BitMEX Review 2023
BitMEX is a cryptocurrency exchange that offers various derivatives products. Additionally, it 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 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.
In addition to these features, BitMEX also provides a selection of order types like stop and market orders. BitMEX’s trading engine was designed to execute high-speed trades using software developed by high-frequency trading companies.
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 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.
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.
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 provides traders with a selection of contracts to 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 can be collateralized and settled in USDT or BTC, depending on which instrument is being used. 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 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.
BitMEX offers traditional contracts and futures
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.
BitMEX offers many ways to trade traditional futures markets. These include market orders, stop limit orders and take profit orders. These orders determine whether a position is profitable.
The trailing stop order is another popular type of order on BitMEX. 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.
Perpetual contracts are unique in that they don’t have an expiration or settlement date. This gives traders the flexibility to hold positions for however long they wish and close them whenever desired.
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.
Upside Profit Contracts on BitMEX
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.
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 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.
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’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. 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. 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.
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. 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.
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.
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. 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. 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. 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 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, 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.
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. 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. 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. Furthermore, BitMEX encrypts all transactions with SSL encryption and has a risk check system in place.
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.
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. 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. 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.
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. Furthermore, its robust security framework shields customers from cybercrime attacks such as hacking or malware threats.
Who Is It For?
BitMEX was founded in 2014 by a group of web-development, finance and trading 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 calculates profit and loss based upon entry and exit prices. This allows traders to determine when it is 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 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. You can make money either way. If prices rise, you will gain it. Conversely, if they fall, you’ll 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.
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.