What Platform to Choose for Buying Cryptocurrency and Why not FTX?

December 17, 2022 Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Metaverse, NFTs, FinTech and Alternative Finance, Fintech International, Fintech Services, Fundraising, Investing, Trading, Innovation and Resources, Online Funding / Investing Portals No comments

What Platform to Choose for Buying Cryptocurrency and Why not FTX?

Guest Post | Dec 17, 2022

Image: Unsplash/Kelly Sikkema

Cryptocurrency trading and investment have become popular ways to generate income using digital assets. The essence of trading is to buy and sell cryptocurrency with benefits, that is, at different prices. Most trading methods imply buying digital coins at a lower rate and selling them at a higher price. However, there is a method called “short”, which means selling out coins and repurchasing them at a lower price. A variety of trading strategies and tools can be practiced in large and credible crypto platforms. The most reliable exchanges are:

Binance
ByBit
WhiteBIT
Coinbase
Huobi.

The popular FTX platform used to be among the best exchanges until recently. What happened with it, and why is it a bad idea to buy cryptocurrency on it now? Let's find it out.

What Happened to FTX?

Everything started on November 2, 2022, when an article by CoinDesk was released. It claimed that most of the Alameda company assets were FTT tokens that belonged to its subsidiary FTX exchange. This news hit the market because, by the rules, company assets should not mostly contain its own assets but other coins that have nothing to do with the company, for example, coins released by other companies. But according to CoinDesk, Alameda had $5,81 billion worth of FTT tokens from total capital of $14,6 billion. This news caused a collapse in the market. The head of the Binance exchange claimed he would sell all the FTT tokens. In return, Alameda offered Binance to buy the FTX platform. All these events caused a massive collapse of the FTT token price from $22 to $1.33 on December 1.

See: Top 5 Crypto-Tax Haven Countries for 2023

In the end, Binance's head rejected the proposition to buy FTX. The platform lost its reputation and credibility in less than ten days. The collapse of the FTX platform shook the entire crypto market, and many asset prices dropped in November. We recommend you purchase and sell cryptocurrency only on reliable and credible crypto exchanges, for example, WhiteBIT. It is a young yet reliable exchange that has proved its reliability. The exchange has transparent work conditions and operates officially according to regulators' laws. Registered and verified clients can buy cryptocurrency with fiat money. Read more about the WhiteBIT exchange on its blog.

NCFA Jan 2018 resize - What Platform to Choose for Buying Cryptocurrency and Why not FTX? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org