase. However, you must be aware that using your cards for buying crypto may attract an additional fee. You will see the fees associated with using your debit card. This is a convenience fee charged by the card processor and is equivalent to 2.9% + 0.30 USD per transaction. You can trade immediately on your funds deposited with your card as long as you've not had any chargebacks. Coins purchased with cards can be withdrawn after 7 calendar days.
You can also deposit cryptocurrency into your FTX App account, and funds will usually be available anywhere between a few minutes to an hour, depending on the speed of the blockchain’s verifications of your transaction.
Purchase FTT
Once you've deposited funds into your account, the next step is to buy the FTX token (FTT). There are multiple trading pairs available for FTT. In the Futures Market, the trading pair is FTT-PERP, while in the spot market, the trading pairs are FTT/BTC, FTT/USD, and FTT/USDT. So you can choose a trading pair to buy FTX (FTT) token.
Buy FTT on Binance
Binance is among the most popular cryptocurrency exchanges in the world. While it has disadvantages compared to a decentralized exchange, its ease of use and wide range of supported cryptocurrencies make it a popular choice for purchasing FTT and other digital tokens.
To purchase FTT on Binance, you need to create a retail investor account on the platform and verify your identity by uploading identity proof documents. Once the account is verified, Binance allows users to purchase the FTX token (FTT) or any other crypto of their choice through fiat deposits using a credit or debit card, crypto coins from a different crypto wallet, or a bank transfer.
FTT is available on Binance in 4 trading pairs, namely FTT/USDT, FTT/BUSD, FTT/BTC, and FTT/BNB. You could also use the comparison service of CoinStats to select what asset you want to trade FTX token (FTT) against. Once you select the asset, you wish to trade FTX token (FTT) against, e.g., USDT (TETHER), the next step is to purchase the required amount of USDT needed for purchasing FTT. After you’ve added USDT (TETHER) to your wallet, go to FTT/USDT trade and buy your desired amount of coins. After the transaction is completed and your order for FTT has been fulfilled, the new coins should reflect in your wallet.
Congratulations on purchasing FTX tokens (FTT) in a few easy steps!
Get an FTX Token Wallet
When it comes to cryptocurrencies, one of the most important things to consider is how to store them. While most major cryptocurrency exchanges, such as FTX, Binance, etc., provide their own wallets to store your crypto assets, these wallets are prone to online attacks, hacks, malware, etc., due to being connected to the internet at all times. The 2019 hack of Binance, when Bitcoin worth USD 40 million was stolen from it, is a vivid example.
Therefore it's advisable for all traders and investors in crypto to store their assets in wallets that they control.
The FTX.US cryptocurrency exchange provides a custodial wallet to store your crypto, including the FTX token; however, the exchange has your private keys, which means it has control of your crypto.
If you want to have complete control of your crypto, you need to transfer it to your own external wallet.
Types of Wallets
Crypto wallets randomly generate a recovery phrase (or "seed phrase"), a list of 12 to 24 words given in a specific order. A recovery phrase is a human-readable form of your wallet’s private key—the unique, secret passcode used to authenticate and encrypt your wallet access. This phrase allows you to sign transactions and claim ownership of your wallet addresses, recover your wallet if it gets lost or damaged (in case of hardware wallets), or if the device you use to access your wallet gets lost, stolen, or becomes otherwise inaccessible.
Note that you’ll see this phrase only once during account setup, and be sure to write it down, take a screenshot, add it to a password manager, or find another way to keep it safe.
Depending on your investing preferences, you might choose between software and hardware wallets, the latter being a more secure choice.
- Software Wallet: The strength of software wallets lies in their flexibility and ease of use. A software wallet is the most easy-to-set-up crypto wallet. It lets you interact with several decentralized finance (DeFi) applications quite easily. However, these wallets are vulnerable to security leaks because they're hosted online—like your bank accounts. So, if you want to keep your private keys in software wallets, conduct due diligence before choosing a wallet to avoid security issues. We recommend a platform that offers 2-factor authentication as an extra layer of security.
CoinStats Wallet is one of the most secure software wallets to store cryptocurrencies after buying from an exchange. CoinStats Wallet lets you monitor all your assets across different exchanges from one place, and it even allows you to use the full power of DeFi protocols.
Another popular software wallet is the Metamask Wallet, available as an app and a browser extension. - Hardware Wallet: A hardware wallet is a device that stores the private keys you need to receive or send crypto. Hardware wallets are usually considered the safest way to store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. Hardware wallets also let you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber attacks.
Ledger hardware wallets are arguably the most secure hardware wallets letting you securely trade FTT tokens. They come in two models:
The Nano S is designed for crypto beginners and offers only a few features.
The Nano X is more suitable for advanced crypto traders and provides storage for a wider variety of assets.
Depending on your preferences, you can go for either of the kinds mentioned above of wallets and safely store your assets, including the FTX Token (FTT). You can also check out CoinStats Wallet to securely manage all your assets in one place.
Final Word
FXT is a legitimate cryptocurrency exchange that offers its users innovative trading products such as leveraged tokens and futures trading. Users will not be short of trading opportunities with over 100 trading pairs, leveraged tokens, futures, indexes, and options.
Therefore, if you are looking to invest in cryptocurrency, then the FTX token (FTT) might be one of the best choices to diversify your crypto portfolio.
Investment Advice Disclaimer: The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any securities, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice. Our information is based on independent research and may differ from what you see from a financial institution or service provider.
Investments are subject to market risk, including the possible loss of principal. Cryptocurrency is a highly volatile market and sensitive to secondary activity, do your independent research, obtain your own advice, and be sure never to invest more money than you can afford to lose. There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider your circumstances and obtain your advice before making any investment. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.
Text source: CoinStats Blog
