Cryptocurrency futures trading is, undoubtedly, becoming more popular daily. The level of competition between various platforms is heating up and it takes something special for an exchange to emerge. Thus, a lot of derivatives exchanges look to differentiate themselves from the others and find their piece of the sky. One such is BaseFEX.
What is BaseFEX?
BaseFEX is a cryptocurrency futures trading platform launched in October 2018. The company takes pride in the fact that it secured the backing from some of the highest-profile crypto-related companies, like InBlockchain and Big.ONE.
However, big names don’t mean that BaseFEX makes things complicated for their users. On the contrary. Registering on the platform is really simple and swift. BaseFEX doesn’t force AML or KYC requirements upon their clients. Besides, the company also discloses that they don’t share any of their clients’ information with any government.
This can make those who feel safer in government-controlled environments uncomfortable. Nevertheless, others, who value their privacy, will definitely be thrilled by these facts.
Cryptocurrency futures trading on BaseFEX
Trading on the platform is also quite simple. After registration, users can choose between depositing in Bitcoin or USDT and start trading. Trading on BaseFEX can still be called newbie-friendly since BaseFEX currently offers only perpetual futures.
Regarding pairs, BaseFEX offers the following:
BTC/USD
BTC/USDT
ETH/BTC
ETH/USDT
XRP/BTC
BCH/BTC
LTC/BTC
BNB/BTC
The choice of pairs falls a bit short from the top industry’s players, but to differentiate the platform from the others, BaseFEX settles contracts in USDT as well as in BTC. However, the former only for Bitcoin and Ethereum trading. Yet, experienced traders know how important this can prove to be considering Bitcoin’s volatility.
Of course, it is also possible to trade with leverage of up to 100x for BTC pairs and 20x for other cryptocurrencies.
Although this seems like a pretty straightforward approach, don’t let the simplicity sidetrack you. BaseFEX has some sophisticated features hidden under the hood. One that’s worth mentioning is trigger order which lets traders set up various functions going into the trade.
While writing this article, we have asked for support on the chat popup screen and we have received it in less than 10 mins. The approach was fully personalized according to our needs but also highly professional, which is a great addition to all the specified advantages of the trading platform.
By combining the lowest takers’ fees in the industry with everything described, we get a serious competitor for one of the top spots in the derivatives trading business.
The competition in cryptocurrency futures trading
BaseFEX will not have an easy job competing against the established giants of the industry. As the main player, there is BitMEX. A well-rooted derivatives platform known for the professional but newbie unfriendly trading experience. However, November proved that BitMEX isn’t without flaws as their bulk email leaked their users’ addresses to the public.
On the other hand, some of the leading crypto-to-crypto exchanges are also penetrating the derivatives market as traders show more interest in trading contracts. One of the most important movers is the renown, Malta-based Binance. The one that should not be left on the side is the long-awaited Bakkt. Although the latter is still having problems with the trading volume, Bakkt Bitcoin futures can transform into a real market leader in the future.
Yet, a lot of the trading platforms, except Bakkt, are lightly scrutinized by governments, or not at all. Therefore, the reported volumes are often questioned by the members of the crypto trading community.
Cryptocurrency futures trading security on BaseFEX
Like many other futures exchanges, BaseFEX keeps its clients’ funds in multi-signature cold storage. Meaning that users’ USDT and BTC can be accessed only when more than one authorizer signs the transaction.
To add an extra layer of security, the company assures that all withdrawals are processed manually. Although this enhances security, it can be more time consuming so users may have to wait a bit longer to get their money off the exchange. There is no upside or downside to this. Each trader has personal preferences and, according to those, this can be a huge plus or a major disadvantage.
BaseFEX points out to the fact that their trading platform is one of only four crypto exchanges with Mozilla’s A+ security rating. Moreover, experienced futures traders will know how much it means when BaseFEX states:
“We by no means conduct any kind of market manipulation nor do we use “system errors” to take advantage of our users. We despise these behaviors.”
This way, the company guarantees no overloads or downtime that may prevent traders from closing a position when they intend to.
A different philosophy
As we already stated at the beginning of the article, derivatives trading platforms need to differentiate themselves from the competition to succeed. In that spirit, BaseFEX tries to do exactly that by returning to the root philosophy of cryptocurrencies and blockchain.
To emphasize their modus operandi, the company behind the exchange highlights its six core values:
Respect for privacy
Decentralized
People-powered
Boundless
Transparent
Secure
In conclusion, we recognized BaseFEX as a serious contender for a top-player position in the cryptocurrency derivatives trading industry. With a few more trading pairs and trading contracts options, it may blossom simultaneously with the rising volume across the market. Of course, under the condition that they stick to their promises.