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BTC BitMEX Crypto Derivatives Trading Platform Review

BTC BitMEX Crypto Derivatives Trading Platform Review – BitMEX is a market-leading cryptocurrency derivatives exchange that allows traders to purchase and sell crypto-asset futures and perpetual. Potential consumers may be put off by the exchange’s lack of regulatory compliance and its founders’ criminal charges in the United States.

Introduction to BTC BitMEX Crypto

BitMEX is a leading cryptocurrency derivatives exchange where traders and investors may purchase futures and perpetual swap contracts on a variety of cryptocurrencies.

The Seychelles-based crypto-only trading platform, which was founded in 2014, has established itself as a major crypto derivatives exchange, with deep liquidity and a professional trading dashboard.

BitMEX is the place to go for experienced and professional traders wishing to implement crypto derivatives trading techniques.

BTC BitMEX  Company Overview

The Bitcoin Mercantile Exchange (BitMEX) was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed with the goal of providing a professional-grade Bitcoin derivatives trading platform.

BitMEX, which is run by HDR Global Trading Limited in Seychelles, soon became the favored leveraged trading platform for Bitcoin dealers.

BitMEX introduced perpetual leveraged swap contracts on Bitcoin in 2016, allowing traders to trade Bitcoin futures with up to 100x leverage and no expiration date. BitMEX became one of the world’s most popular Bitcoin exchanges thanks to an innovative new crypto derivative.

BTC BitMEX Crypto
BTC BitMEX Crypto

BitMEX has not been without controversy, despite the trading platform’s advanced user experience and product offering.

Former clients have filed many lawsuits accusing BitMEX of engaging in market manipulation, money laundering, trading against its customers, and violating international compliance rules. BitMEX was also charged by the Commodity Futures Trading Commission (CFTC) in 2020 for illegally operating a virtual currency exchange and violating anti-money laundering rules while conducting business out of the United States and enabling US consumers to trade on the platform.

BitMEX is now attempting to shed its tarnished image and aspires to become the world’s largest licensed crypto derivatives exchange. BitMEX implemented identity verification for all users in 2020, signaling the start of the exchange’s new approach.

Cryptocurrencies Available on BitMEX

The crypto derivatives exchange supports 18 digital currencies and tokens, including but not limited to:

  • Bitcoin (XBT)
  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Binance Coin (BNB)
  • Cardano (ADA)
  • Polkadot (DOT)
  • Solana (SOL)
  • Shiba Inu (SHIB)
  • Avalanche (AVAX)

Trading Experience

BitMEX is known for providing experienced traders with an institutional-grade trading platform.

While novice traders may struggle with the platform’s professional layout, seasoned traders will almost certainly find all of the capabilities they want to perform a wide range of crypto derivatives trading techniques.

The following are some of the prominent characteristics of the trading platform:

  • The capacity to trade bitcoin with leverage of 100x.
  • Market data and trade execution with low latency
  • APIs for crypto trading and pricing that are cutting-edge
  • The ability to invest idle funds in BitMEX Earn up to a ten percent annual percentage rate (APR).

BTC BitMEX  Fees

BitMEX has some of the lowest costs in the cryptocurrency trading world. Price takers pay a 0.05 percent commission on each trade, while price producers get a 0.01 percent refund.

As shown in the table below, high-volume traders earn decreased price taker fees. Discounted costs are calculated using a user’s average daily volume over the previous 30 days (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%

BitMEX does not charge fees for deposits or withdrawals of Bitcoin. Withdrawals are subject to only Bitcoin network fees.

Deposits of Tether USD are also free of charge. BitMEX does, however, levy USDT withdrawal fees, which fluctuate depending on Ethereum network fees.

Security

BitMEX uses multi-signature wallets, keeps all funds in cold storage, and ensures that all withdrawals are audited by at least two staff.

BitMEX also uses a multi-party computation (MPC) technology, which allows two or more parties to complete a function on encrypted data without revealing any information other than the desired result. Even if all of BitMEX’s systems are compromised, the MPC, according to BitMEX, prohibits an attacker from stealing cash.

Opening a BitMEX Account

It’s fairly simple to open a BitMEX account. You’ll need to provide your email address and a password to get started.

After that, you’ll finish the identification verification procedure. To be verified, you must provide a photo of your ID, a presence capture video or selfie, your location, a statement of citizenship, and information about how you want to pay your account.

Businesses can also create corporate accounts on BitMEX.

It’s worth noting that BitMEX isn’t available in the United States. Customers in Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, and Sudan are also not served by the exchange.

Also prohibited from using BitMEX are residents of Seychelles, Bermuda, Hong Kong Special Administrative Region of the People’s Republic of China, Japan, Ontario, Quebec, Burundi, Central African Republic, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Libya, Mali, Palestine, Somalia, South Sudan, Western Sahara, and Yemen.

Customer Service

BitMEX offers customer care via email and support requests. It, like many other crypto exchanges, lacks phone support.

Customer Satisfaction

While experienced traders lauded BitMEX’s professional trading experience in the early days of cryptocurrency when high-quality trading platforms were few and far between, the list of BitMEX user complaints has become longer and longer over time.

On Trustpilot, BitMEX has received only two out of five stars from approximately 60 reviews. While some evaluations appear to be fraudulent, a number of users have complained about market manipulation, difficulties withdrawing funds, and a convoluted user experience. Former users have even filed lawsuits against BitMEX, claiming that the exchange participates in market manipulation and trades against its customers.

Furthermore, because BitMEX was founded in Seychelles, it was able to operate without having to authenticate its users’ identities or get licenses in the jurisdictions where many of its customers resided.

As a result, the CFTC and the US Financial Crimes Enforcement Network (FinCEN) fined the Seychelles-based exchange $100 million in 2021 for knowingly breaking the Bank Secrecy Act (BSA) and FinCEN regulations.

In addition, in 2022, all three of the exchange’s founders pleaded guilty in the Southern District of New York to charges of breaching the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act.

They are no longer employed by the exchange.

Pros Explained

  • BitMEX is a professional derivatives trading platform that was designed by seasoned traders to provide an institutional-grade crypto derivatives trading experience.
  • Leverage up to 100x on Bitcoin and Ethereum: Depending on the asset, BitMEX users can leverage up to 100x.
  • Deep liquidity for Bitcoin perpetual futures contracts: BitMEX has some of the market’s deepest liquidity for Bitcoin perpetual futures contracts.
  • BitMEX offers very low trading fees as well as a maker fee rebate.

Cons Explained

  • BitMEX users cannot deposit fiat cash into their trading accounts, so they can only trade crypto-to-crypto.
  • The Seychelles-based exchange is unregulated, and its founders are facing criminal charges in the United States for breaking the Bank Secrecy Act.
  • BitMEX is not available to clients in the United States since it is not regulated in the United States.

Account Management

BitMEX offers a web-based trading platform as well as an Android and iOS mobile app.

The BitMEX mobile app does not include all of the exchange’s goods and capabilities, but it does let users manage their trading positions while on the road.

BitMEX offers business accounts in addition to individual consumer accounts. Individualized solutions, such as 24/7 customer service, consultation, or institutional crypto strategies, are available to corporate clients.

How BitMEX Compares to Other Cryptocurrency Companies

BitMEX pioneered Bitcoin’s perpetual futures contracts, quickly establishing itself as one of the crypto market’s major Bitcoin derivatives trading platforms. However, BitMEX has a reputation as more of a casino than an exchange due to its early lack of KYC processes and ability to take highly leveraged positions.

While the Seychelles-based company has been working to improve its image in recent years, introducing an identity verification process in 2020 and parting ways with its founders who are facing criminal charges, other crypto exchanges have been able to capture a significant portion of the crypto derivatives market.

Binance, ByBit, FTX, and Huobi Global are among BitMEX’s primary competitors. Each of these systems has tools and capabilities that are similar to BitMEX.

Methodology

Investopedia is committed to assisting anyone considering bitcoin investments in making well-informed and safe decisions. We are dedicated to providing unbiased reviews of the best cryptocurrency exchanges for investors of all levels of our readers.

Security, costs, the number of cryptocurrencies accessible, and other factors were considered when evaluating exchanges. We also assessed whether the exchange is governed by a centralized authority or is completely decentralized. Our entire bitcoin exchange methodology is available for scrutiny, including the review process and weighted data points.

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