BitMEX Review 2023
BitMEX is a cryptocurrency exchange that offers various 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 explore both its pros and cons to help you decide if the platform is suitable for your needs.
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. 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. The platform uses a unique multisignature deposit/withdrawal system that ensures your Bitcoins are safe until you authorize withdrawal.
Is BitMEX Regulated?
BitMEX, a cryptocurrency derivatives exchange, was founded in Hong Kong. It is now incorporated in 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.
BitMEX was recently fined $100 million by the Financial Crimes Enforcement Network (FinCEN) for violating both Bank Secrecy Act and FinCEN’s implementing regulations. 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 also discovered that BitMEX failed to file suspicious activity reports (SARs) as required by Anti Money Laundering regulations, placing the company at risk for potential criminal liabilities. 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.
Since the charges were filed, BitMEX has taken steps to improve their compliance practices. 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 offers a variety of services such as derivatives trading and cryptocurrency futures. Furthermore, the exchange has a perpetual swap trading product that allows users to leverage up to 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.
BitMEX also offers a cryptocurrency converter that allows users to quickly and easily convert their coins. The service is free and available without any fees.
The company has also created the BitMEX Academy, offering various courses and podcasts. This gives users an unparalleled opportunity to gain insight in the industry.
To protect their users’ funds, private key and information, the company uses a variety of security measures. 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 provides traders with a selection of contracts to 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 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 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 ensures all account holders have enough funds to cover their entire exposure on each trade.
BitMEX offers traditional contracts and futures
BitMEX offers various derivatives that give traders the ability to purchase or sell commodities, currencies or other instruments at a prearranged price on a specific date. There are two types of these contracts: traditional futures or perpetual contracts.
The first type of derivative settles at a future date. Users have the option to close or open the contract at any moment they wish. 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 help determine whether a given position will be profitable or not.
Another popular order type on BitMEX is the trailing stop order. This enables you to place a pre-set order at an established percentage away from the current market price when it moves either way.
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.
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. However, this type of trading also exposes users to liquidity risk if the price of the underlying asset drops significantly. Therefore, users should deposit only minimal collateral in order to maintain their open trading positions.
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 be traded with either a fixed or floating margin and feature 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.
BitMEX is not without its flaws, but it is still a popular choice among cryptocurrency derivatives traders because of its simple interface, low trading fees, and 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.
BitMEX has its flaws. For instance, it lacks regulatory compliance and its founders face 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.
A fee structure for an exchange might not be appropriate for beginners. These fees can quickly add up so it is important to be familiar with them.
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. You can also use their mobile app for trading and managing your positions 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. Four years later, Samuel Reed, Ben Delo and Arthur Hayes launched BitMEX in 2014.
Bitmex is a world-class leveraged trading platform that offers leverage up to 100x on a variety of 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 is available on Bitcoin, Ethereum and Monero contracts and can be applied to futures and spot trading activities.
Bitmex offers its users more than just leverage. Bitmex’s sophisticated margin- and liquidation system ensures that traders’ margin balances are never below zero.
As an added benefit, BitMEX also gives traders access to its testnet so they can practice using 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.
The exchange’s most sought-after product is the perpetual swap, which functions similarly to a futures contract. They can be acquired for various cryptocurrencies with up to 100x leverage available.
Futures contracts allow you to buy or sell assets at a specific price in the future. Because they track the price of the underlying asset, futures contracts offer greater liquidity than spot trading.
BitMEX also provides other derivatives in addition to futures and swaps. These include perpetual swaps that have no expiry dates and trade near 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. 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 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. The platform charges a maker fee of just 0.025%, which is quite low for a crypto exchange.
Traders can also generate extra income by promoting the exchange using affiliate programs. Commissions are paid out each time a user refers a new customer.
BitMEX’s trading charges are extremely competitive and negligible in comparison to the potential profits of experienced operators. Taker fees start from 0.075% and decrease as you trade more. Makers get a rebate of 0.01% for each trade.
BitMEX, a cryptocurrency exchange based in Seychelles, was established by a team of experienced finance, trading and web-development experts. It has become a popular platform among professional traders who are looking for advanced dashboards and deep liquidity.
Is BitMEX Legit & Safe?
BitMEX, a well-known exchange in the cryptocurrency market, is known for its high-leverage trading opportunities. Users can leverage their assets up to 100 times on its Bitcoin, Ethereum and Monero contracts as well as spot and futures trading.
BitMEX requires you to have an email address and a password. After completing the verification process, you will be able to trade and deposit without any restrictions or limits.
To protect your trades and crypto funds, the exchange uses multi-signature access and two factor authentication (2FA). It also has a multiparty computation (MPC), which prevents hackers from stealing 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 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. 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 offering a variety of products for trading cryptocurrency. Its primary service is margin trading, though it also provides spot trading in certain coins. BitMEX is the most trusted platform for cryptocurrency trading thanks to its intuitive interface and transparent pricing policies.
Start trading with BitMEX by creating a free account. 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. 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. BitMEX offers services to traders who are experienced in trading cryptocurrency derivatives, such as futures and 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.
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 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. The customer support team is made up of professionals who deal with customers on a daily basis. They help users organize their cryptocurrencies efficiently and explain the platform’s key features clearly and promptly.
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.
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. You can also access a chat room that allows you to interact with other traders on the site.