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 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, a cryptocurrency derivatives exchange, was founded in Hong Kong. It is now incorporated in 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 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.
BitMEX has made improvements to their compliance procedures since the charges were brought against them. 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 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 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.
BitMEX Academy is also available, which offers a variety of 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 security measures include multisig withdrawals, cold storage, and an efficient security infrastructure. These security measures keep hackers out of 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.
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 cryptocurrencies, with up to 100x leverage.
These derivatives can be collateralized and settled in USDT or BTC, depending on which instrument is being used. They also provide a minor fiat gateway that allows traders to trade cryptocurrencies with 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%. As your trading volume grows, so too do your fees; they decrease accordingly.
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.
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. 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 type of contract is available for Bitcoin and other cryptocurrencies as well.
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.
The trailing stop order is another popular type of order on BitMEX. 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 offers margin trading which allows you leverage up to 100x your BTC balance within an account. This is a great way to trade more efficiently, despite the inherent risks of cryptocurrency trading.
BitMEX Perpetual Contracts
Perpetual contracts on BitMEX allow traders to invest in future prices of cryptocurrency. While these contracts are similar to futures contracts, they have important differences.
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. 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.
On some exchanges, perpetual contracts can be leveraged up to 125x for traders’ profit potential. However, this type of trading also exposes users to liquidity risk if the price of the underlying asset drops significantly. Therefore, users should deposit only minimal collateral in order to maintain their open trading positions.
BitMEX offers Upside Profit Contracts
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.
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 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. 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 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.
However, BitMEX does have some drawbacks. For instance, it lacks regulatory compliance and its founders face 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.
A fee structure for an exchange might not be appropriate for beginners. It is essential to understand these charges since they can accumulate quickly.
To open an account on BitMEX, you need a valid email address and password. After verification, you can deposit cryptocurrency into your account for trading on the platform. You can also use their mobile app for trading and managing your positions 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.
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 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.
BitMEX offers traders access to its testnet, which allows them to practice the platform. This is a great opportunity to learn about all its features and how to place orders.
BitMEX supports many crypto assets. It offers margin trading and derivatives – Swaps. These contracts track the price of an asset without expiration date and can be leveraged up to 100x on 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 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. It also records profits and losses in BTC, which makes it easy to keep track of them for accounting purposes.
BitMEX is one of the most sought-after margin trading exchanges, and for good reason. It provides a comprehensive selection of products and features that appeal to sophisticated investors.
BitMEX’s competitive fees are a key differentiation. BitMEX charges a 0.025% maker fee, which is very low for a crypto exchange.
Affiliate programs can be used to generate additional income for traders. 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, 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.
To protect your trades and crypto funds, the exchange uses multi-signature access and two factor authentication (2FA). 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.
BitMEX provides cold storage and multi-signature wallets to ensure your crypto funds are safe. Two employees also audit every withdrawal. BitMEX also encrypts transactions using SSL encryption and has a risk control system.
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 should make your life much simpler when it comes to answering questions regardless of location.
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. 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. 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.
Register for a BitMEX account to start trading. 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.
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 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.
It’s for Whom?
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. 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.
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 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, 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.
However, futures and perpetual contracts carry risks, so you should be cognizant of them before trading. Therefore, take time to learn all relevant details before beginning trading.
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.