BitMEX is one of the biggest derivatives exchanges in the world, however, there are mixed opinions regarding its efficacy and level of security. This is a high-end platform that was established by ex-bankers. There is no doubt that the platform has been prominent among other crypto exchanges but the reasons for its popularity are conflicting.
Its impressive trading volume and debatable history has caused a lot of confusion around the exchange. However, if you are interested in using the BitMEX exchange then you need to know its features, pros and cons to determine how suitable or unsuitable the exchange is for you.
Every new crypto investor or trader should know the details mentioned below.
What to Know About BitMEX?
BitMEX stands for Bitcoin Mercantile Exchange and was formed in 2014. It is a peer-to-peer trading platform that enables the users to offer leveraged contracts to be sold and purchased in Bitcoin. There are several exchanges that are derivatives exchanges, also known to support margin trading.
Despite some ups and downs experienced by the platform, it is an operational platform and offers its services to a vast audience. The team working behind the exchange consists of experienced developers, high-frequency traders and economists. Since the team is versatile, the platform also aims to offer various types of contracts for traders who use the exchange.
Apart from some downsides of the exchange there are some prominent features of the exchange as well that are mentioned in this brief BitMEX review.
Variety of Crypto Assets Supported
One of the highlighting factors of BitMEX mentioned in this brief review is that it offers support to several cryptocurrencies. While looking for a secure and suitable exchange you should always take a look at the availability of assets. So you can determine if the respective platform is offering what you are looking for.
If you are interested in using this exchange then you should know that it offers support to the digital assets mentioned below.
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Dash (DASH)
- EOS Token (EOS)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Monero (XMR)
- Ripple Token (XRP)
- Tron (TRX)
- Zcash (ZEC)
Supports Leverage Trading
Another major feature of the BitMEX exchange mentioned in this review is that it supports leverage trading. This is one of the most popular trading strategies that has grabbed the attention of a vast audience interested in trading digital assets.
There are several platforms that offer support to leverage trading but not all of them are secure or suitable for the users. Leverage trading can be quite risky which is why, interested parties need to be careful while choosing an exchange. And they also need to be properly familiar with the concept of leverage trading before they begin.
BitMEX is a high-end platform that supports leverage trading. And even offers one of the highest leverages, which is up to 100x.
Leverage trading basically allows the traders to borrow funds from brokers and open bigger trading positions. The borrowed amount is called.
Since the traders are able to open bigger trading positions, it comes with high rewards and high risks. Therefore, you need to be careful and learn as much as possible about leverage trading before you begin.
Fee Charged by BitMEX
One of the most crucial aspects of an exchange that you should never overlook is the fee. It charges for making trades, deposits and withdrawals.
Unlike several other crypto exchanges in the market, BitMEX fees is not only fair but straightforward and transparent. Some platforms include hidden and additional charges, which makes the exchange unsafe and can jeopardize your funds, accounts and information. Therefore, you need to check the fee structure of an exchange before using it.
This BitMEX review specifies the fee details as seen below.
- Trading fee for market makers: -0.025%
- Trading fee for market takers: 0.075%
- There is no fee for deposits
- There is no fee for withdrawals
- Minimum network fee based on network’s load
How Much Can You Deposit and Withdraw?
Whether the trade involves Bitcoin or not, BitMEX only accepts deposits in BTC. This is also used as collateral on trading contracts.
While there are no limits for withdrawals, the minimum you can deposit is 0.001 BTC.
BitMEX in USA
This exchange extends its services to a vast audience all around the world. However, due to regulatory strictness in the United States of America. This exchange does not offer its services to the residents.
Therefore, potential BitMEX USA customers should look for a more suitable exchange that is also available in their country or region.
Problems with Liquidation
BitMEX liquidation was one of the problems with the exchange as a few years back the customers were liquidated but not much responsibility was claimed by the exchange.
BitMEX has several impressive features that it offers to the users, however, there have been some problems with the exchange too. If you are interested in using the platform you should know the details mentioned above first.