BITMEX: A RUNDOWN
This cryptocurrency trading platform gives traders the opportunity to purchase and sell contracts for cryptocurrencies executed through margin trading. Though it provides contracts for multiple cryptos, its focus lies on Bitcoin, including deposit and withdrawal of such. Since the system is advanced, it is highly suggested for professional traders.
This exchange primarily caters margin trading, which happens to be complex in structure and technicality. With this, readers are encouraged to scan through the article to have an overview of BitMEX and margin trading. For people who want to acquire knowledge about such, consider going through the following:
- BitMEX Overview
- BitMEX Services
- Currencies and Payment Methods
- BitMEX Fees
- Supported Countries
- Customer Support and Reviews
- BitMEX vs. The Competition
- Frequently Asked Questions
This company was established mainly from collaborative efforts of finance, trading, and web-oriented individuals named Arthur Hayes, Ben Delo, and Samuel Reed. They introduced the brokerage firm back in 2014 and was filed as part of their larger business HDR Trading Ltd. located in Victoria, Seychelles.
Every brokerage company has their frontline of service. In BitMEX’s case, it is popular for offering a derivative platform with a focus on margin trading. Its objective is to trade contracts for cryptocurrencies instead of trading virtual coins. This method traces a crypto price with a leverage ratio of up to 100x.
This framework is volatile in a way that trades may either lead to exponential profits or may result in mounting losses. If this appears to be a confusing concept, it is suggested that one should not subscribe to it as this will only harm the overall trading experience.
Relatively, BitMEX provides different types of contracts, including:
FUTURE CONTRACTS – A deal between traders to either purchase or sell a virtual coin at an agreed price and time.
PERPETUAL CONTRACTS – Its structure resembles futures contracts much in the same manner that it is devoid of expiration or settlement.
UPSIDE PROFIT CONTRACTS – This allows participating in the possible upside of virtual coins. It works through premium payment in which the client is given the privilege to acquire the difference between crypto price and strike price.
DOWNSIDE PROFIT CONTRACTS – This is the counterpart of Upside Profit Contracts in which traders are subject to transact in the downside of virtual coins.
CURRENCIES AND PAYMENT METHODS
BitMEX caters crypto-focused services with Bitcoin as its priority. If Bitcoin doesn’t appeal to clients, they may resort to other cryptocurrencies such as Bitcoin Cash, Cardano, EOS, Ripple, Ethereum, Litecoin, and Tron. Since it has an in-depth focus on Bitcoin, it allows a spot and futures trading method under such as other virtual coins are left with only futures markets as an option.
Presently, BitMEX has not developed fiat currency supported transactions as it is centered in Bitcoin operations. This indicates that earnings and declines are presented through Bitcoin figures regardless of what type of contracts one has subscribed to. In line, withdrawal and deposit methods can only be executed through Bitcoin.
Charges are highly competitive under BitMEX. Its trader-friendly fees make it almost doubtful for clients with a fixed taker fee of 0.0750% and maker fee of -0.0250%. Its fees are convincing as they are marginally lower compared to other exchanges with fees starting at 0.25%. In addition to this, deposit and withdrawal under BitMEX favor clients mainly because of its no-charge policy.
This has authorization from the Republic of Seychelles, making it eligible to conduct its operation. Its services are available across all zones except for the United States, Sudan, Quebec, North Korea, Cuba, Syria, Crimea, Iran, and Sevastopol.
Note that the company does not restrict its accessibility from any locations, but local legislation and authorities may intervene with the service, which is beyond the exchange’s control.
CUSTOMER SUPPORT AND REVIEWS
The only method from which clients can carry out inquiries is through email ticket, which is common in the cryptocurrency industry. What makes this function interesting is it presents comprehensive information and convenient instruments. Its support service provides a settlement of discussion, including the nature of the exchange and how-to guides to help traders execute complicated transactions and trades.
Real-time updates are also available on the company’s official website. From time to time, the website presents announcements and information about the financial world. Moreover, clients may utilize live chat for questions in need of immediate answers. This feature can be found in the bottom right corner.
Though this is not fully directed to BitMEX, it’s still favorable and convenient as it gives clients the opportunity to have an exchange and transparent way of communication with other Bitcoin users who use the same exchange.
Traders must subscribe to exchanges that practice transparency. This can be presented in the form of security information. Through this function, traders may have an idea about the exchange, the system, the execution, and how they secure finances. With security, BitMEX provides security features, including multi-signature withdrawal, that only partners can confirm, cold storage, and amazon web services. These remain to be some of the unique wires that are embedded in the BitMEX system.
Online reviews about BitMEX are few, as the concept of margin trading is not fully understood. More so, narratives about such can only offer superfluous discussion filled with questions and random discourses.
BITMEX AGAINST BITFINEX AND OTHER RIVALS
Exchanges that offer margin trading options are common in the market. The higher the number of such, the tighter the competition is. Thus, BitMEX is in a constant battle against other trading platforms that also offer the same service. Bitfinex and OKCoin are some of its competitors. Though they are close in services, there are differences that clients need to be mindful of.
- BitMEX provides a bigger leverage ratio with a minimum margin. It also provides a little contract amount.
- BitMEX’s variable for margin calculation is the index price compared to others that use the last traded price.. This indicates that a fraudster cannot tweak or rewire the order history to tamper liquidations.
- BitMEX allows traders to choose their preferred leverage ratio through a function called Leverage Slider. The selection process can also be conducted through manual navigation.
FREQUENTLY ASKED QUESTIONS
Issues of accessibility are commonly asked in forums, especially those that concern US customers. To answer, BitMEX opts out from accepting American traders as disclosed in their terms of service. Though this is the case, no filter feature was wired in the system to regulate and validate customers.
Going to its legitimacy, BitMEX has a long, illustrious record of service as HDR Global Trading Limited owns it. The said firm is linked under the International Business Companies Act of 1994 of Seychelles, and it is registered under license number 148707.
With collaborative efforts, BitMEX delivers an optimum solution for margin trading, all while giving traders prime interface and seamless transactions. Its customer-oriented goal is very much evident through helpful customer service features as it gives a convincing range of charges.
In addition, live update features, including notification tabs, real-time consultation outlets, and economic updates, maximize traders’ success in margin trading. These are very crucial as recent financial events and statistics have a direct impact on trading. By providing the features mentioned above, traders are given adequate knowledge, and margin trading can be exercised with ease and convenience.
If margin trading appears to be a comprehensive venture, then one can resort to using Bitmex. However, if this presents a rather taxing and confusing activity, it is recommended to go for a simpler exchange.