If you are looking for a simple, secure, and reliable crypto exchange to trade Bitcoin futures, your search might end with BaseFEX.
BaseFEX exchange is relatively new. It was founded in 2018 in Hong Kong and registered in Seychelles. However, BaseFEX has gained popularity among crypto traders over this short time period, especially professional and experienced traders.
BaseFEX Exchange Review
BaseFEX provides many exciting features to traders. For starters, it has low trading fees and offers up to 100x leverage on BTC futures. The BaseFEX platform is robust, has an intuitive trading interface, and is easy to learn for beginners.
Moreover, BaseFEX has a no-KYC promise and does not require any identity verification. But there are a few things to using BaseFEX that traders should know about.
Here is a comprehensive BaseFEX review to help you make the right choice.
BaseFEX Supported Coins
BaseFEX supports the trading of Bitcoin (BTC) only. Earlier, it supported:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Binance Coin (BNB)
- Litecoin (LTC)
- EOS.io (EOS)
- OKEx coin (OKB)
- Cosmos ATOM (ATOM)
- Cardano (ADA)
- Huobi Global coin (HT)
However, the BaseFEX team announced on June 24, 2020, that they would be delisting all trading pairs apart from BTCUSD and BTCUSDT to deliver the best trading experience to users.
BaseFEX Product Offerings– Futures Contracts, Perpetual Contracts, and More
BaseFEX is a derivatives-only exchange and supports crypto trading of futures. It offers traditional futures contracts, and perpetual swaps on BTC settled in USD (BTCUSD) and USDT (BTCUSDT).
Some XBT and USDT settled contracts that were available earlier but are no longer supported are ETHXBT, ETHUSDT, BCHXBT, LTCXBT, BNBXBT, ZECUSDT, DASHUSDT, ETUSDT, EOSUSDT, and ETHUSDT.
Coming to leverage, the exchange offers up 100x leverage on BTC traditional futures and perpetual swaps. This means you can take positions up to USD 10,000 for an initial investment of USD 100 only. This increases your profit potential but also exposes you to a greater loss.
Therefore, beginner traders should be cautious when it comes to leverage trading on a crypto exchange.
BaseFEX has 24h derivatives trading volume of USD 5.91 million – the 31st-highest in the market. BaseFEX does not support spot trading. Also, it doesn’t have options or other trading pairs like other platforms.
Since it is a cryptocurrency derivative exchange that focuses solely on Bitcoin futures trading, its daily trading volume is lower than other exchanges in the market.
However, on the upside, this makes it easily compliant with the current regulations.
BaseFEX Order Types
BaseFEX supports all types of orders, including:
- Limit Orders: These orders are filled at a specific price defined by the trader.
- Market Orders: These orders execute at the current market price.
- Stop-Limit Orders: These are limit orders placed in the opposite direction of the trade.
- Stop-Market Orders: These are stop-loss orders that aren’t visible in the order book until the market reaches the entered price.
- Trailing-Stop Orders: These are stop-loss orders with a specific trailing value.
- Take-Profit Limit Orders: These are limit orders placed in the same direction of the trade.
- Take-Profit Market Orders: These take-profit orders don’t show in the order book until the market reaches the entered price.
Additionally, the exchange supports two advanced order types:
- Post Only Orders: These orders will only be posted if they can enter the Order Book.
- Reduce Only Orders: These orders only allow you to reduce or close a current position that you hold.
BaseFEX Liquidation Mechanism
All derivatives exchanges have an auto-deleveraging system that facilitates forced liquidations of traders’ positions if they cannot fulfill the margin requirements of the open position.
For example, BaseFEX offers up to 100x leverage on BTC futures. This means for an investment of USD 1,000, you can buy Bitcoin futures worth USD 100,000.
This means if you take a long position and the price increases by 1%, you’ll make a profit of USD 1,000. However, it also means that if the price goes down by 1%, you’ll incur a loss of USD 1,000 – your initial margin.
If the price goes down even further, you won’t have enough margin to fulfill the margin requirements of your leveraged position. In that case, your position will be forcefully closed (liquidated).
BaseFEX implements a Fair Price Marking mechanism to avoid unnecessary liquidations. Unlike standard liquidations that use the Last Price as the Fair Price, this method calculates the liquidation price by setting the Mark Price to the Fair Price.
For perpetual swaps, the Fair Price is equal to the Index Price of the underlying asset plus the Funding Basis Rate.
BaseFEX Margin Trading Fees
BaseFEX has a market maker-taker trading fees structure. If you’re new to this fee model, here’s how it works.
Some order types, such as a limit order, enter the order book, thereby adding liquidity to the market. These orders are known as market maker orders. Contrarily, some orders, such as a market order, don’t enter the order book, thereby taking away the liquidity. These are known as market taker orders.
Hence, in the market maker-taker model, exchanges charge a fee on each market maker or market taker order. Some exchanges don’t follow this model and charge flat commissions per order.
The market maker-taker fee model is further categorized into two types: flat fee and tiered. In a flat-fee structure, the exchange charges a specific fee on market taker and market maker orders.
For example, most exchanges that use a flat-fee structure offer a 0.025% rebate on market maker orders and charge a 0.075% fee on market taker orders.
BaseFEX follows a tiered fee structure based on the last 30-day volume. It has seven trading account levels (level 0 – level 6).
Traders with the last 30d trading volume of less than 100 BTC fall into Level 0. For Level 0 traders, the maker fee is 0.02%, and the taker fee is 0.06%.
Traders with the last 30d volume of more than 60,000 BTC fall into Level 6. For Level 6 traders, the maker fee is 0.0050%, and the taker fee is 0.030%.
BaseFEX also offers a flat 50% discount on trading fees to traders whose trading volume has been more than USD 35 million in the last seven days. This way, you can make more money while paying a lower fee.
BaseFEX Funding Fees
Since BaseFEX offers perpetual futures contracts, it has a funding rate mechanism. If you’re new to the concept of funding rates, this quick explanation will help.
Unlike traditional futures that come with an expiry, perpetual swaps have no expiry. Therefore, they can trade away from the price of the underlying asset forever. This could make the market one-sided.
For example, if the futures price is trading above the spot price, it indicates that buyers are dominant in the market. This will encourage people to buy even more, which will further increase the difference.
The funding rate helps avoid this one-sided trend in the market. When the futures’ price is higher than the spot price, buyers pay a funding fee to sellers. If the futures’ price is lower than the spot price, sellers pay a funding fee to buyers. This ensures that the futures price stays near the spot price.
BaseFEX Trading Platform & Tools
BaseFEX has a sophisticated trading platform with all the essential features and functionalities. It’s ideal for both beginners and professional traders and comes with a minor learning curve. If you’re looking for an exchange that offers a robust yet intuitive trading interface, BaseFEX can be the right pick for you.
Here’s a detailed overview of the BaseFEX trading platform.
Desktop Trading Platform
BaseFEX’s desktop trading platform looks similar to most crypto exchanges. It offers the following features:
- Contract Details: This section is located at the top-left area of the trading panel and shows real-time price changes of the opened contract.
- Order Form: The Order Form allows you to place Buy and Sell orders. You can select the order type, enter quantity, and Buy and Sell futures.
- Your Position: This section displays the current status of your open position.
- Your Balances: This section shows your current USDT balances.
- Open Position: This section shows your open positions, open orders, closed positions, and trading history.
- Order Book: The Order Book gives information on real-time market depth and the volume of orders at each price.
- Recent Trades: It shows recently-placed trades on the exchange.
TradingView Charting System
BaseFEX uses the TradingView charting system, which is the industry standard used by most crypto exchanges. The TradingView charting system comes with the following features:
- Chart Types: BaseFEX offers numerous chart types, including line, area, candlesticks, Heikin-Ashi, etc., to get a better view of the market, price action, and trend.
- Timeframes: BaseFEX allows you to choose from multiple time frames, training from 1 minute to 1 day. This helps you get a short-term and long-term view of the market.
- Indicators: BaseFEX offers hundreds of built-in indicators for you to conduct in-depth technical analysis and make informed trading decisions.
- Drawing Tools: BaseFEX also provides drawing tools so that you can make crucial levels, trends, and patterns.
Additionally, you set alerts at critical price points to get notified when the price reaches those levels.
BaseFEX has a mobile app available on both iOS and Android platforms. The app allows you to trade on the go. You can create an account, deposit and withdraw funds, and enter and exit positions from the mobile app. Mobile trading can be helpful for busy professionals who need a fast and seamless trading experience.
BaseFEX Deposit & Withdrawal Methods
BaseFEX only accepts Bitcoin deposits.
If you have BTC, you can deposit them into your BaseFEX account from any BTC wallet. If you don’t have BTC, you can head to a Bitcoin exchange platform like Coinbase to exchange your fiat currency into BTC.
Similarly, BaseFEX supports BTC withdrawals only. Currently, there is no support for fiat withdrawals either directly or via third-party payment gateways.
Also, BaseFEX doesn’t charge deposit or withdrawal fees, and users can deposit and withdraw funds without incurring any charges.
However, the blockchain network fee will apply. There are no deposit or BaseFEX withdrawal limits; however, a minimum deposit requirement of 0.0001 BTC.
How To Start Futures Trading on BaseFEX?
BaseFEX offers a seamless accounting opening process, and users can create an account and start trading on BaseFEX within minutes. One of the striking features of BaseFEX is its No KYC Promise – BaseFEX promises that there will never be any KYC checks.
This can be an important factor to consider for users who are not comfortable with the KYC process. With that said, here is how you can start futures trading on BaseFEX.
1. Open a Trading Account
Visit the BaseFEX registration page and open a trading account. You can open an account with your email address, password, and nickname.
2. Add Funds to Your Account
Once you register, head to your wallet and deposit funds in it. Since BaseFEX offers up to 100x leverage, you can get started with a small initial deposit.
3. Place a Trade
After adding funds to your account, you will be all set to start trading. Now, head to the trading panel and select the order you want to place in the Order Form. You’ll also need to select the quantity and the leverage you want to use.
If you’re a new trader, it’s wise to start with low leverage. Using high leverage increases your exposure and can lead to forced liquidations. Once you have filled the Order Form, place a Buy or Sell order.
4. Close Your Position
If you place a market order, it will be executed at the current market price. If you place a limit order, it will execute once the market reaches your desired price.
The next step is to close your open position. You can either do so manually by selecting your open position and exiting it or place stop-loss or take-profit order.
5. Hang in There
Patience and practice are essential when it comes to succeeding as a trader. Keep practicing and develop new strategies to increase your probability of winning in the crypto market.
BaseFEX Security Features
BaseFEX adopts industry-standard security features to provide a safe and hassle-free trading experience to all its users. Here is a quick overview of all the security features and practices implemented by BaseFEX.
- Multi-Signature Cold Storage Wallets
BaseFEX uses multi-signature cold wallets to protect its users’ funds from cyberattacks. These wallets have unique keys and require the availability of all keys to access and transfer funds.
- Withdrawal Confirmation
BaseFEX manually verified all withdrawal requests to ensure no unauthorized withdrawal requests took place on the platform. This ensures that users’ funds aren’t illegally withdrawn from their wallets without their permission.
- Insurance Fund
BaseFEX has an insurance fund to ensure that users’ funds are protected against the sudden volatility seen in the crypto market.
- Two-Factor Authentication
BaseFEX encourages its users to activate two-factor authentication to protect their accounts from unauthorized logins. After activating 2FA, users need to prove the ownership of the account twice to be able to access it.
- Cutting-Edge Platform
Lastly, BaseFEX has a cutting-edge trading platform that uses top-notch technologies and techniques, such as IP whitelisting and SSL encryption, to provide a safe and secure experience.
BaseFEX Customer Support
BaseFEX offers excellent customer support, thanks to their highly-trained customer support team. BaseFEX has four modes of customer support:
- Live Chat: BaseFEX offers live chat support that is accessible from their website.
- Email: BaseFEX also offers email support for detailed customer queries.
- Social Media: You can also contact the BaseFEX team on Telegram and Twitter.
- Knowledge Base: BaseFEX has a vast FAQs section where you can find answers to a wide range of frequently asked questions.
Can You Use BaseFEX in the USA?
The USA imposes strict regulations when it comes to crypto trading.
BaseFEX is not allowed to operate in the US, and hence, it does not accept clients from the country. However, since BaseFEX is a completely anonymous exchange, it doesn’t require you to disclose your location or identity.
Thus, users in the USA can create an account on BaseFEX and start trading. If BaseFEX doesn’t open, users can use a VPN to hide their location and IP address. This will allow you to access the BaseFEX platform anonymously.
With that said, be sure to learn about the risks of using a VPN when trading crypto derivatives and use this method at your own risk.
Is BaseFEX Safe and Legit?
Yes. BaseFEX uses cutting-edge technologies to offer superior quality and a completely safe trading experience to all its users. It has scored A+ on the Mozilla Observatory Test. Only four out of 400 exchanges have achieved this rating.
Although BaseFEX is completely anonymous and unregulated, it has never been hacked since its launch in 2018. Hence, traders can stay assured that they will get a secure trading experience on BaseFEX.
Pros & Cons of Using BaseFEX
Like any exchange, BaseFEX also has its pros and cons. Understanding them will give you a better idea of whether you should use BaseFEX exchange for the margin trading of crypto derivatives.
There are several benefits of using BaseFEX. These include:
- Low and competitive BaseFEX fees
- Up to 100x leverage trading on BTC traditional cryptocurrency futures and perpetual contract
- Custom-made mobile app to help you trade on the go
- Robust security measures as per industry standards
- Allows users to trade without KYC and AML
- No fees deposit and withdrawal fee
- Powerful trading platform with intuitive user interface
There are some drawbacks of trading cryptocurrency derivatives on BaseFEX that traders should know about. These include:
- No fiat currency deposits and withdrawals
- Supports only BTC futures contract trading
- It does not accept users from the US
BaseFEX Review Summary
To conclude, BaseFEX is a transparent and advanced cryptocurrency exchange that has become one of the popular platforms for crypto leverage trading. It offers many benefits to both new and veteran traders.
If you’re looking for a user-friendly exchange that allows you to trade Bitcoin futures at low fees, BaseFEX will be the right pick for you. The BaseFEX fees are lower than other similar platforms, and it does not charge any deposit withdrawal fee.
An intuitive user interface, low initial margin requirements, no KYC requirements, and robust security are other reasons to use BaseFEX.
However, BaseFEX may not be the ideal choice for you if you are looking for a cryptocurrency derivatives trading exchange that supports numerous currencies and trading pairs. BaseFEX specializes in Bitcoin futures only and doesn’t support any other products.
Overall, if you only want to trade BTC futures, BaseFEX can be a good platform for you.