A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of BaseFEX consists of four parts: general information, fees, deposit methods and security.
BaseFEX is an exchange registered in the Seychelles. Out of all exchanges in our Cryptocurrency Exchange List, there are a few others registered there (e.g. BitMEX, Remitano, DigiFinex, BitForex and Huobi). But, as you know, when it comes to cryptocurrency trading, the world is your playing field and the locality of the exchange doesn’t really matter that much.
BaseFEX is a cryptocurrency futures exchange (i.e. you can trade on your hunch that Bitcoin is going up or down). It has been developed by professionals using “cutting-edge technologies” from the world wide web. According to the company, these new technologies outperforms the obsolete technical set-ups that are so common in the finance industry.
The CEO of BaseFEX is a man named Jesse Wu, and the CTO is Issac Zeng. Other than that, there is no information on this cryptocurrency exchange’s website on the identities of the team members.
So this exchange offers its customers to engage in leveraged trading, on Bitcoin.
A word of caution might be useful for someone contemplating leveraged trading. Leveraged trading can lead to massive returns but – on the contrary – also to equally massive losses.
For instance, let’s say that you have 10,000 USD on your trading account and bet 100 USD on BTC going long (i.e., increasing in value). You do so with 100x leverage. If BTC then increases in value with 10%, if you had only bet 100 USD, you would have earned 10 USD. As you bet 100 USD with 100x leverage, you have instead earned an additional 1,000 USD (990 USD more than if you had not leveraged your deal).
On the other hand, if BTC decreases in value with 10%, you have lost 1,000 USD (990 USD more than if you had not leveraged your deal). So, as you might imagine, there is potential for huge upside but also for huge downside…
US-investors may not trade here. The exclusion of US-investors is primarily due to regulatory reasons. The US-legal regime imposes obligations on many companies accepting funds from US-investors. If you are a US-investor, don’t despair! Why don’t you just try finding the best cryptocurrency exchange for you to trade at by using our Exchange Finder or using the filters in our Cryptocurrency Exchange List? Check it out.
BaseFEX Trading fees
Many exchanges charge what we call taker fees, from the takers, and what we call maker fees, from the makers. Takers are the people removing liquidity from the order book by accepting already placed orders, and makers are the ones placing those orders. The main alternative to this is to simply charge “flat” fees. Flat fees mean that the exchange charges the taker and the maker the same fee.
As most exchanges that offer derivatives trading, this exchange offers a “maker discount”. They charge takers 0.05% and makers 0.00%. This means that if you are a maker, thus promoting liquidity at the exchange, you don’t have to pay anything at all!
0.05% for takers and 0.00% makers is really competitive and indeed a consumer friendly fee model. To our knowledge, 0.05% is the lowest taker fee for cryptocurrency derivatives trading out there.
BaseFEX Withdrawal fees
Another fee to consider before choosing which exchange to trade at is the withdrawal fee. The withdrawal fee is usually fixed (regardless of the amount of cryptocurrency units withdrawn), and varies from cryptocurrency to cryptocurrency. The global industry average withdrawal fee is 0.000812 BTC when you withdraw BTC. Here, at BaseFEX, you pay no withdrawal fees at all. Zero. This is very impressive indeed and there’s only 30 something exchanges in the whole world that offer zero-fee withdrawals.
BaseFEX does not accept any deposits of fiat currency. You can only deposit Bitcoin here. This means that the new cryptocurrency investors (i.e., the investors without any previous holdings of Bitcoins) can’t trade here. In order to purchase your first Bitcoins, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
We run all the exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/). The score in such test is one of many indicators of the exchange’s security. BASEFEX received a score of A+ in this test. This is an incredible score.
Out of all the 360+ exchanges in our Cryptocurrency Exchange List, only four others have received A+ scores at all.
Truly a remarkable achievement by the development team at BaseFEX.
There are only a few exchanges that – like the above exchange – receive Mozilla Observatory-scores of B or higher. The following list includes 10 such exchanges with very impressive security scores (none of the below received an A+ score though):