Bitmex Review

BitMEX is a leading cryptocurrency trading platform that offers a variety of features to help traders and investors succeed in the global financial markets. It is a popular choice for Bitcoin loyalists around the world.

BitMEX Summary

Table Header	Table Header
Official Website	https://www.bitmex.com/
Headquarters	Hong Kong
Found in	2014
Native Token	None
Listed Cryptocurrency	BTC, ETH, LTC, XRP, BCH, LINK, TRX, ADA
Trading Pairs	15+
Supported Fiat Currencies	No
Supported Cuntries	Worldwide, except US
Minimum Deposit	Depends on the Initial Margin of products
Deposite Fees	Free
Transaction Fees	Depends on the products
Withdrawal Fees	Free, but do take network fee
Application	Yes
Customer Support	FAQ, Knowledge Base, & Submit form support

In this comprehensive evaluation of BitMEX, various facets of the platform are examined. The margin and leverage trading capabilities of the platform are assessed in detail.

This BitMEX analysis highlights the reasons why investors and multinational corporations should consider employing a dependable derivatives trading platform like BitMEX to broaden their worldwide trading activities.

What Is BitMEX?

BitMEX, operating under the International Business Companies Act, is a specialized trading platform catering to experienced traders engaging in margin trading and leverage trading. Its primary focus is on the creation of perpetual contracts through margin trading.

Recognized as a cutting-edge peer-to-peer platform in the field of cryptocurrency trading, BitMEX stands out by offering top-notch APIs that provide traders with valuable insights and enhance investor confidence. By facilitating the establishment of high-value trading accounts, BitMEX empowers individuals to engage in million-dollar trading endeavors.

BitMEX’s leveraged trade contracts facilitate swift transaction execution, bolstering the efficiency of trading activities. With a reputation for reliability, the platform ensures ample liquidity to support Bitcoin trades. Notably, the platform benefits from the backing of hedge funds from various parts of the world, further strengthening its position in the market.

Within the BitMEX ecosystem, the XBT-USD perpetual swaps have emerged as highly sought-after trading instruments, revolutionizing the crypto industry. The BitMEX team remains dedicated to continuous innovation, prioritizing the security of their robust trading engine while introducing new perpetual swap options.

BitMEX operates under the regulatory oversight of the Commodity Futures Trading Commission and provides a trading engine that enables direct currency trading. It facilitates the creation of value for cryptocurrencies, such as Bitcoin, and other virtual coins, which do not represent physical assets.

The BitMEX platform caters to traders engaging in high-frequency algorithmic trading, particularly those involved in selling contracts related to Bitcoin swaps.

BitMEX’s success in leverage trades stems from its commitment to product innovation. Many individuals utilize the BitMEX leverage slider when trading cryptocurrencies on the platform. In July 2020, the BitMEX exchange introduced 100x leverage, with risk management handled by HDR Global Trading Limited, a financial holding group responsible for BitMEX users.

Is BitMEX Regulated?

The BitMEX app offers advantages to traders interested in both fiat currency investments and cryptocurrencies. It is renowned for being a secure exchange that specializes in margin trading. The platform receives high ratings for spot trading, BTC deposits, and the availability of maximum leverage trading options.

However, recent news reports indicate that the BitMEX platform and three individuals associated with its operations have been under scrutiny by federal prosecutors in New York. Allegedly, this wholly-owned trading platform has violated trading regulations set by US regulators, including the Commodity Futures Trading Commission. These alleged violations have negatively impacted BitMEX’s reputation regarding compliance with banking regulations.

BitMEX Services

BitMEX, a platform dedicated to cryptocurrency trading, provides a wide range of tools and services to traders globally. These services are categorized according to the liquidation price of the crypto assets, offering distinct advantages. Notably, BitMEX stands out by offering a unique opportunity for trading fiat currencies, an aspect often overlooked by other cryptocurrency exchanges.

BitMEX, a leading cryptocurrency exchange, offers seamless trading of popular cryptocurrencies like BTC, XRP, ETH, BCH, LTC, BCH, and LINK. It stands out among other exchanges by providing users with low fees for deposits and withdrawals, making it a preferred choice for many. Notably, BitMEX is renowned for its leverage offerings, allowing traders to access leverage of up to 100x. The trading fee structure on BitMEX starts at 0.025% and can go as low as 0.0075% based on the trading amount.

BitMEX enables convenient deposits and withdrawals through its mobile app, ensuring a user-friendly experience. Additionally, the platform offers a variety of Bitcoin swap contracts, including:

1. BitMEX futures contracts: These enable trading Bitcoin derivatives as commodities at predetermined prices.

2. BitMEX perpetual contracts: These contracts do not have an expiry date and utilize margin-based spot trading based on BTC index prices.

3. BitMEX Upside Profit: A smart contract that allows traders to participate in potential upside movements of financial instruments like BTC.

4. BitMEX Downside Profit: A smart contract that enables traders to participate in potential downside movements of Bitcoin.

Through these contract options, BitMEX caters to diverse trading preferences and strategies, enhancing the trading experience for its users.

How to Get Started with BitMEX?

Registering and logging in/signing up on BitMEX is a straightforward process. The website streamlines the entire procedure, taking only a few minutes to complete. Users have the option to undergo the KYC (Know Your Customer) process, which can be slightly intricate. Experienced traders can easily scan and upload their identification documents along with valid email addresses. This verification process enables users to promptly deposit Bitcoin and initiate trading on the BitMEX platform without delay.

Steps to Create a Bitmex Account

To create an account on BitMEX, follow these steps:

1. Access the BitMEX website and locate the ‘Register’ tab positioned in the top right corner of the page.
2. Fill in the required details and provide your email address to generate a password for your account.
3. Choose your country of residence, complete the registration form, and then click on the ‘Register’ button.
4. Check your email inbox for a verification message from BitMEX.
5. Open the email and click on the ‘Verify My Email’ link to complete the registration process.
6. Congratulations! You have successfully created a new account on BitMEX.

Depositing Funds on BitMEX

To sign in and make Bitcoin deposits on BitMEX as a registered account holder, follow these steps:

1. Click on the ‘Account’ button located at the top left corner of the BitMEX page.
2. Navigate to the BitMEX wallet page.
3. Click on the ‘Deposit’ button and enter the deposit address link provided.
4. Use the Bitcoin address generated and click on “Send Bitcoin to” or transfer Bitcoin from your external wallet to this address.
5. If you’re using a reputable crypto hardware wallet, copy the address from your wallet and enter it in the “Withdrawal from” field.
6. Additionally, the BitMEX mobile web wallet supports deposits using barcodes.

By following these steps, registered BitMEX account holders can sign in and conveniently make Bitcoin deposits, either by providing the deposit address or using barcodes in the mobile web wallet.

How to Trade Using BitMEX?

The BitMEX exchange offers an intuitive interface designed to cater to the crucial considerations of crypto trading. The website’s trading interface is well-organized and user-friendly. The top trading bar remains fixed, allowing for easy navigation within the ‘Trade’ window. The ‘Accounts’ page and ‘Contract’ information are presented in a clear and understandable manner. Although the overall UI may appear simple, it encompasses all the necessary features found in popular exchanges like Bybit.

Moreover, BitMEX integrates with TradingView’s charting package. These responsive charts provide traders with access to advanced trading tools, empowering them to make informed decisions. By leveraging TradingView, traders can optimize their profitability and mitigate risks by analyzing market indicators and utilizing appropriate time frames.

Traders on BitMEX can effectively draw chart patterns and precisely time their trade orders. This enables them to execute market orders, limit orders, and stop orders with accuracy.

The bottom bar of the platform displays active positions for trading, providing essential information such as position size, margin, entry price, and pending orders. Within the ‘Active Orders’ tab, users can conveniently review all upcoming orders and easily modify or delete them as needed.

More experienced traders appreciate BitMEX for its market depth chart, which offers valuable insights into market liquidity. The order book on the left side of the interface includes the BitMEX margin calculator, a useful tool for effective risk management. This combination of features empowers traders to make well-informed decisions and navigate the market with confidence.

BitMEX Fees

BitMEX exchange implements settlement fees on leveraged contracts and perpetual swaps, which have become mandatory due to recent crypto banking regulations, as highlighted by former banking experts. Additionally, BitMEX provides a transparent breakdown of fees based on the specific cryptocurrency used for trading.

Trading fees play a crucial role in selecting a cryptocurrency trading exchange. When starting to trade on BitMEX, it is important for users to be aware of the fees associated with larger position sizes. The exchange offers opportunities to offset these fees through favorable market positions, where the margin is significantly larger.

BitMEX follows the maker and taker fee model, with a maker fee of just 0.025% on trading applications. These low fees contribute to BitMEX scoring favorably in comparisons with other platforms such as BitMEX vs. Bybit or BitMEX vs. Binance, among others.

For smaller Bitcoin transactions, there are no deposit or withdrawal fees. Bitcoin Network fees, if applicable, are minimal and only charged for withdrawals made on the blockchain, not within the BitMEX ecosystem. However, it is advisable to review the complete fee structure of BitMEX exchange to have a comprehensive understanding of the fees involved.

BitMEX Calculator

BitMEX provides a comprehensive profit and loss calculator that precisely assesses the risks associated with trades, specifically for Bitcoin transactions. This tool proves particularly useful when BitMEX offers leveraged contracts to traders, as it enables them to determine the practicality of withdrawing Bitcoin.

The BitMEX calculator is employed to verify the following scenarios:

1. Exit price higher than the entry price: Traders can assess the potential profit if the exit price of a trade is higher than the entry price.

2. Entry price lower than exit price: This calculation helps traders understand the potential loss if the entry price is lower than the exit price.

3. Short position at a low exit price: Traders can evaluate the profitability of a short position when the exit price is relatively low.

By utilizing the BitMEX calculator, traders can make informed decisions and gain insights into the potential profits or losses associated with their trades, ultimately enhancing their trading strategies.

BitMEX API

BitMEX offers an Application Programming Interface (API) that provides powerful trading features to users. This comprehensive REST API is equipped with a wide range of features, ensuring the security of high leverage trades.

The BitMEX API includes a robust streaming tool that utilizes WebSocket technology to efficiently sort and analyze markets based on user data. This streaming tool enhances the trading experience by delivering real-time market updates and facilitating quick decision-making.

With its advanced API functions, BitMEX transforms its website into a sophisticated trading application, catering to top-tier crypto traders. The API empowers traders with the necessary tools and data to execute trades effectively and stay ahead in the dynamic cryptocurrency market.

BitMEX Bot

BitMEX leverages an automated trading engine similar to the well-known HamsterBot. Developed using Python programming, this trading bot assists traders by enabling instant and continuous quoting in two-sided markets.

Functioning as a trading bot, the BitMEX Market Maker also supports multiple API Keys, serving as a valuable starting point for traders looking to implement new trading plans and strategies. These API Keys enhance flexibility and facilitate the execution of various trading approaches on the BitMEX platform.

BitMEX Insurance Fund

The BitMEX insurance fund plays a vital role in ensuring the success of the platform. In both traditional and cryptocurrency markets, unexpected volatility often leads to turbulence among traders. BitMEX addresses this issue by providing support through its insurance fund.

The insurance fund serves as the final safeguard, protecting traders from experiencing Auto Deleveraging (ADL) of their assets. Auto deleveraging can have adverse effects on profitable traders, potentially pushing their liquidated positions into insolvency. The insurance fund effectively prevents such situations from occurring, providing an added layer of protection and stability to BitMEX traders.

Supported Cryptocurrencies at BitMEX

BitMEX exclusively supports Bitcoin (BTC) deposits on its platform. However, traders can also engage in trading with other leading cryptocurrencies using various indices provided. It’s important to note that BitMEX does not support deposits in USD or any other fiat currencies. The platform allows trading with the following cryptocurrencies:

1. Cardano (ADA)
2. Bitcoin (BTC)
3. Ethereum (ETH)
4. Bitcoin Cash (BCH)
5. EOS Token (EOS)
6. Litecoin (LTC)
7. Ripple (XRP)

These cryptocurrencies offer diverse trading opportunities on the BitMEX platform, catering to the needs and preferences of cryptocurrency traders.

BitMEX Supported Countries

BitMEX is a registered company based in the Republic of Seychelles. While it is available for users from around the world to register and start trading, it is important to note that BitMEX restricts access for users from the United States. This restriction is primarily due to regulatory factors within the United States that are beyond BitMEX’s control.

Some individuals have found ways to circumvent this restriction by using a secure VPN service. However, it is important to highlight that BitMEX strictly prohibits and does not recommend this option. Instead, BitMEX advises users from the United States to explore and choose an alternative cryptocurrency exchange within the country for their trading needs.

Leverage Available on BitMEX

BitMEX provides an extensive selection of leveraged products for cryptocurrencies such as Ethereum, Bitcoin, Cardano, Ripple, Tron, and Litecoin. However, it should be noted that BitMEX offers the lowest leverage on EOS and Bitcoin Cash compared to other supported cryptocurrencies. The specific leverage amount varies depending on the chosen product.

When engaging in leveraged trades, users can utilize only cryptocurrency as collateral. BitMEX allows for leverage up to 100x, meaning traders are required to allocate Bitcoin equivalent to 1% of the initial trade amount. For example, if a trader wishes to enter into a 10 Bitcoin contract valued at $10,000, they would need to allocate $100 as the initial margin for leverage.

This structure allows traders to amplify their exposure to the market while managing risk and capital requirements effectively. It is important for users to carefully consider the leverage amounts and margin requirements before engaging in leveraged trading on BitMEX.

BitMEX Futures Contract

The BitMEX Futures Contract is a derivative product designed for trading purposes. It enables traders to buy or sell an instrument at a predetermined price, with the flexibility to specify a future time for the transaction or even opt for an early settlement.

These contracts can be settled in either cash or cryptocurrency. BitMEX also incorporates other trading products within the Futures Contract framework. Payments for these contracts are made in cash and deposited into the BitMEX wallet.

One notable advantage of BitMEX Futures Contracts is that they do not require a 100% collateral margin. With the potential for leverage of up to 100x on certain BitMEX contracts, traders can utilize denominated Bitcoin to speculate on the future value of the instrument, facilitating quick and precise speculation on price movements.

What Is BitMEX Testnet?

The BitMEX testnet serves as a simulated environment that replicates real trades and allows users to test and assess their outcomes. It is specifically developed for new users to familiarize themselves with the BitMEX trading experience.

On the testnet, users can practice placing trade orders, executing them, and even canceling orders, while observing how leverage impacts their trades. Various order types and sizes are available for experimentation on the BitMEX testnet.

It’s important to note that the BitMEX testnet is a separate product and requires a separate registration process. Users who already have a registered BitMEX.com account must also create a new account specifically for the BitMEX testnet. Additionally, in order to trade on the testnet, users need to deposit “Testnet Bitcoin,” which are simulated versions of actual Bitcoin cryptocurrency.

These Testnet Bitcoins hold no monetary value and can be freely obtained through faucets available across the internet. Every deposit and trade conducted on the BitMEX testnet carries no risk of impacting the user’s actual digital wealth or real trades.

Is BitMEX Legit & Safe?

BitMEX prioritizes the safety of its trading environment and incorporates several secure trading features. The platform employs bank-like security protocols and advanced data protection measures to ensure the utmost level of business safety for both BitMEX and its customers.

Customer assets are stored in cold wallets, enhancing their security against potential threats. The platform utilizes multiple layers of data encryption during the trading process, further bolstering the protection of sensitive information. This includes the implementation of multi-signature withdrawals and validation through the Two-Factor Authentication (2FA) process.

By adhering to these stringent verification measures, users can confidently carry out secure withdrawals and make changes to their account details on BitMEX. These security measures contribute to a safer trading environment, providing users with peace of mind when engaging in transactions on the platform.

BitMEX Security

BitMEX places a strong emphasis on security and incorporates a unique multi-signature system for deposit and withdrawal processes. This system allows users to enhance the security of their BitMEX addresses through the utilization of multi-signature technology.

Furthermore, user assets, including Bitcoin and private keys, are stored completely offline. This offline storage approach ensures that even in the event of a full system compromise, BitMEX does not expose user assets through its web servers. This measure adds an extra layer of protection to safeguard user funds from potential security breaches.

To reinforce security, BitMEX implements a tracker within its database to safeguard the movement of private keys. These private keys are stored separately from cloud servers and are kept in deep cold storage. Alongside this, encrypted cryptocurrency funds are also securely stored in the same deep cold storage, adding an additional layer of protection to user assets. By employing these measures, BitMEX ensures that private keys and crypto funds remain highly secure and shielded from potential vulnerabilities.

BitMEX Customer Support

Safeguarding Bitcoin and other cryptocurrencies is a complex task. BitMEX’s customer support is dedicated to addressing a wide range of inquiries, from Bitcoin wallet concerns to managing the inherent risks associated with BTC withdrawals.

The support team is well-equipped to provide traders with informative guidance on effectively managing their diverse cryptocurrencies. They assist in distinguishing between various cryptocurrencies and understanding the platform’s key features, ensuring clarity and comprehension.

Additionally, the support team aids traders in navigating minimum trade amount requirements when they have insufficient funds. The support section also includes a list of supported countries, providing traders with essential jurisdictional information.

Notably, BitMEX does not impose fees for accessing customer support services. Traders can easily access the support team by visiting the Contact tab, where they can seek assistance with their queries and concerns.

BitMEX Review: Our Verdict

In summary, BitMEX offers a unique trading service and provides users with access to top-notch tools. The platform is well-suited for professional traders and individuals willing to engage in trading volatile and high-risk assets, making it an ideal choice as a cryptocurrency exchange. BitMEX is specifically designed to maximize exposure to margin trading.

Traders frequently turn to BitMEX to trade derivatives of Bitcoin, the largest cryptocurrency. The platform facilitates speculating on the market, allowing users to potentially earn assured Bitcoin profits.

In conclusion, BitMEX is a preferred choice for trading high daily volumes of derivatives on the exchange. It maintains its popularity as a well-regarded platform within the cryptocurrency space.

FAQs

Is BitMEX considered a secure platform?
Absolutely, BitMEX prioritizes the safety of crypto investors. It implements measures such as multi-signature access, 2FA verification, and cold storage to ensure the protection of assets and trades.

Is BitMEX recommended as a trading platform?
BitMEX is highly regarded as a trading platform, especially for professional investors and passionate crypto enthusiasts. Its margin trading feature can be quite profitable for users.

Why is BitMEX prohibited in the US?
BitMEX faced a ban in the US due to its failure to comply with the regulations set forth by the Commodity Futures Trading Commission (CFTC).

Does BitMEX offer mobile applications?
Yes, BitMEX provides mobile apps and APIs for both iOS and Android devices, allowing users to access the platform on the go.

How long does it take to withdraw funds from BitMEX?
BitMEX processes withdrawals on a daily basis for security reasons. To ensure inclusion in the day’s batch, users are advised to submit their withdrawal requests by 13:00 UTC.

Is BitMEX available in multiple languages?
Yes, BitMEX offers support in several languages, including Japanese, English, Russian, Korean, and Chinese. Users can select their preferred language from the provided list to determine if the service is available to them.