BitMEX Review 2023
BitMEX, a cryptocurrency exchange, offers a variety of derivatives products. Additionally, it 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. For professional traders, the exchange offers margin trading with up to 100x leverage.
In addition to these features, BitMEX also provides a selection of order types like 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. Once you have received your wallet address, you will be able to transfer your BTC into it.
You can also use the profit and loss calculator to project possible losses. This calculator can help you decide whether to withdraw your Bitcoins, especially if you trade on high leverage.
BitMEX not only offers advanced trading features, but it takes security seriously as well. 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. 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 penalties were levied because BitMEX failed to implement and maintain an adequate anti-money laundering (AML) program as required under the Bank Secrecy Act (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. However, the case serves as a reminder for companies dealing in crypto assets that taking a compliance-first approach is essential for maintaining business growth and avoiding potential 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. 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 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 security measures include multisig withdrawals, cold storage, and an efficient security infrastructure. These security measures keep hackers out of 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 various cryptocurrencies with up to 100x leverage available.
These derivatives can be collateralized and settled in USDT or BTC, depending on which instrument is being used. Furthermore, they provide a minor fiat gateway which enables traders to buy and sell cryptocurrencies using 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 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. These contracts come in two varieties – traditional futures and 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.
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 provides margin trading, which allows you to leverage up to 100x your BTC balance in an account. This can assist in trading more efficiently despite the inherent risks involved with cryptocurrency trading.
Perpetual Contracts on BitMEX
On BitMEX, perpetual contracts offer traders the chance to invest in the future price of a particular 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.
Perpetual contracts can be leveraged on some exchanges up to 125x for increased 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 be traded with either a fixed or floating margin and feature low trading fees.
BitMEX also offers an insurance fund that protects traders against unexpected volatility in cryptocurrency markets. 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 stores most funds in cold storage to prevent hackers from exploiting a system-wide breach. 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.
Downside Profit Contracts on BitMEX
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. 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.
To open an account on BitMEX, you need a valid email address and password. 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.
Although experienced traders may find this kind of leverage advantageous, it can also lead to huge losses if misused. Therefore, inexperienced investors should be aware of these potential hazards prior to beginning to trade with leverage.
Leverage can be used to spot and future trading as well as on Bitcoin, Ethereum, and Monero contracts.
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 offers margin trading and derivatives – Swaps. These contracts track an asset’s price without expiration date. They can be leveraged up 100x for 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.
The platform also provides a crypto converter, allowing users to convert cryptocurrency to fiat currencies quickly and efficiently. You get a free quote before making a transaction, too. Furthermore, users can withdraw Bitcoins to their BTC wallet address. Furthermore, it records profits and losses in BTC for ease of accounting purposes.
BitMEX is one of the most sought-after margin trading exchanges, and for good reason. It provides a comprehensive selection of products and features that appeal to sophisticated investors.
One of the key differentiators for BitMEX is its competitive fees. The platform charges a maker fee of just 0.025%, which is quite 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 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. 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 their assets up to 100 times on its Bitcoin, Ethereum and Monero contracts as well as spot and futures trading.
In order to use BitMEX, you’ll need an email address and password. After completing the verification process, you will be able to trade and deposit without any restrictions or limits.
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.
BitMEX provides cold storage and multi-signature wallets to ensure your crypto funds are safe. Two employees also audit every withdrawal. Furthermore, BitMEX encrypts all transactions with SSL encryption and has a risk check system in place.
BitMEX’s customer service is one of the best in business. They provide industry-standard email and ticketing services as well as live support channels on social media channels like Twitter, 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. 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. 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. 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. Its primary service is margin trading, though it also provides spot trading in certain coins. With its user-friendly interface and transparent pricing policy, BitMEX strives to be the go-to cryptocurrency trading platform.
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. You can then deposit cryptocurrencies to your BitMEX wallets and start trading.
Crypto Converter is a tool that allows users to easily convert their cryptocurrency into USD or Tether. Its conversion process is instantaneous, without fees, and offers you a free quote before executing the transaction.
BitMEX also provides multilingual customer support and supports multiple payment gateways. BitMEX’s robust security system protects customers against cybercrime such as hacking and malware threats.
It’s for Whom?
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.
Perpetual swaps, which are contracts that never expire, are one of BitMEX’s most popular derivatives products. These are a great way for investors to speculate on price movements and protect themselves against market volatility without actually owning 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 are an ideal option for those seeking short-term gains on their cryptocurrency investments.
BitMEX’s Margin Calculator helps traders evaluate the risk associated to 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 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 and Ben Delo founded the company with financial support from their family and friends in 2014.
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. You can make money either way. If prices rise, you will gain it. Conversely, if they fall, you’ll lose it.
However, futures and perpetual contracts carry risks, so you should be cognizant of them before trading. 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. Moreover, you can access a site-wide chat room where you can interact with other traders in real-time.