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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 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.

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.

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 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 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.

Services Offered

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.

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 Available 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%. 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.

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

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 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. 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. 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

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 vital because traders may feel overwhelmed by sudden shifts 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 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. 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.

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. Four years later, Samuel Reed, Ben Delo and Arthur Hayes launched BitMEX in 2014.

Bitmex is a world-class leveraged trading platform that offers leverage up to 100x on a variety of 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. 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.

Supported Cryptocurrencies

BitMEX supports a broad selection of crypto assets. It provides margin trading as well as derivatives – swaps. These contracts track the price of an asset without expiration date and can be leveraged up to 100x on certain contracts.

The exchange’s most sought-after product is the perpetual swap, which functions similarly 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. 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, 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.

Trading Fees

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.

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 charges are extremely competitive and negligible in comparison to the potential profits of 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 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.

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.

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.

Customer Support

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. 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. 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. Its conversion process is instantaneous, without fees, and offers you a free quote before executing 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.

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 provide investors with an excellent way to protect against market volatility or speculate on price movements without owning actual 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 evaluate the risk associated to 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. The customer support team is made up of professionals who deal with customers on a daily basis. They help users organize their cryptocurrencies efficiently and explain the platform’s key features clearly and promptly.

FAQ

BitMEX is a well-established exchange that offers access to numerous crypto assets. Furthermore, its user-friendly mobile app makes trading on the go much simpler than ever before.

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. Therefore, take time to learn all relevant details before beginning trading.

The website provides detailed information about the exchange and how to use it effectively. 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.

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