BitMEX Review – Can You Trust This Crypto Broker?

Summary

If you’re at the cryptocurrency marketplace you may possibly come across BitMEX. BitMEX is a cryptocurrency market for trading. With lots of helpful tools and features, BitMEX might possibly be what you’re searching for. Wait, before signing up, browse our comprehensive review of BitMEX and decide yourself.

As Forex has drawn attention to the cryptocurrency distance, BitMEX has gained fame among the most useful markets for deal trading. But, those searching for spot-trading should be aware: This is a derivatives marketplace, since it addresses the trading of derivatives trades just. For individuals thinking about contracts, BitMEX provides a number of their most useful leveraged trading uncovered in the room.

BitMEX

BitMEX History

BitMEX (Bitcoin Mercantile Exchange) was set in 2014 from HDR Global Trading LTD, consisting of Arthur Hayes, Ben Delo, along with Samuel Reed. The three based company from Victoria Seychelles at 1994, now works in Hong Kong. Hayes, the CEO, is a banker with experience in trading equity derivatives. Reed, the CTO, has extensive working experience with web software, whereas Delo, the CSO, has experience construction trading platforms such as J.P. Morgan and IBM. Together, they’ve assembled a futures exchange that’s been collecting attention in the past couple of decades.

BitMEX Main

BitMEX Main2

BitMEX Product Offerings

BitMEX provides numerous distinct contracts to trade at Bitcoin; Litecoin; Ethereum; DASH; EOS; Cardano (ADA); TRON (TRX); and Ripple (XRP). Currently, Bitcoin is currently extended in endless contracts; 1 month or two 4 month futures; along with 7-day UP/DOWN contracts. The rest of the token offerings (LTC; ETH; DASH; EOS; ADA; TRX; and even XRP) are provided in 1-month futures only.

The contracts are a bit confusing to novices, therefore it’s better this platform be utilized by experienced traders just, to conserve riches and protect against fiscal disaster. For a fast guide: Perpetual contracts don’t have any expiration date, and also the amount imitates the location trade amount and trades near the benchmark indicator amount. Perpetual contracts come up to 100x leverage throughout BitMEX. Conventional Futures contracts are still a concession to buy/sell a stock in a pre-arranged time. BitMEX UP and DOWN contracts enable traders to potentially capitalize on marketplace movements (either up, or down), by paying for the consumer the volatility of their contract amount minus the strike amount. Maximum loss on UP/DOWN contracts is bound just to the sum which has been invested, since there aren’t any liquidation amounts or gross forecasts.

BitMEX features leverage on all contracts except UP/DOWN contracts, but users will need to look after these perimeter balances/trade care to make sure their capital aren’t liquidated. A first margin is important, that’s the sum of margin needed to start up a posture. Care margin is the total amount of margin needed to preserve the position available. Minimum deposit required per trade will be dependent on carrying $1 divided by the present amount of Bitcoin, times 1 percent ([$1/Current BTC Price] # 1 percent ).

It should be noted that BitMEX uses cold-storage for all capital; there clearly was not any hot pocket in usage storing cryptocurrency. This helps to keep users’ funds safe from outside attacks.

Opening an Account on BitMEX

The process of opening an account on BitMEX is very straightforward and easy to obtain. To start, all one has to do is click the “Register” button found at the top right-hand corner of BitMEX’s homepage, or the top header of any of their other webpages.

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It should be noted that BitMEX is currently open to customers worldwide, except for citizens of the United States of America; Crimea; Cuba; Iran; North Korea; Quebec; Sevastopol; Syria; and Sudan. In July 2019, the CFTC opened an investigation on BitMEX regarding the allowance of U.S. citizens to trade on their platform. General consensus holds that, despite BitMEX having IP address detection software in place on the platform, many forbidden citizens can bypass the block using a VPN. This option is not recommended, as user funds could be liquidated should BitMEX discover a user is violating their terms of use. The gamble is not worth the risk considering there are similar exchanges that may operate within the customer’s residing country’s legal framework.

BitMEX Register

Once the “Register” button is clicked, the new user will be a demand 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 (check the box). 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. BitMEX allows users to deposit and withdraw in BTC only; there are no fiat on-ramps, or wallets that support other cryptocurrencies.

Users can then add 2-Factor Authentication (2FA) to their accounts for an added layer of security. A device (such as a cellphone) uses an authentication application (such as Authy, or Google Authenticator), which broadcasts a unique numerical code every 30 seconds. The proper numerical code must be entered within the 30 second time limit, or the required number would change to the newly broadcasted number.

BitMEX Fees

There are no fees for deposits or withdrawals (except the standard network fee it costs to send BTC to a wallet), nor does it charge a fee for funds received or paid. For trading, BitMEX operates on a Maker/Taker fee format. Hidden orders (known as “Iceberg Orders”) pay a Taker fee until the quantity hidden is fully executed, which then functions as a normal order. The fees on BitMEX differs medially the types of contracts offered, and the different cryptocurrencies tradable with those contracts.

The fee schedule for Perpetual Contracts is as follows:

BitMEX Perp Fees

The fee schedule for Traditional Futures Contracts is as follows:

BitMEX TF FeesThe fees for BitMEX UP/DOWN Contracts are as follows:

BitMEX UpDown FeesBitMEX Platform and Tools

BitMEX TradeThe trading platform on BitMEX is fairly straightforward and simple to use, though the amount of information on the window may appear to be a little congested. At the top header of the trading window, the user will find the current amount of information for all of the contracted cryptocurrencies offered. Below, the customer is able to switch medially the different cryptocurrencies/contracts by clicking any of the tabs available. To the far left side of the screen, the customer is able to input the quantity and amount of their order, as well as choosing the order type (Limit; Market; Stop Market; Stop Limit; Trailing Stop; Take Profit Limit; Take Profit Market). Below this area, in the equal column, is an adjustable meter, allowing customers to adjust the amount of leverage used on the trade. Below the leverage meter, customers will find contract details about the particular contract the user may be looking to trade.

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To the right of the order-taking column, users will find an Orderbook, displaying the various open buy/sell amounts all users have currently placed. Next to the Orderbook, is a candle chart, with a depth chart beneath it, displaying past and current marketplace information. To the right of the charts is the trade history, displaying the history of every trade executed.

Towards the bottom of the page, the customer will find their individualized trading history, which shows information such as open trades; locked positions; active orders; stops; and fills.

If the realtime contracts trading platform is a little overwhelming, BitMEX offers a live trading simulation (BitMEX Testnet) built on Bitcoin’s testnet, allowing users to trade fake money on a virtual exchange. This is a very handy feature, as it allows potential new users to obtain a grasp of how the exchange works without having to sacrifice real personal wealth. The Testnet is a little hard to find, as it looks nearly identical to the real BitMEX. However, the Testnet is found by clicking “Want to take to simulated trading? ” on the main BitMEX page, or by clicking here.

BitMEX TestNet

BitMEX also has chart integration with Sierra Chart, NinjaTrader, Tradingview, Coinigy, and Cryptowatch. This allows users to use technical analysis on BitMEX’s charts, outside of BitMEX. Tools such as these are essential in any trader’s toolkit. For those interested in bot trading, BitMEX has their own Market Maker, based on Liquidbot, allowing for 2-sided marketplaces. BotVS, one of the largest cryptocurrency bot traders in China, also supports BitMEX.

BitMEX Supported Chart

BitMEX Sierra

BitMEX Ninja

BitMEX Supported Bots

To top it all off, BitMEX also has a Trollbox, similar to that of HitBTC, which allows users to chat with each other, whilst making trades on the platform. This is a good way to pass time while waiting for trades to execute, as well as getting to know other traders on the platform. This can generally be found towards the bottom of most BitMEX pages.

BitMEX Customer Service

Regarding issues of customer service, BitMEX has a few services in place to aid customers with whichever problems may arise, or for more information regarding the services and products BitMEX offers. For starters, customers should check the FAQ, which hosts a large repository of commonly demand questions – and answers to those questions. A Contact section allows users to open up a support ticket with BitMEX’s support in the case that the FAQ does not provide the needed information. The team also has an IRC (Internet Relay Chat) channel, allowing customers to speak with a customer service representative in real-time. BitMEX also has accounts at both Reddit and Twitter. This information is found at the bottom footer section of every BitMEX webpage.

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What Makes BitMEX Unique?

For any trader interested in trading contracts, it’s hard to ignore an exchange like BitMEX. Though they do not offer spot-trading, their leveraged contracts should suffice for any serious (and professional) trader. Their integration with several charting software companies allow for technical analysis outside of the platform. BitMEX also uses cold storage for all funds, to help ensure the safety of their users’ funds. The simulation marketplace is actually a superb tool to help beginners find out the way the derivatives marketplace works, and how it is different in the spot-trading marketplace.

Is BitMEX Trustworthy?

First and foremost, the BitMEX should just be utilized by professional traders in legal nations, as BitMEX remains untrue. Any reports found operating outside legal authority are apt to be suspended, together with the capital lost forever. That said, BitMEX is apparently a feasible option for leveraged trading.

In November, 2019, BitMEX unintentionally leaked email addresses (and other delicate advice ) by not only adding a blind backup protocol with their subscriber list before sending out their emails. Afterward, their Twitter accounts have been hacked within precisely the equal moment. Tweets were shipped outside, saying that the market had been murdered, and that users have to draw their capital before it had been too late. BitMEX recovered control of these Twitter, however, the damage had been achieved. The end result of the hardship still hangs from the accounts, as BitMEX asserts no longer than email addresses were leaked, and then that once the mistake was detected, you can forget mails were shipped minus the protocol in place. Many have theorized whether the sensitive information was already obsessed with the dark web. In any event, this is an extremely regarding accident, and ought to be taken under consideration before launching a merchant account together with BitMEX. Additional advice is seen in BitMEX’s Blog.

Conclusion

For a derivatives marketplace, BitMEX gets got the amount, leverage and an extensive selection of distinct contracts that may make it possible for any acute, professional trader to assemble their pile of Satoshis (Bitcoin). Most rely upon BitMEX and its particular stage; many others, alternatively have promised to own a secured account (perhaps as a result of being out of legal authority ). Since BitMEX is untrue, it’s recommended that users perform their own research in researching whether the stage is valid to use inside their own nation. In light of their recent accidents at BitMEX in November, 2019 (customer email addresses getting discharged, and Twitter accounts being hacked), all possible prospects are cautioned to consider proper measures ahead.

BitMEX

2.4

Rating

2.4/5

Pros

  • High grip over multiple contracts
  • Funds saved in Cold Storage pockets
  • Exchange has a number of the maximum volume inside the business.
  • Fairly simple to utilize

Cons

  • Does not Provide spot-trading
  • Unregulated
  • Users have reported suspended accounts
  • Limited Number of cryptocurrencies provided
  • Unexperienced traders can Shed everything or even cautious

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