If you have been in the crypto market for some time, BitMEX is a name you have not missed! From being the largest Bitcoin trading exchange in the world to being one of the most controversial trading platforms, BitMEX has seen them all! In this BitMEX review, we will cover everything about the infamous crypto exchange – from its fees to the various lawsuits the exchange has faced through the years.
Since its inception, the platform has had a roller coaster ride, but is it a regulated and safe trading platform? Is the crypto exchange better than its counterparts? If you have these questions in mind, then you’ve come to the right place!
This BitMEX exchange review will give you an overview of what the platform is, its special features, products and more!
What is BitMEX?
BitMEX is one of the largest crypto trading platforms that specialize in Bitcoin trading among cryptocurrencies. The platform mainly caters to the needs of seasoned traders with its leveraged margin trading options and sophisticated product offering.
BitMEX stands for Bitcoin Mercantile Exchange, where traders-both beginners and professionals can trade-in perpetual swap contracts and buy commodity futures. It is a P2P exchange platform with trade volumes crossing $1-$2 million on a daily basis.
The platform was established in 2014 by the famous trio- of Arthur Hayes, Samuel Reed, and Ben Delo. The company is currently based in Seychelles with operational centers in the US and Hongkong and is operated by HDR Global Trading Limited, incorporated under the International Business Companies Act of 1994.
BitMEX is focused on experienced traders who prefer contract trading rather than trading in currencies directly. It frequently introduces innovative products and features that attract the trading community to become part of the exchange.
If you are a Bitcoin loyalist, you will definitely benefit by trading in BitMEX since the platform, as the only exchange, allows a 100x leveraged trading option in Bitcoin. The BitMEX trading engine provides users with high-quality trading knowledge and options to earn the highest returns from the crypto market.
Is BitMEX regulated?
BitMEX exchange is considered to be one of the safest exchanges for margin trading and strictly complies with the AML programs. The company currently operates by religiously adhering to international financial laws and under strict regulatory guidelines.
The platform came under the scrutiny of regulatory agencies in the US a few years back because of its lack of compliance with the country’s financial laws. The founders of the company faced charges for breaking laws under the Bank Secrecy Act.
The platform is not regulated in the US and is not available for US customers currently. In 2020, the Futures Trading Commission (CFTC) and the FSA in the US charged BitMEX for violating anti-money laundering laws and illegally operating a virtual currency exchange.
BitMEX is not regulated as yet, but it has introduced numerous safety measures to ensure the security of its transactions and customers. Since its ordeal with the court in 2020, the same year, BitMEX introduced its User Verification Program to maintain a check and balance of the platform.
Since the Financial Crimes Enforcement Network of the US charged BitMEX with lax anti-money laundering controls, it demands a full KYC verification process under its verification program. Such a program guarantees the elimination of illegal and wilful activities on the platform, thus securing it for legit traders.
How many cryptocurrencies are available on BitMEX?
The platform currently hosts 18 cryptocurrencies and is expected to add more cryptos in the near future. It mainly trades in Bitcoin but continues to add more to its arsenal. Some of the important coins are listed below:
- Bitcoin (BTC)
- Dogecoin (DOGE)
- Ethereum (ETC)
- Cardano (ADA)
- Binance Coin (BNB)
- Bitcoin Cash (BCH)
- Shina Inu (SHIB)
- Litecoin (LTC)
- Polkadot (DOT)
- Solana (SOL)
How to trade on BitMEX?
Trading on BitMEX is a no-brainer, thanks to its excellent user interface. The website has all the important features and actions located on the top navigation menu bar and account settings that enable the highest transparency.
To begin trading in BitMEX, you need to follow four simple steps:
- Register an account with BitMEX
- Verify your account
- Log in to your account
- Start Trading!
BitMEX aims to make the trading experience on the platform comfortable for both novice traders and professionals. It has a list of advanced trading tools that enable professionals to up their game and execute multiple trading strategies at a time.
Register and verify an account on BitMEX
To open an account on BitMEX, register an account using an active Email address. Enter your Email address and strong password.
Confirm your account through the verification Email sent by BitMEX to your Email address. Once that is done, log in to your BitMEX account and complete the KYC process.
The identity verification process is straightforward where you will need to submit a Government-issued ID, take a selfie and fill in other details like your citizenship and how to intend to fund your account.
Depending on the website’s traffic, the verification process may take some time, but it usually takes about a few minutes to hours.
Login to your account and click on “deposits” on the left menu bar. Choose the crypto you want to deposit- XBDT, USDT or ETH. Your deposit address will pop up. Either copy the address or scan the code from your external wallet and hit “Transfer”.
Depending on the network traffic, the deposit may take some time to show in your account. However, it usually takes a few minutes or a couple of hours to show.
Why trade on BitMEX?
Trading on BitMEX involves a whole new level of trading experience since the platform provides innovative and advanced trading products to its customers. There are many features on BitMEX that makes it stand out from the lot. In this BitMEX review we will look at some of its amazing features:
BitMEX Affiliate Program
BitMEX’s affiliate program is a unique way for traders to earn through any kind of referrals they make. Users get lifetime commissions for referrals under three tiers- 10%, 15% and 20%.
The program offers daily payouts at 12:01 UTC, which get collected in your BitMEX wallet. Another interesting feature is the 10% discount users get when they use a referral code.
100x leverage trading in Bitcoin
BitMEX offers one of the highest leveraged tradings in perpetual Bitcoin up to 100x. It offers leverage trading on several other products, too, and the leverage amount varies among different products.
The maintenance margin level and the initial margin levels determine the leverage amount of a product. A few other products that BitMEX offers leverage in are Ethereum, Litecoin, Tron, Ripple, Cardano, Bitcoin Cash, etc.
Products like Ethereum can access leverage up to 50x, while Monero can leverage up to 25x.
For a full walkthrough on this product, feel free to check out our separate BitMEX leverage trading guide.
Ever since May 2022, BitMEX has supported spot trading on the exchange, meaning that you as a user can buy and sell your cryptocurrency. Although BitMEX is in no way able to compete with exchanges like Binance when it comes to spot trading and the available spot trading pairs, it’s still definitely a step in the right direction to not only attract experienced margin traders but to also get regular traders to the exchange.
Futures contracts with cash settlements
Futures contracts are one of the products BitMEX offers to its customers. A futures contract is a derivative product agreement to sell or buy a product at a predetermined price at a specific time in the future.
BitMEX insurance fund
The BitMEX insurance fund is one of a kind in the crypto world. BitMEX introduced the insurance fund with an aim to save its margin traders from losing their assets permanently and becoming bankrupt. The aim is to avoid auto-deleveraging in traders’ positions.
Since the crypto industry market is very volatile, there are chances of the traders’ assets getting liquidated when the numbers run too low. Hence, the purpose of the insurance fund is to give margin traders more certainty that they will receive their expected profits.
The BitMEX insurance fund is the largest in the crypto industry, and its value keeps increasing by the day. It grows from liquidations that were able to get a better price in the market in that specific trading position.
Supported in countries worldwide
BitMEX margin trading is supported in most of the countries located across the globe. There are only a handful of countries where its jurisdiction is restricted due to the country’s international financial laws. Some of the countries where BitMEX services are unavailable are- the US, Cuba, North Korea, Iran, Syria, etc.
However, the good news is that customers can use VON and open a BitMEX account when they travel to these countries. Also, US citizens can use BitMEX through VPN, but the company strictly prohibits this.
The BitMEX app was launched in 2020 to help traders manage their accounts and seamlessly perform trades. The app is available on both Android and iOS devices with all the important BitMEX features and products.
The mobile app features a price index to track the market prices and alerts the user when the market price moves. Therefore, using the BitMEX app helps traders keep a real-time check on the market and begin margin or spot trading on the go!
BitMEX trading bot
The use of trading bots for crypto trading purposes is increasing because of their efficiency and performance. BitMEX allows users to create their own BitMEX trading bot for margin trading using python. However, this task is not for beginners and is more suited for professional traders.
By creating a BitMEX bot, experienced traders will have every opportunity to use the BitMEX platform to the fullest. The bot can keep track of the prices, analyze the market and make investments on behalf of the trader.
The bot will identify assets that are at risk at any moment in time or identify assets that are expected to increase in value through market research. Hence, BitMEX bots are a great way for experienced serious to make an informed investment with minimal human intervention.
The BitMEX Testnet is another remarkable feature available exclusively for BitMEX users. BitMEX introduced a special trading platform called BitMEX Testnet, which is mainly designed for beginners.
The platform understands how risky margin trading can be and hence doesn’t want its customers to go bankrupt or lose large wealth in margin trading. Hence, the BitMEX Testnet acts as a rehearsal ground for novice traders who may have knowledge in trading but lack practical skills.
It equips the user with all the tools and products available on the real platform and acts as a practice zone for beginners. This is a very helpful feature for newbies who want to test the waters and make informed decisions when trading real money.
Is BitMEX legit?
This BitMEX review would not be complete without answering this simple question: Is BitMEX legit? Yes, absolutely! BitMEX is a legit and safe cryptocurrency trading company that is registered in Seychelles. HDR Global Trading Limited owned and operated the trading platform and was established in 2014.
The platform is a wholly regulated trading entity that complies with international anti-money laundering laws. However, it is not regulated in countries such as the US and a few other countries.
Is BitMEX safe?
Yes, BitMEX is one of the safest trading platforms where users can trade without any stress. Of course, the platform has faced security breaches in the past years, but since then, it has enforced strict trading engine security and other security measures to avoid any form of hacks. The platform takes a couple of measures to keep the wallets of the customers secure, such as:
Assets are kept in cold storage
The Bitcoin addresses on BitMEX are multi-signature, and all are kept in cold storage. Also, every Bitcoin that leaves the platform is audited by two employees of the company.
A multi-part computation (MPC) system
The MPC is a multi-signature withdrawal and deposit scheme which was specially designed by BitMEX for its users. This cryptographic tool secures all withdrawals and deposits from the wallet by allowing two or more independent parties to encrypt data pertaining to the action. Such a tool prevents an attacker from stealing crypto assets or funds even if all of the platform’s security systems have been compromised.
Apart from these security measures, BitMEX ensures the security of the trading engine by using trading systems that are used by major banks for high-frequency applications. The systems also use Amazon Web Services’ world-class security, which requires many layers of authentication to gain access.
The 2FA in BitMEX adds a layer of protection from hackers or scammers trying to steal your funds. For any kind of withdrawals, be it when withdrawing Bitcoin or any other cryptocurrency, or trading, the platform asks for the 2FA key, which you must enter to complete the action. Make sure that 2FA is enabled in your account to avoid any mishaps.
BitMEX also guarantees the utmost privacy to its customers since it does not accept fiat currency deposits or in other ways deal in fiat currencies.
Fee structure of BitMEX
Understanding the fee structure of BitMEX is important if you want efficient trading. One of the best parts about trading on BitMEX is that there are no deposit and withdrawal fees. Customers can make any number of withdrawals and deposits throughout the day without paying a penny.
However, there are quite a few different trading fees with different percentages on BitMEX. The trading fees on the platform will depend on the like of trading you are doing. For example, there is a maker fee, taker fee, traditional and Quanto future fees, BitMEX finding fees and more.
The transaction fees or trading fees for every transaction are displayed before making any purchase or trade, thus showing you what you are paying for. However, though the platform has a number of trading fees – both for margin trading and spot trading, they are nominal and won’t make a hole in your pocket.
For example, the taker’s fee is only 0.075% of the commission, while makers can get a 0.01% rebate on every trade, so it can definitely pay off being a BitMEX market maker instead of a BitMEX market taker. Also, the platforms offer discounts on fees for users that have a high average daily trading volume. They are counted based on the user’s 30-day average trading volume.
Pros and cons of BitMEX
This BitMEX review would not be complete without a pros and cons of the exchange.
The platform boasts robust security systems in place to secure the funds of its users effectively. The MPC cryptographic tool is the first of its kind and is known for its multi-layered security approach.
Leverage margin trading
The leverage margin trading option allows users to take full advantage of the market’s volatility and earn high incomes through timed investments. It is a risky affair but has the potential for high profits.
BitMEX finally decided to give the masses what they wanted: spot trading. It’s something we have craved for years to make the BitMEX experience whole, and now it’s here!
No rigorous identification process
Good selection of cryptocurrencies
The crypto exchange has a good selection of crypto trading pairs though they are limited in number, especially when it comes to the spot trading pairs compared to other crypto exchanges.
No deposit and withdrawal fees
The trading fees are low, and all deposits and withdrawals on the platform are for free, apart from a negligible fee when withdrawing Bitcoin.
Available in different languages
BitMEX is not restricted to English speakers only. The platform accommodates customers from different nationalities by making it available in different languages. BitMEX supports Chinese, Korean, Japanese, Russian and English.
Limited deposit method
Currently, BitMEX accepts only three types of deposit methods- Ethereum, Bitcoin and Tether ( ER20)
Not available in the US
BitMEX is not available for US customers since it is not regulated in the US.
Customer support of BitMEX
The customer support service of BitMEX is better than most other crypto trading platforms. All inquiries or complaints are submitted through an email for which a customer support ticket is generated.
The response time of the inquiries is good, with many users being satisfied with the answers they receive from BitMEX customer support. Users can also contact the support team directly through a chat box that is available on the website.
How is BitMEX different from other cryptocurrency companies?
Despite its controversies in the past, BitMEX has emerged to be one of the leading crypto trading platforms in the world, not only deemed so in this BitMEX review but by many independent sources also. It went on to become of the largest Bitcoin derivatives trading platforms in the crypto market.
Its feature of offering 100x leverage trading in Bitcoins is what attracted many bitcoin loyalists to the platform. Over the years, BitMEX has made major changes by enhancing its security measures, such as introducing the User Verification Program. Some of the main competitors of BitMEX include ByBit, Binance, and FTX since they share similar features.
BitMEX Review FAQs
Is BitMEX available in the US?
No, BitMEX is not available in the US since it is not regulated in the country. The trading platform came under the scrutiny of the CFTC (Commodity Futures Trading Commission) for violation of international financial laws. The founders were charged with violating provisions of the Bank Secrecy Act.
Where is BitMEX located?
BitMEX is located registered as a trading company in Seychelles and is owned and operated by HDR Global Trading Limited.
How to withdraw from BitMEX?
Go to your account page and click on “wallet.”
Choose the crypto you want your withdrawal in -XBT (Bitcoin), ETH, or USDT
Enter the destination address and the amount you wish to withdraw, and you are done!
How long do BitMEX withdrawals take?
BitMEX processes all withdrawals before 13:00 UTC for the day. The withdrawal time will depend on the network congestion of that day, which at times can be tough when withdrawing Bitcoin. However, it may take a few minutes to a couple of hours.
How to use BitMEX in the USA?
If you want to use BitMEX in the US, then you need to down VPN on your desktop. Once it has been installed, choose the country of residence as one where BitMEX is not restricted and start trading.
What happened to BitMEX?
BitMEX was founded in 2014 but faced charges by the CFTC and FSA of the US for illegally operating in the country. The founders were charged with violating rules under the Bank Secrecy Act. However, the matter has been resolved now, and since then, BitMEX has revamped itself as a safe and secure trading platform.
BitMEX Review: Final Verdict
The BitMEX review has come to an end and it’s safe to say that BitMEX is a sturdy trading platform that offers multiple trading products to its customers, but it has not been without controversies. Despite its stained reputation in the past due to the founders facing criminal charges by the CFTC, the platform still continues to be one of the best in the market.
It goes without saying that BitMEX has stood the test of time by occasionally introducing innovative products that help its users gain the most out of the crypto world.
The trading dashboard of the platform is loved by professional traders due to its robustness and efficiency. However, BitMEX is better suited for seasoned traders and not much for beginners. Beginners may not be able to maneuver or make full use of the advanced financial products it offers.