BitMEX Review: Home of the 100x King

Overview

BitMEX is a well-known platform in the world of cryptocurrency trading, offering a range of features designed for both beginners and experienced traders. Established in 2014, BitMEX has made a name for itself by providing options for leveraged trading, spot trading, and a variety of other trading tools. With an institutional-grade trading experience and a transparent pricing system, BitMEX has attracted a large number of users to its platform.

Since its inception, BitMEX has been at the forefront of innovation in the crypto trading space. The platform was one of the first to offer bitcoin futures trading, allowing traders to speculate on the future price of bitcoin without actually owning the asset. BitMEX has also introduced several other innovative trading products, such as perpetual contracts and options trading, which have helped to establish it as a leading player in the crypto derivatives market.

Features and Functionality

Leverage Options and Limits

At BitMEX, you have access to a variety of leverage options, allowing you to enhance your trading experience and take advantage of market movements. With up to 100x leverage on Bitcoin and lower levels provided for other cryptocurrencies, you can amplify your potential profits or losses, depending on your trading strategy and risk tolerance. Remember to trade responsibly and be cautious when employing leverage, as it can lead to significant losses if not properly managed.

Trading Pairs and Instruments Offered

BitMEX offers a diverse range of trading pairs and instruments, giving you the freedom to trade over 60 crypto pairs with deep liquidity and tight spreads. Major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are available, alongside popular tokens like Tether and various altcoins. This extensive selection ensures that you can diversify your portfolio and capitalize on emerging trends in the cryptocurrency market.

Order Types and Execution Options

The platform supports a wide variety of order types, enabling you to execute trades according to your specific needs and preferences. Maker fees come with a -0.01% rebate, while taker fees are set at 0.075%, ensuring competitive pricing throughout your trading experience. Some of the order types you can utilize on BitMEX include:

These flexible options allow you to tailor your trading strategies and maintain better control over your positions in the ever-changing cryptocurrency market.

Mobile App and Platform Usability

BitMEX's mobile app keeps you connected to the market even when you're on the go. It's available for both Android and iOS devices and provides a seamless user experience with the same functionality and features available on the main web-based platform. The app features real-time market data, charting tools, and support for various order types, ensuring you never miss an opportunity in the fast-paced world of cryptocurrencies.

To sum it up, BitMEX offers a comprehensive range of features and functionality, designed to meet the needs of seasoned traders and newcomers alike. With a powerful trading platform, diverse selection of instruments, and advanced order types, you can enjoy a professional and customizable trading experience tailored to your preferences and risk appetite.

Fees and Costs

Trading Fees and Commissions

At BitMEX, you'll encounter different trading fees and commissions depending on whether you're considered a maker or a taker. Maker fees are typically lower, since you're effectively adding liquidity to the market by placing limit orders below the current best offer (for buying) or above the current best bid (for selling). On the other hand, taker fees apply when you place market orders that immediately get executed, effectively removing liquidity from the market.

For most contracts, the maker fee is -0.025%, while the taker fee is around 0.075%. It's worth noting that the maker fee is actually a rebate, which means you'll receive a small portion of the transaction cost back when you fulfil the role of a maker!

Funding and Withdrawal Fees

Depositing funds into your BitMEX account is free. However, when you're ready to withdraw your balance, there's a withdrawal fee associated that varies depending on the Bitcoin network congestion at the time of processing the transaction.

Margin Requirements and Liquidation Fees

BitMEX is well-known for offering margin trading, allowing you to trade cryptocurrency derivatives with leverage. This can significantly magnify your potential profits, but it also comes with higher risks. As a result, the platform requires you to maintain a specific margin balance in your account to cover potential losses on your open positions.

Margin requirements vary depending on the specific contract and the amount of leverage you're using. If your account margin balance falls below the requirement, your position will get liquidated. It's important to be aware of the margin requirements and manage your risk accordingly.

In addition, when a forced liquidation occurs, a liquidation fee is applied to your account. This fee varies on a per-contract basis as well. It's recommended that you review the contract specification for each derivative you're planning to trade and fully understand the associated margin requirements and liquidation fees.

Final Thoughts

Security Protocols and Measures

BitMEX focuses on providing a secure trading environment for its users. The platform utilizes multi-signature wallets, two-factor authentication (2FA), and cold storage to protect user funds. BitMEX ensures all withdrawals are processed manually and requires multiple authorizations before releasing funds. As a trader, you should always enable 2FA to enhance the security of your account and personal information.

History of Hacks or Security Breaches

Although security is a top priority for BitMEX, it has faced a few controversies in the past. However, none of these events resulted in the loss of user funds or any major security breach. Stay informed about any platform's security history before entrusting your assets to them.

Regulatory Compliance and Transparency

BitMEX, like many other crypto exchanges, operates in an unregulated environment, which has led to some scrutiny by regulatory bodies such as the Commodity Futures Trading Commission (CFTC) regarding alleged market manipulation and money laundering practices. Despite this, BitMEX co-founder Ben Delo has expressed commitment to ethical practices and full compliance with regulatory authorities.

Frequently Asked Questions

What are the trading fees on BitMEX?

The trading fees on BitMEX vary depending on the type of contract and your position as a maker or taker. Typically, makers receive a rebate while takers pay a fee. To see the exact fee structure, you can refer to their detailed fee schedule.

Is BitMEX a legitimate platform?

BitMEX is a well-established and legitimate platform for trading cryptocurrency derivatives. Since its inception, it has gained a strong reputation among traders for offering advanced trading features and high leverage. However, it's essential to keep in mind that trading on leverage carries significant risks, so you should exercise caution and trade responsibly.

Does BitMEX require KYC verification?

Yes, BitMEX requires KYC verification for all users. This process involves providing personal identification documents and proof of residence. Their KYC process aims to ensure compliance with global anti-money laundering (AML) regulations and enhance platform security. For more information, you can visit BitMEX's KYC policy page.

Can BitMEX be used in the United States?

BitMEX does not provide services to users in the United States due to regulatory restrictions. If you are a US resident, you will need to look for alternative platforms that allow cryptocurrency derivatives trading within the country.

What countries permit the use of BitMEX?

BitMEX offers its services to users in many countries globally, excluding some jurisdictions due to legal restrictions. A comprehensive list of supported and restricted countries can be found in their Terms of Service.

What is the minimum withdrawal amount on BitMEX?

The minimum withdrawal amount on BitMEX depends on the specific cryptocurrency you are withdrawing. Each cryptocurrency may have different minimum withdrawal amounts, so it's essential to check their withdrawal policy before requesting a withdrawal.

What are you waiting for? Give it a try and register an account now!