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 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.
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.
To open an account with BitMEX, you need to create a wallet address through their multi-signature deposit process and verify your identity. After receiving this valid wallet address, you can then transfer your BTC into it.
You can also use the profit and loss calculator to project possible 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, a cryptocurrency derivatives exchange, was founded in Hong Kong. It is now incorporated in 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. 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.
BitMEX Earn allows users to earn interest from 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. 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 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.
BitMEX’s most sought-after product is the perpetual swap. These contracts track the price of crypto assets and do not have 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. 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%. 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 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 contract is also available for Bitcoin and other cryptocurrency.
BitMEX offers many ways to trade traditional futures markets. These include market orders, stop limit orders and take profit orders. 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 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.
BitMEX Perpetual Contracts
On BitMEX, perpetual contracts offer traders the chance to invest in the future price of a particular cryptocurrency. These contracts have some similarities to futures contracts but with some important distinctions.
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. 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.
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.
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 also utilizes a multi-signature deposit and 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.
BitMEX offers Downside Profit Contracts
BitMEX, one of the oldest cryptocurrency exchanges, offers investors a variety of trading tools. It is known for its high leverage trades, low trading fees, and makes it an attractive option for traders.
BitMEX has its flaws. For instance, it lacks regulatory compliance and its founders face 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 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.
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.
BitMEX supports a broad selection of 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. They can be acquired for various cryptocurrencies with up to 100x leverage available.
Futures contracts are agreements to purchase or sell an asset at a specified 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 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. 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 provides a comprehensive selection of products and features that appeal to sophisticated investors.
One of the key differentiators for BitMEX is its competitive fees. 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 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, 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.
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. 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 offer industry-standard email support and ticketing, as well as live support channels for social media channels such as Telegram, 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 that provides a range of products for trading cryptocurrencies. 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.
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. 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.
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.
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.
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 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 calculates profit and loss based upon entry and exit prices. This allows traders to determine when it is best to withdraw funds.
BitMEX offers a variety 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, 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. 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.
The website provides detailed information about the exchange and how to use it effectively. It also has live updates and an announcement box to keep you informed of any significant changes that could affect your trading activity. You can also access a chat room that allows you to interact with other traders on the site.