An In-Depth BitMex Review (Updated 2022)
In this BitMEX review, we explain why investors and international businesses should use a reliable derivative trading platform like BitMEX.
Financial markets constantly change, but capitalists stick to technologies as well as devices that help them earn immediate revenues. In the marketplace, trading platforms have become the latest way to implement economic decisions. By allowing the most effective tools, these trading platforms are helping investors and also users make money in cryptocurrency markets.
Currently, BitMEX is one of the most popular trading systems in the crypto room. It is used worldwide by Bitcoin enthusiasts. In order for investors to succeed in the global financial markets, the system offers many trading functions.
We have reviewed various aspects of BitMEX in this review. Margin trading and leverage trading features have been examined.
What is BitMex?
BitMEX is a trading platform for experienced traders in margin trading and leveraged trading that is registered under the International Business Companies Act. This platform is used for constructing margin contracts.
The BitMEX platform is one of the most advanced peer-to-peer platforms for crypto trading. The platform runs the best-in-class APIs to provide high-quality trading knowledge and boost investor confidence. By helping people create million-dollar trading accounts, BitMEX exchange offers precision to people.
BitMEX leverages trade contracts to deliver trades more quickly. The platform is reliable and provides liquidity to facilitate Bitcoin trades. The platform is backed by hedge funds from around the world, despite cryptocurrency risks.
XBT-USD is one of the most traded perpetual swaps on BitMEX that revolutionized the crypto industry. BitMEX continues to innovate with perpetual swaps and robust trading engine security.
By using the BitMEX trading engine, people can directly trade currencies under the regulations of the Commodity Futures Trading Commission. Bitcoins and other crypto coins, which are not actual coins, are boosted by it.
BitMEX continues to benefit from high-frequency algorithmic trading for sellers of Bitcoin swaps.
BitMEX’s leverage trades are successful because of its product innovation. The BitMEX leverage slider is used by most people to trade cryptocurrencies on the BitMEX platform. The BitMEX exchange established a 100x leverage in July 2020, in which the risks were managed by HDR Global Trading Limited, a holding company for BitMEX users.
Is BitMEX a Regulated Exchange?
Users of the BitMEX app can trade both fiat currency and crypto currencies. It is one of the safest platforms for margin trading. It is an excellent platform for spot trading, Bitcoin deposits, and maximum leverage.
Federal prosecutors in New York have recently been monitoring BitMEX and three individuals involved in its operations. Apparently, this wholly-owned trading platform violated US trading rules. Regulators including the Commodity Futures Trading Commission alleged this. BitMEX’s reputation for adhering to banking regulations has been damaged by these violations.
The cryptocurrency trading platform BitMEX offers a variety of tools and services to traders worldwide. These services are segmented according to the liquidation price of crypto assets. The BitMEX account can be used to trade fiat currencies, a feature that other cryptocurrency exchanges do not offer.
Several popular cryptocurrencies are available on BitMEX, including BTC, XRP, ETH, BCH, LTC, BCH, and LINK. BitMEX is the only exchange with low fees for deposits and withdrawals for most users. The platform provides leverage of up to 100x, making it one of the best crypto exchanges. Trading fees on BitMEX start at 0.025% and go up to 0.0075% of the trading amount.
Mobile apps are available for deposits and withdrawals on BitMEX’s cryptocurrency exchange. BitMEX also offers a variety of Bitcoin swap contracts, including:
- Bitcoin derivatives can be traded as commodities at predetermined prices via the BitMEX futures contract.
- BitMEX’s perpetual contracts are not subject to any expiry dates because they use margin-based spot trading methods on BTC index prices.
- Upside Profit on BitMEX is a way for traders to profit from the potential upsides of financial instruments such as bitcoins.
- Downside Profit is a smart contract that allows traders to participate in Bitcoin’s potential downside.
How to Start Trading on BitMEX?
Registering and logging in/signing up at BitMEX is a simple process. This process takes a few minutes from start to finish on the website. KYC is a bit complicated and users can choose to go through it or not. Traders with valid email addresses can scan and upload their identification documents. As a result, one can deposit Bitcoin and begin trading on BitMEX immediately.
Here are the steps to open a Bitmex account
- Click on the ‘Register’ tab in the top right corner of the Bitmex website.
- Enter your details and your email address to create a password.
- To register, select your country of residence and complete the form.
- Verify the email address by clicking on the link BitMEX sent to the registered email address.
- Follow the instructions to complete the registration process.
- A new BitMEX account is now created.
Making a Deposit on BitMEX
By following the steps below, registered BitMEX users can sign in and deposit bitcoins instantly:-
- To access your account, click on the ‘Account’ link at the top left of the page.
- Click on the BitMEX wallet link.
- Enter the deposit address and click on Deposit.
- Enter the Bitcoin address and click on “Send Bitcoin to”.
- In the “Withdrawal from” field, paste the address from the best crypto hardware wallet.
- The BitMEX mobile web wallet can also be used to deposit using barcodes.
How Do You Trade on BitMEX?
The BitMEX exchange is a platform with an intuitive user interface for addressing the most important issues in crypto trading. There is an appropriate layout on this website for trading. In the top trading bar, there is a static display that allows easy navigation throughout the ‘Trade’ window. The ‘Accounts’ page and ‘Contracts’ information can be viewed easily. Similarly, the user interface appears essential, but it includes all the features of popular exchanges such as Bybit.
The charting package of TradingView supports the BitMEX exchange. By using these charts, traders can take full advantage of advanced trading tools. TradingView provides refined trading activities. When used within the required timeframes and market indicators, it can maximize profits and minimize risks.
Traders can draw chart patterns and time their trade orders perfectly, helping them to issue accurate market orders, limit orders, and stop orders.
A bar at the bottom displays the current trading positions. The information displays position size, margin, entry price, and pending orders. Under the ‘Active Orders’ tab, users can review all upcoming orders and modify or delete them quickly.
The market depth chart is a favorite of more experienced traders. Additionally, the order book to the left contains the BitMEX margin calculator, which is quite useful for risk management.
Fees on BitMEX
For leveraged contracts and perpetual swaps, BitMEX charges a settlement fee. According to former banking experts, this fee is mandatory in accordance with recent crypto banking regulations. BitMEX also provides a complete fee breakdown based on the cryptocurrency used for trading.
While selecting a cryptocurrency exchange, fees are an important factor to consider. In order to begin trading on BitMEX, the user must be aware of the fees imposed on larger position sizes. Futures exchanges pay fees with favorable market positions, where the margin is larger.
BitMEX operates on a maker & taker model. The maker fee on trading applications is a small compensation of 0.025 percent. The platform’s low fees help it stand out in comparisons such as BitMEX vs. Bybit or BitMEX vs. Binance.
Withdrawals and deposits for small Bitcoin amounts are free. Also, the Bitcoin Network fee is tiny and is only charged for withdrawals made on the blockchain and not on the BitMEX ecosystem. The full fee structure of BitMEX exchange can, however, be found here.
Calculator for BitMEX
Traders at BitMEX can use a profit and loss calculator to determine the exact risks involved. Only Bitcoin trades can be calculated using this tool. It is possible to withdraw Bitcoin with this calculator when the platform offers leveraged contracts to other traders.
The calculator allows you to check the following things:-
- A higher exit price than the entry price.
- The entry price is lower than the exit price.
- An exit price that is lower than the entry price.
BitMEX provides powerful trading features through an Application Programming Interface (API). It aligns the security information on high leverage trades with this feature-rich REST API.
Streaming tool that uses WebSocket API to sort and analyze markets based on user data. BitMEX’s website features API functions, making it an advanced trading application for top-tier crypto traders.
Similar to the popular HamsterBot, BitMEX uses an automated trading engine. It is developed with the Python programming language. The BitMEX bot helps traders quote instantly and continuously in two-sided markets.
As a trading bot, the BitMEX Market Maker also supports several API keys to provide a good starting point for implementing new plans and strategies.
Does BitMEX Have Insurance Fund?
The BitMEX insurance fund plays a crucial role in its success. Unprecedented volatility is stirring the markets in both traditional and cryptocurrency markets. Through this fund, BitMEX aims to alleviate this chaos.
Traders are prevented from deleveraging (ADL) their assets with this last line of defense. Profitable traders may lose their liquidated jobs if their positions are automatically deleveraged. The fund prevents such scenarios.
Cryptocurrencies Supported by BitMEX
Bitcoin is the only currency accepted by BitMEX. On the platform, traders can also trade Bitcoin and other top cryptocurrencies using different indices. US dollars or other fiat currencies cannot be deposited. Cryptocurrencies that can be deposited are listed below:
- Cardano (ADA)
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- EOS Token (EOS)
- Litecoin (LTC)
- Ripple (XRP)
Countries supported by BitMEX
BitMEX is a registered company in the Republic of Seychelles. BitMEX is accessible to almost all users around the world, with the exception of the United States. Because of regulations in the United States and primarily outside of BitMEX’s control, this is the case. There is reportedly a way around this for US customers who use a VPN. BitMEX policy prohibits this, and BitMEX does not recommend this. To use or trade crypto in the US, BitMEX recommends finding another crypto exchange.
Available Leverage on BitMEX
The BitMEX exchange offers leveraged products for Ethereum, Bitcoin, Cardano, Ripple, Tron, and Litecoin. On the other hand, it offers the lowest leverage for EOS and Bitcoin Cash. The degree of leverage varies depending on the product. Leveraged trades can only be made with cryptocurrency.
Traders who use leverage of 100x need to place Bitcoin worth 1% of the initial trade amount. Leverage would be set at $100 of the initial margin for a 10 Bitcoin contract worth $10,000.
BitMEX Futures Contract
The BitMEX Futures Contract is an agreement that serves as a derivative product in trading. Trading at a predetermined price is made possible with this agreement. Clients can specify a future date and even get an early settlement.
Payments are made in cash or cryptocurrency. The Futures Contracts at BitMEX are also integrated with other products. These contracts are settled in cash on the BitMEX wallet.
BitMEX does not require 100% collateral margin for futures contracts. Traders can use up to 100x leverage on some of these BitMEX contracts to speculate on the future value quickly and accurately.
How Does BitMEX Testnet Work?
The BitMEX testnet is a simulator that lets you test trades with tangible outcomes and mirror your trades. It was created for new users to familiarize themselves with the BitMEX trading experience.
Placing trade orders, executing them, and canceling some orders will allow them to practice how leverage varies. Different order types and sizes are available on the BitMEX testnet.
The BitMEX Testnet is an independent product that requires a separate registration process. BitMEX.com account holders need to create a new account on the BitMEX Testnet as well. Users also need to deposit simulated versions of Bitcoin coins, called testnet bitcoins, in order to trade on this testnet.
They are free and distributed through faucets across the Internet and have no monetary value. A user’s digital wealth and actual trades are not affected by any deposit or trade on BitMEX Testnet.
How safe is BitMEX?
BitMEX has several safe trading features. It uses bank-like security with advanced data protection measures. This helps in maintaining the highest standard of business safety for BitMEX and its customers.
The customer assets are also stored in cold wallets. During the trading exchange, the platform uses multiple protection layers for encrypting data. This implementation is used in multi-sig withdrawals and validated with the Two Factor Authentication (2FA) process.
By following these multiple verification measures, users can confirm withdrawals and change account details securely on BitMEX.
Security for BitMEX
The security of BitMEX is bolstered by a multi-signature deposit and withdrawal system. Users can use this system to protect their BitMEX addresses with multiple signatures.
All user assets, such as Bitcoin and private keys, are stored offline. The BitMEX web servers will not be compromised if there is a full system compromise.
A tracker is also used to protect the movement of private keys in the database. Data is kept away from cloud servers. Encrypted crypto funds are stored in deep cold storage.
Customer Support at BitMEX
Bitcoin and other cryptocurrencies are not easy to protect. The company’s customer support team can handle any query, from concerns about Bitcoin wallets to high-risk withdrawals.
In addition to providing information, the support team assists traders in managing different cryptocurrencies effectively. The support team separates other cryptocurrencies from Bitcoin assets. The platform’s key features are fully explained.
When traders do not have enough funds to trade, the support team lets them know the minimum amount to trade. Supported countries are listed in the support section.
There are no fees associated with this information. Traders can contact customer support via the Contact tab.
Review of BitMEX: What We Think
After reading this BitMEX review, you can access the best tools and experience a unique trading service with this platform. Users of this exchange are able to access advanced trading techniques. It is the best crypto exchange for professional traders and those willing to deal with volatile risk assets. The platform maximizes margin trading exposure.
BitMEX will be used extensively for trading derivatives of Bitcoin, the largest cryptocurrency. Speculating on the market with this app will also ensure that you earn Bitcoin profits.
In summary, BitMEX offers large daily volumes of derivatives trading. Overall, it’s a popular cryptocurrency exchange.