BitMEX Review 2020: Complete Guide to The Exchange Is it Safe?

BitMEX is an excellent option for experienced crypto traders that want to trade futures and swaps. The interface poses too steep of a learning curve for a casual trader –if you’re a beginner, BitMEX is not the right exchange for you. However, leverage is limited to 50x when trading Ethereum and 33.3x when trading Litecoin. However, with high leverage, you can lose a lot of money quickly. Another entity that regulates a bitcoin price and business in the US is FINCEN.

bitmex review

If you’re looking for an excellent cryptocurrency exchange platform BitMEX is one of the best choices. It´s oriented on experienced traders and offers very good services, a high level of security, and if you´re not assured feel free to try the demo. BitMEX enables millions of users to trade over a dozen cryptocurrencies, but it is a fully Bitcoin-denominated exchange. To trade on the exchange, you will need to use a spot exchange to buy BTC with fiat currency.

How To Open An Account On BitMEX?

With leverage of 100x, traders need to put Bitcoin worth 1% of the initial trade amount. For a 10 Bitcoin contract worth $10,000, the leverage would be put up at $100 of the initial margin. No deposit or withdrawal fees are charged for small Bitcoin transactions. The Bitcoin Network fee is also tiny and charged only for withdrawals made on the blockchain and not on the BitMEX ecosystem.

  • While it is limited to Bitcoin support, it does also offer trading options with several other cryptocurrencies.
  • The charges were a result of a years-long effort by the US to crack down on the crypto market and start regulating it.
  • The exchange offers detailed tables with all relevant numbers in their FAQ section.
  • Once the quantity is complete, the order will become normal, and the user will receive the maker rebate for the non-hidden amount.

Bitcoin is the only cryptocurrency that can be deposited into the exchange. It is the fuel of the platform as it is used as collateral on trade bitmex review and fees. The whole process only takes a few minutes, while the verification on their end can take between a few hours and a few days.

Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. . Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. The taker fees start at 0.075% and decrease as your 30-day trading volume increases, the highest volume traders only get charged 0.025% on trades. In May 2022, BitMEX added a spot trading feature to the platform, for the first time enabling their users to buy and sell cryptocurrencies, rather than just speculate on their prices. Perpetual swaps are the most popular product on the exchange, providing traders with contracts that track the price of the underlying crypto asset with no expiry.

This review is based on my own experience and is my genuine opinion. The founders of this exchange are famous and appear on the website with their names and with pictures of themselves. The CEO Arthur Hayes even regularly visits shows like CNBC and makes remarkable statements about Bitcoin. For example, on May 2018 he said that he expected the Bitcoin price to be 50,000 dollar at the end of 2018. Whether you should believe him or not is of course up to you. Bitvavo is the cheapest exchange in Europe and only charges a maximum trading fee of 0.15%.

BitMEX vs. Binance

If it takes more than one day for your position to settle, then you might as well have just bought and sold cryptocurrencies on regular marketplaces. Besides, the updated version of the app can be collected from BitMEX as Apk. The app allows you to trade Bitcoin and other digital assets, and it has a user-friendly interface that makes it easy to use. You can also use the app to monitor your account and keep track of your trading activity. A perpetual contract is a type of derivative that never expires. When a futures contract is set to expire, a new one is created with the same terms, and then the old one will be liquidated.

bitmex review

The interface is complex and therefore it can be very difficult for users to get used to the platform and to even navigate the website. BitMEX also offers trading guides which can be accessed here. The BitMEX also offers a knowledge base and FAQs which, although they are not necessarily always helpful, may assist and direct users towards the necessary channels to obtain assistance.

Who Should Use BitMex?

BitMEX states they do not accept US traders in their terms of service. BitMEX recently updated their terms and conditions so they require all customers to provide photo ID, proof of address and selfie. Aside from email tickets and the “Trollbox” you can also contact BitMEX using their social media channels or through their discord server which has a dedicated support channel. The really nice aspect of the service is the website itself, which is packed full of useful information and features. The support center gives a slick rundown of the exchange and helps educate users on complex trades. The exchange doesn’t limit access for any locations, due to the fact that it does not handle fiat currency deposits or trading pairs.

bitmex review

First and foremost, BitMEX should only be used by professional traders in legal countries, as BitMEX is unregulated. Any accounts found operating outside of legal jurisdiction are liable to be frozen, with the funds lost indefinitely. With that said, BitMEX appears to be a viable option for leveraged contracts trading. Once the “Register” button is clicked, the new user will be asked to provide a valid email address, as well as a password, country of residence, and full name. To proceed further, the Terms of Service and Privacy Notice must be reviewed and accepted . From there, BitMEX will send an email to the provided email address, containing a link that will verify the email address, after which, the user can fund their accounts.

Is Bitmex Legit? – License & Security

Through the testnet, users can seamlessly place, execute, and cancel different types of orders. The testnet functions as a separate entity, so its usage entails the creation of a separate account. It functions exactly as the main interface, so it’s also suitable for those who are new to BitMEX, but not to derivatives trading. Perpetuals are relatively similar to futures, with the only noticeable difference being that there is no expiration date for the contracts.

BitMEX has a profit and loss calculator which tells exactly what risks are involved in the traders. When the platform offers leveraged contracts to other traders, withdrawing Bitcoin becomes practical with this calculator. Trading fees are an essential factor to consider while selecting a cryptocurrency trading exchange. To start trading on BitMEX, the user must be aware of the fees imposed while trading larger position sizes.

This is done by providing them with access to the price charts, indicators, and various technical analysis tools. The platform allows you to trade more than 18 cryptocurrencies. The exchange offers high levels of security and privacy for its users. Further, they have been around for quite some time and have been doing well in the digital currency market.

This means that those providing the exchange with liquidity will receive a rebate , and those using the liquidity already available will pay a variable trading fee that is expressed as a percentage. If you do have an interest in crypto-centric futures contracts, BitMEX also facilitates this. All futures contracts are settled on a cash-basis, and depending on the underlying cryptocurrency it is tied to, comes with an expiry period of 7 days, 1 month, or 4 months . But then I learned about leveraged contracts, margin trading, and derivatives. It is a peer-to-peer trading platform that offers leveraged contracts that are bought and sold in Bitcoin. BitMEX receives just two out of five stars on Trustpilot across nearly 60 reviews.

Trading with leverage is very risky and can result in losses. Are you trading at BitMEX and would you like to share your experience? Buy Bitcoin and pay with your preferred payment method (a step-by-step guide on how to buy crypto at Bitvavo). Go to Bitvavo (Bitvavo only charges a fee of 0.25% and you can trade your first € 1.000 for free).

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