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 examine both the pros and cons of BitMEX to help you decide whether it is right for you.
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. Once you have received your wallet address, you will be able to 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 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. 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 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.
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.
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. 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 gives users an unparalleled opportunity to gain insight in 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 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 cryptocurrencies, with up to 100x leverage.
These derivatives are collateralized and settled in either BTC or USDT, depending on the instrument at hand. Furthermore, they provide a minor fiat gateway which enables traders to buy and sell cryptocurrencies using 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.
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. These contracts come in two varieties – traditional futures and 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 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 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. 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 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 important because traders might feel overwhelmed by sudden changes in cryptocurrency prices.
BitMEX uses a multisignature deposit/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. 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.
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.
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.
A fee structure for an exchange might not be appropriate for beginners. 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 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. 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. 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 many crypto assets. It provides margin trading as well as 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. These can be purchased for various cryptocurrencies and have up to 100x leverage.
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 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. Furthermore, users can withdraw Bitcoins to their BTC wallet address. 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. 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, a cryptocurrency exchange based in Seychelles, was established by a team of experienced finance, trading and web-development experts. It has become a popular platform among professional traders who are looking for advanced dashboards and deep liquidity.
Is BitMEX Legit & Safe?
BitMEX, a well-known exchange in the cryptocurrency market, is known for its high-leverage trading opportunities. Users can leverage up to 100x their assets on BitMEX’s Ethereum, Monero and Bitcoin contracts. They also offer spot and futures trading.
In order to use BitMEX, you’ll need an email address and 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. Furthermore, BitMEX encrypts all transactions with SSL encryption and has a risk check system in place.
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.
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 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.
Register for a BitMEX account to start trading. 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 also provides multilingual customer support and supports multiple payment gateways. Furthermore, its robust security framework shields customers from cybercrime attacks such as hacking or malware threats.
It’s for Whom?
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.
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.
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 offers a variety 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. Furthermore, its user-friendly mobile app makes trading on the go much simpler than ever before.
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.
However, futures and perpetual contracts carry risks, so you should be cognizant of them before trading. 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. 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.