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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.

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. 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. 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 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. 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 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. 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. 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 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 include cold storage, multisig withdrawals and an effective 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 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 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%. 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 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 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 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

Perpetual contracts on BitMEX allow traders to invest in future prices of 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 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. 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. 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 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 also utilizes a multi-signature deposit and withdrawal system. This ensures that each address associated with an account is multi-sig, meaning no one can access funds from the exchange without proper 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 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.

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.

Additionally, the fee structure on an exchange may not be suitable for novice users. 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 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 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 provides more than leverage to its users. 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 a broad selection of crypto assets. It provides margin trading as well as 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 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. A free quote is available before you make a transaction. Furthermore, users can withdraw Bitcoins to their BTC wallet address. It also records profits and losses in BTC, which makes it easy to keep track of them for accounting purposes.

Trade Fees

BitMEX is one of the most sought-after margin trading exchanges, and for good reason. It offers sophisticated investors a wide range of products and features.

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.

Traders can also generate extra income by promoting the exchange using affiliate programs. 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 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. 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.

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. 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 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. 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. 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.

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. BitMEX offers services to traders who are experienced in trading cryptocurrency derivatives, such as futures and 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 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. The customer support team is made up of professionals who deal with customers 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 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.

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.

This website contains detailed information about the exchange as well as how to use it. 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.

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