BitMEX Review

What Is BitMEX?

BitMEX is a cryptocurrency trading platform that was founded in Seychelles by Arthur Hayes. The exchange established itself as the top service for crypto derivatives after it invented and introduced perpetual futures to the world in 2016.

While the company has found itself in trouble with the Commodity Futures Trading Commission for transgressions against U.S. anti-money laundering laws, the platform remains one of the largest technical crypto trading exchanges. Professional investors who want to execute advanced crypto strategies find BitMEX's technical features (often unavailable on other generic platforms) of particular benefit. 

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BitMEX Features

BitMEX is known for its robust set of trading options designed to support seasoned traders who want greater exposure to crypto markets. To help provide an overview, we have outlined the key features that have made BitMEX one of the more popular platforms among institutional investors.

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Institutional grade dashboard

The desktop interface is well-designed, providing trade volume graphs, daily price movements, and other supporting data that might scare away beginner investors. Traders can initiate many different order types such as pegged orders, trigger orders, and hidden orders.

More importantly, with its crypto pricing APIs, the BitMEX platform supplies accurate real-time pricing, a key advantage sure to win over many interested crypto-enthusiasts.

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Derivatives 

BitMEX offers a range of institutional grade derivatives, such as swap contracts, crypto perpetuals, and futures trading. BitMEX also gives traders the option to leverage certain crypto assets by up to 100x, a figure that alludes to deep liquidity and comprehensive methods of collateralization.

Leverage and any offered margin trading amounts depend on the underlying asset and the risk associated with each financial vehicle, determined by the platform (Bitcoin and Ethereum as the most popular coins).

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Cryptocurrency Staking

For a subscription fee, you can stake crypto to earn rewards, often with an indicative APR listed on the platform. However, all staking options have fixed terms for 2 weeks and offer limited allocation, meaning that it’s a first come, first serve basis.

For example, the current staking options are Bitcoin and Tether, and there is a max allocation of 10 BTC, meaning only 10 Bitcoins in total can be staked. If you want high yields on multiple cryptocurrencies, we recommend using Bybit.

Is BitMEX a Safe Trading Platform?

While BitMEX uses a highly secure trading platform, has a %100 cold storage policy, and employs advanced cybersecurity (zero lost value due to hacking and intrusion), BitMEX may involve some amount of risk depending on your location.

For example, the platform is not registered as a Money Service Business (MSB), and the Ontario Securities Commission has banned BitMEX in Ontario, Canada. The same applies for a few countries, to check if you’re in one of these banned countries, you can refer to BitMEXs Restricted Countries.

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BitMEX Fees

BitMEX is known for its low fees and standard tier structure. It doesn't charge fees to deposit but when withdrawing assets, a small fee is charged to cover network costs.

If you want to trade spot, the Taker fee is 0.075%, and for derivatives the maker rebate is -0.01%, while the taker fee is 0.075%. Discounts are applied based on your 30-day average daily volume (ADV).

Available Cryptocurrencies

On BitMEX you can buy over 7 cryptocurrencies on spot including Bitcoin, Ethereum, ApeCoin, Axie Infinity, Chainlink, Polygon and UniSwap. In addition to the spot trading, BitMEX also offers over 60 pairs.

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BitMEX Audited Reserves

BitMEX is one of the only crypto exchanges that have an audited proof-of-reserves which  ensures that users’ funds are safe and secure. The audit is conducted by a third-party auditor, who reviews the data from BitMEX’s servers, checks it against its public records of deposits and withdrawals, and then verifies the results with BitMEX’s own internal records.

This process is repeated on a regular basis in order to ensure that the exchange is running smoothly and securely. BitMEX’s auditing process provides an extra layer of security, allowing its users to have more confidence in their investments.

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Mobile App

BitMEX developed a well-designed mobile app with many of the same features associated with the desktop platform: 

• Fulfilling orders
• Real-time price data
• Manage open positions
• Fund or withdraw tokens

The mobile app is relatively new (released in 2020), but is available in 140 different countries across the world. You can download the app on both iOS and Android devices.

BMEX Tokenomics

BitMEX offers its own BMEX token to further incentivize staking opportunities within the platform. Any BMEX earnings likely contribute to the liquidity pool that acts as insurance for failed contracts (25% of its distributions is set aside for long-term reserves, with another 30% saved for ecosystem growth).

Staking rewards can reach up to 8% APR, in addition to gifts such as sporting event tickets. You can find more information about BMEX and its potential for further financial activities by reading the BitMEX Litepaper.

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Final Thoughts

In conclusion, BitMEX is a leading cryptocurrency trading platform that caters to experienced traders with its advanced features and tools. Offering a wide range of derivatives, institutional-grade dashboard, and a competitive fee structure, BitMEX remains a popular choice for professional investors. Despite facing regulatory challenges, the platform maintains a strong reputation for security with audited reserves and advanced cybersecurity measures. Additionally, BitMEX provides a mobile app and its own BMEX token to enhance user experience and staking opportunities. However, potential users should check their location's regulations before trading on BitMEX to avoid any legal complications.