FTT is the utility token for the big international crypto derivatives exchange, FTX, which has attracted a lot of attention recently. FTX customers can use the token to reduce fees and earn interest. But if you’re not an FTX customer, does it make sense to buy the coin? Here are some things to bear in mind.
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1. FTX.US (FTX’s U.S. exchange) has a limited product range
Derivatives are complex financial instruments that essentially allow traders to bet on whether the price of an asset will go up or down. Derivatives can also be used to leverage trades — multiplying both gains and losses.
At time of writing, CoinMarketCap put FTX as the third biggest global cryptocurrency exchange in terms of trading volume. It offers several crypto derivatives products, including leveraged tokens, which allow investors to use leverage without the complications of full margin trading.
FTX can’t offer all its products in the U.S. because of stricter regulation. It operates a separate site called…