Bitmex, popularly written as BitMEX is short for Bitcoin Mercantile Exchange. You probably might have heard of the Chicago Mercantile Exchange, CME. Bitmex is the cryptocurrency version of the CME. In this bitmex review, you will find answers on, how to trade crypto on the bitmex platform, the bitmex scam concern, is bitmex legit, and whether bitmex responds to customer queries.
Bitmex was established in 2014 by bankers Authur Hayes, Samuel Reed, and Ben Delo. Since then, the website has transacted over $33.93 billion worth of bitcoin. It is one of the largest bitcoin trading platforms in the world. The platform has its headquarters in Hong Kong, China. Its owner is HDR Global Trading Limited, a company incorporated in Seychelles. Considering the fact that cryptocurrency trading is unregulated, HDR’s incorporation in Seychelles does not inspire customer confidence.
The official Bitmex site states that their platform is “The Next Generation of Bitcoin Derivatives.” Bitmex allows customers to trade cryptocurrency on margin. Trading on margin means you can buy more cryptocurrency than you can pay. Industry experts call this leverage trading. Bitmex has an option to allow you to purchase crypto, up to 100 times the value of your deposit (1:100 leverage).
Trading on the bitmex platform is simple and easy. First, you need to log on to www.bitmex.com and create an account. You will need a valid email address and choose a preferred password. Bitmex also requires you to fill data such as your country of residence, date of birth, and your full name. Users must be at least 18 years. Also, the bitmex platform does not allow United States residents to trade on their website. Some people use anonymous details to hide their identity.
Once you are allowed to log in, you can now place your first trade. The websites’ user interface is a bit complicated, especially for beginner traders. Currency pairs are located on the left side of the screen. Your open positions are easily viewed on your account’s dashboard. You can also adjust your leverage although different cryptocurrency pairs have their leverage limits. Trading cryptocurrency on leverage has its benefits as well as its risks. If the market goes against your open positions, you might end up losing your entire initial invested amount.
Before you place a trade, you need to deposit funds in your account. Bitmex does not allow deposits in fiat currency. Bitcoin is the only option allowed to settle payments and bitmex fees. The minimum deposit amount is 0.001BTC and can be made at any time. The platform does not put a limit on profit withdrawals. However, since the withdrawals are hand processed, the platform only allows one withdrawal per day. Hand processing of funds provides ample time to detect and cancel any fraudulent withdrawals. The procedure adds a layer of security to your assets.
Apart from trading currency pairs, bitmex offers other trading instruments. They include perpetual swaps, futures, and binary series or predictions. Perpetual swaps work like traditional futures contracts. However, they do not have an expiry date. Only the buyer has the right to cancel the contract at some point in the future. As at the time of writing this article, the BTCUSD perpetual swap is available for customers.
Bitmex futures work just like traditional future contracts. They have a specific date of expiry and settlement terms. Cryptocurrency pairs available to trade as future contracts include BTCUSD and BTCJPY. Binary series or predictions are quite complicated and not recommendable for beginners. Primarily, these transactions involve benefiting from correct forecasts of blockchain events. Bitmex does not allow trading on leverage for these types of transactions.
All deposits that you make into your account are stored in the bitmex wallet. It has a multi-signature feature that secures your funds from hackers. External service providers also verify withdrawals from the bitmex wallet as well as other deposit addresses. The key protection feature also improves your funds’ security.
As the time of writing, there is a bitmex app supported by the Android operating system. However, it is not yet official. A bitmex app supported by other major operating systems such as Windows or MacOS is not available. Bitmex traders rely on the platform’s exchange to trade cryptocurrency and monitor their open trades. To their advantage, the bitmex website is fast, reliable, and can manage multiple trades without delays.
Bitmex Supported Coins
On the platform, you will be able to buy an instrument of your choice. Depending on the type of instrument, you will be allowed transact only supported currency pairs such as bitmex bitcoin core, bitmex bitcoin cash, and other major altcoins. They include DASH, Litecoin, Monero, Ethereum, Ethereum Classic, Ripple, and Zcash.
Payable bitmex fees depend on the type instrument you buy and what cryptocurrency you choose. Perpetual swaps are charged at 0.025% for market makers and 0.075% for market takers. If you decide to trade Zcash, you will be charged 0% if you are a market maker or 0.25% if you are a market taker. All other transactions are charged at 0.025% is you are a market maker or 0.05% if you are a market taker. All futures are charged an additional 0.05% settlement fee.
Bitmex Scam – Is It Legit?
Despite the firm being incorporated in Seychelles, which is an unregulated market, bitmex has well served its users for four years. Besides, the website has not had any major raid by hackers. The platform is a bit complicated, but customer support is readily available. In case of late response to queries, a detailed FAQ section will prove useful for your specific problem. This bitmex review provides relevant answers on concerns including, the bitmex scam and is bitmex legit. Make a decision today, invest in cryptocurrencies on bitmex and secure an early retirement.