FTX vs Coinbase: Trading platform Comparison 2022

FTX and Coinbase are the two exchanges that we hear about a lot in the Crypto space. Both offer innovative products to help their users get the best trading experience in the Cryptosphere. Let’s start with a briefing about them.

FTX-Review3

FTX was founded in 2017 with a head office in Hong Kong. It is considered the world’s 3rd largest cryptocurrency exchange. They offer a variety of crypto industry-specific services on their platform.

coinbase

Coinbase is the 2nd largest in total trade volume, founded in 2012 and headquartered in San Francisco until 2020. However, it became the first crypto exchange to operate remotely post-pandemic.

This article will help you break the dilemma and choose the suitable exchange that fits your trading requirements. Let us now compare the products offered by these platforms in detail.

FTX vs Coinbase (Product Offerings)

Both FTX and Coinbase offer financial products in the crypto industry for both beginners and experienced traders. FTX offers crypto derivatives trading in the USA through FTX US Derivatives, while Coinbase has introduced Coinbase Pro with more functionality for advanced traders, a wider range of cryptos, and lower fees. Let us now go through the products they offer.

Futures Trading

It is a contract with an agreement to buy or sell a specific cryptocurrency at a future date at an agreed price. At the time of expiration of the futures contracts, Crypto traders speculate that the price of assets will rise or dip and initiate long or short positions depending on their speculation.

FTX was the first crypto exchange to offer index futures. There are over 250 perpetual and quarterly markets available on the platform. Crypto futures trading can be accessed from the FTT tab available on the window.

  • In FTX, futures are stablecoin settled, meaning that you get legitimate USD- based price exposure and settlement without needing a bank account.
  • The quarterly futures expire to a time-weighted average price of their associated index on the last Friday of every quarter between 2 am, and 3 am UTC.

On the other hand, Coinbase has stopped offering Futures trading recently on their platform.

Spot Trading

It means buying or selling at crypto exchanges that offer derivatives like Bitcoin and Ethereum for immediate settlement. The trader earns profits from the market’s fluctuations by buying or selling cryptos at spot price.

  • FTX consists of over 100 spot markets, enabling you to trade in FTT, BTC, and many more. If you don’t use margin, the future and spot interfaces are pretty similar in FTX.
  • Coinbase’s spot trading market is consistently listed as one of the most liquid regulated crypto exchanges globally, with a dynamic fee structure; taker fees ranging between 0.25% to 0.15% and maker fees between 0.15% to 0.05%.

Leveraged/Margin trading

In this, traders can invest their limited capital to buy and boost their crypto investments with borrowed money from the broker. Leverage helps to magnify their profits by trading in leveraged tokens offered in the cryptocurrency exchanges.

  • FTX supports ERC20, which you can use as leveraged tokens in the exchange. FTX allows up to 20x leverage, with nominal collateral depending on the position size.
  • Coinbase has also shut down its margin trading platform.

Fiat Currencies

It is a currency that gets recognized due to a formal authorization or proposition (a decree) of a legal body, say the Government. For example, USD, EURO, etcetera.

  • In FTX, there are, in total, 11 fiat currencies to choose from. It accepts wire transfers and withdrawals of up to $1m and above with no fees, tight spreads, or reasonable settlement. Click DEPOSIT to get the details, and click WITHDRAW to request a wire out. All fiat can be used as collateral on FTX.
  • In Coinbase, you can initiate an ACH transfer by depositing funds- transferring fiat from your bank account to your USD wallet. You can see the deposited fiat in your Coinbase Digital wallet, once the transaction is confirmed.

Staking In FTX

It is the process of depositing crypto holdings to gain profits or obtain interests. Let us see how both Coinbase and FTX offer it.

  • FTX’s Staking

Referrers that stake FTT is paid a higher fraction of their referee’s fees and get maker fee rebates. When opting for staking the supported assets, you’ll be eligible to earn up to an 8% annual percentage yield on them.

Stakers also benefit from increased airdrop rewards and waived blockchain fees with several free ERC20 and ETH withdrawals per day and an extra free fiat withdrawal per week.

Stakers also get tickets for IEOs hosted on FTX. You can also stake Serum (SRM), Solana (SOL), and RAY on FTX.

  • Coinbase’s Staking

Coinbase also allows staking, where you can earn staking rewards with Ethereum 2.0, Tezos (XTZ), Cosmos (ATOM), and even more. Coinbase rewards stakers with up to 5.0% on cryptos. Rewards appear in your Account periodically, depending on the asset.

You can earn rewards with even $1 in crypto. The more you hold, the more you earn.

FTX vs Coinbase (Trading fees)

The fee structure on the whole in these platforms is quite similar. They charge less as your trade volume increases; let us look into them in detail.

  • Trading Fees In FTX

The futures and spot fees in FTX have a tiered fee structure based on the maker/taker fees model as follows:

trading fees in FTX

  • Trading Fees in Coinbase

Coinbase also uses the maker-taker fees model for its trading fees and is distributed in a tired structure as well. The fee chart is as follows:

Trading fees in Coinbase

It can be seen that FTX and Coinbase have a lot of differences in their fees. FTX is far cheaper than Coinbase.

FTX vs Coinbase (Deposit and withdrawal fees)

  • Deposit and withdrawal Fee in FTX

In FTX there is a wide range of fiat currencies available. There is no Deposit or Withdrawal fee except for ETH. ERC-20 tokens or small BTC withdrawals. Users staking FTT tokens are not charged any fee on ETH and ERC-20.

In case the fiat, stablecoin deposit/withdrawal volume exceeds their trading volume, they can charge a withdrawal fee of up to 0.10%. Small BTC, withdrawal of more than 0.01 BTC can be done for free but if withdrawal is less than that and more than once per day, then the charges are applied.

For fiat withdrawals, FTX charges $75 for any amount below $10,000. FTX accepts payments from a bank transfer, credit card, and debit card with $0.3+2.9% of additional charges. It also offers Silvergate SEN and Signature SIGNET for faster transactions.

  • Deposit and withdrawal Fee in Coinbase

Coinbase has only 3 fiat currencies to choose from, meaning you have to bear the extra flat fees. It charges a 1% fee for fiat conversion of your cryptocurrency, with an additional blockchain technology network, rendering charge.

You can use SEPA for a free deposit of Euros or faster payments if you are based in the UK. The fiat deposit and withdrawal fee depend on the payment method and vary from one currency to another as given in the table below.

Deposit and withdrawal fee in Coinbase

FTXvs Coinbase (Trading Platform Comparison)

  • FTX User Interface

FTX has a simple interface with a side navigation bar to easily access the wallet, trading history, and products.

The interface’s center is a chart with a trading view that includes chart patterns—drawing tools, and indicators. You can easily drag and drop the sell stop and take profits tab on the chart, thereby reducing the hassle of typing numbers every time you want to do so.

Below the chart window, users can view the order book to examine the volume against the bid and ask prices. The order window is placed in the middle, through which you can enter a position and set entry prices by clicking on the order book.

FTX also launches projects through initial exchange offerings, allowing FTX account holders to get into early-stage projects.

  • Orders in FTX

FTX offers an excellent selection of order types; they are:

  • Limit Order
  • Market Order
  • Stop Market
  • Stop Limit
  • Trailing Stop
  • Take profit
  • Take profit limit

FTX Pay

FTXs payment method is divided into two sub-methods, first, to receive payments with an FTX account and the other where payments can be received in an external wallet. It guarantees security and fast transactions with partners like Sonar, Metaplex, Moondrops, Phantom, Sollet.io, and TSMFTX.

  • Quant Xone in FTX

The main FTX platform offers this tool with which you can automate those crypto trading strategies, and then it doesn’t require you to stick to your computer screens all day long.

Coinbase is a beginner-friendly platform with a fairly straightforward, fast, and responsive engine integrated with an easy-to-navigate search bar.

  • Coinbase User Interface

Coinbase being an international platform has kept its interface beginner-friendly with an easy-to-use, subtle yet straightforward dashboard. The navigation bar on the left provides quick links to the main features. The home page can be customized as per the requirement to show favorite coins.

A basic price chart shows the asset’s value, and the duration of the data can be changed in daily, weekly, monthly, or yearly time frames. You can also click on the asset to view a larger chart displaying the overall market cap, recent trading volume in the 24 hours, and circulating supply.

The sentiment graph shows the trading activity of other users on the exchange. There are also certain custody services that Coinbase offers.

  • Crypto Asset Custody In Coinbase

Coinbase offers custody solutions for digital assets holding institutions, which would be quite reassuring that institutional biggies are happy entrusting Coinbase with their millions or tens of millions of dollars worth of crypto assets.

  • Self Custody Mobile Wallet In Coinbase

Coinbase allows users to create a wallet to trade in 500 crypto assets and store NFTs all in one place, without even creating an account on Coinbase. It also integrates with multiple decentralized exchanges if you want to try those kinds of exchanges.

  • Coinbase Card in Coinbase

Coinbase users can get this card which allows them to spend cryptos where ever visa is accepted, but Coinbase charges €4.95 as fees for issuing the card. Similar to the working of a debit card, users can now spend crypto.

FTX vs Coinbase (Account opening process)

You can start your crypto journey on any of these platforms by a somewhat similar process; let us go through them now.

Opening an account in FTX

  1. Click ‘Register’ located on the top right corner of the website.

ftx register

  1. Enter your Email ID and a secure password below that.

ftx create account

  1. Agree with the terms and services and click on ‘Create Account.
  2. Get over with the KYC process depending on the level of access and features you want to trade in.
  3. Then click ‘Continue’ and start trading.

KYC in FTX

KYC is carried out on a tiered basis in FTX. Tier 1 unlocks a daily $2000 limit, with no crypto deposit limit, but you cannot withdraw or deposit any fiat currencies. Whereas Tier 2 unlocks all the features.

Opening an account in Coinbase

When you open Account an account in Coinbase, there will automatically be an account created in the Coinbase Pro as well, and you can log in to Coinbase pro with the same Login credentials as Coinbase.

  1. Firstly click ‘Get Started’ and enter your name, Email ID, and a secure password.

coinbase get started

  1. Verify your email with the link you will receive.
  2. Enter your mobile number, verify it with the code received on your phone, and click ‘Submit.’
  3. Add your personal information and documents to prove your identity.
  4. Lastly, link a payment method from those available in your country.

KYC in Coinbase

Identity verification is a must on the Coinbase platform and is carried out in multiple steps. The process requires basic identification documents and a clear selfie of your face.

FTX vs Coinbase (Customer Support)

Customer services are a vital aspect to look for while choosing an exchange because if things go south, it is the customer support that you can rely upon.

FTX offers 24×7 customer support on Facebook, Telegram, WeChat, Blog, Medium, Youtube, and Bilibili. Customers can also get help via Email support, and it also offers an option of live chat support on the chat box provided on the exchange.

On the other hand, Coinbase has a professional support team, guaranteeing a 24-hour email response time. It also has an instant live chat window where customers can reach out during US business hours.

FTX vs Coinbase (Security Features)

Security features are also a crucial point to consider while choosing a crypto exchange because it’s the security of crypto exchanges that will ensure that your funds are safe.

Both FTX and Coinbase fairly stand up to the point of being secure.

FTX has never been hacked; with two-factor authentication and SSL encryption of their website, their security level is truly in-penetrable. FTX also offers insurance funds that ensure that customers do not suffer losses in case of adverse market fluctuations.

In addition to that, you can add a different password to authorize withdrawals, and also, if anybody tries to remove 2FA or attempts a password change, the withdrawals will be locked for 24 hours.

FTX also monitors your Account’s activity, and if it finds something suspicious, it will give you a heads up over Email. It also has some advanced features called IP whitelisting, through which your Account will only be accessible while connected to your home internet connection.

You can also whitelist wallet addresses on FTX, meaning that funds can be sent only to the selected list of wallets. In the case of big deposits or withdrawals of funds, FTX manually reviews them, giving you extra security assurance.

Coinbase is also nowhere behind when it comes to security. The platform states that up to 98% of trader’s funds are kept offline where they store crypto in cold storage in different places across the globe. The rest 2% are kept on online hot wallets to ensure the exchange can process withdrawals on time.

Even then, the hot wallets are insured by Coinbase in chances of hacks or cyber-security breaches happening on the platform’s end.

Back in 2020, only 0.004% of customers experienced transactions where email accounts were taken over, SIM swaps attacks occurred on their cellphones, or other personal information unrelated to Coinbase was breached.

Coinbase also requires two-factor authentication, with biometric prints compulsory to obtain private keys. Traders also get FDIC insurance cover of up to $250,000 since the funds are primarily held in the US.

To Conclude

FTX and Coinbase are both uniquely powerful cryptocurrency exchanges. Looking at Coinbase at a glance, being comparatively older, Coinbase is a beginner-friendly exchange with a basic and subtle interface, whereas FTX has many innovative, essential, and exciting toolsets to offer.

Choosing one of them is totally dependent upon your requirements. The best way to choose is to try both exchanges with small deposits keeping all the details we discussed here in mind.

nv-author-image

Jack Bailey

I am John, a veteran trader turned into a trading coach. Especially in the realm of cryptocurrency derivatives which is now booming and expected to grow big.

Leave a Reply

Your email address will not be published. Required fields are marked *