BitMEX is a peer-to-peer cryptocurrency derivatives trading platform that offers leveraged contracts that are bought and sold in Bitcoin. It is the largest and most widely used margin trading platform in the world.
But before you jump right in, we will address commonly searched queries such as:
- Is BitMEX a safe website to trade crypto?
- Is BitMEX legit?
- Has BitMEX been hacked?
In this BitMEX review, we will touch upon the above questions, what is BitMEX, what it has to offer and it’s a popular choice to trade Bitcoin and other crypto coins.
BitMEX Overview
BitMEX users are able to buy and sell contracts for cryptocurrencies (not the actual coins themselves) combined with margin trading up to 100 times. This means only Bitcoin deposits and withdrawals are permitted. It is a great platform for cryptocurrency digital traders looking to increase their BTC holdings by trading the market.
As the time of writing this article, BitMEX is not registered with any legislative board. However, given it’s wide use globally, it is considered by many traders to be a trustworthy cryptocurrency derivative exchange that takes extensive security measures to protect the digital assets of its users.
How To Trade Crypto Using BitMEX
The process to sign up with BitMEX takes just a few minutes to complete to start finish. Users are not required to undertake a complicated KYC process, take selfies or scan identification documents.
All you need is a valid email address and you can then deposit Bitcoin and start trading immediately! !
To create an account on BitMEX:
- Go to the Bitmex site and and click on ‘Register’ at the top right of the page
- Enter your email, password, country of residence and when complete, click on the Register button.
You will be required to verify the email address. Check the registered email and click the ‘Verify My Email’ link. This will complete the registration process.
That’s it! You have now created your account on BitMEX exchange.
Depositing Funds on BitMEX
Once you have registered an account and signed in, you will need to make a Bitcoin deposit on BitMEX to start trading. Follow these instructions to make a deposit:
- Click on ‘Account’ at the top left of the page that will redirect to your BitMEX wallet
- Click on the green button labelled ‘Deposit’ to show the deposit address link
The deposit screen will show the Bitcoin address. This is the BTC address to send Bitcoin to. Copy the address and paste it in your hardware wallet or wherever you are making a withdrawal from. If you are using a mobile web wallet, then you can scan the barcode to get the deposit address.
Remember, this is a crypto-to-crypto trading exchange only and does not support fiat deposits. So be sure to send Bitcoin (BTC) only to your BitMEX deposit address.
BitMEX Leverage
BitMEX offers leveraged products for Bitcoin, Ethereum, Cardano, Tron, Ripple, Litecoin, EOS and Bitcoin Cash. The amount of leverage varies for each product.
As it is a cryptocurrency only service, you can only use cryptocurrency as collateral to trade with. This means that if you have a leverage of 100x you will need to put up a margin of 1% of the initial notional amount of the trade. So, if the notional on a 10 Bitcoin contract is $10,000, you will have to put up $100 in initial margin.
BitMEX Deposit Methods
BitMEX do not accept deposit of fiat currency. It is a cryptocurrency exchange only. This means new cryptocurrency traders will need to make a Bitcoin purchase first and deposit BTC into the exchange. To do this, you will need to find a spot market exchange that accepts deposits of fiat currency in your country.
BitMEX Deposit / Withdraw Fees
There are no deposit or withdrawal fees. There will be a small Bitcoin Network fee charged for withdrawals that is determined by the blockchain, not BitMEX.
BitMEX Trading Fees
Trading fee’s are a important consideration when selecting a cryptocurrency trading exchange. It becomes even more critical when trading larger position sizes and on a futures exchange where you are paying fees on positions that are much larger than your margin.
BitMEX exchange works on a maker & taker model so the trading fees are dependent on the type of order (e.g. futures or contracts) and the cryptocurrency coin. Users that place a traditional futures BTC order will earn a small compensation, as BitMEX rebates the maker trader 0.025% and charges the taker 0.075%.
How To Trade Using BitMEX
For cryptocurrency traders, the interface is one of the most important considerations. When you first login to BitMEX, you will see that the trading interface is extremely well laid out and intuitive. The top bar is static and provides an easy way to return back to the ‘Trade’ window, view ‘Accounts’, view ‘Contract’ information and more. The interface does appear to be a little dated compared to the newer exchanges such as Bybit.
The charting package is provided by TradingView which are renowned for smooth, intuitive and responsive charts. Traders will be able to make use of advanced trading tools provided by TradingView to refine their trading edge in maximize profits and minimize risk. BitMEX charts offer a wide range of time frames and tools to draw trend lines, add indicators and draw chart patterns to perfectly time a trade order using a market, limit or stop order.
Active positions are displayed at the bottom and can be easily monitored. The asset, position size, entry price, margin, and unrealised P&L are all displayed and update in real time. Pending orders can be displayed by click on the ‘Active Orders’ tab which provides the option to review, modify or delete the order.
More experienced traders will benefit from the market depth chart and order book on the left. The BitMEX margin calculator feature is also great for risk management.
BitMEX Advanced Orders
BitMEX ordering system allows traders to set up their take profit and stop loss using limit orders such as:
- Limit Order (an order is fulfilled if the specified price is reached)
- Market Order (an order is executed at current market price)
- Stop Limit Order (an order is filled once the Stop Price is triggered)
- Stop Market Order (an order that is not visible in the order book until the market reaches a specified price)
- Trailing Stop Order (an order that has a specified trailing value that is used to trigger a market order)
- Take Profit Limit Order (an order is fulfilled if the specified take profit price is reached)
- Take Profit Market Order (an order is fulfilled if the specified take profit at market price is reached)
BitMEX Security
BitMEX runs a first-of-its-kind multisignature deposit and withdrawal system. This means users BitMEX addresses are multisignature and storage of assets are kept offline. In the event of a full system compromise, including web servers, trading engine, and database, there would not be enough keys available to an attacker to steal funds. No private keys are kept on any cloud server and deep cold storage is used for the bulk of funds.
All deposit addresses sent by the BitMEX system are verified by an external service to ensure they contain the keys controlled by the founders. If the public keys do not match, the system is shut down immediately and trading is halted.
For more information on other security measure that are in place on BitMEX, navigate to the bottom of the page and click on ‘Security’.
BitMEX Reviews & Customer Support
BitMEX customer support is contactable using a ticket system. To submit a ticket for technical issues, navigate to the left menu and click on ‘Contact’. The will bring up contact box. Simply enter an email address, subject and body of message and click ‘Submit’ to send to the BitMEX customer support team. BitMEX provides multilingual customer support for English, Chinese, Russian, Korean and Japanese.
The other alternative is to browse through the guides and articles in the ‘Knowledge Base’ section which covers topics on general trading FAQs, deposits & withdrawals, ID verification and security.
BitMEX Supported Countries
BitMEX is available for users to register and start trading worldwide, apart from the United States. This is due to regulations in the U.S and largely outside of BitMEX’s control. There are reportedly ways around this for US customers using a secure VPN. We must note that this is prohibited by BitMEX policy and do not recommend this option.
BitMEX Competitors
BitMEX vs. Binance
Two heavy weights in the cryptocurrency trading arena that are generally focused on different cryptocurrency trading products. Binance has recently introduced margin and futures trading to its exchange to compete with BitMEX.
As most will know, Binance offers a wide selection of altcoins and stablecoins to trade where BitMEX only accepts Bitcoin. Traditionally, BitMEX has been the preferred exchange for professional traders to maximize their BTC returns using up to 100 times leverage and its advanced trading tools. We do expect the competition to increase in the near future as Binance continues to innovate and introduce new trading experiences and products to attract new users.
BitMEX vs. ByBit
Both exchanges are competing in the Bitcoin derivatives trading space and are often compared to each other. There are similarities between the two exchanges however we will focus on the main differences.
Related: Stop Using BitMEX: Trade With These 4 Alternatives Instead
Firstly, BitMEX has a much larger daily volume to boast with and command significant more users and has an established reputation in the market. It does have it’s issues with server overload that can be really frustrating. Furthermore, there is limited new features and innovation being introduced to keep traders interested.
On the other hand, Bybit exchange is a new platform that has over 100,000 traders in a short time.
Bybit offers unique features that are very attractive such as trading competitors, price manipulation control, fast trade speed and low latency, insurance fund and up to 100 times leverage on Etherium contracts.
Frequently Asked Questions
Is BitMEX Legit & Safe?
Does BitMEX Have A Trading App?
The answer is no, there is currently no BitMEX app for Android or iOS mobile phones.
Is There A BitMEX Testnet Or Demo Account?
Yes. BitMEX has released a testnet that allows its users to demo trade cryptocurrency without risk using the BitMEX trading charts. It’s a great way to experience the crypto exchange without having to deposit funds.
Conclusion: Is BitMEX Still Reliable In 2019?
To conclude our BitMEX review, we can say that the exchange offers advanced trading techniques which are suited for professional traders who are familiar with trading volatile risk assets and exposure to margin trading.
The exchange has done a lot of things right to become the worlds largest cryptocurrency derivatives platform to speculate on the market to earn Bitcoin.
In summary, you should trade with BitMEX if:
- You want to trade on the world’s largest derivatives exchange by daily volume
- You want fair and transparent trading fees
- You want a safe and secure trading platform
- You are familiar with using TradingView charts and advanced tool
- You like a reputable and popular exchange
Risk management tools and platform features are very important for any prospective cryptocurrency investor. The following cryptocurrency trading exchanges – in addition to the above exchange – provide advanced trading features, technical indicators and a smooth, mobile-responsive charting interface that will be suited to beginners and professional crypto traders.
