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BaseFEX is a cryptocurrency derivative exchange that allows users to trade crypto derivatives like Bitcoin futures with good leverage. It is a relatively new exchange which was launched only by the end of 2018. BaseFEX is owned by Base Investing corporation, which is registered as a company under the International Business Companies Act of 1994 of the Republic of Seychelles. Even though the official website doesn’t list a physical address, it seems that the exchange is based out of Hong Kong.
The exchange claims that it is developed using cutting edge technologies by highly skilled professionals, with the sole objective of providing the most reliable, transparent and user-friendly platform for the traders. Even though it offers advanced trading instruments and tools, the user interface of BaseFEX is made relatively simple. The exchange makes use of the third-party software called ‘Trading View‘ to provide in-depth pricing and market charts.
BaseFEX exchange offers its services to members worldwide and the website supports 5 different languages including
The following review analyses several aspects of BaseFEX, whilst providing you with an all-rounded detailed overview of the exchange and its services. Although Cryptimi does its best to provide you with accurate information, whilst aiming to update it on a regular basis, we strongly recommend that you visit BaseFEX for any important updates which might occur after this review is published.
At the time of writing, BaseFEX is a very new exchange (less than 1 year old). It has taken extensive security measures to protect users digital assets by storing on offline multi-signature cold storage wallets. Since the exchange doesn’t follow a KYC procedure it doesn’t ask for the personal information of users and subscribtion is anonymous, however, users from China and the US are not accepted. Also,
It states that the Bitcoin private or public keys are never stored on their servers and they are forwarded to the offline vaults immediately. Hence, there is no need for users to worry about losing their assets, even if hacking or other fraudulent activities are attempted by hackers. Even though this exchange implemented several security measures, we always recommend you to store your funds on the best cryptocurrency wallets when ready from trading to keep your funds 100% safe.
BaseFEX is Bitcoin-based virtual trading platform that allows users to trade Bitcoin and Altcoin contracts. At the time of writing, the exchange doesn’t accept any kind of fiat-based payment methods. The only option to trade futures contracts used to be by depositing BTC, but as of recently the exchange has also started supporting USDT for deposits and withdrawals. Even though BaseFEX is relatively new when compared with other exchanges like Bitmex, it offers good liquidity and unmatched low fees.
BaseFEX exchange securely stores the user’s digital assets on offline multi-signature wallets, which requires multiple signatures to make withdrawals or other expenses. It is a 7-signature wallet that requires at least 5 signatures of the partners in order to move funds out of the wallet.
BaseFEX allows users to quickly sign up on the exchange by just providing their name and email address. The trading screen of the exchange is very simple and easy to navigate. All types of fees are clearly mentioned on the official website and there are no hidden fees at all. Also, BaseFEX allows users to reset the password, in case they had forgotten the same.
Follow the below steps to create your account on BaseFEX exchange.
Congratulations! You have successfully created your account on BaseFEX.
To login to your account, follow the below steps:
Now, you will be redirected to your account dashboard. In case you had forgotten your password, you can reset that by clicking ‘Forgot password?’.
As you seek to develop your investment strategy, you can make use of a handy tool called BaseFEX Testnet. After having registered an account you can access this demo trading platform which behaves exactly like the real thing, with the exception that no funds are gained or lost.
By trading in this non-threatening way you will be able to try out different investment strategies, including trend trading and shorting cryptocurrencies. You will be given 10BTC in demo funds, which you can use in any way you wish.
Even though the Testnet has its own subdomain, it is linked to the BaseFEX platform and behaves in exactly the same way. As a result, it is a great way to get acquainted with the intuitive interface and try out the different functions and features present on the platform. When you are ready to proceed to the real thing, the transition is seamless.
BaseFEX exchange doesn’t require users to upload any kind of documents for trading futures contracts. Users can start trading immediately after they create an account with their email address. Since the exchange doesn’t follow any KYC (Know Your Customer) procedure, users can remain completely anonymous.
In order to buy futures contracts on BaseFEX, firstly, users should create an account on the exchange using their email address. Users need not to worry about uploading any kind of verification documents, as it is not required. Next, deposit any amount of BTC to buy perpetual futures contracts.
At the time of writing, BaseFEX accepts both BTC and USDT. Hence, users need to buy BTC or USDT from other exchanges like Coinbase or CEX which accept fiat-based payment methods. For buying BTC with Visa click here.
Follow the steps below to deposit BTC on BaseFEX exchange.
Note: As of January 2020, to facilitate a better user experience, BaseFEX has just removed the minimum deposit requirements, which was 20 USDT for USDT-settled contracts and 0.002 BTC for BTC-settled contracts.
Once your sender initiates the transaction, BTC will be credited to your account after 1 confirmation on the Bitcoin network.
Firstly, users should fund their account with the required amount of BTC before starting to trade futures contracts on the exchange. Since BaseFEX is purely a cryptocurrency derivatives exchange, it is highly recommended to understand the below terminologies before starting trading.
Futures Contract: It is an agreement between two parties to buy/sell a currency, commodity or other kinds of instruments at an agreed or pre-determined price in the future.
Perpetual Contract: It is almost similar to the futures contract except that it doesn’t have an expiry date.
Initial Margin (IM): It is the minimum amount of Bitcoin that needs to be deposited for opening a position.
Maintenance Margin (MM): It is the amount of Bitcoin that the user should hold in order to retain the position.
Settlement Price: It is the price where a futures contract settles.
Mark Price: It is the price for which the contract is marked for its PNL calculation and liquidation purposes.
Market Order: The order will be executed at the market rate immediately after placing the same.
Stop Loss/Take Profit function: Can be executed as a Market Order. While it remains a function that you set up for current positions, BaseFEX has enabled the SL/TP Market functions where you can execute SL/TP as Market Order. Moreover, different trigger conditions are also available: you can choose Market Price, Index Price, or Mark Price to be your price trigger. There is also the PnL function, which estimates for any planned SL/TP. For more details, we recommend that you refer to their trading interface, by clicking here. Alternatively, you can try it out at their Simulated Trading site by clicking on this link.
Limit Order: This type of order allows you to set a maximum/minimum price at which you buy/sell. Hence, the order will be executed only if the criteria is met.
Follow the below steps to buy BTC perpetual contract on BaseFEX. It is assumed that the user had already deposited BTC on the margin account. (This example explains the procedure for buying BTCUSD).
Once you place the order, the system will check if you have enough balance to keep the Initial Margin (IM). In case you have an existing position, then the system will check if your balance is sufficient enough to cover Maintenance Margin (MM) and PNL (Profit and Loss) when your position is priced at the order price. Only then, your order will be processed by the exchange.
The procedure for buying other altcoin contracts (like ETHXBT) is exactly the same as for BTCUSD except Step 2 where users need to select the asset they would like to buy. Of course, the trading and funding fees will vary based on the asset type.
On BaseFEX, users can cash out by withdrawing the funds to a BTC or USDT wallet. At the time of writing, Bitcoin and Tether are the only supported withdrawal currencies. Follow the below steps to place a BTC withdrawal request.
Since the exchange processes the withdrawals manually once in a day, the order needs to be placed before the cutoff time (7.00 UTC + 00) so that it can be processed on the same day. Once your order has been processed, BTC will be credited to your wallet.
BaseFEX exchange supports 10+ perpetual futures contracts which are listed below:
BaseFEX exchange accepts members from a lot of countries all over the world to trade Bitcoin and altcoin futures.
Except for the countries listed in the below section, BaseFEX is available for all countries in the EU, Australia, and Canada.
At the time of writing, BaseFEX exchange does not accept users from the following countries:
This is likely due to the lack of KYC and AML procedures.
Every cryptocurrency exchange has its own fee structure and limits.
BaseFEX utilises a level structure to offer increasingly competitive fees to those traders who trade on the platform regularly. Depending on where you fit into the seven-tier system, you could see maker and taker fees as low as 0.005% and 0.03% respectively. However, to get these discounted rates you would need to have traded more than 60,000 BTC in the last 30 days. For the majority of traders who trade less than 100 BTC within a 30-day window, the maker and taker fees are 0.02% and 0.06% respectively.
For more details, we advise you to refer to their fees page, by visiting their site.
In addition to the trading fees, BaseFEX charges a fee called Funding Fee for holding the position at the funding timestamp which occurs every 8hours on the funding intervals, while you are trading on the margin.
The funding timestamps are at:
BaseFEX doesn’t charge anything to deposit or withdraw cryptocurrencies. However, while you are withdrawing BTC or USDT, the minimum network fee is applicable, which varies depending on the blockchain network load or traffic.
Based on the information given on the official website, there is no maximum limit for deposit/withdrawals. For most of the assets, the Max. order quantity is set to 1,000,000 contracts.
At the time of writing, BaseFEX doesn’t accept fiat-based payment methods like credit/debit cards, wire transfer, SEPA, etc. The only available payment option is to deposit Bitcoins or Tethers for trading futures contracts.
Like most of the traditional cryptocurrency exchanges, BaseFEX also offers two-factor authentication (using Google Authenticator) to prevent user’s accounts from unauthorized access. Once 2FA is enabled, users will need to input their 2FA code followed by the 6-digit code sent via email to initialize withdrawals.
Even though BaseFEX has social media profiles like Twitter and a dedicated group on Telegram, the best option to get quick support is by sending an email to [email protected]. The exchange offers 24/7 support for its customers.
For general queries, users can refer to the FAQs and the How-to articles listed on the official website which are very detailed and easy to follow.
BaseFEX has recently announced their partnership and integration with Coinalyze, which is an advanced trading tool where you can draw things and set indicators on BaseFEX charts for analysis. Find more right here. BaseFEX exchange is planning to add more altcoins futures contracts and cryptocurrency options trading in the near future.
Both exchanges used to only accept BTC deposits to trade futures contracts, however, BaseFEX now also accepts USDT. Even though both BaseFEX and Bitmex provide up to 100x leverage, BaseFEX mostly offers only perpetual contracts (with no expiry date) whereas Bitmex allows users to trade different types of contracts like traditional futures, upside profit contracts, downside profit contracts, and perpetual contracts. Regarding security, BitMEX has passed the test of time keeps building it a trustworthy reputation within the crypto community, on the otherhand, BaseFEX follows great security measures and looks very promising. Both these exchanges make use of the maker-taker model and charge a nominal trading fee. BitMex offers more liquidity however the UX of BaseFEX is superb and much easier to get used to especially for newcomers.
Both exchanges don’t support fiat payment methods. Deribit only accepts Bitcoin deposits, whereas BaseFEX has recently started accepting USDT too. BaseFEX supports 10+ trading pairs whereas Deribit focuses only on Bitcoin and Ethereum. Deribit supports both cryptocurrency futures and options whereas BaseFEX offers only perpetual contracts. Both BaseFEX and Deribit store the customer’s digital assets on offline cold storage wallets which provide unmatched security and up to 100x leverage. Regarding fees, both the exchanges operate on the maker-taker model and charge a nominal trading fee.
Since it is relatively new, BaseFEX supports only a limited number of assets. However, the user interface of the exchange is more intuitive and user-friendly. It offers good liquidity, high leverage and follows best security practices. Also, it charges only a nominal trading fee. Even though it is too early to come to a well-rounded conclusion about BaseFEX, the fact that it is trying to become a secure, user-friendly and transparent exchange makes it a worthy competitor to the other leading cryptocurrency derivative exchanges.
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