BitMEX Review 2023
BitMEX, a cryptocurrency exchange, offers a variety of 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.
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 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. 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. 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.
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.
The company has also created the BitMEX Academy, offering various 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 measures are highly secure, preventing hackers from gaining access to your money.
Types Of Contracts Available 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.
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%. 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 allows account holders to have sufficient funds to cover all trade exposures.
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. 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.
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 can assist in trading more efficiently despite the inherent risks involved with 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.
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. 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.
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 vital because traders may feel overwhelmed by sudden shifts 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. Furthermore, BitMEX utilizes an external service to verify every deposit address sent to its platform.
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.
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.
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.
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. 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. 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 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 an invaluable opportunity to become familiar with all of its features and learn how to place orders successfully.
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.
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 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.
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. It also records profits and losses in BTC, which makes it easy to keep track of them for accounting purposes.
Trading Fees
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. 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. 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 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. 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 up to 100x their assets on BitMEX’s Ethereum, Monero and Bitcoin contracts. They also offer 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. 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. 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.
BitMEX provides cold storage and multi-signature wallets to ensure your crypto funds are safe. Two employees also audit every withdrawal. 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.
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. 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. 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 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 established in 2014 by a team of finance, trading, and web-development professionals. Although BitMEX is registered in Seychelles its operational centers can be found in Hong Kong or 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 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 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.
FAQ
BitMEX is a well-established exchange that offers access to numerous crypto assets. Its mobile app is easy to use, making trading even easier than ever.
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. 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. 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.
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