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Backpack Exchange is redefining the crypto experience with its sleek, next-generation platform that combines spot and futures trading with innovative lending features. Designed with simplicity and performance in mind, Backpack makes crypto trading accessible for both newcomers and seasoned traders—while offering advanced tools under the hood.
In this review, we are going to observe the basic functions and opportunities opened by Backpack for everyone interested in trading and earning yield on cryptocurrency.
One-stop platform for crypto trading and lending: Backpack at glance
- Launched in 2022 by Armani Ferrante—the mind behind Solana’s Anchor framework.
- Backpack is a centralized exchange built to support over 50 crypto assets including BTC, ETH, USDC, SOL, and a wide range of popular altcoins.
- With spot, futures, and integrated lending available in one cross-margined interface, Backpack eliminates the friction of switching between platforms.
- The exchange is backed by notable VCs like Placeholder and Hashed, with a post-Series A valuation exceeding $120 million.
- It is licensed in Dubai and progressing toward full regulatory approval in Japan - positioning Backpack as a globally trusted platform in key blockchain hubs.
- Backpack recently announced its point system to allow its dedicated users to benefit from trading, referring and spreading the word about the platform.
What is crypto exchange?
A crypto exchange or cryptocurrency exchange should be referred to as a platform where users can buy and sell cryptocurrencies (blockchain-based assets) like Bitcoin, Ethereum and others.
These exchanges function similarly to stock markets or ForEx platforms but deal with digital assets instead of traditional stocks or fiat currencies.
Normally, analysts talk about centralized and decentralized exchanges. Centralized exchanges (CEXs) like Backpack, Binance, Coinbase or Bybit are operated by centralized entities (for-profit) that act as intermediaries, making transactions quicker but requiring trust in the platform’s security.
Decentralized exchanges (DEXs) — like Uniswap, PancakeSwap or Hyperliquid — operate without a central authority, processing all operations through smart contracts, blockchain-based software programs.
Crypto exchanges also offer features like spot trading, margin trading and sometimes staking or lending services. The majority of modern cryptocurrency exchanges also support deposits with fiat currencies.
How to choose proper crypto exchange in 2025
While competition in the segment of cryptocurrency exchanges gains steam every year, some basic rules for choosing the right one remain unchanged:
- Security first. First of all, you need to evaluate the platform’s security features such as multi-factor authentication, cold storage and insurance policies. The right exchange also holds proper licenses to ensure legitimacy and protect your investments.
- One-stop-shop approach is key. You need all the instruments for trading and lending in a single interface to avoid losing money on deposit/withdrawal fees. Ensure the exchange offers high liquidity for smooth transactions and diverse trading pairs. Look for additional features like margin trading, staking, or advanced order types that suit your trading style.
- Clear UX/UI matters. Users should always prioritize exchanges with intuitive interfaces, comprehensive educational resources and responsive customer support. Checking community reviews to confirm reliable assistance and a positive overall trading experience is always a smart move.
As such, before starting trading on a cryptocurrency exchange, users should review its security surface, check the toolset of its functions and evaluate its user experience.
Introducing Backpack, next-generation crypto exchange by industry veteran
Launched in 2022, Backpack kept building through post-Terra and FTX Crypto Winter and now offers a best-in-class capital efficient trading experience with a clear and user-friendly interface.
Backpack: Basics
Backpack offers a clean, intuitive UI that supports fast execution for both spot, futures, and borrow and lending markets. Traders can utilize all products using a single unified cross-margin account, with one-click-to-create sub accounts available for isolating trading strategies as needed.
Whether you're trading meme coins like WIF, DOGE, SHIB, and MEW, or large caps like BTC and ETH, Backpack gives users a seamless trading experience with institutional-grade reliability.
Backpack was launched in April 2022 by Armani Ferrante, seasoned software developer and visionary, creator of Anchor development framework.
In February 2024, the exchange completed a Series A funding round led by top VC firms Hashed and Placeholder. After this fundraising, the exchange valuation exceeded $120 million.
The exchange garnered much attention thanks to its capital efficient trading experience that allows customers to earn yield on collateralized crypto and realized profits using a unified cross-margin account structure
Backpack: Spot and futures trading
Backpack cryptocurrency exchange offers spot and futures trading for Bitcoin (BTC), Ethereum (ETH), Solana (SOL), top stablecoins USDT and USDC as well as all mainstream altcoins Dogecoin (DOGE), Shiba Inu (SHIB), Cat in Dogs World (MEW), Book of Meme (BOME) and Dogwifhat (WIF), and more.
To ensure the maximum security of trading, Backpack labels early-stage super-volatile assets with an “Experimental” badge. In the Futures section, traders can customize the margin level for their orders as well as Take Profit / Stop Loss levels, an “Immediate-or-Cancel” condition and other metrics.
The spot trading section on Backpack offers secure and simple execution on spot orders for all major cryptocurrencies.
Backpack: Lending and borrowing dual yield advantage
Where Backpack truly stands out is its cross-margin lending system. Unlike other platforms that make users choose between lending or trading, Backpack allows assets to work double-duty:
- Earn yield on collateral
- Earn yield on realized trading profits
With Auto Lend turned on, assets like USDT, USDC, BTC, ETH, and SOL can earn APY in a fully automated system—no need for manual rebalancing or asset toggling. This innovation represents a leap forward in capital efficiency, letting users maximize utility across every part of their portfolio.
Backpack also introduces interest-bearing futures, a new paradigm in crypto where realized PnL from futures trades is automatically deployed into a p2p lending pool. This means your profitable trades don’t just sit idle—they go to work immediately, compounding your gains.
Backpack is the only cryptocurrency service where collateral and realized trading profits earn yield in fully automated manner with no need for manual rebalance.
On competing exchanges, traders have to choose to lend their assets for passive yield or use them as margin to trade. With Backpack, users don’t have to choose any longer. Lent assets double as collateral, and realized profits are automatically credited and lent out. This is true cross-margin trading with no capital limits.
Backpack: Transparency and availability
Since its inception in 2022, Backpack has always been committed to upholding the values of regulatory compliance and transparency.
In November 2023, the platform proudly obtained a virtual asset service provider (VASP) license in Dubai, UAE, a thriving fintech powerhouse.
In December 2024, Backpack joined as the Japan Virtual Currency Exchange Association (JVCEA) a Type 2 member. Backpack became the first member that joined the elite association after Binance’s introduction in 2022.
This industry-leading standard of compliance is accompanied by the comprehensive accessibility of Backpack on various platforms.
- Web
- Browser extensions (Chrome, Brave, Arc)
- Mobile apps (iOS, Android)
Backpack: Points System
Backpack runs a global affiliate program that allows any user to earn rewards by sharing the platform. Users receive a unique referral link and earn bonuses based on referred activity.
On top of that, Backpack’s Points Program gamifies user activity with status levels from Bronze to Challenger. Traders earn points through trading, lending and referring, competing for exclusive rewards.
Closing thoughts
Backpack Exchange is more than just a trading platform—it’s an ecosystem built for capital efficiency, regulatory trust, and user empowerment. From cross-margin lending to interest-bearing futures, multi-platform accessibility, and gamified incentives, Backpack delivers a streamlined experience for the next wave of crypto participants.
Vladislav Sopov
Dan Burgin