Bitmex Review: The Leveraged Crypto Trading
BitMEX Review: BitMEX is the world’s largest cryptocurrency derivatives exchange, allowing traders to purchase and sell crypto-asset futures and perpetual.
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⦿ Low trading fees
⦿ Professional derivatives trading platform
⦿ Deep liquidity for Bitcoin perpetual
⦿ Up to 100x leverage on Bitcoin and Ethereum
⦿ Only crypto-to-crypto trading
⦿ Lack of regulatory compliance
⦿ Not available to U.S. customers
BitMEX is well-established crypto derivatives exchange with a large liquidity pool.
Trading for 18 cryptocurrencies is available on the derivatives trading platform.
Potential clients may be put off by a lack of regulatory licensing.
In the United States, the BitMEX founding team is facing criminal prosecution.
Year Founded: 2014
Cryptocurrencies Available: 18+
Customer Support: Email, and Chat.
- BitMEX offers very low trading fees and a maker fee rebate.
- BitMEX offers an institutional-grade crypto derivatives trading experience built by seasoned traders.
- BitMEX possesses some of the deepest liquidity for Bitcoin perpetual futures contracts in the market.
- BitMEX customers can use 20x to 100x leverage, depending on the asset.
- BitMEX users cannot deposit fiat currency into their trading accounts.
- The Seychelles-based exchange is unregulated, and its founders are facing criminal charges in the U.S. for violating the Bank Secrecy Act.1
- BitMEX is not regulated in the United States, and is not available to U.S. customers.
Introduction to BitMex Review
BitMEX is a market-leading cryptocurrency derivatives exchange that allows traders to purchase and sell crypto asset futures and perpetual. Potential consumers may be put off by the exchange’s lack of regulatory compliance and its founders’ criminal charges in the United States.
Arthur Hayes, Ben Delo, and Samuel Reed created BitMEX in New York in 2014, and it was the first exchange to provide permanent futures trading. BitMEX soon became one of the most popular Bitcoin exchanges for leveraged futures trading, but the Commodity Futures Trading Commission (CFTC) took notice and started an inquiry into the firm in 2019. The creators of BitMEX were eventually indicted by US authorities for failing to install anti-money laundering procedures.
BitMEX is currently owned by HDR Global Trading Limited, a Seychelles-based company that continues to trade in most countries across the world. BitMEX isn’t available in the US or Canada, and it includes a list of countries that aren’t allowed to use it. Leveraged futures trading, which includes perpetual swaps, a type of cryptocurrency-based derivative product, is BitMEX’s main emphasis. This exchange may be a suitable option for advanced traders searching for futures trading and high leverage.
BitMEX has not been without criticism, despite the trading platform’s advanced user experience and product offering.
Former clients have filed many lawsuits accusing BitMEX of engaging in market manipulation, money laundering, trading against its consumers, and violating international compliance rules. BitMEX was also accused by the Commodity Futures Trading Commission (CFTC) in 2020 of illegally running a virtual currency exchange and violating anti-money laundering rules while conducting business out of the United States and enabling US consumers to trade on the platform.
BitMEX is now attempting to recover its tarnished image and aspires to become the world’s largest licensed crypto derivatives exchange. BitMEX implemented identity verification for all users in 2020, signaling the start of the exchange’s new approach.
Cryptocurrencies Available on BitMEX
Among the 18 digital currencies and tokens supported by the crypto derivatives exchanges are Bitcoin (XBT), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), Bitcoin Cash (BCH), Binance Coin (BNB), Cardano (ADA), Polkadot (DOT), Solana (SOL), Shiba Inu (SHIB), and Avalanche (AVAX)
BitMEX Earn is yet another interesting function that the platform has just released. It lets users earn money by investing their Bitcoin or Tether in high-yielding items. It’s a low-risk, simple-to-use, and high-earning tool, according to BitMEX: the user merely allocates tokens for a set period of time in order to get principle and interest as described in the product listings in the Earn part of the website.
Your First Deposit And Trade On BitMEX
Here is an easy-to-follow step-by-step guide to depositing Bitcoin with BitMEX and placing your first trade.
1- On the left-hand side navigation bar, click on “Account / Wallet” then “Deposit”
2- You will be asked to verify your location. Select your country of residence and click “Submit”.
3- Once your location has been verified, you will be presented with your personal BitMEX deposit address. Using your Bitcoin wallet software, copy and paste your address and send any amount of Bitcoin.
4- Your deposit will be credited to your account after one confirmation on the Bitcoin network (which takes around 10 minutes). An email will be sent to you, as well as a notification on your trade dashboard.
5- Now is the time to make your first trade. Indicate the number of contracts you want to exchange and the price you want to pay. Click the “Buy / Long” button if you feel the Bitcoin price will climb. Click the “Sell / Short” option if you feel the Bitcoin price will decline.
That’s it, in just ten minutes you can make your first deposit and begin trading on BitMEX.
BitMEX includes a profit and loss calculator that shows traders exactly what risks they are taking. This tool can only be used to compute Bitcoin transactions. With this calculator, withdrawing Bitcoin becomes possible when the site provides leveraged contracts to other traders.
The BitMEX calculator is used to verify the following:-
- The price to exit is higher than the price to enter.
- The cost of entry is less than the cost of leaving.
- At a low exit price, take a short position.
Essential tips when spot trading:
BitMEX is recognized for providing experienced traders with an institutional-grade trading platform.
While novice traders may struggle with the platform’s professional layout, seasoned traders will almost certainly find all of the capabilities they want to perform a wide range of crypto derivatives trading techniques.
Among the notable characteristics of the trading platform are:
- The capacity to trade bitcoin with leverage of 100x.
- Market data and trade execution with low latency
- APIs for bitcoin trading and pricing that are cutting-edge
- The ability to invest idle cash in BitMEX Earn up to a ten percent annual percentage rate (APR).
BitMEX uses multi-signature wallets, keeps all cash in cold storage, and ensures that all withdrawals are audited by at least two staff.
BitMEX also uses multi-party computation (MPC) technology, which allows two or more parties to execute a function on encrypted data without revealing any information other than the intended result. Even if all of BitMEX’s systems are compromised, the MPC, according to BitMEX, prohibits an attacker from stealing funds.
BitMex Review Fees
BitMEX has some of the lowest costs in the cryptocurrency trading world. Price takers pay a 0.05 % commission on each trade, while price producers get a 0.01 % refund.
A “taker” places an order that is promptly filled, whereas a “maker” places an order that is entered into an order book.
As seen in the table below, high-volume traders earn decreased price taker fees. Discounted costs are calculated using a user’s average daily volume over the previous 30 days (ADV).
BitMEX doesn’t charge fees for Bitcoin deposits or withdrawals. Only Bitcoin network fees apply to withdrawals.
Tether USD deposits are also free of charge. BitMEX, on the other hand, charges USDT withdrawal fees, which vary depending on Ethereum network expenses.
Opening a BitMEX Account
Opening a BitMEX account is fairly straightforward. First, you’ll need to provide your email address and a password.
After that, you’ll finish the identification verification procedure. To be verified, you must provide a photo of your ID, a presence capture video or selfie, your location, a statement of citizenship, and information about how you want to pay your account.
Businesses can also create corporate accounts on BitMEX.
It’s worth noting that BitMEX isn’t available in the United States. Customers in Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, and Sudan are also not served by the exchange.
Also prohibited from using BitMEX are residents of Seychelles, Bermuda, Hong Kong Special Administrative Region of the People’s Republic of China, Japan, Ontario, Quebec, Burundi, Central African Republic, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Libya, Mali, Palestine, Somalia, South Sudan, Western Sahara, and Yemen.
How BitMEX Compares to Other Cryptocurrency Companies
BitMEX was one of the first exchanges to provide Bitcoin perpetual futures contracts, swiftly establishing itself as one of the most important Bitcoin derivatives trading platforms in the crypto sector. Due to its early lack of KYC standards and ability to buy extremely leveraged bets, BitMEX has a reputation as more of a casino than an exchange.
While the Seychelles-based company has been working to improve its image in recent years, introducing an identity verification process in 2020 and parting ways with its founders who are facing criminal charges, other crypto exchanges have been able to capture a significant portion of the crypto derivatives market.
Binance, ByBit, FTX, and Huobi Global are among BitMEX’s primary rivals. Each of these sites has similar tools and features as BitMEX, so it’s worth looking into if you’re interested in cryptocurrency trading.
Top 10 Approach BitMex Review
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- BitMex “Fee Structure.” https://www.bitmex.com/app/fees Accessed May 31, 2022.
- BitMex “FAQ” https://www.bitmex.com/app/faq Accessed May 31, 2022.
- CoinMarketCap. “Top Cryptocurrency Spot Exchanges.” https://coinmarketcap.com/rankings/exchanges/ Accessed May 31, 2022.