BitMEX Review: The Best Platform For Traders Who Love Leverage Trading
BitMEX, which stands for Bitcoin Mercantile Exchange, is a platform for trading bitcoin derivatives. Users may trade leveraged contracts that are based on the value of some of the most well-liked cryptocurrencies available today.
The fact that it is a derivatives market implies that you are trading contracts that BitMEX has made and given, not actual Bitcoin versus the USD. Instead, you are trading derivatives of the actual Bitcoin market.
HDR Global Trading LLC established the platform in 2014. While it was founded in Seychelles, the corporation is based in Hong Kong. The platform’s creators, Arthur Hayes, Samuel Reed, and Ben Delo, have prior banking sector expertise.
The cryptocurrency only supports BTC deposits; no other fiat or cryptocurrency is permitted. As a result, traders on BitMEX are only seldom required to submit to KYC verification.
BitMEX is a trading platform created for knowledgeable traders in margin trading and leverage trading. It is registered under the International Business Companies Act. On margin trading, perpetual contracts are created using the platform.
One of the most sophisticated peer-to-peer systems for cryptocurrency trading is BitMEX. It uses top-notch APIs to deliver superior trade information and increase investor trust. By assisting users in setting up a trading account worth a million dollars, BitMEX exchange provides customers with accuracy.
BitMEX’s leveraged trade contracts provide faster transaction delivery. The exchange’s platform is dependable and offers liquidity to enable deals in bitcoin. Hedge funds from around the world support the platform despite the dangers associated with cryptocurrencies.
One of the most popular permanent swaps on BitMEX, XBT-USD, improved the crypto sector. The BitMEX team keeps pushing the envelope with novel perpetual swaps and strong trading engine security.
This BitMEX review will go through the key aspects of the exchange so you can decide whether the exchange is the best option for you or whether you’re better off using a different reputable cryptocurrency exchange. Here is a brief summary of the exchange’s advantages and disadvantages.
| Pros | Cons |
| No KYC required | Not available to US-based customers |
| High-performance trading engine and security | Can only deposit BTC |
| Professional derivatives trading platform | User data leak in 2019 |
| Up to 100x leverage on Bitcoin and Ethereum | Only crypto-to-crypto trading |
| Deep liquidity for Bitcoin perpetual | Lack of regulatory compliance |
| Low trading fees |
BitMEX is known as one of the top cryptocurrency margin trading exchanges. With smaller leverage on other cryptocurrencies, it provides trading with up to 100x leverage on Bitcoin. Ethereum, Litecoin, Ripple, and Tron are some of the other well-known cryptocurrencies on the site, however, they are always introducing new ones.
For seasoned users, BitMEX is renowned for providing a trading platform of institutional caliber.
Beginners could find the platform’s professional setup difficult to use, but experienced traders are likely to find all the capabilities they want to carry out a variety of crypto derivatives trading techniques.
The trading platform’s standout features include the following:
It is not surprising that BitMEX offers a wide range of contracts, given that it is one of the top derivatives exchanges:
Traditional Futures Contract – A derivative product that includes an agreement to buy/sell the instrument at a predetermined price and specified date in the future. It is usually physically settled, but in this case, it’s settled in BTC.
Perpetual Contacts – Similar to a traditional futures contract but has no expiry date. These contracts act almost like a spot market such as BTC/USD and, therefore, usually trade close to the underlying price of the asset. The funding for the contract occurs every 8 hours, and you will pay/receive funding depending on what kind of position (short or long) you’re holding.
BitMEX Upside Profit Contract – Allows buyers to participate in the potential upside of the underlying instrument. The buyer pays a premium and is entitled to receive the difference between the underlying price and the strike price on the maturity date.
BitMEX Downside Profit Contract – Similar to upside profit contracts, however, it allows buyers to participate in the potential downside of the underlying instrument.
There are a total of 8 cryptocurrencies available to trade on BitMEX. The only coin accepted as collateral is Bitcoin and all trades are settled in Bitcoin. There are no FIAT pairings on BitMEX and everything is priced to the USD price (or BTC price in some cases) of the underlying asset.
On the Traditional Futures platform, you can trade the following cryptocurrencies with the corresponding maximum leverage:
When it comes to perpetual contracts, you can trade the following cryptocurrencies with the corresponding maximum leverage:
The BitMEX exchange charges a settlement fee for perpetual swaps and leveraged contracts. Former banking professionals claim that this charge is required under current crypto-banking legislation. In accordance with the cryptocurrency being used for trade, BitMEX also offers a detailed cost breakdown.
An important consideration when choosing a cryptocurrency trading exchange is the trading costs. The user must be informed of the costs levied when trading greater position sizes before they can begin trading on BitMEX. With advantageous market positions and a high margin, this futures exchange assists in paying fees.
The maker & taker approach is used by the BitMEX cryptocurrency exchange and mobile app. The maker charge for trading applications is a negligible 0.025% payment. When compared to other exchanges, such as BitMEX vs. Bybit or BitMEX vs. Binance, the platform performs well because of its cheap costs.
Little Bitcoin transactions are subject to no deposit or withdrawal fees. The minuscule Bitcoin Network fee is only applied to withdrawals performed directly on the blockchain, not through the BitMEX ecosystem. To learn about the whole BitMEX exchange charge structure, it is suggested that you visit this page.
In the world of cryptocurrency exchanges, BitMEX has some of the lowest costs. Price producers get a 0.01% refund on each deal, while price takers only pay a 0.05% commission.
According to the table below, high-volume traders are given decreased price-taker fees. Fee reductions are determined by a user’s 30-day Average Daily Volume (ADV).
| Tier | 30-Day ADV (USD) | Taker Fee |
|---|---|---|
| 0 | <5,000,000 | 0.050% |
| B | ≥5,000,000 | 0.040% |
| M | ≥10,000,000 | 0.035% |
| E | ≥25,000,000 | 0.030% |
| X | ≥50,000,000 | 0.025% |
The exchange has a profit and loss calculator, which tells exactly what risks are involved for the traders. Only Bitcoin trades can be calculated with this tool. When the platform offers leveraged contracts to other traders, withdrawing Bitcoin becomes practical with this calculator.
The calculator is used for checking:
BitMEX utilizes an automated trading platform like the well-known HamsterBot. Python programming was used to create this trading bot. The BitMEX bot aids traders in providing quick and consistent quotes in two-sided marketplaces.
The BitMEX Market Maker supports a number of API Keys as a trading bot to provide users with a decent place to start when implementing new ideas and trading techniques.
The success of BitMEX depends heavily on the insurance fund’s function. Unprecedented volatility in both traditional and cryptocurrency markets agitates investors. By providing assistance through this fund, BitMEX seeks to reduce this confusion.
In order to stop traders from automatically deleveraging (ADL) their assets, it serves as the last line of defense. Profitable traders may be adversely affected by the automated deleveraging of positions, which may force their dissolved businesses into bankruptcy. This fund guards against such occurrences.
Without round-the-clock client service, an exchange of the highest caliber would fall short, and BitMEX provides it via a variety of channels.
Customer help from the exchange is available via email and support tickets. It does not provide phone help like many other crypto exchanges.
You may contact the team through Weibo, WeChat, IRC, Telegram, and the exchange Help Ticketing System.
Although high-quality trading platforms were scarce in the early days of cryptocurrency, experienced traders commended BitMEX for its professional trading experience. Nevertheless, as time went on, a growing number of BitMEX customer complaints accumulated.
Several former users have even sued the exchange, claiming that the exchange manipulates the market and executes deals against its customers.
In addition, BitMEX was able to function without having to confirm the users’ identities or get licenses in the nations where many of its clients were headquartered because of the exchange’s incorporation in Seychelles.
As a consequence of intentional violations of the Bank Secrecy Act (BSA) and U.S. Financial Crimes Enforcement Network (FinCEN) rules, the Seychelles-based exchange was assessed a $100 million fine by the CFTC and the FinCEN in 2021.
Moreover, in the Southern District of New York in 2022, all three of the exchange’s founders entered guilty pleas to charges of breaking the Bank Secrecy Act and conspiring to break the Act. The exchange no longer employs them.
The fund is kept in cold storage by BitMEX, which also uses multi-signature wallets and employs at least two people to check each withdrawal.
In addition, BitMEX uses a multi-party computation (MPC) mechanism, which enables two or more parties to perform a function on encrypted data without allowing any information other than the intended result to leave the encrypted domain. BitMEX asserts that even if all of the systems are hacked, the MPC prohibits an attacker from taking money.
BitMEX is an extremely safe and secure exchange since it has never been compromised.
But, there is one significant error that needs to be highlighted. All users were at risk in October 2019 due to a data leak that exposed all users’ email addresses. This poses a serious privacy risk to users and makes it simple to identify exchange dealers, which raises serious concerns.
We can only presume that the exchange has improved security measures to ensure that anything like this will never occur again.
Although BitMEX is frequently regarded as the best futures exchange, consumers also have access to a variety of alternative choices.
The recently introduced new Binance Futures platform is one of the most notable interests. Users are able to take up to 125x leveraged positions, which allows for bigger leverage on Bitcoin contracts. In addition, exchanges like Bybit, Deribit, and OKX are also its competitors.
A very reliable Bitcoin leverage trading exchange with a good reputation is BitMEX. Users should feel secure knowing that their money is probably safe because it has never been compromised. Yet, the most recent data leak may worry some consumers.
To sum up, this review, using this platform, will provide you access to the greatest tools and a distinctive trading experience. It is reasonable to state that this exchange gives its consumers access to sophisticated trading methods. It is the finest cryptocurrency exchange since it is designed for experienced traders and those who are willing to deal with volatile, risky products. The exposure to margin trading is maximized on this platform.
Consumers will frequent BitMEX and make great use of this exchange platform for trading Bitcoin futures. This program also aids in market speculation for certain Bitcoin gains.
In conclusion, you can trade with the exchange for significant daily derivatives exchange volumes. It is a widely used exchange in the cryptocurrency industry. Hopefully the BitMEX Review article has helped you understand more about the project.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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