BitMEX Review

What Is BitMEX?

BitMEX, short for Bitcoin Mercantile Exchange, is an established cryptocurrency trading platform known for its focus on leveraged trading. Founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, it allows traders to engage in the buying and selling of futures and derivatives with up to 100x leverage. The platform is designed for experienced traders and offers a range of contracts, including perpetual contracts and futures, primarily in Bitcoin but also other cryptocurrencies. 

It has a robust trading engine, advanced order types, and a commitment to security, implementing multi-factor authentication and storing assets in cold storage. However, it has faced scrutiny and legal challenges, notably from the U.S. Commodity Futures Trading Commission (CFTC), regarding regulatory compliance and user verification processes. Despite these challenges, BitMEX remains a significant player, known for its sophisticated platform and deep liquidity.

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BitMEX Features

BitMEX is known for its robust set of trading options designed to support experienced 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:

1. Institutional Dashboard: The desktop interface is well-designed, providing trade volume graphs, daily price movements, and other supporting data. Traders can initiate many different order types such as pegged orders, trigger orders, and hidden orders.
2. Robust API: With its crypto pricing APIs, the BitMEX platform supplies accurate real-time pricing, a key advantage sure to win over many crypto enthusiasts.
3. Derivatives Trading: BitMEX offers a range of institutional grade derivatives, such as swap contracts, crypto perpetuals, and futures trading. It 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.
4. 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.

Is BitMEX Regulated?

No, BitMEX is not regulated but has a %100 cold storage policy and employs advanced cybersecurity (zero lost value due to hacking and intrusion). However, it 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 Audited Reserves

It is one of the only crypto exchanges that have an audited proof-of-reserves which ensures that users’ funds are secure and accessible at all times. 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. 

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Fees Schedule

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 markets, 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.

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). These 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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Mobile App

BitMEX developed an intuitive mobile app with many of the same features associated with the desktop platform, such as opening and closing orders, access to real-time price data, fund or withdraw tokens and contacting customer support. The mobile app is available in 140 different countries across the world can be used on both iOS and Android devices. It has a 3 star rating on the Apple App Store and a 3.2 star rating on the Google Play Store.

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, it 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.