BitMEX Review 2023
BitMEX, a cryptocurrency exchange, offers a variety of derivatives products. Additionally, it 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, 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.
BitMEX offers a variety of order types, including stop and market orders. BitMEX’s trading engine was designed to execute high-speed trades using software developed by high-frequency trading companies.
To open an account with BitMEX, you need to create a wallet address through their multi-signature deposit process and verify your identity. 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 calculator can help you decide whether to withdraw your Bitcoins, especially if you trade 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. 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 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 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 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 provides a range of services, such as cryptocurrency futures and derivatives trading. The exchange also offers a perpetual swap trading product, which allows users to leverage up 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.
BitMEX also offers a cryptocurrency converter that allows users to quickly and easily 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.
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 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.
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 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 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 help determine whether a given position will be profitable or not.
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 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. 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 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
Investors who want to be part of the growth potential of a cryptocurrency can use BitMEX’s upside profit contracts. These contracts can either be traded with a fixed margin or floating margin, and they have low trading fees.
BitMEX also offers an insurance fund that protects traders against unexpected volatility in cryptocurrency markets. This is important because traders might feel overwhelmed by sudden changes 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 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.
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. 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. These fees can quickly add up so it is important to be familiar with them.
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. 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.
Although experienced traders may find this kind of leverage advantageous, it can also lead to huge losses if misused. Therefore, inexperienced investors should be aware of these potential hazards prior to beginning to trade with leverage.
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. For instance, its sophisticated margin and liquidation system guarantees traders’ margin balances never drop 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 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. 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. You get a free quote before making a transaction, too. 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 one of the most sought-after margin trading exchanges, and for good reason. 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 at 0.075% and decrease with increased 30-day trading volume, while Makers receive a rebate of 0.01% on 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 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. Furthermore, it has a multi-party computation (MPC) system in place which helps stop hackers from stealing your 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 offer industry-standard email support and ticketing, as well as live support channels for social media channels such as Telegram, 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 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. 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. Thankfully there are plenty of other trustworthy crypto exchanges available to choose from.
How To Get Started
BitMEX is an exchange that provides a range of products for trading cryptocurrencies. Its primary service is margin trading, though it also provides spot trading in certain 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. Afterward, you can begin depositing cryptocurrencies into your BitMEX wallets to begin 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 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. 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.
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 contracts are a great option for anyone looking to make short-term profits on cryptocurrency investments.
BitMEX’s Margin Calculator helps traders evaluate the risk associated to 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. 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, 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. 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.