We find many cryptocurrency exchanges that focus on making it easy for new investors to enter the crypto world. However, there aren’t many cryptocurrency trading platforms out there that are built for experienced traders. In this article, we will have a look at BitMEX, an advanced cryptocurrency trading platform that specializes in margin trading.
High leverage. BitMEX is one of the very few margin trading platforms that allows its users to leverage up to 100X. This enables users to maximize their profits further.
Low fees. The fees that you would need to pay on BitMEX are very low. When compared to the high profit you can potentially earn on the platform, the fees charged are negligible. Market makers, in turn, earn money whenever their orders are executed.
Profession charts. Professional charts are essential for technical analysis. BitMEX has these on the same platform. So, you can quickly analyze a market and make decisions accordingly.
Security. BitMEX follows all the latest security measures such as 2FA, multi-signature wallets, etc. Even after searching hard, there were no reports of a security breach on this 6-year-old platform.
Not beginner-friendly. BitMEX is a platform that suits experienced traders and not new crypto traders.
High risks, high rewards. Any trader should be careful in their BitMEX transactions since the high leverage can make or break your portfolio.
BitMEX was never designed to be beginner-friendly, as newbies are not its target user.
The security options, available charts, and trading methods in the platform will greatly help expert traders in their journey to earn more cryptocurrency. The fees are also low, but there is a great need to be careful as leverages and contracts incur significant gains or losses.
Overall, BitMEX is an excellent platform for those who want to expand their knowledge and expertise in cryptocurrency. If you are a trader who wants to benefit from different trading methods, then this is the best site for you.
BitMEX Review Summary
BitMEX is not your regular cryptocurrency exchange. On this trading platform, you will be trading cryptocurrency contracts instead of actual cryptocurrencies. At the end of the contract, all profits or losses you endure will be settled in Bitcoin.
The best part about BitMEX is that you can trade on margin, i.e., leverage money that you do not own to buy cryptocurrency contracts. This helps to maximize the total profits that you can make on the platform.
BitMEX is a trading platform that suits more experienced trades. While margin trading sounds great when you look at the profits, the losses that you will have to endure if the market goes against your price prediction is also high.
Let us now have a look at the services that BitMEX has to offer its users.
How to Get Started with BitMEX
To register with BitMEX, you need to go to the site and click on the register button. In there, there is a need to input your place of residence, e-mail address, as well as chosen password. Afterward, you will be routed to your account.
However, you can not make deposits or withdrawals instantly unless you participate in the verification program. This entails every user to send a copy of an official ID, which will give them the privileges of making deposits, trading, and receiving affiliate bonuses for referrals.
BitMEX is a trading platform that focuses mainly on margin trading. This means that only part of the original investment is your own money. A portion of it is leveraged. You will be able to see many altcoins on the platform.
The altcoins that you see on BitMEX are not real altcoins. They are contracts that have been programmed to mimic the price of the real altcoin. This means that when you buy one of the altcoins on BitMEX, you are purchasing a contract and not the altcoin itself.
The services offered by BitMEX are:
In a futures contract service, you would promise to buy or sell a particular cryptocurrency for a particular price on a future date. If your predicted price in the future is correct, you would be able to get a considerable profit from the same.
A perpetual contract is very similar to a futures contract. The only difference between the two is that a perpetual contract does not have an expiry. So, you can decide to end the contract whenever you want.
Upside Profit Contracts
On the trading day, the trader would make a price prediction for a particular contract and pay the premium. On the day of expiry of the contract, if the price is on the upside of the premium paid, the user will receive a profit equal to the difference between the cryptocurrency price and the price at the time of maturity.
If the cryptocurrency price is not positive during maturity, then no payment happens, and the user will lose all his initial premium.
Downside Profit Contracts
This is precisely like upward profit contracts. The only difference is that with downward profit contracts, you earn a profit if the price of a particular cryptocurrency falls. The profit gained is a function of the price you paid and the price of the cryptocurrency at the time of the expiry of the contract. With the downward profit contract, you will earn profit even if the cryptocurrency market takes a hit.
This feature is restricted to Bitcoin only. You will be able to trade Bitcoin, usually like on any other trading platform. Bitcoin is the only asset on BitMEX that has both a spot as well as a futures trading market. So, you need to make sure that you are trading on the market of your choice when doing so.
All futures contracts are settled in terms of Bitcoin and not the altcoin contracts that just expired.
Suppose you had bought a Cardano contract on BitMEX. On the expiry of the contract, you would typically expect to receive Cardano itself. However, you will receive the equivalent amount of Bitcoin instead.
These contracts add high volatility to the market. You will see high price variations. Therefore, BitMEX is more suited for experienced traders who are more composed during times of high volatility.
Overall, these services are not meant for beginners in the craft. They are created for expert traders since the risks are high. Regardless of the risk, possible earnings are also capped at a high value, making it a high-risk, high-reward platform. The risks can always be minimized with proper knowledge and predictive skills of the volatile market.
BitMEX is an all-cryptocurrency exchange. So, you will not find an option to convert these digital assets to fiat currency. Bitcoin is the main currency used on this platform. Whenever any contract expires, all the settlements are made in terms of Bitcoin itself. This can then be withdrawn to your wallet address as well.
Alternatively, BitMEX also supports many altcoins such as Litecoin, Ripple, Ethereum, Bitcoin Cash EOS, Cardano, and Tron. So, you can also deposit and withdraw these digital assets from the platform.
Amazing Offerings of BitMEX
BitMEX is one of the few margin trading platforms that allow users to take leverage of up to 100X. This means that you would be able to trade for crypto worth $10,000 by using your own money of just $100.
The profits that you earn when you leverage 100X are incredibly high. However, I would never recommend you to take leverage of 100X. While the potential profits you can earn are high, the loss you might incur is also high.
If everything goes right, you will end up with a considerable sum of money; else, you would risk the entire money you invested.
Yet another innovative feature offered by BitMEX is the live chat feature. This is not your typical chat with the customer care live chat service. On BitMEX’s live chat, you will be able to chat with other traders on the platform in real-time.
I have used this as a knowledge base. If you are looking for quick answers, ask in the chat, and one of the experienced traders would help you understand.
BitMEX also has active social media handles. The subreddit is an excellent source of knowledge for anyone wanting to try out margin trading.
This is one of the best parts of the BitMEX platform. If you are an experienced trader, then you would be able to make hefty profits. Compared to the profits, the taker fees of 0.075% is negligible.
The maker fees get even better. The maker fees are just -0.025%. Yes, you read that right. The negative fees indicate that a maker earns extra rebates whenever his order gets filled. So, you are earning more money for being a maker on the platform.
Deposits and withdrawals on the BitMEX platform don’t incur any additional charges. So, the whole fee structure is impressive from a trader’s point of view.
Customer Support Service
So far, BitMEX has managed to impress us much with all the great features that you would normally not expect from an exchange. The customer support offered by this platform is pretty much in line with the standards followed by all the other trading platforms.
BitMEX offers standard e-mail support. You can create a ticket explaining your issue, and the BitMEX support team would help you resolve it quickly over e-mail.
However, the platform is very well designed, that one would hardly need to contact the customer care service. BitMEX also has a complete overview of the platform, which would help traders understand the various services offered.
This is present in a section called references, which also contains tutorials for using the BitMEX platform the right way. If you ever feel lost on the platform, head over to the references section, which will solve most of your issues.
When I initially started margin trading on BitMEX, I would head over to the references section before placing any trades. This helped me understand margin trading better. So, I’d suggest that even you go through the contents of the References section on the website.
Frequently Asked Questions About BitMex
In BitMEX, a perpetual contract is a product that does not have an expiry, meaning that it can be held for as long as a user wants it. This type of contract behaves like spots, and it tracks the Index Price very closely.
BitMEX offers leverages on all of its products. However, the amount of leverage that one can have depends on the product that they choose. Keep in mind that BitMEX offers up to 100x leverage on Bitcoin or USD contracts.
No, BitMEX does not collect fees for deposits and withdrawals. The only fee you need to pay for is the Bitcoin Network Fee taken from the blockchain processing. When it comes to trades, BitMEX charges a trading fee for every completed and accomplished contract.
Features such as large margins and low fees would win the hearts of every single trader out there. With services designed to help an experienced trader maximize his profits, BitMEX has been an excellent margin trading platform for the past six years.
The professional charts and the live tickers would help experienced traders make quick decisions on the platform. This also means that you would not have to go to another platform just for technical analysis.
While all these features are great for an experienced trader, a new crypto trader can easily get lost on BitMEX. The platform can be very confusing to understand in the beginning. If you are investing in cryptocurrency for the first time, then BitMEX should not be the platform you try out first.
BitMEX Review – January 27, 2021
BitMEX offers high volume, cheap fees, fast transactions, and large leverages. This makes it an ideal earning spot for those who want to trade at a high level. Yes, the learning curve is a bit steep, but mastering everything on the site is worth it. Support is also excellent, and the interface has a great design.
Review from Pau
BitMEX Review – October 11, 2020
A colleague forced me to try BitMEX for a change. I never thought that it would change my life as I use it! I have more freedom in my trades compared to other exchange systems. However, I needed to be careful due to the leverage system, as it could mean that I could lose or gain more money than I have. For cryptocurrency experts, BitMEX is a great tool.
Review from Lucas
BitMEX Review – July 17, 2020
Among the platforms that I have used, BitMEX is the only one with 100x leverage, margin calls, and Bitcoin contracts. I can also earn more through referrals, and affiliate payout is amazing and fast. The mobile app design is also topnotch, and it greatly helps in navigating when not using a computer. A downside of the site is its risky nature, and it is very high-risk, high-reward.
Review from Eli
BitMEX Review – October 6, 2018
It has a very comprehensive guide on how to begin your first trade contract. Yes. The learning curve is very steep but taking time to master the platform is very beneficial since the leverage is high. Transactions fees are lower compared to other platforms, so this is an advantage for any traders. Once you get the hang out of it, you will surely earn more.
Review from Basti
BitMEX Review –March 19, 2020
I first had trouble understanding the futures feature. However, guides on the site helped me learn more about it, and I quickly caught up on what to do with it. It is an excellent feature that helped me earn more through contracts and trades, and I am happy that I stumbled upon the platform.
Review from Zeus
BitMEX Review – January 2, 2020
I do not know why some fees on this site are a bit higher than others. I wish that all platforms have equal pricing. That would be more beneficial for users like me. Also, I kind of dislike the user interface of the app and the website; I wish you would stick to simpler colors. Other than that, transactions are good and fast on the site.
Review from Joseph
BitMEX Review – February 19, 2020
I HAD A TRADE WHICH WAS NOT FUNDED! CONTACTED CUSTOMER SUPPORT BUT THEY ARE SLOW TO RESPOND!
Edit: the issue is now resolved, and I got my money. Thank you to the customer service representative for being patient with me. I appreciate it!
Review from Rey