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 is a cryptocurrency derivatives exchange that provides futures and perpetual contracts on numerous coins. Professional traders can use the margin trading feature to get 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.
To open an account with BitMEX, you need to create a wallet address through their multi-signature deposit process and verify your identity. 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, 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 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.
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 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.
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.
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 various cryptocurrencies with up to 100x leverage available.
These derivatives are collateralized and settled in either BTC or USDT, depending on the instrument at hand. They also provide a minor fiat gateway that allows traders to trade cryptocurrencies with 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 allows account holders to have sufficient funds to cover all trade exposures.
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. 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 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 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 gives traders the flexibility to hold positions for however long they wish and close them whenever desired.
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. Users should only deposit minimal collateral to keep their trading positions open.
Upside Profit Contracts on BitMEX
BitMEX offers upside profit contracts to investors who wish to participate in the potential growth of a particular cryptocurrency. These contracts can be traded with either a fixed or floating margin and feature 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 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.
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, 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. 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 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 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 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 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. Bitmex’s sophisticated margin- and liquidation system ensures that traders’ margin balances are never 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 a broad selection of 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 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 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 a highly-respected margin trading exchange. It provides a comprehensive selection of products and features that appeal to sophisticated investors.
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.
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. It has become a popular platform among professional traders who are looking for advanced dashboards and deep liquidity.
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. 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. 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.
A cryptocurrency trader requires access to high-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. 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. There are many other trusted crypto exchanges that you can 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. 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. 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 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. 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 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 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 assist users in organizing their cryptocurrencies and quickly explain the platform’s key features.
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, Ben Delo and Samuel Reed founded the company in 2014 with funding from family and friends that allowed them to get started in the industry.
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. You can make money either way. If prices rise, you will gain it. Conversely, if they fall, you’ll 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.
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. You can also access a chat room that allows you to interact with other traders on the site.