Important: Please exercise extreme caution when using the FTX exchange amid current market events as the exchange has filed for bankruptcy. Read more: Source 1; Source 2; Source 3.
In this guide, we will examine the security of FTX, a cryptocurrency exchange to buy, sell and trade Bitcoin, Dogecoin, Ethereum, as well as over 300 other coins and tokens. In particular, we will analyze its safety features such as its password strength, two-factor authentication, and withdrawal lock, amongst other measures.
About FTX
Founded in May 2019 by co-founders Sam Bankman-Fried and Gary Wang, FTX is a cryptocurrency trading platform that delivers cutting-edge products such as derivatives, options, volatility products, and leveraged tokens.
The platform is both comprehensive enough for professional traders to use with a selection of advanced trading tools while also being simple and intuitive enough for novice users to build trading strategies on the FTX interface.
Additional features include the exchange’s own native token, the FTX token (FTT), a safe and low-fee payment processor with FTX pay, and a Visa FTX card for spending your FTX crypto holdings around the world as well as numerous others.
Note: For more information on the platform and its main products, please see our in-depth FTX review.
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FTX’s reputation in the industry
FTX specializes in derivatives, indexes, futures, and leveraged tokens that may be traded on margin.
Since its inception in 2019, FTX has maintained its reputation as a safe cryptocurrency exchange, having never been hacked or otherwise compromised.
FTX is a reputable cryptocurrency exchange that was established with the objective of giving to the most effective charities in the world. In order to save lives, reduce suffering, and assure a better future, FTX, its affiliates, and its employees have together given more than $10 million.
The exchange is also backed by Alameda Research, a leading cryptocurrency liquidity provider that handles hundreds of millions of dollars worth of digital assets every day.
What makes FTX safe?
IMPORTANT: The FTX exchange is currently unsafe to use, as the previously third-largest crypto trading platform has collapsed and filed for bankruptcy. The previous industry-leading crypto exchange’s liquidity dried up following a sudden high demand in customer withdrawals, after which the company suffered substantial financial losses and couldn’t recover. It has also resulted in possible criminal investigations.
FTX employs a number of security mechanisms to protect the confidentiality of users’ personal information as well as the safety of funds held on the exchange.
Security measures like as cold wallet storage and two-factor authentication (2FA) have so far prevented any hacks or security breaches, ensuring a safe and secure trading environment.
Industry-standard security measures have been put in place by FTX to protect its users, including:
- Custom-built hot and cold wallet technology;
- Complete external backing of all hot wallet funds;
- Partnership with industry-leading custodians.
FTX regulation
The crypto exchange is incorporated in Antigua and Barbuda, while its headquarters are in the Bahamas, where it is both licensed and regulated.
The margin trading platform is presently unregulated, and users from the United States are not permitted to utilize its services. Residents of the United United States may make use of FTX.US, a subsidiary that provides services to residents of the United States, which is also fully regulated.
Personal account security
- Withdrawal Lock: After a user’s account status changes, such as when Two-factor authentication (2FA) is removed or a password is changed, FTX will temporarily disable withdrawals from the account for a period of 24 hours.
- Two-factor authentication: To transact in any fashion on any registered account, FTX mandates that a necessary 2FA system is in place.
- 2FA & Password for Withdrawals: 2FA and password protection are available for cryptocurrency withdrawals.
Watch the video: How to Enable Two Factor Authentication (2FA) on FTX
Built-in security features
- Whitelisting IPs: When generating your API Keys on FTX, you have the option of specifying the security permissions for your account.
- Login Functions for Subaccounts: FTX has provided the option to configure your logins, which you can then use to grant access to your account to other users with varying degrees of accessibility.
- Whitelisting Wallets: Withdrawals are only permitted from specified accounts when a whitelisted address is used in conjunction with FTX account. Only by contacting an FTX administrator can you deactivate or minimize the time it takes for your account to be whitelisted.
- Monitor suspicious transactions: FTX is partnered with Chainalysis’ Know Your Transaction (KYT) to monitor suspicious crypto transactions. This enables the exchange to keep track of cryptocurrency transactions in real-time using anti-money laundering (AML) compliance software.
- Human review: Using KYT in conjunction with manual supervision of large or dubious deposits and withdrawals adds an extra layer of protection.
- Backstop liquidity: FTX Backstop Liquidity Fund has about $200 million in assets, which was calculated using the price of FTT on May 24, 2021, as a basis of estimation.
Customer Support
If you have any queries, you can reach out to FTX by email at [email protected].
Additionally, it is recommended that you visit their social media pages on Twitter, Facebook, and Telegram to remain up to speed with the newest advancements on the platform.
Verdict
All in all, FTX is one of the most secure cryptocurrency exchanges on the market, allowing traders to deal in spot, futures, and leverage tokens on and offering both an innovative and efficient platform.
In terms of crypto exchange security, the platform incorporates the most recent innovations, such as the need for two-factor authentication, the ability to lock accounts, and even the possibility to set withdrawal passwords.
Additional security measures include creating subaccounts with restricted rights, whitelisting approved addresses, and using third-party monitoring, which sends quick alerts to the FTX security team.
FAQs about FTX safety
Is FTX safe?
Yes, the fact that FTX has never been hacked or had a security breach since its launch in 2019 further adds to its credibility as a trustworthy and safe cryptocurrency exchange.
Where is FTX based?
Based in the Bahamas, the FTX cryptocurrency exchange provides comprehensive trading tools as well as access to a diverse range of over 300 cryptocurrencies. FTX is not available in the U.S. though there is its subsidiary platform FTX.US.
What are the fees on FTX?
FTX’s basic trading fees are competitive, and reductions are granted to high-volume traders as well as holders of the FTX native token (FTT). Trading costs at FTX are structured in a tiered manner, with savings being offered to individuals that trade in higher volumes. Prices are calculated on the basis of a Maker-Taker fee schedule.
Is FTX good for beginners?
FTX is a trusted exchange that caters to both experienced and novice traders. It enables users to buy, sell, and trade cryptocurrency, stocks, and other financial instruments. Utilizing either the desktop or mobile app, users may log in to their accounts, check their balances, make deposits, or withdraw funds in either fiat or cryptocurrencies.
