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FTX

FTX is a market-leading, centralized crypto exchange that specializes in leveraged products and derivatives. The exchange was founded in 2018 by Sam Bankman-Fried, an MIT graduate and former trader. 

FTX exchange offers a plethora of trading products such as options, derivatives, leveraged tokens, and volatility products. Lastly, it also offers spot markets in more than 100 virtual coin trading pairs such as ETH/USDT, BTC/USDT, XRP/USDT, and its native currency FTT/USDT. 

FTX Tax Report; A Brief

FTX, a cryptocurrency exchange, may provide users with tax reports to facilitate the process of filing taxes related to their crypto transactions. Here’s a brief overview of what an FTX tax report includes:

  1. Transaction History: The report typically includes a comprehensive transaction history detailing all your trades, purchases, sales, deposits, and withdrawals on the FTX platform.
  2. Capital Gains and Losses: FTX tax reports often calculate and summarize your capital gains and losses based on your trading activities. This information is crucial for tax reporting purposes.
  3. Fees Incurred: Details of transaction fees incurred during your trading activities on FTX may be outlined in the tax report. These fees can be considered when calculating your overall profit or loss.
  4. Data Format: FTX tax reports are usually provided in a format that is compatible with popular tax preparation software or platforms. This facilitates the seamless integration of your crypto transactions into your overall tax filing process. 
  5. Compliance Information: The report may also include information to help you comply with tax regulations specific to your jurisdiction. This could include relevant tax codes, reporting requirements, or other details to assist you in accurately reporting your cryptocurrency activities.

Connecting your FTX Address to ZenLedger For Your Crypto Tax Forms 

As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 500+ exchanges. 

Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. We support a direct API code import for many centralized exchanges, while others may require a CSV import. Decentralized exchanges may require a wallet address.

To import your transactions from an exchange, simply navigate to the “Exchanges” tab of the “Imports” page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!

Overview of FTX Crypto Exchange

FTX’s array of products and simple mobile and desktop trading apps attract beginners as well as seasoned traders. The platform’s comprehensive lineup of order types from straightforward market orders to intricate trailing stop orders makes it ideal for every trader. 

On the FTX crypto exchange, the deposit or withdrawal fees for a majority of crypto assets are zero. If you withdraw Bitcoin more than 0.01, the withdrawals are free. Also, withdrawals below 0.01 Bitcoin a day will result in a fee of 0.1 percent after the first free withdrawal. If you withdraw more than $5,000 fiat currency, the withdrawal is free and one withdrawal below this amount is free once a week. 

For listing an NFT using the exchange’s self-service tool, you have to pay $1 and 2 percent for each sale or trade of the NFT. Furthermore, wire transfers will cost you 1 percent of USD deposits and withdrawals (minimum $5, maximum $35)

Key Products

As previously mentioned, FTX’s key products are options, leveraged tokens, futures, spot markets, and MOVE. 

Options: With options, traders can guess the future price of the underlying asset and hedge against the open position with either put or call options. This gives the traders the right but not the obligation to purchase or sell at the future strike price.

Leveraged Tokens: The exchange allows traders to trade ERC 20 tokens with more than 3 times the leveraged exposure than the trading pair. Such as, if you open a position of BULL/USD that is 3x long the Bitcoin token and Bitcoin’s value increases 10 percent, you’d gain 30 percent. Moreover, FTX’s leveraged tokens don’t require margin. 

Futures: FTX crypto exchange offers 10x margins on more than 100 quarterly and perpetual futures pairs. Traders can bet on both long and short bets. To open and maintain positions, traders have to use Stablecoins such as Tether and USD. 

Spot Markets: The exchange provides more than 100 spot trading pairs, offering exposure to tokens such as BTC< ETH, BNB, XRP, and more.

MOVE: The MOVE contracts enable traders to bet on the price fluctuations of a crypto token, regardless of the direction, taking advantage of the volatility. When the price of the underlying assets moves over a certain dollar amount, the contract generates a profit. 

Regulation

Headquartered in the Bahamas, FTX is also set up in Barbuda and Antigua after the company moved from Hong Kong in 2021. The company’s FTX Digital Markets Ltd. is regulated by the Bahamas’ Securities Commission. US-based traders cannot use the services offered by FTX. However, US-based traders can use FTX US. The company acquired LedgerX in 2021 and rebranded it as FTX US Derivatives.

User Experience 

The FTX crypto exchange has a myriad of features and is extremely user-friendly. Users can hover over a button and read the information that pops up about that feature. The platform also provides educational videos, articles, and user manuals on getting started with FTX. 

It has a standard chart from TradingView, which can be further customized by the user. Even the grouping of the order book, order entry form, and others can be rearranged. If you face any problems, you can chat with other users using the Toolbox chat window. Additionally, you can automate your trading process using the REST API. The FTX apps are available on both App Store and the Play store. 

Security 

FTX exchange offers two-factor authentication. Users can use Google Authenticator, Authy, or SMS for the two-faced authentication. Users can set a separate password only for withdrawals. The incredibly skilled team consists of graduates from MIT and Berkeley and ex-employees from Facebook and Google who are constantly improving the security protocols of the FTX exchange.

To Summarize

Traders are attracted to FTX due to liquidity and the exchange offers tons of liquidity. Moreover, the exchange is expanding and offering to trade on companies such as Amazon and Tesla. When it comes to crypto, FTX is also listing tons of DeFi tokens. Users can also get a discount on the fee if they hold FTT tokens. With all the features and trading options, FTX is one of the best crypto exchanges available today.

FTX Crypto Exchange FAQs

1. What is FTX crypto exchange?

FTX is a market-leading, centralized crypto exchange that specializes in leveraged products and derivatives. The FTX exchange was founded by Sam Bankman-Fried in 2018, an MIT graduate and former exchange-traded funds trader. FTX crypto exchange delivers a wide range of trading products such as options, derivatives, leveraged tokens, and volatility products

2. Is FTX a legitimate exchange?

Yes, FTX is a legitimate cryptocurrency exchange. The company’s FTX Digital Markets Ltd. is regulated by the Bahamas’ Securities Commission. US-based traders cannot use the services offered by FTX. However, US-based traders can use FTX US. The company acquired LedgerX in 2021 and rebranded it as FTX US Derivatives, which is also regulated on both federal and state levels.

3. Is FTX a US exchange?

FTX is not a US exchange and US-based traders cannot use the FTX exchange. However, US-based traders can use FTX US. The company acquired LedgerX in 2021 and rebranded it as FTX US Derivatives, but its offerings are more limited than the global platform.