Exchange Coins - Crypto Academy S5W1 - Homework Post for @imagen

QUESTION 1:

ANSWER 1:

We are doing the analysis of the token called FTT which is a exchange token for the FTX Ecosystem, let's see some current stats of this coin.

^{FTT token on CoinMarketCap}

FTX Token Price (FTT): $52.52
Rank: #34
FTX token Contract: 0x50d1c9771902476076ecfc8b2a83ad6b9355a4c9
Market Cap: $6,263,987,691
Volume(24h): $361,142,311

FTX is a trading platform that aims to work on the improvement for removing the flaws that other cryptocurrency exchanges has and which aims to provide their user a easy to use platform which is eventually profitable, As we discussed above the official token for FTX exchange is FTX token(FTT).

The FTX exchange charge low exchange and leverage token fees, But for other services this can be different like spot, margin, future, etc.

Let's see price movement of the coin as time passes by :

^{Price movement of coin according to CoinMarketCap as per 1 hour, 1 Mount and 1 year.}

24h Low: $48.53
24h high: $55.95
1M low: $48.53
1M high: $69.66
1y low: $3.64
1y high: $85.02

The aim of FTX exchange is to overtake the Bitmex and OKEx which are trending crypto exchanges in the crypto world, the CEO pf Sam Bankman Fried is the co-founder of the exchange, Gray wang and nishad singh are also the co-founder of FTX exchange, According to the FTX exchange official website it's exchange platform mechanism are very hard to copy by anyone which makes it a individual from others.

^{FTT/USDT pair Technical patterns}

As we know currently due to some negative news about cryptocurrency, The cryptocurrency market is suffering the down trend in most of the assets, due to this the price can also fall below the major support line and currently this is not a good time to enter the market.

^{Negative News spreading about cryptocurrency in india Source}

QUESTION 2:

ANSWER 2:

I have recently created an account of the FTX trading platform to perform the FTX conversion, for that I deposited 139 TRX to FTX from my binance wallet and then converted those TRX to USDT as there is no pair available for the FTT/TRX or TRX/FTT so that I can convert my TRX directly to FTT,

Step 1: Click on the Wallet Button on the top left corner.

Step 2: Click on the Convert Button on the asset you want to convert to FTT token.

Step 3: Select the desired asset on the menu bar and enter the quantity of Asset you want to convert, after filling the required fields click the convert button.

Step 4: Now our asset is converted to the FTT token and now we can stake our FTT token over the FTX Trading platform.

Let's Stake our FTT token over the FTX trading Platform.

Step 1: Click on the Menu button and then click the Stake Button.

Step 2: Click on the Stake button.

Step 3: Over the Pop-Up menu select the amount of FTT token you want to stake and then click Stake.

Step 4: Now we can see our FTT tokens are Staked and there we can see the statement "Unstaking FTT takes 14 days. FTT scheduled for unstaking will not contribute to staking rewards. You can pay a fee to unstake immediately".

QUESTION 3:

ANSWER 3:

We can see from the trade history at what price we bought the asset and at what time we bought the asset.

Here we can see that we purchased the asset at 12:15 PM that means 00:15 according to the 24 hour clock so we will see the price after 24 hours on the trading view platform.

So here we can see the price after 24 hour went from 50.31 USDT to 51.30 USDT.

Now, we will see the price after 48 hours on the trading view platform.

So here we can see the price after 24 hour went from 51.30 USDT to 49.63 USDT.
And the price after 48 hour went from 50.31 USDT to 49.63 USDT.

---

Let's see the price of FTTUSDT and BTCUSDT at a particular time between 4 November to 18 November.

^{FTT/USDT chart in between 4 November 2021 to 18 November 2021}

^{BTC/USDT chart in between 4 November 2021 to 18 November 2021}

Here we can see as the BTC price rise the FTT also rise in the same pattern and as the BTC price falls the FTT price also falls so we can conclude that the price of FTT is influenced by BTC an their price movement is almost makes similar pattern.

QUESTION 4:

ANSWER 4:

Future contract is a type of agreement that is created between the buyer and the seller, the buyer agrees to purchase a derivative index at a specific time for a fixed time in future, As the time goes on the price changes from the previous price compared to the price at the time when trade was done, this leads to the profit and loss for the trader, this is managed by the exchange platform.

• Contract between buyer and seller, made for the future which get executed at a specific time.

• Usually two participants are there: Hedgers( who protect asset from the risk) , Speculators( floor traders).

• The buyer has to pay some margin value at the moment of making the contract.

^{Future market of FTX exchnage}

^{FTT-PREP future market}

QUESTION 5:

ANSWER 5:

The margin market is the collateral which is an amount investor need to deposit to the broker (exchange platform), an investor need to set the credit risk if the borrow money from broker to buy financial instruments, they borrow financial instruments to enter into derivative contract or sell them short.

Buying by margin is when an trader purchase a asset by borrowing money from the broker(exchange platform), buying on margin is done by making a initial payment to the broker for the asset, then the trader use the margin securities into their brokerage account as a collateral

QUESTION 6:

ANSWER 6:

Cryptocurrency market hold the daily income of various people and these money are kept in a wallet provided by their cryptocurrency exchange, These aren't fully safe as there have been cases where it's seen that hackers can have access to the people wallets and they can stole their assets easily, let's discuss 2 of the cases happened in the past years.

November 2019 (UpBit)

^Source

A south korean exchange goes through a massive breach of 342000 ETH which is approx $51 million at that time. Some news says that it is a inside job done by upbit itself but this turn out to be a false news, then upbit promised to cover all the losses, however the company completed the major security update over January 2020.

March 2019 (CoinBene)

^Source

The problem started when the funds started to move mysteriously out of hot wallet, analysts got worried and the exchange taken down for maintenance, over that time the exchange was down for over a whole month.

The CoinBene's admins were unwilling to admit that anything was wrong in aspects of hacking, It is to be believed that over $100 million worth of cryptocurrency was stolen during the hack

• Exchange coins are the tokens specially made for a particular exchange, the exchange issues their own currency, this is made for a means of exchange to exchange it into other coins at a cheaper fees.

• We made a purchase of $15 worth of exchange coin called FTX on their native exchange FTX exchange and stake all that coins on the exchange.

• we have seen how the price of the exchange coin is following the bitcoin price.

• We discussed about other trading types called Futures and margin and then discussed 2 previous major hacks that are occurred over exchanges.