Bitcoin Mercantile Exchange popularly called BitMEX is a derivatives exchange created by a selection of trading, finance, and web-development experts. It allows leveraged trading on crypto-based instruments. It is not a traditional exchange, such as Kraken and the likes. BitMEX’s mother company is known as HDR Global Trading Limited. It is registered on Seychelles, which really does not give room for much of trust.
Trading at BitMEX allows several essential specifics. Most importantly, your trading results and account balance are always measured in Bitcoin. While this is in-line with the company’s central philosophy, it may pose some inconveniences for those who want to make systematic trading profits. The regular traders reasonably also hedge their exposure. BitMEX allows experienced professional Bitcoin traders to trade on margin. Leverage of about 100x is available to users for Bitcoin and a variety of altcoins for spot and futures markets.
From its establishment in 2014 till now, BitMEX has not suffered any significant hacks. This is always a positive sign, although not an assurance for future stability.
There is not much user commentary on BitMEX given the fact this is a somewhat complicated exchange. There are, however, virtually no complaints about the company’s service.
The verification process at BitMEX is a simple one, which consists only of verifying user’s email address. After passing through this short and straightforward verification process, there are no limits for trading. Traders must be at least 18 years old to sign up on its website.
However, it is worth noting that traders from the United States are not allowed on BitMEX, as it uses IP checks to confirm that users are not in the United States. While some US-based traders have bypassed this with the use of a VPN, it is not advised that people living in the US register to the BitMEX service, especially given the fact that there are numerous exchanges out there ready to service US customers and function within the US legal framework.
BitMEX provides a web-based trading platform. The charting functionality is rendered by TradingView, which means the technical analysis enthusiasts will be pleased.
BitMEX like most crypto-exchanges provides a vertically arranged order book, where traders can quickly switch between the different products, and place their order. Apart from that, the platform has an excellent visual appeal.
BitMEX currently charges 0.025% for the market makers and 0.075% for the market takers. There is also a 0.05% settlement fee for futures.
Regarding leverage offered, as noted earlier, BitMEX gives up to 100% leverage, with the amount of leverage ranging from product to product. However, you should bear in mind that trading at the highest leverages is quite complex and is meant for professional traders who are familiar with speculative trading.
There are additional fees for iceberg / hidden orders. A hidden order pays the taker fee until the entire hidden quantity is fully executed. Then, the order will become normal, and the trader will get the maker rebate for the non-hidden amount.
Deposits and Withdrawals
Deposits or withdrawals are free on BitMEX. When withdrawing Bitcoin, however, the minimum Network fee is determined by the blockchain load. The only costs, therefore, are those of the banks or the digital currency networks.
BitMEX only allows deposits in Bitcoin, and hence Bitcoin serves as collateral on trading contracts, even if the trade involves Bitcoin or not. The minimum deposit allowed is 0.001 BTC. There are no withdrawal limits, but users can only withdraw in Bitcoin. All users need to do to make a withdrawal is insert the amount to withdraw and the wallet address to complete the transfer.
You can replenish your trading account 24/7, but withdrawals are processed by hand at a recurring time once per day. This process helps increase the security levels of users’ funds by giving extra time to cancel any fraudulent withdrawal requests, as well as avoiding the use of automated systems & hot wallets which are sometimes more prone to compromise.
Is BitMEX Safe?
BitMEX is renowned for having strong levels of security, and a system for risk checks. It uses multi-signature deposits and withdrawal plans which can only be used by BitMEX partners.
This exchange will be a reliable choice for you if you want a market-leading cryptocurrency derivatives trading platform.
For those looking for a more straightforward exchange to buy and sell some Bitcoin, you should rather check out some more user-friendly options.