The BaseFEX Exchange offers traders a platform to trade crypto with low fees, high security, as well as up to 100x leverage. All of the above are done without KYC in place. They also provide perpetual contracts for BCH, BNB, BTC, EOS, ETH, LTC, and XRP, allowing you a leverage of up to 100x in margin trading.
In this review of the BaseFEX Exchange, our crypto exchange research team paid attention to the crucial features you need to take into cognizance when choosing the best exchange for your crypto trading. We, therefore, advise that you take a critical look at this review and get the necessary information that may help you in becoming a better crypto trader/investor and earn a higher profit.
BaseFEX is registered in the Republic of Seychelles as Base Investing Corporation, with company number 205276. However, the company’s team is domiciled in Hong Kong and has been into the crypto business since December 2018.
The two people responsible for running the company are Jesse Wu (CEO), and Isaac Zeng (CTO). According to them, BaseFEX exchange is designed to be the most reliable, transparent, and advanced cryptocurrency futures derivative platform. They also added that it is to aid smooth trading, security, and unhindered access to traders globally.
BaseFX currently has clients spread across the globe. And it does business using up to ten international languages including English, French, Italian, Spanish, Portuguese, Chinese, Japanese, Korean, Russian, and Turkish.
The exchange does not, however, accept traders from some countries. These include Canada (Quebec), Crimea and Sevastopol, Cuba, Iran, North Korea, Sudan, Syria, and the United States of America.
The exchange hopes to disrupt some older exchanges like Deribit, BitMEX, PrimeXBT, and the rest, through their cryptocurrency derivatives exchange.
They provide up to 100x leverage on more than ten different cryptocurrency pairs. They include BTCUSD, BCHXBT, BNBXBT, ADAXBT, ATOMXBT, DASHXBT, ETCXBT, ETHBTX, EOSXBT, HTXBT, LTCXBT, OKBXBTC, and XRPXBT.
BaseFEX is well-known for offering customers with competitive fee rates. The model they operate is the “Maker-Taker”. In this model, liquidity creators (market makers) are charged relatively lower fees than liquidity takers from the order books. The table below represents the fees that the exchange charges.
From the above table of fees, it is evident that trading fees are charged based on the volume of trade carried out in one month (30 days). The higher the number of trades you make, the lower the percentage of fees charged. In summary, the trading fees range from 0.0050% to 0.0200%. The highest fees of 0.0200% (Maker fees) apply to traders whose trade volume is >=0 BTC within the period. They also pay 0.0600% Taker fees. But traders whose trading volume is >=60000 BTC pay 0.0050% Maker fees or 0.0300% Taker fees.
However, it is good to note that the platform does not charge users any fees on deposits or withdrawals. Nevertheless, the minimum Bitcoin or USDT Network fee is charged on blockchain load if you are withdrawing Bitcoin or USDT.
Lowest Maker fee = 0.0050%
Highest Maker fee = 0.0200%
Lowest Taker fee = 0.00600%
Highest Taker fee = 0.0300%
BaseFEX trading platform has an avalanche of features that make trading on the platform a unique experience for users. Some of the features of the crypto exchange include:
• No server downtime
• Comprehensive API
• No KYC
• Mobile app
• 100% cold storage
• Highest verified security
• Simulated trading
• High level of integrity.
The above features are treated in the various sections of this BaseFEX review.
BaseFEX allows you to perform different kinds of trading. These include Crypto derivatives, Futures trading – Bitcoin futures and Ethereum futures, Perpetual swap contracts, Margin trading, Futures contracts, etc.
As a global trading platform, BaseFEX allows residents of several countries to perform trading on their website, using their trading interface. However, if you are from any of the countries below, they will not allow you to make use of their site or tools. The countries that are currently not approved include:
- North Korea
- The United States of America.
The likely reason for this may be as a result of lack of KYC and AML procedures.
One of the features crypto traders look for in authentic crypto exchanges is whether or not such companies are regulated. The regulated exchanges are trusted more because the relevant authorities monitor their activities. This ensures that users’ funds are not mismanaged or embezzled.
Unfortunately, there is no record to show that the relevant authorities regulate BaseFEX in the country where it is registered or where its company team is based. Users are, therefore, advised to trade on the platform with caution. They are to use their discretion or be sure they trust the site before trading on the platform.
BaseFEX Deposit & Withdrawal
Users of BaseFEX enjoy one of the lowest charges on deposits and withdrawals. In January 2020, BaseFEX removed the minimum deposit requirement to improve user experience and make trading smoother. This used to be 20 USDT for USDT-settled contracts, and 0.002 BTC for BTC-settled contracts. The minimum Bitcoin or USDT Network fee is charged depending on blockchain load when you are withdrawing Bitcoin or USDT.
So, to deposit BTC on BaseFEX exchange, follow these steps:
1. Login to your account and click on the “My Account” link on the right.
2. Click on “Deposit” on the left
3. Scan the QR code that is shown on the screen or copy the address manually to enable you to share the Bitcoin deposit address with the Bitcoin sender. The user should always verify that they are depositing BTC only since it is Bitcoin multi-signature address. You will lose any other coin you deposit aside from the BTC.
Your account will be credited with Bitcoin after one confirmation on the Bitcoin network, once the sender kicks off the transaction. You will only be able to place a market order when there are funds in your account.
BaseFEX audits every withdrawal manually before sending it. The coordinated actions of numerous employees are equally needed. There is no keeping of private keys on any cloud server.
BaseFEX uses the services of external verifiers to verify all deposit addresses sent by the BaseFEX system. This is to make sure that they consist of the keys that are controlled by the founders. The system would immediately shut down and stop trading if there is a mismatch of the public keys.
BaseFEX will not charge you any fees on the funding you pay or receive. In the Perpetual Contracts, there is an exchange of funding between standing long and short positions over discrete Funding Intervals. In most cases, the funding intervals take place every 8 hours. As you can see from the chart below, the funding interval for the various cryptocurrency pairs is 8 hours. This can be verified from your Trade History to see the positive amount you paid for the Funding Interval or the negative amount you received.
A negative fee simply means that you will be granted a rebate. Market lending rates determine Funding rates. This is why funding rates fluctuate.
BaseFEX Account: Register & Login
It is pretty straightforward to register on the BaseFEX trading platform and start trading right away.
1. Sign-up and create account
Go to the homepage of the BaseFEX trading platform and click on the “Register” link. Enter your e-mail address in the registration box. Fill in the desired password. Choose your nickname and click register to proceed.
You will receive a six-digit code in the email address you used. Enter the code into the box provided on the account creation page to verify your email address. Once verified, you are logged in automatically.
2. Deposit funds
After logging in, select “Account” from the header menu and also “Deposit” in the left pane of the Account page.
You will be given two different options – BTC and USDT (ERC20). If you select any one of them, your deposit address would be disclosed to you. You will need this address to deposit BTC or USDT into your account before you can trade.
Whereas it takes just 1 confirmation to show your BTC deposit in your account, the USDT deposit takes 12 confirmations to show.
3. Start trading
After your deposit has reflected in your account, you can start futures trading or margin trading or anything else you wish to do.
To start, click on the “Trade” option in the header menu. You will then be redirected to the BaseFEX trading interface
On the interface, there are diverse contract options under the “BTC Settled” and “USDT Settled” tabs from which you can choose. Simply select your choice to open up the trading tools panel under the chart. We have chosen the BTCUSD Perpetual contract for this illustration.
In the trading panel, you can easily choose from three diverse order types –’Limit’, ‘Market,’ and ‘Trigger,’ including the leverage you prefer on the left-hand side.
Finally, choose an entry price and the number of contracts you prefer to purchase before you hit the ‘Buy/Long’ or ‘Sell/Short’ button to perform your order. Your order is either executed immediately or whenever the specified conditions are met, based on the type of order you place.
A few terms to note
Before you start to trade, there are a few terms you might want to be familiar with. Some of them include:
Futures Contract: It is a derivative product and an agreement to purchase or sell a currency, commodity, or other instruments at a price that is prearranged at a particular future time. It can be settled physically or with cash. On BaseFEX, many of the products being traded are provided in the form of futures contracts in Bitcoin (BTC) or USDT settlement.
As a trader, you do not need to post 100% of collateral as margin to leverage up to 100x on some BaseFEX contracts while entering into futures contracts. Traders can always guess on the future value of its products by making use of Bitcoin (BTC) or USDT since all BaseFEX’s margin is expressed in Bitcoin (BTC) or USDT
Perpetual Contracts: They are like the traditional futures contract in the way they are traded. However, they do not expire; this means that you can hold a position for as long as you want. They help in tracking Bitcoin (BTC) or USDT prices. Some of its features include:
- It has no expiry date
- It has a funding rate whose update takes place every 8 hours.
- The Fair Price Marking method is used in marking the contracts
- Funding timestamp include 02:00 UTC+00, 10:00 UTC+00, and 18:00 UTC+00
Limit orders: A limit order is used in stipulating the minimum or maximum price at which one is ready to buy or sell. When the limit order is too far from the market price, you may find it difficult to execute, though you can minimize the cost of trading. The input to use is – Quantity, Limit Price.
Order book: An order book is an instrument that displays a picture of the outstanding orders in place for a specific asset. Once you place your order, you can easily monitor the order from this visual display. An order does not have to be significant for it to be monitored; all orders are displayed irrespective of their volume.
In the above picture, the bids of buyers of Bitcoin (BTC) are displayed on the left-hand side. The asking price is shown on the right-hand side. A bid is a price a buyer is prepared to pay for a specific amount of an asset. The amount column shows you how much of the asset is to be bought or sold.
The order book keeps being updated regularly to show the market health of a cryptocurrency. Crypto with high liquidity will keep showing a lively order book. This kind of crypto is easy to buy or sell without a significant change in the market price. Such crypto is not easily prone to pump and dump schemes.
Margin trading: BaseFEX allows its users to participate in margin trading and increase their chances of making more profits. In this case, traders make use of funds that are provided by a third party to trade. It helps traders get more money to buy. It has lower volatility. In margin trading, the initial margin is the funds that a trader needs to open a position or place a market order.
On BaseFEX, traders can enjoy up to 100x leverage. If a trader opens a position for 100 USD using 100x leverage, he can trade contracts of up to 10,000 USD in worth. The leverage you use determines the initial margin. Higher leverage needs a lower margin. You can place your order now and enjoy the higher leverage provided on the site. Remember that there is also a possibility of losing big should things go wrong.
BaseFEX Mobile App
BaseFEX has taken a further step in enhancing user experience. Apart from having a beautifully-designed website with an easy-to-navigate menu, they have added a mobile app to cater to the needs of millions of mobile users. The highly-responsive mobile app is available on:
- Apple Store
- Google Store
- Beta BaseFEX
You can download any of them on the App Download page.
BaseFEX Safety & Security
BaseFEX takes the safety and security of the users seriously. Several security measures have been put in place for the safety of one’s fund, though it may give individuals some level of inconvenience. BaseFEX, therefore, enjoys one of the highest security ratings among all cryptocurrency derivatives exchanges. Out of over 400 cryptocurrency exchanges that were studied, BaseFEX is one of the four exchanges that enjoy A+ in Mozilla’s Observatory Test.
BaseFEX has also put some strict cybersecurity frameworks in place to ensure Asset Protection. Individuals’ assets are, therefore, secure in the event of any threat. The crypto exchange has put the following actions and security tools in place:
- 2FA to ensure accounts are safe and prevent unauthorized access to users’ funds.
- Cryptographic hashing of all passwords. There is also the encryption of other sensitive data.
- Encrypted SSL to encrypt and secure all traffic to the website.
- Periodical stress tests and security audits to take care of new possible susceptibilities.
Note that BaseFEX does not reveal all the security measures it has in place for security reasons.
BaseFEX has engineered its system to ensure that the integrity of user funds cannot be compromised by a single individual, vault location, or device failure.
Some of the measures the crypto exchange has put in place to secure its user wallets include:
- Storing the assets of users in multi-signature cold wallets only.
- All addresses are multi-signature
- Keeps all storage offline.
Should there be a compromise in the system, a hacker would not be able to gain access to all the keys needed to steal funds.
BaseFEX Customer Support
BaseFEX has a reliable support system that is available to its customers 24/7 to provide answers to the questions they may have or respond to queries. The support team consists of professionals that are highly trained to handle all customer concerns promptly. There are also channels that users can quickly exploit to get answers to some of their questions. Some of these channels include:
- Live Chat
You can send a mail to the email address firstname.lastname@example.org if you have queries. Someone will respond to you within 24 hours of receiving the email. Urgent needs are usually attended to through Live Chat. This is mostly necessary if you need someone to walk you through an immediate challenge, especially relating to your account or trading. You can also get answers from their blog, where several topics are handled. The twitter handle is equally active @BaseFEX.
BaseFEX offers all new users that register on the trading site a bonus of $20. Recall that BaseFEX recruited 100 Angel Users from 14th – 30th March 2019. These active crypto futures traders would assist Basement in testing its platform and giving users a better experience on the crypto trading site. BaseFEX gave such users a bonus of $50 upon signing up on the site. The Angel users were required to join the exclusive BaseFEX community groups, receive advice from the BaseFEX chief analyst, have a firsthand experience of the latest features, and then enjoy all the rights applicable to those who join early.
Functions of the Angel users include:
- Have an experience of the BaseFEX platform
- Take part in developing the BaseFEX exchange
Currently, there’s a message conspicuously displayed on the registration page, asking newcomers to register and enjoy a 10% fee discount. You can take advantage of that if you join now.
BaseFEX Review: Conclusion
BaseFEX has been gaining popularity since it launched itself into the crypto ecosystem in 2018. Basement has disrupted the way the big players have carried on business over the years, though relatively new in the system.
The company takes the security of users’ data and funds seriously and has gone steps further to develop a hack-proof system. This is the reason why it is rated among the four exchanges that enjoy A+ in Mozilla’s Observatory Test.
BaseFEX provides users with the necessary tools to perform their futures contract, futures trading, perpetual contracts, crypto derivatives, margin trading, and any other activity that improves user experience.
New users to the sites are motivated by a 10% fee discount to encourage them to start to trade as soon as possible. BaseFEX simply puts the interest of the users before any other thing and makes sure that users earn more profits. This it does by charging one of the lowest fees in the industry. The site equally allows you a leverage of up to 100x in margin trading.
Since the company is currently not regulated, trading on the site has its associated risks. Therefore, users must weigh before committing their hard-earned income to trade on the site.