BitMEX Review 2020: The Crypto Perpetual Contract Platform

Details

Broker BitMEX
Website URL https://bitmex.com
Founded 2014
Headquarters Republic of Seychelles
Support Types Email
Languages English, Chinese, Russian, Korean, Japanese
Trading Platform Web Platform
Minimum 1st Deposit 0.0001 BTC
Bonus 10% off - no KYC
Leverage 100X
Spread Exchange
Free Demo Account Yes
Regulation Not Regulated
Fee Info Make Fee : -0.0250%, Taker Fee: 0.0750%
Deposit Methods Bitcon
Withdrawal Methods Bitcoin
Number of Assets 8
Types of Assets Perpetual & Futures: Bitcoin (XTBUSD), Bitcoin Cash (BCHUSD), Ethereum (ETHUSD), Ripple( XRPUSD) Futures Only: Cardano, Litecoin, Ripple, EOS Token, Tron
Option Types Futures Contracts, Perpetual Contracts
US Traders Allowed No
Mobile Trading Yes
Tablet Trading Yes
Overall Score 70

Pros

  • Deep XBTUSD liquidity
  • Offers high leverage, up to 100x
  • No KYC
  • Has API Trading
  • BitMEX Testnet

Cons

  • They have a limited number of markets
  • Limited UI Platform Features
  • BTC is the only deposit option
  • No US clients accepted

Founded in 2014, BitMex is short for Bitcoin Mercantile Exchange, and as the name might imply it is a cryptocurrency trading platform. This Bitmex review will explain all there is to know about this company, such as the BitMEX calculator, BitMEX fees, and the BitMEX testnet platform.

We invite you to read all about BitMEX trading in this article.

What is BitMEX

As mentioned above, BitMEX stands for Bitcoin Mercantile Exchange, and it is the right way to explain the focus of this crypto broker.

BitMEX founders Arthur Hayes, Ben Delo, and Samuel Reed are three persons focused on trading derivatives and the soul of the company. For example, Hayes was an equity derivates trader who was a market-maker for Deutsche Bank and Citibank’s ETF businesses.

On the other hand, Delo is a graduate of Oxford with a Master in Mathematics and Computer Science. His focus? High-frequency trading systems. He worked for J.P. Morgan and IBM. Reed is another Computer Science expert with top programming experience.

As programming and derivatives are the focus of BitMEX, it supports margin trading solutions for professional crypto traders. This BitMEX Review found that this platform is more appropriate for experienced traders.

Is BitMEX a safe Broker?

BitMEX Regulation

BitMEX was incorporated in 2014 to the Republic of Seychelles under the name HDR Global Trading Limited, the company that owns and operates this crypto broker. Seychelles regulates entities under the International Business Companies Act of 1994. This company’s license number is 148707.

Main features

BitMEX offers security for their users to keep funds and personal information safe from hackers. Wallet Security in the form of multi signature with multiple keys, will keep your storage and addresses offline. This is known as a “cold multi signature wallet”.

The platform works with Amazon Web Services, known for their top class security. You might want to activate their two factor authentication to receive an email or text message any time you or someone else tries to log in.

It is also important to note that they use a trading engine written in kdb+ which is also a tool used in major banks. In case anything out of order is sensed, BitMEX will freeze your account and your trading until you verify, and give the order to unfreeze.

Non accepted clients

BitMEX is registered in the Republic of Seychelles. They are available almost globally, but you may not access their services if you are a citizen or live in the United States of America Province of Québec in Canada, Sevastopol, Cuba, Crimea and there is no BitMEX USA.

BitMEX account types

This cryptocurrency trading platform only offers one standard account. Here, you can choose any of the available contracts and trade any of the available assets.

However, there is a BitMEX test account, also known as BitMEX Testnet. It is a demo account where you can trade money that has no actual value. While using this, you can practice a new strategy or try using leverage since it has a high risk to it.

BitMEX Fees Review and other commissions

Deposits

After creating an account you may deposit using only Bitcoin through a multi-signature address. After only one confirmation your funds will be credited into your account. There are no fees charged when you deposit.

The BitMEX minimum deposit will depend on the initial margin.

Withdrawals

Withdrawals are processed once a day at 13:00 UTC using a manual review. This means you must submit your withdrawal before the previously mentioned time, the procedure will be managed that same day.

BitMEX withdrawals, a free of charge process which can only be made in Bitcoin.

BitMEX Trading fees and others

BitMEX fees will depend on the contract and the crypto you are trading. However, their fees are lower than most of other crypto trading platforms.

BitMEX, a review of trading features and platforms

Position sizes and leverages

BitMEX has a maximum leverage of 100x, but it will depend on the coin and the contract.  So, it is important to understand how to use BitMEX leverage.

If you would like to know more about each currency and their maximum leverage, you will find that information on the fee page.

Techniques allowed and risk management

Margin trading is not only allowed but emphasized by BitMEX. To help you take care of your funds they offer different risk management options such as stop market order, stop limits, trailing stops, or take profit orders.

Also, their margin and liquidation process will prevent a negative margin balance, protecting you from bankruptcy.

BitMEX Trading Tools

This crypto broker offers a BitMEX calculator, two different charts, an order book, and a box with recent trade details to help you see as many important details as possible before trading.

BitMEX calculator

BitMEX offers a calculator that is built into their trading web page. It allows you to calculate BitMEX profit in Bitcoin. If you click on profit/loss you can calculate your risk. You can also calculate your liquidation price, and target price.

Learning how to use the calculator might be a good idea before you enter a risky trade.

Markets and Assets

BitMEX only offers their clients to trade using cryptocurrencies, using Bitcoin as its first option. It also has Bitcoin Cash, Cardano, Litecoin, Ripple, Etherium, EOS token, and Tron.

Types of contracts available on BitMEX

Since the platform offers margin trading, you need to sign up for different contracts in order to follow certain prices. The contracts that BitMEX offers for all cryptocurrencies are the following:

  • Futures contracts, as specified on the BitMEX website is “an agreement to buy or sell a commodity, currency or other instrument at a predetermined price at a specified time in the future”.
  • Perpetual contracts, much the same to a Futures Contract, but you may hold a position for as long as you would like. This means, it does not expire.

BitMEX also offers contracts only for traders who will be using Bitcoin, such as:

  • Upside Profit Contracts will allow you to participate in the potential upside of the cryptocurrency, in this case, Bitcoin.
  • Downside Profit Contracts are as stated before, allows the participation, but of the downside of the asset.

BitMEX Platform

The online platform available is exposed using API that stands for Application Programming Interface. This allows market and user data to be updated in real time. According to BitMEX’s website, they have a “fully featured REST API and a powerful streaming WebSocket API”.

You will be able to use this software to make trades, manage your account, and see market data without any delays whatsoever.

You can also download their app for both Android or iOs.

BitMEX Promo: How to earn money with the BitMEX trading platform

BitMEX offers new and old clients with access to the affiliate program where you can invite friends using a link. If they open an account with your link you and the referred person will be benefitted. Note that they only have seven days before the link expires.

 

The affiliate will receive a percentage of the commissions paid by their referral, and the referral will be able to get a fee discount for a certain amount of time. As an affiliate, your initial commission will be 10% which will increase to up to 20%.

It is important to note that all payouts are updated daily at 12:01 UTC.

BitMEX review: Social trading, education and support

Educational offering

BitMEX offers guides for futures and perpetuals. They will first explain the differences between each, and then explain a few mechanics.

Another available guide is the “exchange guide”. Here, you will find introductory information on placing orders, margin, profit, loss, funding, and more.

You can also read the short yet informative article they have about “trading on BitMEX”. It explains in short sentences what they offer traders, and what it means.

BitMEX tips

Before you begin trading, you might want to read up on certain trading terms such as margin trading, perpetual contracts, futures contracts, leverage, and risk limits.

By understanding each of the tools on the trading platform you can think of better trades as the market moves. You could even start by trying out the BitMEX testnet to not risk your funds, but have real time market data, and trading tools.

Once you think you are ready, remember to keep calm and trade with no emotions since they could get in the way or blur a clear mind. If there are any bonuses available when you sign up, they might be a good way to enhance your user experience.

Research

BitMEx has their own blog where they publish general information, company announcements, grants and research. The company has also made a section called “the most popular articles” so you can access the ones with most views.

Customer support

BitMEX offers customer support in four different languages: English, Chinese, Russian, Korean, and Japanese. Although all of them are widely used languages in the world, other platforms offer over 20.

If you need to contact customer support you may use their email, Twitter, Reddit or Telegram. There are also live updates available on the website and an FAQ section.

How to trade on BitMEX

How to open an account

If you want to open an account you must only make a few clicks and fill in a bit of information. We have prepared a step by step process for you.

  1. Click on register on the top right corner. You will be redirected to a new page where you must fill in your email, password, country and name. Don’t forget to accept terms and privacy conditions.
  2. A verification email will be sent to you. Check your inbox or your spam folder, and verify your information.
  3. The image below is what the email should look like. If it is correct, you can click on the blue button that says “verify my email”.
  4. Once you click on the verification button you should immediately be taken to the trading page. If not, just log in with your email and password.

How to deposit BTC to BitMEX and start trading

If you are ready to deposit you must go to the trading platform, and click on the button that says “account”. You will see the image below.

If you click on the green button “deposit” you will have a multi signature deposit address which is part of the platform’s security. Remember you may only deposit using Bitcoin.

What is the best crypto broker?

The best crypto broker will depend on your needs as a trader. This BitMEX review has all the information needed before you decide.

BitMEX offers very high leverage, up to 100x, which can be very risky and not recommended for new traders. This company also charges low fees compared to others. Remember, knowledge will help you minimize risks in this fast moving and competitive market.

 

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