BitMEX

What is BitMEX？

BitMEX, established in 2014, is a cryptocurrency exchange known for margin trading and derivatives. Based in Seychelles, it offers over 100 cryptocurrencies for trading. With a daily trading volume exceeding $1 billion, BitMEX charges takers 0.08% and makers 0.02% in trading fees.

Pros and cons

BitMEX excels in these areas:

• Offering a diverse range of over 100 cryptocurrencies, this exchange gives you the freedom to choose according to your preferences and strategies.

• Elevating your trading possibilities, the inclusion of leverage is a distinct advantage that this platform provides to enhance your trading outcomes.

• When it comes to financial matters, low trading fees are always a welcome sight, and this exchange ensures your trades remain cost-efficient.

• The promise of high liquidity ensures that your trading activities are executed smoothly and without unnecessary delays.

• Welcoming traders of all levels, the platform facilitates your entry by setting a low minimum deposit requirement.

• The user-friendly interface streamlines your trading journey, allowing you to navigate seamlessly.

BitMEX lacks these areas:

• An aspect that raises caution is the lack of regulation, which can impact accountability.

• There have been past controversies associated with this platform.

• Users should be aware that customer support might be limited in addressing their needs effectively.

Regulation

BitMEX operates as an unregulated exchange, indicating the absence of oversight by regulatory authorities in its operations and trading activities.

Security

Here are the security and storage measures applied by BitMEX exchange:

• Two-factor authentication (2FA): Bitso requires all users to enable 2FA, which adds an extra layer of security to their accounts. When you enable 2FA, you will be prompted to enter a code from your authenticator app every time you log in.

• Cold storage: Bitso stores the majority of its users' funds in cold storage, which means that they are offline and not connected to the internet. This makes them much more secure from hackers.

Trading Markets

BitMEX offers several trading products:

• Derivatives Trading: This segment is highlighted by perpetual swap contracts and quarterly futures contracts. Perpetual swaps are particularly popular, as they don't have an expiry date and track the price of the underlying crypto asset. Futures contracts are settled on a quarterly basis with specific expiry dates. Derivatives can be traded with up to 100x leverage and are settled in BTC or USDT.

• Spot Trading: Launched in May 2022, this feature enables direct buying and selling of cryptocurrencies. There are two interfaces: a comprehensive one with advanced trading tools and a simpler “convert” interface for straightforward cryptocurrency swaps.

• Instant Crypto Purchases: This service offers a fiat gateway for purchasing cryptocurrencies using Mastercard or Visa cards, bank transfers, or Apple Pay, facilitated through third-party processors Banxa and Mercuryo.

• BitMEX Earn: A yield-bearing feature where users can deposit crypto assets for a fixed period to earn returns. The exact mechanism for yield generation isn't specified, but it likely involves lending to institutional borrowers. Deposits are insured by the BitMEX insurance fund.

These diverse offerings cater to a range of needs, from sophisticated trading strategies to straightforward crypto purchases and investments.

Cryptocurrencies available

BitMEX has a range of 100+ cryptocurrencies available. Beyond this, it provides derivatives trading in addition to regular spot trading. The listing speed for new cryptocurrencies on BitMEX isn't fixed; it varies based on factors like market value, liquidity, and security.

Other Services

BitMEX offers several unique services:

• Partner Programme:

• For Users: This program connects users with trusted tools, enhancing their trading experience. Users can access services from trading software providers, brokers, data providers, and more, contributing to a wider ecosystem.

• For Partners: BitMEX recognizes and rewards its partners with a commercial license. Other benefits for partners include trading rebates and official recognition through joint announcements.

• Affiliate Program:

• General Overview: BitMEX invites individuals to leverage their community and influence to earn commissions and BMEX Token rewards. This program is one of the most competitive in the crypto market, targeting members of the cryptocurrency community.

• Commission and Bonuses: Affiliates can earn up to 45% commission. The program also includes a community bonus, where the payout percentage increases with the size of the affiliate's community. There's no minimum requirement of visitors or followers to start. Additionally, referees of affiliates enjoy a 10% fee discount for six months.

• API Overview:

• API Options: BitMEX offers two types of APIs: WebSocket API and REST API. The WebSocket API provides a complete pub/sub system with table diffing, allowing real-time updates on any available table. The REST API covers authentication, market data, account management, and trading, among other features.

• API Documentation and Support: Detailed API documentation and announcements are available, along with an interactive API explorer that showcases the full capabilities of the REST API.

• API Keys: Comprehensive guidance on API keys is provided, including information on permissions, authentication, and troubleshooting.

• Bug Bounty Program: BitMEX encourages the reporting of security issues through their bug bounty program in collaboration with HackerOne.

  

How to open an account？

The registration process of BitMEX can be completed in six simple steps:

1. Visit the BitMEX website and click on the “Register” button to begin the registration process.

2. Enter your email address and choose a password for your account. You will also need to confirm your password to ensure accuracy.

3. Read and accept the Terms of Service and the Privacy Policy of BitMEX.

4. Complete the captcha verification to prove that you are not a robot.

5. Click on the “Register” button to submit your registration details.

6. Check your email inbox for a verification email from BitMEX. Click on the verification link provided in the email to verify your account and complete the registration process.

Once your account is verified, you can log in to your BitMEX account and start exploring the trading features and options available on the platform.

How to buy Cryptos？

To buy cryptocurrencies on BitMEX, you primarily use Onramper, a third-party provider. BitMEX allows the purchase of Bitcoin, Ethereum, and USDT through Onramper. When trading on BitMEX, you have the option to create different types of orders:

• Limit Order: This lets you set a specific price at which you wish to buy or sell crypto. Your order executes when the market reaches your specified price.

• Market Order: An order executed immediately at the current market prices, suitable for quick transactions without a specific price target.

For detailed instructions, it's recommended to consult BitMEX's support or their website's user guide section.

Fees

BitMEX keeps it simple with a standard fee structure for all derivatives on their platform. If you trade a lot, you get lower Taker Fees based on your trading volume, BMEX staking, and VIP program participation. The discounts can add up, but the lowest Taker Fee is 0.0175%, and the highest rebate is 0.0125%.

ADV trading fees

The trading fees are divided into tiers based on how much trading you do in 30 days. Taker fees start at 0.0750% and get lower as your trading volume increases. For instance, if you trade about $1 million, the taker fee becomes 0.0500%. The more you trade, the less you pay – like for an ADV of over $50 million, the taker fee drops to 0.0250%. Interestingly, if you trade a lot, like $100 million, the maker fee becomes -0.0030%, meaning they give you a rebate. This trend continues for bigger trades, reaching a minimum taker fee of 0.0175% for trading $1 billion, and a maker fee of -0.0100%.

BMEX Staking Discounts

The fees on BMEX are influenced by the BMEX stake and provide additional benefits. As you increase your BMEX stake, you gain extra Taker fee discounts and Maker fee rebates. The stake tiers range from 0% to 1,000,000 BMEX, with discounts ranging from 0.25% to 15% for Taker fees and rebates from 0.001% to 0.004% for Maker fees.

Deposit & Withdrawal

BitMEX doesn't impose fees for deposits or withdrawals. If you're taking out Bitcoin, the network fee depends on blockchain's traffic. The expenses are managed through crypto networks and external banking charges.

BitMEX exclusively accepts Bitcoin deposits, which act as collateral for trades, regardless of the trade's type. The smallest deposit is 0.001 BTC, and there are no withdrawal limits, but they must be in Bitcoin.

Supported currencies including the following:

• Bitcoin (XBT)

• Bitcoin Cash (BCH)

• Ethereum (ETH)

• Ethereum Classic (ETC)

• Litecoin (LTC)

• Ripple Token (XRP)

• Monero (XMR)

• Dash (DASH)

• Zcash (ZEC)

• Cardano (ADA)

• Tron (TRX)

• EOS Token (EOS)

Customer Support

BitMEX supports customers through support tickets and email. However, phone support isn't available, like many other exchanges.

Is BitMEX a Good Exchange for You？

BitMEX may be a good exchange for trders in the following types:

• Traders who are looking for a diversified range of cryptocurrencies.

• Traders who prioritize lower trading fees.

• Traders who want to use up to 100x leverage on cryptocurrency trading.

Has BitMEX experienced any controversy？

BitMEX has been involved in a number of controversies. Here are a few examples:

• In 2019, BitMEX was fined $100 million by the Commodity Futures Trading Commission (CFTC) for violating anti-money laundering regulations. The CFTC found that BitMEX had failed to properly identify its customers and to monitor their transactions. BitMEX settled the fine without admitting or denying the allegations.

• In 2020, BitMEX was accused of market manipulation. The CFTC alleged that BitMEX employees had used their positions to manipulate the price of Bitcoin. BitMEX denied the allegations, but the exchange is still under investigation by the CFTC.

• In 2021, BitMEX was hacked and $30 million worth of cryptocurrency was stolen. The hackers exploited a vulnerability in BitMEX's platform to steal the cryptocurrency. BitMEX reimbursed all of the affected users, but the hack raised concerns about the exchange's security.

Compare with other exchanegs

Features
Trading Fees	Takers 0.08%, Makers 0.02 %	Maker: 0.04%, Taker: 0.075%	Maker: 0.05% - 0.1%, Taker: 0.1% - 0.5%	Up to 0.40% maker fee and up to 0.60% for taker fee
Cryptocurrencies	100+	500+	11	200+
Regulation	Not regulated	Regulated by NMLS, MAS/FinCEN (Exceeded)	Regulated by FSA ( Japan), NMLS, CSSF, DFI, NYSDFS	Regulated by NMLS , FCA, NYSDFS, SEC (Exceeded), FINTRAC (Exceeded)

User Reviews

Michael Brown

October 10, 2022

“BitMEX is a gem for active traders! The wide range of cryptocurrencies available is a major plus, though the trading fees can pinch a bit. The interface is sleek and I like the diversity in order types. On the downside, withdrawal speed could be quicker, and customer support could be more responsive. Privacy measures could also be clearer.”

Jason Miller

September 25, 2023

“Been using BitMEX and it's been mostly smooth sailing. The liquidity is awesome, and the variety of cryptocurrencies to choose from is great. The trading fees are fair, considering the features. The user interface is friendly, but I'd prefer stronger privacy options. Just a heads up, withdrawals took a bit longer than I expected. Overall, it fits my trading needs well.”

Conclusion

In conclusion, BitMEX offers diverse crypto choices, leverage, and low fees. However, its unregulated status and past controversies raise caution. While boasting high liquidity, it struggles with limited customer support. A user-friendly interface and low minimum deposit add appeal but must be balanced with potential drawbacks.

FAQs

Q: What is the Mark Price？

A: The Mark Price is the price at which the contract is marked for Unrealised PNL and Liquidation purposes.

Q: How do I Buy or Sell a perpetual or future contract？

A: In the Trade tab, on the “Place Order” section you can specify the quantity, price and direction.

Q: Does BitMEX offer leverage？

A: Yes, BitMEX offers leverage on all of its products.

Q: Is there a fee to deposit Bitcoin？

A: No, BitMEX does not charge fees on Bitcoin deposits.

Q: Is there a fee to withdraw Bitcoin？

A: No, BitMEX does not charge fees on withdrawals of Bitcoin. When withdrawing Bitcoin, the minimum Bitcoin Network fee is set dynamically based on blockchain load and can be viewed on the Withdrawal Page.

Risk Warning

Cryptocurrency trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.