BitMEX Review 2023
BitMEX is a cryptocurrency exchange that offers various derivatives products. It also supports spot trading and short term staking strategies.
BitMEX’s history is not without its faults. Many users have expressed dissatisfaction with the service. 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 is a cryptocurrency derivatives exchange that provides futures and perpetual contracts on numerous coins. For professional traders, the exchange offers margin trading with 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. 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 is a crypto derivatives exchange founded in Hong Kong and now incorporated in the 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 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 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. In particular, BitMEX failed to identify and report on transactions involving darknet markets, Iran crypto exchanges, unregistered money services businesses offering mixing services, and counterparties involved in fraud schemes.
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 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.
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. 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.
The company has also created the BitMEX Academy, offering various 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 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.
Perpetual swaps are a highly sought-after product on BitMEX, providing traders with contracts that track the price of a crypto asset without 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 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.
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 contract is also available for Bitcoin and other cryptocurrency.
On BitMEX, there are various ways to trade traditional futures markets, including market orders, stop limit orders, take profit orders and more. These orders determine whether a position is profitable.
Another popular order type on BitMEX is the trailing stop order. 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 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.
One major distinction is that perpetual contracts do not have a set settlement time or expiration 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 has a funding rate that ensures the price is closely linked to the spot market value. 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. Therefore, users should deposit only minimal collateral in order to maintain their open trading positions.
BitMEX offers Upside Profit Contracts
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.
Furthermore, BitMEX provides an insurance fund to shield traders from unexpected volatility in the market. This is important because traders might feel overwhelmed by sudden changes in cryptocurrency prices.
BitMEX uses a multisignature deposit/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. 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.
Downside Profit Contracts on BitMEX
BitMEX is one of the oldest crypto exchanges, providing investors with a range of trading tools. It’s renowned for its high leverage trades and low trading fees that make it an attractive option among 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. These fees can quickly add up so it is important to be familiar with them.
To open an account on BitMEX, you need a valid email address and password. 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.
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 offers its users more than just leverage. 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.
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 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.
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. 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.
BitMEX is a highly-respected margin trading exchange. It offers sophisticated investors a wide range of products and features.
BitMEX’s competitive fees are a key differentiation. 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. Commissions are paid out each time a user refers a new customer.
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 is a Seychelles-based cryptocurrency exchange established in 2014 by an experienced team of finance, trading and web-development specialists. 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.
In order to use BitMEX, you’ll need an email address and password. Once you have completed the verification process, trading and depositing will be possible without restrictions.
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.
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. 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 offer industry-standard email support and ticketing, as well as live support channels for social media channels such as Telegram, Discord and Telegram.
The site is available in English as well as Russian and Turkish. This indicates a well-run customer support department. This will make it much easier to answer questions no matter where you are located.
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. 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. 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.
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.
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. 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. 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 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.
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 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. Its customer support team is composed of experienced professionals who handle inquiries from users 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. 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.
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.
The website provides detailed information about the exchange and how to use it effectively. You will also find live updates and an alert box that informs you of any changes to your trading activity. Moreover, you can access a site-wide chat room where you can interact with other traders in real-time.