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 explore both its pros and cons to help you decide if the platform is suitable for your needs.
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. 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 not only offers advanced trading features, but it takes security seriously as well. 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. The platform offers spot and futures trading for experienced traders. However, it may not be suitable to novice investors 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 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 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. BitMEX did not report transactions involving darknet market, Iran crypto exchanges, unregistered cash services businesses offering mixed services and other fraudsters.
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 is the first step toward meeting them; and the BitMEX settlement documents give an extensive look at what transaction monitoring standards are expected of crypto businesses.
Services Offered
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. 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. 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.
To protect their users’ funds, private key and information, the company uses a variety of security measures. 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 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.
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.
Although fees are charged by the exchange for each trade, these rates are still competitive with 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.
Traditional Contracts or Futures on BitMEX
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 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 is a great way to trade more efficiently, despite the inherent risks of 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 gives traders the flexibility to hold positions for however long they wish and close them whenever desired.
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.
BitMEX offers Upside Profit Contracts
Investors who want to be part of the growth potential of a cryptocurrency can use BitMEX’s upside profit contracts. 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 stores most funds in cold storage to prevent hackers from exploiting a system-wide breach. Furthermore, BitMEX utilizes an external service to verify every deposit address sent to its platform.
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 is known for its high leverage trades, low trading fees, and makes it an attractive option for traders.
BitMEX has its flaws. 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.
Unfortunately, the platform does not accept fiat currency deposits – an inconvenience for users looking to trade with 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.
To open an account on BitMEX, you need a valid email address and password. 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 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.
Experienced traders may find this type of leverage beneficial, but it also has the potential for huge losses if not used responsibly. Inexperienced traders should be aware that leverage can pose risks to their investments.
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 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.
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.
The platform also provides a crypto converter, allowing users to convert cryptocurrency to fiat currencies quickly and efficiently. A free quote is available before you make a transaction. 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.
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 fees are very competitive and almost negligible compared to the potential profits for 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 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 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.
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. BitMEX operates Amazon Web Services secure servers with two-factor authentication. It also performs stringent security checks on withdrawals and deposits to ensure maximum protection.
Multi-signature wallets and cold storage provided by BitMEX guarantee your crypto funds are secure, while two employees audit all withdrawals. BitMEX also encrypts transactions using SSL encryption and has a risk control system.
Customer Support
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 should make your life much simpler when it comes to answering questions regardless of location.
Being a cryptocurrency trader necessitates having access to 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. 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. Although it primarily offers margin trading, the exchange also offers spot trading in some coins. With its user-friendly interface and transparent pricing policy, BitMEX strives to be the go-to cryptocurrency trading platform.
Start trading with BitMEX by creating a free account. 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.
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. BitMEX’s robust security system protects customers against cybercrime such as hacking and malware threats.
Who Is It For?
BitMEX was founded in 2014 by a group of web-development, finance and trading professionals. Although BitMEX is registered in Seychelles its operational centers can be found in Hong Kong or 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 evaluate the risk associated to 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 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.
FAQ
BitMEX, a trusted exchange, offers access to many crypto assets. Its mobile app is easy to use, making trading even easier than ever.
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. 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.
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. Moreover, you can access a site-wide chat room where you can interact with other traders in real-time.
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