BitMEX Review 2023
BitMEX is a cryptocurrency exchange that offers various derivatives products. It also supports spot trading and short term staking strategies.
However, BitMEX has a chequered history and many users have complained about its poor service in the past. 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 is a cryptocurrency derivatives exchange that provides futures and perpetual contracts on numerous coins. Professional traders can use the margin trading feature to get up to 100x leverage.
BitMEX offers a variety of order types, including stop and market orders. Its trading engine is tailored for high-speed trade execution using software created by high-frequency trading firms.
BitMEX requires you to verify your identity and create a wallet address. After receiving this valid wallet address, you can then 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. The platform uses a unique multisignature deposit/withdrawal system that ensures your Bitcoins are safe until you authorize withdrawal.
Is BitMEX regulated?
BitMEX is a crypto derivatives exchange founded in Hong Kong and now incorporated in the Seychelles. It provides various contracts such as futures and spot trading to experienced traders; however, the platform may not be suitable for novice 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. In particular, BitMEX failed to identify and report on transactions involving darknet markets, Iran crypto exchanges, unregistered money services businesses offering mixing services, and counterparties involved in fraud schemes.
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.
Services offered
BitMEX offers a variety of services such as derivatives trading and cryptocurrency futures. The exchange also offers a perpetual swap trading product, which allows users to leverage up 100x their initial investment.
There’s also the BitMEX Earn feature, which allows users to earn interest on their crypto holdings. According to the platform, this can save users both time and money since tokens can be placed into high return products and earned interest.
Additionally, BitMEX has created a crypto converter which enables users to rapidly and effortlessly convert their coins. The service is free and available without any fees.
BitMEX Academy is also available, which offers a variety of courses and podcasts. This gives users an unparalleled opportunity to gain insight in 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 measures are highly secure, preventing hackers from gaining access to your money.
Types Of Contracts Available On BitMEX
BitMEX offers traders a variety of contracts that they can trade on its platform. These include traditional futures and perpetual swaps, both allowing users to speculate on the price of cryptocurrency at specific future dates.
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 cryptocurrencies, with up to 100x leverage.
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.
Although fees are charged by the exchange for each trade, these rates are still competitive with other exchanges. The taker fee starts from 0.075%, while the maker fee begins at 0.01%. Your trading volume increases, and so do your fees. They decrease in proportion.
BitMEX uses a maintenance margin (MM), which is a level that BitMEX applies to all accounts. This allows BitMEX to automatically liquidate trader positions if they fall below this point. This ensures all account holders have enough funds to cover their entire exposure on each trade.
BitMEX offers traditional contracts and futures
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.
BitMEX offers many ways to trade traditional futures markets. These include market orders, stop limit orders and take profit orders. These orders help determine whether a given position will be profitable or not.
Another popular order type on BitMEX is the trailing stop order. 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.
Perpetual Contracts on BitMEX
Perpetual contracts on BitMEX allow traders to invest in future prices of cryptocurrency. These contracts have some similarities to futures contracts but with some important distinctions.
One major distinction is that perpetual contracts do not have a set settlement time or expiration 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 has a funding rate that ensures the price is closely linked to the spot market value. For instance, if BTC spot rate is $36k and Alice purchases a 20-day BTCUSDT perpetual swap at $2k, she must pay an ongoing funding fee to the seller every day until its value 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.
BitMEX offers Upside Profit Contracts
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 uses a multisignature deposit/withdrawal system. This ensures that every address associated to an account is multisignature, which means that no one can access funds from the exchange unless they have the right 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, one of the oldest cryptocurrency exchanges, offers investors a variety 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. Furthermore, customer support is only ticket/email based, which means issues may take a long time to be resolved.
The platform doesn’t accept fiat currency deposits. This is an inconvenience for those who want to trade in local currencies.
A fee structure for an exchange might not be appropriate for beginners. 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 can deposit cryptocurrency into your account for trading 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 trading platform that was founded in 2014 by a team of experienced finance and trading professionals. Four years later, Samuel Reed, Ben Delo and Arthur Hayes launched BitMEX in 2014.
Bitmex is one of the world’s premier leveraged trading platforms, offering leverage up to 100x on various derivatives.
Although experienced traders may find this kind of leverage advantageous, it can also lead to huge losses if misused. Inexperienced traders should be aware that leverage can pose risks to their investments.
Leverage can be used to spot and future trading as well as on Bitcoin, Ethereum, and Monero contracts.
Bitmex offers its users more than just leverage. For instance, its sophisticated margin and liquidation system guarantees traders’ margin balances never drop below zero.
As an added benefit, BitMEX also gives traders access to its testnet so they can practice using the platform. This is a great opportunity to learn about all its features and how to place orders.
Supported Cryptocurrencies
BitMEX supports many crypto assets. It offers margin trading and derivatives – Swaps. These contracts track the price of an asset without expiration date and can be leveraged up to 100x on certain contracts.
Perpetual swap is the most popular product on the exchange. It functions in a similar way to a futures contract. These can be purchased for various cryptocurrencies and have up to 100x leverage.
Futures contracts are agreements to purchase or sell an asset at a specified price in the future. Because they track the price of the underlying asset, futures contracts offer greater liquidity than spot trading.
BitMEX offers other derivatives, including 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.
Trading Fees
BitMEX is a highly-respected margin trading exchange. It provides a comprehensive selection of products and features that appeal to sophisticated investors.
BitMEX’s competitive fees are a key differentiation. BitMEX charges a 0.025% maker fee, which is very low for a crypto exchange.
Affiliate programs can be used to generate additional income for traders. Each time a user refers new customers, commissions are paid.
BitMEX’s trading charges are extremely competitive and negligible in comparison to the potential profits of 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. The platform has quickly become popular among experienced traders seeking professional trading platforms with deep liquidity and advanced dashboards.
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. Furthermore, it has a multi-party computation (MPC) system in place which helps stop hackers from stealing your digital assets.
Security is a top priority for anyone investing in cryptocurrency, and BitMEX takes this issue very seriously. 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.
Customer Support
BitMEX’s customer service is one of the best in business. They offer industry-standard email support and ticketing, as well as live support channels for social media channels such as Telegram, Discord and Telegram.
The site is available in English as well as Russian and Turkish. This indicates a well-run customer support department. This should make your life much simpler when it comes to answering questions regardless of location.
A cryptocurrency trader requires access to high-quality customer support. To maximize your profits, a trustworthy exchange must be able answer basic questions such as about minimum amounts, security features and liquidation. Not all exchanges are the same. Some have been accused of manipulating markets and were brought to trial by regulatory agencies like the FBI or SEC. There are many other trusted crypto exchanges that you can choose from.
How to Get Started
BitMEX is an exchange that provides a range of products for trading cryptocurrencies. 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. All that’s required is an email address and password, after which the exchange will send you a verification email to confirm 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. The conversion is quick and free of fees. You can also get a quote before you execute the transaction.
BitMEX also provides multilingual customer support and supports multiple payment gateways. Furthermore, its robust security framework shields customers from cybercrime attacks such as hacking or malware threats.
Who Is It For?
BitMEX was established in 2014 by a team of finance, trading, and web-development 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 are a great way for investors to speculate on price movements and protect themselves against market volatility without actually owning cryptocurrency.
The company also provides quarterly futures contracts settled in Bitcoin for traders who wish to buy or sell a particular cryptocurrency but lack the capital for long-term investment. These are an ideal option for those seeking short-term gains on their 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 offers a variety 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.
FAQs
BitMEX is a well-established exchange that offers access to numerous crypto assets. Furthermore, its user-friendly mobile app makes trading on the go much simpler than ever before.
Arthur Hayes, Ben Delo and Samuel Reed founded the company in 2014 with funding from family and friends that allowed them to get started in the industry.
You can choose between traditional futures or perpetual contracts. These are derivative forms that allow you to agree to purchase or sell at a certain price at a particular date in the future. Either way, you gain money if prices rise; conversely, if they drop, you lose it.
Futures and perpetual contracts have risks so be aware of these before you trade. Before you trade, make sure to take the time to study all details.
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.
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