BitMEX 2020 Review

Bitcoin Mercantile Exchange, or BitMEX is one of the top online exchanges for Bitcoin and Cryptocurrency trading. In my BitMEX 2020 Review i will cover the various services the exchange provides.

What Is BitMEX?

BitMEX is a trading platform that offers investors access to global financial markets using only Bitcoin, which can be used to purchase a variety of other cryptocurrencies. The platform specializes in financial operations such as margin trading which is trading with leverage. BitMEX operates worldwide and is registered in the Seychelles. Bitcoin Mercantile Exchange (BitMEX), is one of the largest trading platforms to date, with a daily trading volume of over 35.000 BTC.

BitMEX Services

BitMEX supplies a derivative trading platform which prioritizes margin trading, meaning you don’t really trade cryptocurrencies, you trade contracts that follow a specific cryptocurrency price. This means that you can generate large profits with small amounts of money, but it also means you can lose everything you’ve invested. Below are the types of contracts BitMEX service provides:

  • Upside Profit Contracts – This type of contract allows buyers to participate in a potential upside of a cryptocurrency. The buyer pays a premium on a trade date for which he is entitled to receive the difference between the strike price and cryptocurrency price on maturity date if positive, else no payment occurs.
  • Downside Profit Contracts -This is the opposite of an Upside Profit Contract. Allows buyers to participate in the potential downside of a cryptocurrency.
  • Future Contracts – This is an agreement to buy or sell a cryptocurrency at a predetermined price at a specified time in the future.
  • Perpetual Contract – This contract is similar to traditional Futures Contract with the exception that it has no expiry date.

BitMEX Leverage

BitMEX allows its users to leverage their position. Leverage is the ability to place orders that are bigger than the users existing balance. The platform allows users to set their leverage level by using the leverage slider. The maximum leverage of 1:100 is available, this is quite a high leverage for cryptocurrencies. The average leverage offered by other exchanges rarely exceeds 1:20.

Payment Methods and Currencies

BitMEX is a cryptocurrency only service with Bitcoin as its main trading option. There is a selection of other altcoins such as:

  • Litecoin
  • Ethereum
  • Ripple
  • Cardano
  • EOS
  • Tron
  • Bitcoin cash

Currently there is no support for fiat currency, meaning that all profits and losses are shown in Bitcoin.

Deposits and Withdrawals

BitMEX does not charge fees on deposits and withdrawals. When withdrawing Bitcoin, the minimum Bitcoin network fee is based on the Blockchain load. The only costs are those of the cryptocurrency networks or banks. Deposits can be made 24/7 but withdrawals are processed at a reoccurring time once a day.

The taker fee is 0.0750% and the maker fee is 0.0250%, so the maker actually grabs a little rebate on trades. Overall the fees are amazing especially compared to other major exchanges, where fees usually sit around 0.25%.

Supported Countries

BitMEX is a registered company in the Republic of Seychelles. BitMEX is a worldwide service except for the following countries:

  • Crimea
  • Cuba
  • Iran
  • Provence of Queben in Canada
  • North Korea
  • Syria
  • Sudan
  • Sevastopol
  • United States of America

Customer Support

The support center gives a rundown of the exchange and helps to educate users on complex trades. Support is offered on multiple channels via email, ticket systems and social media. A live chat between traders is located on the bottom right of the screen known as the Troll box.

Is BitMEX Safe?

BitMEX is widely considered to have high levels of security. The company uses withdrawal schemes and mulit-signatures which can only be used by BitMEX partners. The platform also has a system for threat checks, which requires that the sum of all account holdings on the website must be zero, if not then all trading is immediately halted. All withdrawals are all individually hand checked by employees and private keys are never stored in the cloud. Deposit addresses are thoroughly verified to ensure that they contain matching keys, if not there is an immediate system shut down.

Pros & Cons

Pros:

  • Extremely low fees
  • Transparent operation
  • Up to 100x leverage
  • Advanced Trading services
  • Trustworthy and secure

Cons

  • No fiat deposits / withdrawals
  • Not suitable for beginners

Conclusion

The BitMEX team users their web development and financial experience to create a slick and secure platform, that allows smooth trading while keeping users informed. BitMex is not a beginner friendly trading platform. The interface is complex therefore it can be very difficult for users to navigate the website. For those of you looking for a much more simple exchange to buy and sell Bitcoin, i suggest you look into some other beginner friendly options.

However, the platform provides a wide range of tools. Once users gain experience of the platform they will appreciate the wide range of information and services that the platform provides. To start trading ‘Click Here’.

Kindly leave a comment below.

Herbert

2 thoughts on “BitMEX 2020 Review

  1. EcoCatherine Reply

    I have been considering getting into this field. However, I am a complete newbie. Do you have any suggestions on where I should start?

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