Trade Futures on Base: Your Guide to Cheap and Fast Perp DEXs

Trading perpetual futures on decentralized exchanges (DEXs) used to be expensive. But with new networks like Base, it’s becoming much cheaper and faster. Base is a network built by Coinbase, and it’s designed for low fees and quick transactions.

This guide will show you how to get started trading on Base’s perpetual DEXs. You’ll learn what you need and how to make your first trade.

What are Perpetual DEXs?

Perpetual DEXs let you trade futures contracts. Futures contracts allow you to bet on the future price of an asset. You can go ‘long’ (betting the price will go up) or ‘short’ (betting the price will go down). DEXs are decentralized, meaning no single company controls them. This means more control for you and often lower fees.

Why Trade on Base?

Base is a ‘Layer 2’ network. This means it’s built on top of another blockchain, usually Ethereum. Layer 2 networks are designed to be faster and cheaper than the main blockchain. Base uses technology from the Optimism network to achieve this. This makes trading futures on Base much more affordable than on older networks.

What You Need to Trade on Base

• A Crypto Wallet: You’ll need a wallet that supports Base. Popular choices include MetaMask, Coinbase Wallet, and Trust Wallet.
• ETH or Stablecoins: You’ll need some Ether (ETH) to pay for transaction fees on Base. You can also use stablecoins like USDC, which are pegged to the US dollar, for trading.
• Bridged Funds: Your funds need to be on the Base network. If you have ETH or stablecoins on another network like Ethereum, you’ll need to ‘bridge’ them over to Base.

How to Bridge Funds to Base

Bridging means moving your crypto from one blockchain to another. The easiest way to do this is by using a bridge provided by the DEX you plan to use, or a dedicated bridge like Coinbase’s.

1. Go to the DEX you want to use (like Synthetix or Kwenta on Base).
2. Look for a ‘Bridge’ or ‘Deposit’ option.
3. Connect your wallet.
4. Select the network you want to send from (e.g., Ethereum Mainnet) and the network you want to send to (Base).
5. Choose the amount of ETH or stablecoins you want to bridge.
6. Confirm the transaction in your wallet. It might take a few minutes for the funds to arrive on Base.

Step-by-Step Trading Guide

Let’s assume you’ve bridged your funds and have ETH or USDC in your wallet on the Base network.

1. Choose a Perpetual DEX on Base

There are several good options. Many popular DEXs are launching on Base. Some examples include Synthetix, Kwenta, and others. You can find a list of DeFi apps on Base through sites like DeFi Llama.

2. Connect Your Wallet to the DEX

Go to the website of your chosen DEX. Look for a ‘Connect Wallet’ button, usually in the top right corner. Select your wallet and approve the connection.

3. Select a Trading Pair

Once your wallet is connected, you’ll see different trading pairs. These are the assets you can trade against each other, like BTC/USD or ETH/USD. Choose the pair you want to trade.

4. Open a Position

You’ll see options to ‘Long’ or ‘Short’.

• Enter the amount: Decide how much capital you want to use for this trade.
• Set your use: use lets you trade with more than you have. For example, 10x use means you can trade with 10 times the amount of funds you put in. Be very careful with use, as it increases your risk.
• Set your stop loss and take profit (optional but recommended): A stop loss automatically closes your position if the price moves against you by a certain amount, limiting your losses. Take profit automatically closes your position when it reaches a target profit.
• Confirm the trade: Review your order and click ‘Open Position’ or a similar button. You’ll need to confirm the transaction in your wallet, which will cost a small amount in gas fees (paid in ETH).

5. Manage Your Positions

You can view your open positions on the DEX. You can choose to close your position at any time to take your profits or cut your losses.

Low Fees Make a Difference

The main benefit of trading perpetual futures on Base is the significantly lower transaction fees compared to Ethereum mainnet. This means you can trade more frequently and with smaller amounts without fees eating up your profits. This is especially helpful if you are exploring strategies like arbitrage where small price differences are key. You might want to learn about profit from price gaps using cross-chain bridges for arbitrage, as low fees make such strategies more viable.

As the Base ecosystem grows, more DEXs and trading tools will become available, making it an exciting place for decentralized futures trading.