BitMEX Review 2023
BitMEX, a cryptocurrency exchange, offers a variety of 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.
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 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, 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 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. 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 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. 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. 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 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 security measures keep hackers out of your money.
Types Of Contracts Available 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.
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 from 0.075%, while the maker fee begins at 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.
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.
Perpetual Contracts on BitMEX
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.
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.
Perpetual contracts can be leveraged on some exchanges up to 125x for increased profit potential. However, this type of trading also exposes users to liquidity risk if the price of the underlying asset drops significantly. Users should only deposit minimal collateral to keep their trading positions open.
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.
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 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 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.
Downside Profit Contracts on BitMEX
BitMEX, one of the oldest cryptocurrency exchanges, offers investors a variety 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. 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. 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 will be able to deposit cryptocurrency to your account in order for you trade 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 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. 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.
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 also provides other derivatives in addition to 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.
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.
Affiliate programs can be used to generate additional income for traders. Each time a user refers new customers, commissions are paid.
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, 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.
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. 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 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 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. 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. 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. 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 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 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.
One of BitMEX’s most sought-after derivatives products are perpetual swaps – contracts that never expire. These provide investors with an excellent way to protect against market volatility or speculate on price movements without owning actual 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 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. Its customer support team is composed of experienced professionals who handle inquiries from users 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.
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.
This website contains detailed information about the exchange as well as how to use it. It also has live updates and an announcement box to keep you informed of any significant changes that could affect your trading activity. Moreover, you can access a site-wide chat room where you can interact with other traders in real-time.