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BaseFEX Exchange Review 2023
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Sinead Burgess
Cryptocurrency products and platforms continue to evolve as the popularity of cryptocurrencies stays on the rise. Standard ways of dealing with crypto like simple buy and sell orders are becoming somewhat outdated. Platforms with financial world features have emerged on the market and offer users interesting ways to trade with crypto to generate extra income, such as futures and margin trading.
In a similar way, the platform that we’ll be reviewing today, BaseFEX, provides users with high-leverage trading contracts for Bitcoin and other altcoins, along with futures and leverage trading. You’ll find more details and facts about the platform below.
About the BaseFEX Trading Platform
BaseFEX is a Hong Kong-based cryptocurrency derivatives exchange that offers users the possibility to trade crypto with leverage. The platform was in development for over 2 years before it was finally launched in 2018. The company is based in Hong Kong, but due to China’s strict crypto laws, the platform’s registered in the Republic of Seychelles.
The platform’s main goal is to be the most reliable, transparent, and advanced crypto derivatives platform in the industry. BaseFEX is loved for its customer-oriented approach and the smooth and accessible trading experience it provides.
The BaseFEX platform enables leverage trading on four cryptocurrency trading pairs that can go up to 100x, while other altcoins enjoy leverage up to 20x. The platform was created by Jesse Wu and Isaac Zend. They both have experience with crypto, investments, and software development, as Jesse Wu is a serial entrepreneur with experience in the IT sector and forex trading, while Isaac Zend is a former software engineer at Huobi.
Being a derivatives exchange, BaseFEX offers customers the possibility to trade with futures contracts. These contracts track the prices of underlying crypto assets and are mostly used to speculate on the assets’ price without having to purchase or hold them.
The exchange is fairly new and offers a state-of-the-art user interface on its desktop and mobile app for Android and iOS devices. Despite their advanced features, the platform is also oriented towards beginners and offers a testnet variation. New users can try out their crypto skills via the testnet without having to invest their own crypto before they feel comfortable with the platform.
Ease of Use
The BaseFEX platform’s trading interface was designed to be easy to use, especially for new users. The TradingView charting interface covers the main screen, and the full list of crypto pairs is located on the left of the screen. The bottom row is reserved for all the open positions, thus making it easy to track everything from one panel.
Located next to the order book is the adjustable leverage amount for open positions. When this is adjusted, the order will display the liquidation price, active margin, and entry price. There are different order types that can be utilized on the platform.
The most popular one, the market order, allows users to place orders at a level that may differ from the current market price. Whether above or below, the price will be executed once the market reaches the selected level. These orders can last depending on the order life. There are three variants of market order on BaseFEX:
- Good Till Canceled – orders that last until the owner cancels them.
- Fill or Kill – orders that will be either fully executed at the selected price or won’t be executed at all with no partial orders.
- Immediate or Cancel – orders in which all or part of the order will be executed immediately and orders which are not filled will be cancelled.
BaseFEX supports additional orders like:
- Limit order;
- Stop Limit order ;
- Stop Market order;
- Stop loss;
- Trailing stop order;
- Take profit limit order;
- Take profit market order.
The platform features an option that enables users to carry out in-depth technical analysis on any given crypto pair by providing a wide range of indicators and analysis tools. Users can also view their trading history in the “data” section of the interface. The history section features the time and date of both opened and closed positions, along with their profits and losses.
BaseFEX Margin and Leverage
Being a derivatives crypto exchange, BaseFEX allows its users to undertake margin trading and greatly increase their chances of generating greater profits. With margin trading, the funds are provided by a third-party and users who borrow them with margin use them to trade on the platform.
On the BaseFEX platform, users enjoy up to 100x leverage for Bitcoin and 20x for other cryptocurrency pairs. The platform also offers margin funding, an option that allows users to commit their assets to fund the transactions of another user’s initial margin.
Moreover, there is a feature called cross-margin or isolated margin. This margin is applied to a specified position and has a certain limit as to the position’s amount. The cross-margin is shared among the open positions and can be netted.
When users are trading with leverage, they can put up some of their assets to maintain the margin requirement needed to keep a position open. This allows users to take more trades and gain more capital exposure on the market.
It’s important to note that there are benefits to margin trading but there are also risks involved. It’s completely possible to generate large profits while trading, but users can also succumb to great losses if their trading decision goes against the market’s movement. BaseFEX combats that by implementing a feature when a user is over-leveraged and has no free margin to keep the position open, the platform automatically starts to liquidate that position and close the orders.
Futures vs Perpetual Contracts
Cryptocurrency futures contracts are designed to expire, which means that users have to turn over the expired positions. To put it simply, futures trading allows users to use leverage to achieve greater returns. This has its own costs but doesn’t incur any fees per se. Perpetual contacts are very similar to futures contracts in the manner in which they are traded. However, they do not expire, and users can hold the perpetual contract position as long as they like.
Perpetual contracts are a great feature and are aimed at users who are looking for a way to use leverage with the advantage of not having to turn in their positions. In plain terms, perpetual contracts allow users to buy or sell a digital asset at a predetermined date for a designated price. The fault with these contracts is that they lack the transparency of futures. Futures contracts are created when the two parties agree on the price. The costs of funding, the profits and the fees of perpetual contracts are harder to learn in advance before creating them.
Bitcoin and Other Supported Cryptocurrencies
BaseFEX is a derivatives trading platform and as such, it doesn’t support any fiat currencies like the US dollar (USD), except when it comes to Bitcoin, which can be traded against USD (BTCUSD). What the platform supports is the possibility to trade crypto pairs.
The cryptocurrency pairs featured on BaseFEX are BTC/USDT, XRP/XBT, EOS/XBT, OKB/XBT, BNB/XBT, ETH/XBT, ATOM/XBT, ADA/XBT, LTC/XBT, CT/XBT, and HT/XBT.
Every trading pair has a contract specifications page where in-depth analysis is provided for trading. This can include margin trading requirements and trading pair information to help the users make a decision about which pair would suit them before making a trade.
BaseFEX Fees and Limits
BaseFEX is famous for charging its users with competitive fees. Their fees are slightly cheaper than some of the competition, like Bitmex, for example, and the platform operates on the maker/taker fee model. This model charges lower fees to market makers compared to liquidity takers.
Therefore, the maker fee on BaseFEX is 0 for most of the altcoins and -0.02 for any BTC/USD trading pair. This means that the platform rewards users who are adding liquidity to its order books. The taker fees, on the other hand, range between 0.2% and 0.05% depending on the contract.
The platform doesn’t charge any deposit or withdrawal fees, only a minimum network fee for any BTC or USDT on the blockchain load.
BaseFEX offers a discount fee for traders with larger trading volumes. To qualify for the fee discount feature, users must have an account with a total order value of $35 million USD in seven days. This will give the user a 50% discount on all trading fees. There is a total of 6 tiers in the fee system for the discount fee.
Is the BaseFEX Exchange Safe to Use?
BaseFEX takes great care about users’ assets and is one of the rare platforms that store 100% of the funds in multi-signature cold wallets. These wallets require the private keys from all of the owners before the funds could be accessed.
Moreover, BaseFEX carries out manual checks on all withdrawal requests to ensure that the requests belong to an authentic user. This ensures that the users’ accounts are safe from hacks and will not be emptied out except upon their command.
The platform offers an insurance system and an insurance fund for stored assets and protects them from sharp market fluctuations and sharp value drops.
BaseFEX is an anonymous platform, and as such, it doesn’t require its users to complete a KYC verification. Two-factor authentication (2FA) is optional, but other than that, there are no requirements or sensitive credentials on the platform.
Customer Support
BaseFEX offers users a well-trained customer support team that can be contacted 24/7. There are currently no live-chat options, but there is a chat-bot on the main website for any assistance. Their support email is [email protected], and they have a blog where users can write and read about the platform’s features and other users’ issues.
They are pretty active on social media, so you can try to reach them on their official Facebook, Telegram, and Twitter accounts.
A Few Words Before You Go...
To wrap up our BaseFEX review, we’ll say that this is a new crypto derivatives platform that offers low fees and interesting features for leverages and margin trading.
It provides its users with an easy to use trading platform with a good number of crypto trading pairs to choose from. Moreover, it has high leverage for BTC/USDT trading pairs and decent leverage for other altcoins.
If you’re on the hunt for a stable and reliable cryptocurrency exchange, then BaseFEX might be the right place for you. Features like low fees, asset safety, high leverage, crypto pairs, and dedicated customer support, along with a low minimum deposit threshold, make BaseFEX a great choice for both beginners and experienced users.
frequently asked questions
The BaseFEX platform hosts a feature-packed mobile app with all of the functionality of the main platform. Users can download the mobile app on Android and iOS devices.
Yes, but it’s practically obsolete. The minimum deposit on BaseFEX is 0.0001 BTC and is credited after one confirmation.
BaseFEX is a crypto trading platform with a presence all over the world, but due to some regulation issues is not licensed to operate in the United States, parts of Canada, North Korea, Sudan, Syria, Iran, Cuba, Crimea, and weirdly, in Sevastopol.