Backpack Crypto Exchange Review: Is It Safe to Trade Cryptos in 2025?
Backpack Exchange is a regulated platform that offers a comprehensive suite of trading features while serving as a gateway to the Web3 ecosystem. Backpack offers low fees and provides everything traders need in one place without compromising security.
Backpack’s best features and products are the Backpack Wallet, Backpack Lending & Borrowing, and Backpack xNFT Integration. These products provide a well-rounded experience for users who want to trade spot, futures, and perpetual contracts or simply manage their cryptocurrencies in a secure wallet.
Thanks to its robust security measures, Backpack Exchange is considered safe for trading crypto assets in 2025. Keep reading this Backpack Exchange review to learn more about its best features, trading fees on the Backpack trading platform, safety, and how to open a new account to buy and sell cryptocurrency on the Backpack exchange.
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Backpack Exchange Review: What is it?
Backpack is a comprehensive crypto exchange that offers web3 and crypto exchange services to users in over 150 countries. The company features three main products, the first of which is the Backpack Wallet.
Backpack was incorporated in April 2022—the same year it lost $14.5 million (88% of its corporate treasury) on FTX. Despite this setback, Backpack continued building and incorporated Backpack Exchange in March 2023. The Mad Lads NFT collection launched on Solana in April of the same year.
Backpack Exchange initially started with the spot market but later rolled out futures contracts in early 2025. The table below comprises the crypto exchange’s basic information to give you more insight into it.
| Exchange | Backpack |
| Founded | 2022 |
| Founder | Armani Ferrante |
| Key Features | Backpack wallet, lending and borrowing, and Backpack NFTs. |
| Supported Cryptocurrencies | 50+ |
| Leverage Trading | Yes |
| KYC Requirement | Mandatory |
| Security Measures | Scam detection, two-factor authentication (2FA), cold storage, and routine security audits. |
| Customer Support | Email, live chat, and community support. |
| Trading Fees | Spot: 0.08% for makers and 0.10% for takers.
Futures: 0.02% and 0.05% for makers and takers. |
| Trading Options | Spot, futures, and lending. |
| Deposit Methods | Crypto |
| Device Compatibility | Backpack is available as a desktop extension and a mobile application on both iOS and Android. |
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What are the pros of Backpack Exchange?
The pros of Backpack are advanced trading tools, an all-in-one interface, cross-margining and auto-lending, and educational resources.
- All-in-one Platform: The Backpack Exchange supports spot trading, perpetual futures, and lending services, all accessible through a unified interface. This design allows for seamless transitions between different trading activities without switching platforms.
- Advanced Trading Tools: Backpack Exchange offers comprehensive trading tools for seasoned professionals and basic tools for beginners. These features include charting tools, multiple order types (market, limit, stop), and a user-friendly interface for executing trades.
It also offers margin trading with leverage options for advanced users. This allows traders to increase their market exposure and potentially boost their returns but with higher risk exposure.
- Cross-Margining and Auto-Lending: Backpack Exchange uses a cross-margined account system, automatically aggregating user assets to optimize capital efficiency. Additionally, users can enable auto-lending to earn yields on their crypto holdings by contributing to the platform’s lending pool.
- Educational Resources: Since Backpack Exchange is relatively new compared to other exchanges that have been in the market for decades, offering a dedicated “Learn section” is a plus. Here, users get access to educational resources to help them understand the Backpack Exchange, crypto trading, and blockchain technology.
What are the cons of Backpack Exchange?
The cons of Backpack Exchange are the steep learning curve and regulatory restrictions in some regions.
- Learning Curve: Despite efforts to create an intuitive interface, some users, particularly beginners who are unfamiliar with the cryptocurrency world, may find the Backpack Exchange platform challenging.
- Regulatory Restrictions: Backpack Exchange’s service availability is limited in certain regions, including the United States. So, if the exchange is unavailable in your country, you might want to consider other alternatives available to users in your country.
Who owns Backpack Exchange?
Armani Ferrante owns Backpack Crypto Exchange. The platform was founded in 2022 by Solana developer Armani Ferrante, who launched the self-custodial Backpack Wallet before expanding to the exchange.
What are the best features of Backpack Exchange?
The best features of Backpack crypto exchange are the Backpack Wallet, lending and borrowing, and Backpack NFT.
Backpack Crypto Wallet
The Backpack wallet is an all-in-one self-custodial crypto wallet that allows users to hold, trade, and manage non-fungible tokens (NFTs) and access decentralized finance (DeFi) applications.
The wallet also supports multiple chains, including Solana, Ethereum, Optimism, Eclipse, Monad, and Polygon. For this reason, users have the flexibility to manage their digital assets across numerous blockchain networks while connecting with protocols on the various networks.
One of the key security features of the wallet is Backpack’s integration of xNFTs—programmable, non-fungible tokens that integrate directly into its wallet for convenient access to apps and content. This allows users to reduce the number of third-party apps connected to their wallets and minimize security risks.
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Backpack Lending & Borrowing
Backpack Lend allows users to lend their assets to other traders to earn yield or borrow against their collateral without bridging between networks. Backpack Lend stands out because it does not require users to choose between lending or trading like in other exchanges. On Backpack, the cross-margining feature allows you to;
- Earn yield on collateral
- Earn yield on realized trading profits
This helps you earn even when you are not actively trading. In addition, Backpack offers an auto-lend feature that enables the automatic lending of all available assets in a subaccount into the lending pool to generate yield for you by default.
More importantly, Backpack’s Lending system is not a separate product; it is integrated into the exchange to remove the friction of managing different accounts. When you enable auto-lending, there’s no need to transfer funds from your trading account or worry about lock-up periods. You can also toggle this feature on and off at any time.
Backpack NFT (xNFT Integration)
Backpack NFTs support executable non-fungible tokens (xNFTs), a new token standard on Solana that goes beyond ownership of digital images to grant users rights over interactive, executable code. Unlike traditional NFTs, which are static and dependent on third-party marketplaces, xNFTs function as applications within the Backpack ecosystem.
This integration allows users to seamlessly interact with decentralized applications (dApps) and token-gated content directly inside the Backpack wallet. There’s more. Backpack has a set of permissionless developer frameworks and APIs that allow anyone to build their own xNFT apps for any protocol on any blockchain.
One of the most successful use cases of xNFTs is Mad Lads, Backpack’s flagship xNFT collection, the first on Solana. Mad Lads’ success shows the potential of xNFTs as interactive experiences. As more functionalities are unveiled, holders can access in-wallet offers such as staking Mad Lads to earn rewards, accumulating badges, and eligibility to unlock future benefits.
What are the trading fees on the Backpack Exchange?
The trading fees of the Backpack trading platform are charged according to the traders’ tier level, which is determined by their 30-day trading volume. The higher your trading volume, the lower you will pay. Here is a breakdown of the trading fees:
Spot Trading
- Standard: 0.08% for makers and 0.10% for takers.
Futures Trading
- Standard: 0.02% for makers and 0.05% for takers
Note: USDT/USDC trading pair on Backpack is subject to a 0% fee, which means that trades on this pair do not count toward your 30-day volume requirements for fee tier upgrades.
Additionally, there are higher tier levels, so below is a detailed overview of the fees for various VIP users on the Backpack Exchange.
Backpack Exchange does not charge deposit fees, but withdrawal fees vary depending on the cryptocurrency you wish to withdraw, such as 0.0002 BTC for Bitcoin.
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How to open new account to buy and sell crypto on Backpack Exchange?
To open a new account to buy and sell crypto on the Backpack crypto exchange, you need to create an account through the platform’s official website or mobile app. Then, fill in the required information on the registration page and complete KYC verification to use Backpack’s products and services.
Here’s a straightforward guide to help you through the process.
Step 1: Download the Backpack App
Visit Backpack Exchange on your desktop or download the mobile app on iOS or Android. Then, select if you want to set up an exchange account or a Web3 wallet.
If you are creating an account on the exchange, click “Create New Account” to proceed. Enter your email address, then create a secure password. Finally, click to accept Backpack’s user agreement and privacy policy.
After this, click ‘Add referral’ and paste the current Backpack referral code to activate the crypto sign-up bonus for new users.
Step 2: Verify Your Account and Complete KYC
Verify your account by entering the 6-digit code or clicking the confirmation link sent to your email. After that, you must complete the KYC to use the exchange. To do this, indicate whether you are registering a personal or business account.
Then, add your details as they appear on your government-issued ID and provide other required documents for verification. Once verified, you can deposit funds using the supported cryptocurrencies and start trading.
Step 3: Deposit Crypto
Click Deposit in the top right menu, or go to your main account in the top right corner and choose which tokens you wish to receive. Choose either “External” or transfer internally using “Subaccounts.”
Copy the wallet address of the chosen cryptocurrency and then transfer it directly from your external wallet to your Backpack account or deposit it straight from your Backpack wallet.
Step 4: Start Trading
To trade on Backpack Exchange, go to the futures or spot market, depending on the contract you want to invest in.
For spot trading
- Go to the “Spot” section in the menu.
- Choose a Trading Pair: From the dropdown menu, select the cryptocurrency pair you want to trade (e.g., SOL/USDC).
- Place an Order: Use a Market Order for instant execution at current prices. However, if you want your order fulfilled at a specific price, use a Limit Order to set the price you want to buy or sell. You can also set conditional orders and customize other trading parameters to match your goals.
- Confirm the trade and monitor your position in the “Open Orders,” “Order History,” or “Positions” sections.
For futures trading
- Navigate to the “Futures” section.
- Select a Pair: Choose a futures trading pair like SOL-PERP from the dropdown menu.
- Customize Your Trade: Adjust margin levels and set Take Profit/Stop Loss conditions. If you are an experienced trader, you can also use advanced order types like “Immediate-or-Cancel, ”Reduce Only,” or “Post Only.”
- Click Buy/Long or Sell/Short to execute your trade.
How Many Cryptocurrencies Are Available on Backpack Exchange?
There are 50+ cryptocurrencies available on Backpack Exchange, including Solana, Bitcoin, Ethereum, and Aave. It also offers about 55 pairs for trading across the spot and futures markets.
Is Backpack Exchange Safe?
Yes, the Backpack crypto exchange is safe for cryptocurrency trading. The Backpack team prioritizes security and implements advanced security protocols to safeguard users’ digital assets.
In an interview, Armani Ferrante, the CEO and Founder of Backpack stated, “…It shouldn’t be normal to use an exchange with a single point of failure, without proof of reserves, or without auditability. A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that.”
He further said, “Using cryptographic techniques like zk-proofs, MPC, and state machine replication, Backpack Exchange hopes to raise the bar for transparency and compliance to demonstrate the best this technology has to offer. Don’t trust, verify.”
Aside from these claims, the exchange incorporates two-factor authentication (2FA), cold storage for the majority of user funds, and routine security audits to maintain high-security standards. It also has an innovative scam detection system that alerts users before interacting with potentially malicious websites, providing additional protection.
In addition, users can add an extra layer of protection to their Backpack accounts by connecting hardware wallets for enhanced cold-storage security and using the NFT locking feature to protect their collectibles from unauthorized transactions.
Where Backpack Exchange Fits Among Other Platforms?
After learning about the Backpack Exchange through our article, you may want to compare it with other platforms to see which one aligns best with your trading goals. If you’re focused on derivatives markets, note that Backpack’s approach to futures can stand alongside some of the best crypto futures trading platforms.
Additionally, its wallet-based lending and integrated DeFi features echo what you’d find on the best crypto staking platforms, especially if you plan to hold your assets long-term
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