BitMEX is a leading market exchange dealing in cryptocurrency derivatives. Founded in 2014 by Samuel Reed, Arthur Hayes, and Ben Delo, BitMEX serves as a peer-to-peer trading platform with highly leveraged contracts. This allows traders to sell and buy perpetual and futures contracts on several crypto assets, including Bitcoin. The platform’s headquarters are in the U.S., Hong Kong, and Seychelles.
- Operating Since 2014
- Currencies Supported 18 cryptocurrencies
- Fees Varies
- Deposit Methods Cryptocurrencies (Bitcoin and Tether)
- Fiat Currencies No
- Verification Methods 2FA
- Margin Trading Yes
- Futures Trading Yes
BitMEX encounters substantial trading sums each day, often ranging in the billions. Though it has some of the best offerings in futures, margin, and leveraged trading, the platform’s lack of regulatory compliance and the founders’ criminal charges in the U.S. might make BitMEX less than ideal for some traders.
This BitMEX review offers a comprehensive guide about this market maker, so keep reading to learn more about the crypto exchange and determine if it suits your cryptocurrency trading needs.
About BitMEX Trading
BitMEX is a cryptocurrency derivatives trading platform offering leverage contracts. It represents one of the world’s most widely used margin trading P2P platforms. People trading through BitMEX can buy and sell cryptocurrency contracts instead of physical coins with margin trading of up to 100 times.
Though Bitcoin is the primary cryptocurrency on BitMEX, the platform supports 18 cryptocurrencies. However, BitMEX does not support fiat currency for deposits or withdrawals.
Any currencies sold or bought through the exchange will convert into Bitcoin. As such, this makes an excellent platform for traders who want to increase their Bitcoin holdings through trading.
This crypto-only trading platform started as one of the world’s best crypto derivatives exchanges with a professional-grade dashboard for optimal user experience. BitMEX also offers deep liquidity, so it maintains a reasonable balance between sellers and buyers, which means trading prices remain relatively stable.
New and experienced traders are welcome to trade cryptocurrencies through BitMEX. However, the crypto exchange might not be the best for inexperienced traders who want a simple platform for trading and selling Bitcoin.
Due to the leveraged trading, it would be best for anyone using BitMEX to have sufficient assets to settle the margin levels. Otherwise, an account that cannot complete its deals will undergo liquidation to avoid unpayable debts.
Cryptocurrency, Leverage, and Margin Trading
Margin and leverage trading are the most prominent trading options on BitMEX, thanks to its 100x leverage for Bitcoin contracts. BitMEX has the market’s highest Bitcoin leverage, making the platform attractive to experienced cryptocurrency traders. Traders can increase the stakes of each Bitcoin they own to turn a single Bitcoin into 100 Bitcoin on the market.
BitMEX only accepts withdrawals and deposits in Bitcoin, but other cryptocurrencies, fiat, and altcoins are tradable. BitMEX offers the following leverages on other popular cryptocurrencies:
- Ethereum: 50x
- Litecoin: 33x
- Monero: 25x
- EOS: 20x
- Tron: 20x
- BCH: 20x
Leverage contracts through BitMEX are available in four varieties. They include traditional futures, perpetual contracts, upside profit contracts, and downside profit contracts.
BitMEX User Interface
One of the advantages of trading through BitMEX is its user-friendly interface. The platform lays everything out nicely to create an intuitive dashboard. The static top menu bar allows you to quickly return to the “Trade” window, where you can view your “Accounts” and “Contract” information.
Despite the ease with which users can navigate the BitMEX dashboard, some customers mention the interface’s dated appearance in their BitMEX reviews.
One of the positives of the BitMEX interface lies in its charting package, which has a reputation for producing responsive and intuitive charts. BitMEX traders can use the dashboard’s advanced trading tools and charting data to maximize their trading potential while reducing risk. The charts provide various time frames and tools to visualize trend lines, draw chart patterns, and perfectly add indicators to time trades.
Charges for the BitMEX Platform
Because all deposits and withdrawals automatically convert to Bitcoin as soon as the funds enter and exit the crypto exchange, BitMEX does not charge fees for these transactions. Bitcoin network fees will apply to withdrawals. However, other fees and costs are competitive and based on currency type and perpetual and futures contracts.
Since BitMEX is a P2P trading platform, its fee structure resembles other crypto exchanges. It includes maker, taker, and settlement fees. Expenses for taker fees and maker fees link to order type and cryptocurrency choice.
BitMEX has some of the lowest fees among crypto exchanges. Price taker fees include a 0.05% commission. However, price makers can receive a 0.01% rebate on every trade.
Despite BitMEX’s global popularity and superior user experience, it still has its share of trouble. Since its founding, BitMEX has experienced numerous lawsuits from former customers with allegations on various issues, from non-adherence to international compliance laws to trading against its customers.
In 2020, the Commodity Futures Trading Commission charged the company’s founders for illegal virtual currency exchange operations. Other charges include breaking anti-money laundering laws.
BitMEX continues to make strides in correcting its past operational and legal errors because its mission is to become the world’s biggest regulated crypto derivatives exchange. Their recent efforts to increase the platform’s privacy and security include identity verification for all traders.
BitMEX also uses multi-signature wallets for traders and holds all physical funds in cold storage. The company keeps its Bitcoin private keys offline instead of a cloud server. A minimum of two employees audit every withdrawal for security and accuracy.
The platform also uses a multi-party computation system (MPC system) so that multiple people can use encryption to complete functions without sharing sensitive information outside of the encrypted domain. Utilizing an MPC system significantly reduces the risk of a hacker stealing money from traders, regardless of whether BitMEX’s web servers, database, and trading engine are compromised.
Trader Privacy on BitMEX
BitMEX strives to protect its traders with world-class security measures while maintaining the anonymity of its users. The platform has never experienced a data breach.
Because of its fiat currency bypass, BitMEX offers excellent anonymity for its traders. As a result, the platform does not adhere to national or international finance regulations. People can create accounts with BitMEX without revealing their identity and participate in trades without geographical restrictions.
Customer Support for BitMEX Trading
BitMEX offers its users a reasonable level of customer support. The platform uses an email ticket system to help users access an intricate knowledge library containing details on various subjects, including cryptocurrency trading and dashboard troubleshooting. They can also use the email ticket system to connect with BitMEX support staff who speak English, Russian, Japanese, Korean, and Chinese.
Submitting a ticket for customer support is relatively straightforward. If a user experiences technical issues on the dashboard, they can submit a ticket by selecting “Contact” on the left menu. When a contact box pops up, they can input their email address, subject, and message before tapping “Submit” to send the email to the BitMEX support team.
If users prefer to receive assistance from the BitMEX community, the platform has a chat feature through WeChat. Other chat rooms include IRC, Telegram, Weibo. However, Telegram is limited to Russian language support.
Unfortunately, BitMEX does not offer telephone support. It follows a similar model for customer support as many other crypto exchanges, but users could benefit from telephone support to receive immediate assistance.
BitMEX Trading Pros
- A leading crypto derivative platform with global popularity
- Expanded market for trading
- The platform is relatively safe and secure to use
- Transparent fee structure
- Up to 100x Bitcoin and Ethereum leverage depending on the asset
BitMEX Trading Cons
- Only supports crypto-to-crypto trading in a limited capacity
- Little regulatory compliance prompting concerns among experienced traders
- Poor mobile app experiences
Frequently Asked Questions About BitMEX
Is Trading Possible With a BitMEX Trading Mobile App?
BitMEX recently created a mobile app so that users can trade from anywhere in the world at their convenience. The app is available in Google Play and Apple’s App Stores for download in more than 140 countries.
Trading is possible through the BitMEX app. The mobile platform proves highly secure and includes many features, such as:
- Open Positions Management: You can swipe up from any page to reveal a summary of all open positions.
- Order Builder: The order builder feature allows active traders to easily create, limit, stop, and receive profit orders.
- Deposits and Withdrawals: You can seamlessly deposit and withdraw funds using the BitMEX app.
- Real-Time Data: The platform provides access to real-time candlestick charts and market data.
- Biometric Authentication: For optimal security, the BitMEX app offers exceptional protection for its users, including biometric authentication and login notifications.
How Can You Deposit and Withdraw Money Into and out of BitMEX?
Before you can deposit or withdraw money from BitMEX, you must register an account with the platform using your email address and unique password. After registering, you must verify your identity by submitting a copy of your photo ID, a presence capture video or photo, location, and a declaration of your citizenship.
Businesses can create corporate BitMEX accounts as well as individual accounts. Unfortunately, the crypto exchange is not available to users in the U.S., Iran, Cuba, North Korea, Crimea, Sudan, or Sevastopol.
If you are eligible to register a BitMEX account and complete the verification process, you can easily deposit funds by selecting “Deposit” under the Account tab. The deposit link provides addresses where you can deposit cryptocurrency. The funds will go into your account after completing the required network confirmation.
The minimum deposit amount to trade on BitMEX depends on the initial margin. Select “Withdraw” on the Account tab when you wish to withdraw funds. Type your Bitcoin wallet address under the “Destination Address” section to remove coins from your BitMEX wallet.
After typing the address in the input field, you can select the number of coins you want to withdraw from the platform. BitMEX requires a two-factor authentication key from the Google Authenticator app for added security. The following section will summarize your transaction, but the withdrawal will not complete until you select “Submit” to transfer the coins to an external wallet.
Though this BitMEX review acknowledges this crypto exchange’s impressive features and popularity, it is safe to say the platform is not suitable for all traders. For experienced traders who value affordable fees, high anonymity, and a user-friendly interface that focuses primarily on Bitcoin, BitMEX is the ideal platform.
The Bitcoin conversion of all currency going into and out of BitMEX is both an advantage and a drawback. However, the way you perceive how the crypto exchange handles the world’s most popular cryptocurrency will determine whether BitMEX trading will be right for you.