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FTX Tutorial & Review 2022 | Trustworthy platform or scam?

What is FTX?

FTX is a platform that was created in 2019 and allows its users to buy, sell and exchange cryptocurrencies. This exchange platform distinguishes itself from others by applying very low fees, among the lowest on the market. It also gives the possibility to buy stocks; the platform has access to the stock market thanks to tokenized stocks. For instance, you can invest in a stock that has the same value as Tesla stock in the form of a token. These specificities make the FTX platform a reference in the world of cryptocurrencies with a daily volume of $4 billion on average. Read on to find out our detailed assessment of this platform.

How to sign up for FTX?

Click here to sign up for FTX. This way, you’ll get a lifetime 5% discount on all fees. Fill in the form with the required information, email address and password, and your account will then be created.

Secure your FTX account with 2FA

Two-factor authentication (2FA) is a way to reinforce the security of your account by having to provide two different proofs of your identity; we strongly recommend activating this security feature on your account.
Once registered, FTX offers the possibility to secure your account with a 2FA application (either Google Authenticator or Authy), or by receiving a text message or using your personal security key.

If you don’t automatically have access to this pop-up, you can find this feature in the configuration tab of your FTX account.
To access this option, first click on your email address at the top-right of the screen, which will display a drop-down menu in which you’ll find a button to access your account’s settings.

Next, click on the parameters pertaining to two-factor authentication on your account.

You’ll then be able to choose between Google Authenticator and Authy, or use a personal security key or a text message for this purpose.

In our estimation, Google Authenticator is the best option to start with; this 2FA application is easy to use and more secure than text messages.

  • Step 1: download the Google Authenticator application on your mobile phone
  • Step 2: scan the QR Code displayed on the FTX website with your application. If you cannot scan the code it is also possible to enter the series of letters and numbers shown on FTX in your application
  • Step 3: store your authentication code carefully. In case your account is lost or stolen, it allows you to log in from a different device
  • Step 4: enter the 6-digit code found in the application on FTX to confirm your authentication; you’ll need to be quick as this code changes every 30 seconds

After these steps are completed, your account will be secured by two-factor authentication. You can make it so that FTX remembers your authentication on a given device, which will exempt you from having to open the application every time you log in. However, we can only recommend using this feature on a device you do not share with anyone.

If you wish, you can also use your phone number to receive a verification code via text message.
In order to do this, simply choose the “SMS” option, type in your phone number, and enter the code you receive in the form of a text message on FTX. Once this is done, your account will be secured by two-factor authentication.

Regarding the third 2FA method, consisting in using a security key, we’ll not go into more details about it in this article as the manipulations involved are more complex than in the case of the two previous methods.

Verify your account with an identification document (KYC)

If you intend to use FTX on a regular basis, it is crucial to verify your identity in order to increase your withdrawal limit based on 3 verification levels.

Level 0 allows you to withdraw a maximum total of 1,000 USD from your account.

Level 1 increases this capacity by allowing you to withdraw between 2,000 and 9,000 USD each day.

Level 2 gives you the possibility to make unlimited cryptocurrency withdrawals as well as FIAT currency deposits and withdrawals.

  • Step 1: in order to verify your account, go once again to the account settings section at the top-right of the screen.
  • Step 2: next, you’ll just need to click on “Identity Verification” in the lefthand menu, and then on “Continue” for level 1.

You’ll be redirected to a new page on which you’ll have to choose between identity verification for an individual or a company.

In this article, we will solely focus on identity verification for an individual.

  • Step 3: you now have to type in your complete name, country and region of residence. You can also indicate your favorite chatting application and your chat handle if you wish to do so.

After providing this information, you will have access to level 1 identity verification. In order to move up to level 2, you’ll need to provide a personal identification document.

  • Step 4: FTX asks again for your complete legal name, your country of residence, and the origin of your funds; for this last request you simply have to specify whether your capital comes from trading, a salary or any other source of income (to be specified).
  • Step 5: you’ll now have to verify your identification document. To do this, select your country and the type of document you are providing (identity card, passport, driver’s license…).

You can provide your document by taking a picture of it, although you need a camera that is connected to your computer to do this; if it is the case, you also have to authorize the website to have access to the camera. If it is not possible, you can use your mobile phone by retrieving a link via email, or by scanning a QR code.

  • Step 6: take a picture of both sides of your document, and then another picture of your face to confirm your identity.

If this does not work, you also have the possibility to send your documents directly to FTX by including, along with your pictures, a piece of paper indicating the date at which you are sending them, as well as the mention “FTX”.

After you have sent your documents, FTX will take a few minutes to analyze them, and you’ll then be able to fill in the last required pieces of information.

  • Step 7: all that is left is for you to indicate your address and verify your phone number. For the purpose of this verification you’ll need to input a code received via text message; this code is not going to be the same as the one received for 2FA setup if you chose the SMS method.

At the end of the process, FTX asks one last time whether you’d like to indicate your favorite chatting app and your chat handle.

Upon entering these last pieces of information, you’ll unlock level 2 identity verification, which grants you access to all trading features available on the website.

How to buy cryptocurrencies on FTX?

Deposit funds on FTX

You can now buy cryptocurrencies on FTX. To do this, you will first need to deposit funds into your account.

  • Step 1: start by accessing your wallet by clicking at the top-left of the FTX interface on the “wallet” tab.

Once in your wallet, you will have access to a very long list of cryptocurrencies such as Bitcoin, Tether, and FTT, but also FIAT currencies like dollars and euros.

  • Step 2: let’s say you would like to deposit euros on your account; you just need to click on the “deposit” button and then on the line that says “Euro (EUR)”. You’ll then be able to transfer euros to your FTX account. Keep in mind that you need to have reached level 2 identity verification to have access to FIAT currency transfers, as presented earlier in this article.

Don’t forget that by using our link to register on FTX, you’ll benefit from reduced fees on all your transactions.

In the case where you would like to start the FTX adventure with cryptocurrencies that you already own, you have the possibility to deposit them in your FTX wallet with a blockchain transaction, without having to go through a bank transfer or level 2 identity verification.

If you so wish, you can also use this wallet to convert your different currencies and buy cryptocurrencies from the FIAT or cryptocurrency of your choosing.

Buy crypto currencies on FTX

After you have added funds to your FTX wallet, you’ll be able to buy the cryptocurrencies that you desire. There are many ways to buy crypto on FTX, so we chose to focus on the simplest one.

  • Step 1: access the “Market” tab situated at the top-left of the FTX interface, and then the “Spot” tab.
  • Step 2: once in this interface, you will be able to choose the pair of currencies you are interested in (we are talking about a “pair” because you will be exchanging one currency for another). The list of filters at the top of the page allows you to sort through the trades that interest you for one or several currencies, for instance, only those made in USD (dollars).
  • Step 3: in our example, we are buying Solana (SOL) cryptocurrency with USD (dollars). Filter the trades until you find the “SOL/USD” line, and click on it.

You should now be on the trading interface; not to worry, we’ll go through everything there is to know for you to successfully buy SOL with your USD.

At the center of this interface, you will see the SOL price chart for the last hours, and on top of this chart, the current price for SOL in USD and its variation in the last 24 hours is indicated.
Under the chart, the current order book with the related quantity and prices are displayed, along with the latest trades that went through.
Just to the right of the order book is where the part that lets you buy or sell SOL in exchange for USD is located.

There you’ll encounter a list of available order types; the easiest ones to start with are “limit orders” and “market orders”.

How to submit a limit order?

  • Step 1: if you choose to submit a limit order you’ll need to input two pieces of information, the first being the price at which you want to buy SOL. In the following example, we chose to buy SOL for 20 USD per unit.
  • Step 2: after specifying your buying price, you will need to set either the amount of SOL you wish to get, or the amount of USD you wish to spend. In our example, we want to buy 300 SOL which is equivalent to spending 6,000 USD since we previously set our buying price for SOL at 20 USD.
  • Step 3: once you are happy with the way the order is set up, click on the “Buy” button, which will place your order at the bottom of the interface in the “open orders” section.

We did not confirm the order in our example, which is why the order does not appear. In your case, the order you placed will be standing until it is fulfilled; when this happens you will get the desired amount of SOL.

How to submit a market order?

This is the quickest way to buy cryptocurrencies, recommended if you are in a hurry or do not wish to overthink a purchase. Indeed, the buying process is significantly simplified by this method. There is no need to set a buying price because the moment your order is placed, the price will be set by the market, allowing you to get SOL in an instant. The only thing to think about is the amount of USD you want to spend or the amount of SOL you want to get.

  • Step 1: first, enter the amount of cryptocurrency you wish to buy or the amount of dollars you would like to spend. In the following example we want to buy 100 SOL at the current market price, which corresponds to 1,879.75 USD.
  • Step 2: click on the “Buy” button.

Shortly after having clicked this button, you’ll receive 100 SOL at the current market price, provided of course that you have the necessary funds to make the purchase.

How to sell cryptocurrencies on FTX?

Once you are in possession of cryptocurrencies on FTX, you will be able to sell them whenever you want. If you wish to sell cryptocurrencies, you can follow the same steps as the ones we went through to buy them.

  • Step 1: go to the market section and access the “Spot market” tab.
  • Step 2: look for the cryptocurrency that you want to sell to access the trading interface; you have the possibility to exchange cryptocurrencies for FIAT-type currencies like USD or other cryptocurrencies such as USDT.
    In this example, we are selling SOL in exchange for USD.
  • Step 3: once in the trading interface you can choose to sell SOL in the righthand menu. As was the case for the purchase, you have a choice between different order types, which enable you to set a price with a limit order, or to go for a market order.
  • Step 4: specify the amount of SOL that you wish to sell, in our example we are selling 200 SOL at the current market price.
  • Step 5: click on the “Sell” button.

Shortly after placing the order, you’ll retrieve an approximate amount of 3,816 USD in your FTX wallet.

Keep in mind that by selling cryptocurrencies for USD (dollars) or EUR (euros), and depending on your country of fiscal residence, you will likely have to pay a tax on capital gains for each transaction. It may be wiser to sell your cryptocurrencies in exchange for USDT (Tether) because as another cryptocurrency, it is not subject to any taxes.

How to invest in tokenized stocks on FTX?

Buy a token at a stock’s price

FTX offers a variety of tokenized stocks, which allow you to invest in the traditional stock market using the funds present in your wallet. The main difference, in this case, is that you do not actually own stocks from a company, but tokens that have the same value. It is therefore entirely possible to invest in Tesla, Google, Twitter, BioNTech, and many more.

  • Step 1: go to the “Stocks” section of FTX by clicking on “Markets”, and then on the “Stocks” button.
  • Step 2: choose the token you are intersted in, for instance Tesla, and the currency you wish to use in order to invest in the Tesla (TSLA) token. In our example we chose to invest in TSLA with Bitcoin (BTC) with the line saying “TSLA/BTC”. Click on the line of your choosing.
  • Step 3: we place our buying order at the bottom of the trading interface. Here we find again the different order types and for the sake of ease we are buying 1 TSLA at the current market price. To do this, we just need to enter the desired TSLA amount, the order type and then click on “Buy”.

Shortly after this, your order will be placed and honored at the current market price; you’ll therefore lose the amount of cryptocurrency required for the purchase, and gain the corresponding number of tokens.

Sell a token at a stock’s price

Conversely to the purchase, it is also possible to sell your tokens in exchange for other currencies.

  • Step 2: choose the token that you wish to sell, for example Google, as well as the currency that you wish to get in exchange for the sale of your tokens. In our example we chose to sell our Google (GOOGL) tokens in exchange for USD with the “GOOGL/USD” line. Click on the line of your choosing.
  • Step 3: we place our selling order at the bottom of the trading interface. Once again, the order types appear and we keep things simple by selling 1 GOOGL at the current market price. We therefore just need to enter the amount of GOOGL we want to sell, the order type and click on the “Sell” button.

Shortly after this, your order will be placed and honored at the current market price; you’ll therefore lose your tokens and earn the corresponding amount of currency.

How to withdraw money from FTX?

Withdraw cryptocurrencies from FTX

FTX gives the possibility to transfer your cryptocurrencies from the FTX platform to another platform like Binance, KuCoin or Bittrex for instance. You can also send your cryptocurrencies to a physical wallet, in a software or paper format, in order to secure your funds.

Please go through the following steps to withdraw cryptocurrencies from your FTX wallet.

  • Step 1: log in to your account and click on “Wallet” at the top-left of the FTX interface.
  • Step 2: choose the cryptocurrency you wish to withdraw by clicking on the “Withdraw” button on the relevant line. In our example we are withdrawing Bitcoin.
  • Step 3: enter the amount you wish to withdraw and the address where you wish to send your cryptocurrency. If you activated 2FA, you’ll also need to enter the authentication code, which can be found in your application.

Warning: it is crucial to enter the correct address in this form, as if you fail to do this and enter the wrong address, your funds will be lost forever. We, therefore, advise that you check several times the address that you copied and pasted. You can also send a small part of your funds in a first transaction to ensure that the address is correct. Once you have made sure that the address you entered is the right one, you can send as much currency as you want there.

  • Step 4: click on the “Withdraw” button.

Withdraw fiduciary currency on FTX

In order to withdraw FIAT currency on FTX, you first need to sell your cryptocurrencies. To do this, please follow the steps described earlier in the section titled “How to sell cryptocurrencies on FTX?”. You will then be able to withdraw your funds by doing as follows:

  • Step 1: log in to your account and click on “Wallet” at the top-left of the FTX interface.
  • Step 2: choose the FIAT currency you wish to withdraw by clicking on the “Withdraw” button of the corresponding line. In our example we are withdrawing euros (EUR).
  • Step 3: in our example we wish to withdraw our EUR via transfer to a bank account. You need level 2 identity verification to access this option. Enter all the information required by FTX, the amount of EUR you want to withdraw, the type of transfer, as well as the usual banking and personal information. Note: the name of the bank account holder must be the same as the one registered on the FTX account; check this information several times as your funds will be lost if there is any mistake. To validate the transaction, go to your Google Authenticator application and confirm it with your 2FA code, if you previously secured your account as advised of course.
    Once you have thoroughly checked all the information entered you may click “Withdraw”. You’ll receive your EUR on your bank account within the next 1 to 2 working days.

As previously mentioned, depending on your country of residence, withdrawing funds in the form of FIAT currency will probably expose you to a tax on capital gains for each transaction. It may be preferable to sell your cryptocurrencies in exchange for USDT (Tether) because it is another cryptocurrency.

FAQ about FTX

Is FTX safe to use?
FTX has been ranked since 2019 as one of the leading cryptocurrency platforms, hosting thousands of transactions daily for a volume of $4 billion on average. This platform is directly supported by Binance and the team behind FTX acts in total transparency regarding the administration of their website. The platform can therefore be trusted when it comes to providing them with your personal information. When it comes to storing your cryptocurrencies on this platform: zero risk does not exist. If you don’t partake in trading and wish to secure your cryptocurrencies from any hacking attack on the FTX platform or your account, you can withdraw them from the platform and store them in a hardware wallet like Ledger. Not your keys, not your cryptos.

Is it possible to make debit card payments on FTX?
Unfortunately, FTX does not yet allow its users to pay via debit card, bank transfers are the only available option. Once again, make sure that the bank account you use is referenced under the same name registered on your FTX account to avoid losing any funds.

Is it necessary to be 18 or older to create an FTX account?
It is; you must be 18 or older to sign up to FTX, as mentioned in the platform’s terms and conditions. If you are underage, there is no use in trying to open an account as the platform will catch up on this fact while proceeding to the verification of the account.

Who is behind the FTX platform?
FTX’s team is made up of 5 people of varying profiles, who enable the platform to be proactive in many decisions and therefore offer its users one of the best possible platforms.

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