BitMEX is an abbreviation for Bitcoin Mercantile Exchange. It allows traders to access global financial markets through peer-to-peer crypto trading. Arthur Hayes and Benjamin Delo co-founded BitMEX in Hong Kong in 2014. HDR Global Trading Limited presently owns the company situated in Seychelles. BitMEX is known for trading futures and margins.
Its mission is to create a digital financial system that is both powerful and inclusive. BitMEX allows you to leverage your coins 100 times. If you have $1,000 in your BitMEX account, you can trade for $100,000 in Bitcoins. The company exclusively accepts Bitcoin as payment and does not accept other currencies.
How BitMEX works
Bitmex modifies and updates the available contracts regularly, so it’s always good to check the current contracts available if a trader is interested in a specific cryptocurrency.
While Bitmex allows traders to trade cryptocurrency/fiat currency pairs, the exchange’s base currency is Bitcoin, and it does not accept fiat currency deposits or withdrawals. Profit and loss on trades are calculated in Bitcoin regardless of whether the pair is made up of fiat or cryptocurrency.
Leveraged margin trading is a crucial feature of Bitmex. Bitcoin contracts are be leveraged up to x100. Ethereum contracts have a leverage of up to x50, while Monero contracts have a leverage of up to x25. There are also futures and perpetual contracts available. Because Bitmex is a peer-to-peer exchange, contracts’ counterparties are always other traders or market makers on the site. The platform is akin to hedge funds and institutional investors’ trading platforms.
Account-holders trade anonymously on Bitmex. Although enormous leverage is available, the trader must always have sufficient funds in their account to cover their overall risk. When the account’s value falls below the level required to cover a trade’s maintenance margin, the deal is liquidated, and the account is no longer in debt.
How to get started with BitMEX
Trading on BitMEX begins with the successful completion of the registration process. It then confirms that you are eligible to buy bitcoins. If you’ve already purchased bitcoins, you may skip this step and go straight to finding your deposit address. Here is the complete procedure:
- Register for a BitMEX account. The trading matrix would then show up. On that dashboard, you’ll find all of the graphs and tables. Themes can change to light or dark depending on the user’s preferences. You have the option of starting with either basic or advanced trading.
- Begin by learning the fundamentals of BitMEX. By selecting the “basic” option, users can proceed to purchase Bitcoin by selecting “Account” and then “deposit.” The Bitcoin address will appear, which you may copy and paste into your wallet program.
- The coins are added to your account after receiving confirmation from the Bitcoin network. To begin trading, select the contracts and maturities you want to undertake.
The deposit address is a piece of crucial information that, if miswritten the Bitcoins can be lost. Before proceeding, you must double-check the address. After that, you can send your BTC to BitMEX and start trading cryptocurrencies.
One of the benefits of trading on BitMEX is that there are no restrictions on the minimum and maximum investment amounts. Another advantage is that BitMEX does not impose fees for deposits or withdrawals.
BitMEX offers a web-based trading platform and an Android and iOS mobile app. The BitMEX mobile app does not include all of the exchange’s goods and capabilities but lets users manage their trading positions while on the road.
BitMEX offers business accounts in addition to individual consumer accounts. Individualized solutions, such as 24/7 customer service, consultation, or institutional crypto strategies, are available to corporate clients.
Because Bitmex exclusively accepts Bitcoin as a base currency, there are no costs associated with making a deposit or withdrawing funds from a Bitmex account.
Trading costs are modest, but they vary based on whether crypto or fiat currencies are involved and the contract structure, such as futures, perpetual contracts, etc. Bitmex is a peer-to-peer platform; hence fees are divided into three categories:
- Taker fee (Liquidation)
- Maker fee (Initiating trades)
- Settlement fee
- Security and Privacy
The exchange takes considerable measures to maintain security levels and takes pleasure in having never been hacked. The exchange’s security measures are divided into three categories:
Wallets: All BitMEX wallet addresses are Multi-Signature, which means that even if servers, the trading engine, and the database were all hacked, the attacker would not be able to access the keys needed to steal funds. All withdrawals are manually reviewed by personnel, and no private wallet keys are stored on cloud services that could be hacked.
System security: Trading engine security and communications security are based on cutting-edge technology and several levels of defense.
Privacy: BitMEX offers exceptionally high levels of confidentiality since it does not deal in fiat currencies and is not subject to international money laundering legislation. Personal identification is not required to open a trading account, and account holders have no geographical limits.
BitMEX is known for providing experienced traders with an institutional-grade trading platform.
While novice traders may struggle with the platform’s professional layout, seasoned traders will almost certainly find all of the capabilities they want to perform a wide range of crypto derivatives trading techniques.
The following are the features of the trading platform:
- Trade bitcoin with leverage of up to 100x.
- Market data and trade execution with low latency
- APIs for crypto trading and pricing that are cutting-edge
- The ability to invest idle funds in BitMEX Earn up to a ten percent annual percentage rate (APR).
- Customer Service
Customer help is available by email ticket, and a comprehensive knowledge repository is available on the trading platform. While a phone line would be helpful in more urgent concerns, user assessments indicate that response times to questions are adequate.
There’s also a chat feature that allows traders to communicate. Thus the BitMEX trader community can resolve most inquiries or issues without contacting support.
- Referral Program
When you refer a friend to BitMEX, you can earn up to 20%. Create an account, share your referral link, and relax while reaping the benefits. You can earn up to 10 USDT with your first successful referral.