BitMEX Review 2023
BitMEX is a cryptocurrency exchange that offers various derivatives products. Additionally, it supports spot trading and short-term staking strategies.
BitMEX’s history is not without its faults. Many users have expressed dissatisfaction with the service. This BitMEX review will examine both the pros and cons of BitMEX to help you decide whether it is right for you.
What Is BitMEX?
BitMEX, a cryptocurrency derivatives platform, offers perpetual and future contracts on a variety of coins. Professional traders can use the margin trading feature to get up to 100x leverage.
In addition to these features, BitMEX also provides a selection of order types like stop and market orders. BitMEX’s trading engine was designed to execute high-speed trades using software developed by high-frequency trading companies.
BitMEX requires you to verify your identity and create a wallet address. Once you have received your wallet address, you will be able to transfer your BTC into it.
The platform also includes a profit and loss calculator, which lets you project potential losses. This can be helpful when deciding whether it’s worthwhile withdrawing your Bitcoins or not, particularly when trading on high leverage.
BitMEX offers advanced trading features and takes security very seriously. In fact, the platform utilizes a groundbreaking multisignature deposit and withdrawal system that guarantees your Bitcoins remain safe until you authorize withdrawal.
Is BitMEX Regulated?
BitMEX is a crypto derivatives exchange founded in Hong Kong and now incorporated in the Seychelles. The platform offers spot and futures trading for experienced traders. However, it may not be suitable to novice investors or multi-asset investors.
Financial Crimes Enforcement Network (FinCEN), recently assessed a $100 million fine against BitMEX for violating the Bank Secrecy Act as well as FinCEN’s implementing rules. These sanctions were imposed because BitMEX did not implement and maintain an adequate anti money laundering (AML), program as required by the Bank SecrecyAct (BSA).
FinCEN discovered that BitMEX had failed to file suspicious Activity Reports (SARs), as required by Anti Money Laundering regulations. This puts BitMEX at risk of potential criminal liability. BitMEX did not report transactions involving darknet market, Iran crypto exchanges, unregistered cash services businesses offering mixed services and other fraudsters.
BitMEX has made improvements to their compliance procedures since the charges were brought against them. The case serves to remind companies that compliance is key for ensuring business growth and avoiding any encounters with regulators. Recognizing regulatory expectations can be the first step in meeting them. The BitMEX settlement documents provide a detailed look at the transaction monitoring standards expected of crypto businesses.
BitMEX provides a range of services, such as cryptocurrency futures and derivatives trading. Furthermore, the exchange has a perpetual swap trading product that allows users to leverage up to 100x their initial investment.
BitMEX Earn allows users to earn interest from their crypto holdings. This feature can help users save both time and money, as tokens can be used to earn interest and high-return products.
Additionally, BitMEX has created a crypto converter which enables users to rapidly and effortlessly convert their coins. This service has no fees and is completely free for everyone to use.
BitMEX Academy is also available, which offers a variety of courses and podcasts. This provides users with an invaluable opportunity to gain insight into the industry.
The company employs a range of security measures to safeguard their users’ funds, private keys and information. These include cold storage, multisig withdrawals and an effective security infrastructure. These security measures keep hackers out of your money.
Types of Contracts on BitMEX
BitMEX offers traders a variety of contracts that they can trade on its platform. These include perpetual swaps and traditional futures that allow users to speculate on cryptocurrency’s future price.
Perpetual swaps are a highly sought-after product on BitMEX, providing traders with contracts that track the price of a crypto asset without an expiry date. These contracts can be traded across various cryptocurrencies with up to 100x leverage available.
These derivatives are collateralized and settled in either BTC or USDT, depending on the instrument at hand. They also provide a minor fiat gateway that allows traders to trade cryptocurrencies with fiat currency.
The exchange charges fees on each trade, but these rates are competitive compared to other exchanges. The taker fee starts at 0.075% while the maker fee is 0.01%. As your trading volume grows, so too do your fees; they decrease accordingly.
BitMEX also utilizes a maintenance margin (MM) level for all accounts, which allows the system to automatically liquidate a trader’s position if it drops below that point. This allows account holders to have sufficient funds to cover all trade exposures.
Traditional Contracts or Futures on BitMEX
BitMEX provides traders with a variety of derivatives, which allow them to buy or sell commodities, currencies, or any other instrument at a prearranged price and on a particular date. There are two types of these contracts: traditional futures or perpetual contracts.
The former is a type of derivative that settles at some future date, and users have the flexibility to open or close the contract at any time they desire. This type of contract is available for Bitcoin and other cryptocurrencies as well.
On BitMEX, there are various ways to trade traditional futures markets, including market orders, stop limit orders, take profit orders and more. These orders determine whether a position is profitable.
The trailing stop order is another popular type of order on BitMEX. This allows you to place an order pre-set at a set percentage from the current market price, when it changes.
BitMEX also offers margin trading which allows you leverage up to 100x your BTC balance within an account. This can assist in trading more efficiently despite the inherent risks involved with cryptocurrency trading.
BitMEX Perpetual Contracts
Perpetual contracts on BitMEX allow traders to invest in future prices of cryptocurrency. While these contracts are similar to futures contracts, they have important differences.
Perpetual contracts are unique in that they don’t have an expiration or settlement date. This allows traders to keep their positions open for as long or as short as they like and then close them when they are finished.
This type of contract also features a funding rate to ensure the price remains closely aligned with the spot market value of the underlying asset. If Alice buys a BTCUSDT perpetual Swap at $2k for a spot rate of $36k and Alice decides to purchase a 20-day BTCUSDT perpetual Swap at $2k for $38k, she will have to pay an ongoing funding fee each day until the swap reaches $38k.
On some exchanges, perpetual contracts can be leveraged up to 125x for traders’ profit potential. This type of trading can expose users to liquidity risks if the price drops significantly. Users should only deposit minimal collateral to keep their trading positions open.
Upside Profit Contracts on BitMEX
BitMEX offers upside profit contracts to investors who wish to participate in the potential growth of a particular cryptocurrency. These contracts can either be traded with a fixed margin or floating margin, and they have low trading fees.
Furthermore, BitMEX provides an insurance fund to shield traders from unexpected volatility in the market. This is important because traders might feel overwhelmed by sudden changes in cryptocurrency prices.
BitMEX also utilizes a multi-signature deposit and withdrawal system. This ensures that each address associated with an account is multi-sig, meaning no one can access funds from the exchange without proper private keys.
BitMEX also keeps most funds in cold storage to protect against hackers exploiting system-wide breaches. BitMEX uses an external service to verify each deposit address that is sent to it.
Though BitMEX has its limitations, it remains a popular option among cryptocurrency derivatives traders due to its straightforward interface, low trading fees and up to 100x leverage.
BitMEX offers Downside Profit Contracts
BitMEX is one of the oldest crypto exchanges, providing investors with a range of trading tools. It’s renowned for its high leverage trades and low trading fees that make it an attractive option among traders.
However, BitMEX does have some drawbacks. BitMEX lacks regulatory compliance, and its founders are facing criminal charges in the U.S. Customer support is primarily ticket-based and email-based. This means that issues can take time to resolve.
The platform doesn’t accept fiat currency deposits. This is an inconvenience for those who want to trade in local currencies.
Additionally, the fee structure on an exchange may not be suitable for novice users. It is essential to understand these charges since they can accumulate quickly.
You will need to have a valid email address, and a password in order to open an account at BitMEX. After verification, you will be able to deposit cryptocurrency to your account in order for you trade on the platform. Alternatively, you may use their mobile app to manage your trading positions while on-the-go.
Leverage available on BitMEX
BitMEX is a global cryptocurrency derivatives exchange founded by an experienced team of finance and trading professionals in 2014. Arthur Hayes, Ben Delo, and Samuel Reed launched the exchange four years later in 2014.
Bitmex is one of the world’s premier leveraged trading platforms, offering leverage up to 100x on various derivatives.
Experienced traders may find this type of leverage beneficial, but it also has the potential for huge losses if not used responsibly. Therefore, inexperienced investors should be aware of these potential hazards prior to beginning to trade with leverage.
Leverage is available on Bitcoin, Ethereum and Monero contracts and can be applied to futures and spot trading activities.
Bitmex provides more than leverage to its users. Bitmex’s sophisticated margin- and liquidation system ensures that traders’ margin balances are never below zero.
BitMEX offers traders access to its testnet, which allows them to practice the platform. This is an invaluable opportunity to become familiar with all of its features and learn how to place orders successfully.
BitMEX supports many crypto assets. It provides margin trading as well as derivatives – swaps. These contracts track the price of an asset without expiration date and can be leveraged up to 100x on certain contracts.
The exchange’s most sought-after product is the perpetual swap, which functions similarly to a futures contract. These can be purchased for various cryptocurrencies and have up to 100x leverage.
Futures contracts allow you to buy or sell assets at a specific price in the future. They offer more liquidity than spot trading, as they track the underlying asset’s price.
BitMEX also provides other derivatives in addition to futures and swaps. These include perpetual swaps, which have no expiry date and trade close to the underlying reference Index Price.
A crypto converter is available on the platform, which allows users to quickly convert cryptocurrency to fiat currencies. You get a free quote before making a transaction, too. Users can also withdraw Bitcoins to their BTC wallet addresses. Furthermore, it records profits and losses in BTC for ease of accounting purposes.
BitMEX is a highly-respected margin trading exchange. It offers sophisticated investors a wide range of products and features.
BitMEX’s competitive fees are a key differentiation. BitMEX charges a 0.025% maker fee, which is very low for a crypto exchange.
Traders can also generate extra income by promoting the exchange using affiliate programs. Each time a user refers new customers, commissions are paid.
BitMEX’s trading fees are very competitive and almost negligible compared to the potential profits for experienced operators. Taker fees start at 0.075% and decrease with increased 30-day trading volume, while Makers receive a rebate of 0.01% on each trade.
BitMEX is a Seychelles-based cryptocurrency exchange established in 2014 by an experienced team of finance, trading and web-development specialists. It has become a popular platform among professional traders who are looking for advanced dashboards and deep liquidity.
Is BitMEX Legit & Safe?
BitMEX is a prominent exchange in the cryptocurrency space, known for its high-leverage trading options. Users can leverage up to 100x their assets on BitMEX’s Ethereum, Monero and Bitcoin contracts. They also offer spot and futures trading.
In order to use BitMEX, you’ll need an email address and password. Once you have completed the verification process, trading and depositing will be possible without restrictions.
The exchange utilizes multi-signature access, two factor authentication (2FA), and cold storage to protect your crypto funds and trades. It also has a multiparty computation (MPC), which prevents hackers from stealing digital assets.
BitMEX is very serious about security, which is why cryptocurrency investors should be concerned. It operates secure servers on Amazon Web Services with two-factor authentication and performs rigorous security checks on deposits, withdrawals, and trading engines to guarantee maximum protection.
Multi-signature wallets and cold storage provided by BitMEX guarantee your crypto funds are secure, while two employees audit all withdrawals. Furthermore, BitMEX encrypts all transactions with SSL encryption and has a risk check system in place.
BitMEX’s customer support is among the best in the business. They provide industry-standard email and ticketing services as well as live support channels on social media channels like Twitter, Discord, and Telegram.
Their multilingual support is an indication of a well-run customer service department, with the site available in English, Chinese, Russian and Turkish. This will make it much easier to answer questions no matter where you are located.
A cryptocurrency trader requires access to high-quality customer support. A trustworthy exchange should be able to answer questions about minimum amounts, security features, liquidation and other basic functionality so you can maximize your profits. Unfortunately, not all exchanges are created equal – some have even been accused of market manipulation and faced charges from regulatory bodies like the FBI and SEC. Thankfully there are plenty of other trustworthy crypto exchanges available to choose from.
How to Get Started
BitMEX is an exchange offering a variety of products for trading cryptocurrency. Although it primarily offers margin trading, the exchange also offers spot trading in some coins. BitMEX is the most trusted platform for cryptocurrency trading thanks to its intuitive interface and transparent pricing policies.
Register for a BitMEX account to start trading. After creating an account, you will need to provide your email address and password. The exchange will then send you a verification email to verify your identity. Afterward, you can begin depositing cryptocurrencies into your BitMEX wallets to begin trading.
The trading platform offers a feature called Crypto Converter that enables users to convert their cryptocurrencies into other currencies like Tether or USD with ease. Its conversion process is instantaneous, without fees, and offers you a free quote before executing the transaction.
BitMEX offers multilingual customer service and multiple payment gateway support. Furthermore, its robust security framework shields customers from cybercrime attacks such as hacking or malware threats.
It’s for Whom?
BitMEX was founded in 2014 by a group of web-development, finance and trading professionals. Although registered in Seychelles, its operational centers are located in Hong Kong and the United States. As such, BitMEX provides services to experienced traders looking to trade cryptocurrency derivatives such as futures or margin trading.
One of BitMEX’s most sought-after derivatives products are perpetual swaps – contracts that never expire. These provide investors with an excellent way to protect against market volatility or speculate on price movements without owning actual cryptocurrency.
For traders who want to purchase or sell a specific cryptocurrency, but don’t have the capital to invest in it long-term, the company offers quarterly futures contracts that are settled in Bitcoin. These contracts are a great option for anyone looking to make short-term profits on cryptocurrency investments.
BitMEX’s margin calculator helps traders assess the risk associated with a trade. It estimates profit or loss based on entry and exit prices, enabling them to decide when it’s best to withdraw funds.
BitMEX also provides a range of support services. Its customer support team is composed of experienced professionals who handle inquiries from users on a daily basis. They assist users in organizing their cryptocurrencies and quickly explain the platform’s key features.
BitMEX, a trusted exchange, offers access to many crypto assets. Furthermore, its user-friendly mobile app makes trading on the go much simpler than ever before.
Arthur Hayes and Ben Delo founded the company with financial support from their family and friends in 2014.
They provide both traditional futures and perpetual contracts, which are derivative forms of trading that allow users to make an agreement to buy or sell at a specific price on a specified date in the future. You can make money either way. If prices rise, you will gain it. Conversely, if they fall, you’ll lose it.
Futures and perpetual contracts have risks so be aware of these before you trade. Therefore, take time to learn all relevant details before beginning trading.
This website contains detailed information about the exchange as well as how to use it. You will also find live updates and an alert box that informs you of any changes to your trading activity. You can also access a chat room that allows you to interact with other traders on the site.