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. For professional traders, the exchange offers margin trading with 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. After receiving this valid wallet address, you can then transfer your BTC into it.
The platform also includes a profit and loss calculator, which lets you project potential losses. This calculator can help you decide whether to withdraw your Bitcoins, especially if you trade 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.
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 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. 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.
BitMEX offers a variety of services such as derivatives trading and cryptocurrency futures. 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.
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 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 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 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 cryptocurrencies, with up to 100x leverage.
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 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. These contracts come in two varieties – traditional futures and 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 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 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 provides margin trading, which allows you to leverage up to 100x your BTC balance in an account. This is a great way to trade more efficiently, despite the inherent risks of cryptocurrency trading.
Perpetual Contracts on BitMEX
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.
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.
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 either be traded with a fixed margin or floating margin, and they have low trading fees.
Furthermore, BitMEX provides an insurance fund to shield traders from unexpected volatility in the market. 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 each address associated with an account is multi-sig, meaning no one can access funds from the exchange without proper 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.
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, 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. 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.
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. 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 trading platform that was founded in 2014 by a team of experienced finance and trading professionals. Arthur Hayes, Ben Delo, and Samuel Reed launched the exchange four years later 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. 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 provides more than leverage to its users. Bitmex’s sophisticated margin- and liquidation system ensures that traders’ margin balances are never below zero.
BitMEX offers traders access to its testnet, which allows them to practice the platform. This is an invaluable opportunity to become familiar with all of its features and learn how to place orders successfully.
BitMEX supports a broad selection of 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.
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, 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. 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.
BitMEX is a highly-respected margin trading exchange. It offers sophisticated investors a wide range of products and features.
One of the key differentiators for BitMEX is its competitive fees. 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. 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 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, 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.
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.
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.
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.
Being a cryptocurrency trader necessitates having access to quality customer support. To maximize your profits, a trustworthy exchange must be able answer basic questions such as about minimum amounts, security features and liquidation. 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. Although it primarily offers margin trading, the exchange also offers spot trading in some 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. 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 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. 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 provide investors with an excellent way to protect against market volatility or speculate on price movements without owning actual 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 are an ideal option for those seeking short-term gains on their 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 assist users in organizing their cryptocurrencies and quickly explain the platform’s key features.
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, 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.
Futures and perpetual contracts have risks so be aware of these before you trade. Before you trade, make sure to take the time to study all details.
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. Moreover, you can access a site-wide chat room where you can interact with other traders in real-time.