What is the BitMEX exchange?
BitMEX stands for Bitcoin Mercantile Exchange and is one of the largest Bitcoin trading platforms currently operating. It was founded in 2014 by HDR Global Trading Limited. HDR is a product of three bankers – Arthur Hayes, Samuel Reed and Ben Delo – and because of this there is more than a hint of centralised banking methods about this site. The company trades out of Hong Kong but is registered in the Seychelles. It brands itself as the next generation of Bitcoin derivatives.
How BitMEX works?
You can only deposit funds onto the BitMEX exchange using Bitcoin. This means that you will need to go to another exchange first to get started on your cryptocurrency journey. Once funds are deposited on the site, you can use your Bitcoin to purchase other coins and tokens – including trading in fiat currency.
BitMEX exchange is not for beginners. It specialises in a range of sophisticated trading options – such as margin trading and securities – and is not just a matter of a simple buying and selling of cryptocurrency.
As with most other sites, to use the BitMEX exchange you first need to register. The account only requires you to verify an email address. This means you can trade anonymously if you use an anonymous email address for this purpose. Once registered there are no limits on the trades you can make.
This sounds amazing – except to the point where you learn that the site does not accept US-based traders and will use IP checks to verify you are not in the US. A lot of US-based traders bypass this by using a VPN. However, it means the exchange is not regulated under US law and US-based customers are best to find an alternative platform to avoid trading outside the US legal framework.
Even though you can only deposit in Bitcoin, you can trade against a range of fiat currency – including the Dollar, Yen, and Yuan. You can also trade in other cryptocurrency – including Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Monero, Ripple, Litecoin, Tezos and Zcash. BitMEX also offers futures and swaps.
To begin trading just click on trade and all the options will be shown. The site is intuitive to those used to working in financial trading circles – but not if you are a beginner to trading. One of the upsides to the site is that uses built-in widgets. This allows the user to create a user interface that suits their approach to trading.
Key information about BitMEX
Before moving to the BitMEX review, there are some key details it is important to know. The most important relates to security and safety. BitMEX is considered by insiders to be one of the most secure trading platforms around. It has strong levels of security – including multi-signature deposits and withdrawal schemes. The BitMEX exchange also uses Amazon Web Services to secure its servers – with SMS and 2FA, as well as hardware tokens. Probably the most reassuring feature of BitMEX security is that all withdrawals are hand-checked by employees – and therefore there is no automated removal of funds from the site. Most importantly, the site has never been hacked.
Another important detail to consider is the level of customer support. There is 24/7 support offered through different touch points. This includes email, an online ticket system and through social media. The response time can be as little as an hour. The issue with BitMEX is whether the responses you get is useful – and some feel that most responses are handled by a standardised chatbot rather than human to human support.
The fee system on the BitMEX exchange is complex. In some respects, this is due to the nature of the site as an advanced trading site. However, some of this complexity can result in confusion. There are higher prices for trading in Dash and Ethereum Classic – for instance. There are also additional fees for hidden and iceberg orders. This means that the entirety of the fee you pay makes this a costly site to use.
The upside to BitMEX is that you do not pay deposit and withdrawal fees, and these can be made at any time. However, withdrawals are processed only once a day at a set time – therefore, you may need to wait for the funds to become available. However, this is the price you pay for the added security against fraudulent withdrawals.
Your BitMEX Review
- this is an advanced site for advanced traders – and therefore has many trading options, including securities and swaps. The trading site is intuitive for those used to financial systems – but is certainly not a place for beginners.
- the site was set up by people with a background in banking and a good reputation in financial circles.
- the level of security on the site is high – and the site has never been hacked. The use of Amazon Web Services, the hand checking of withdrawals – along with the ability to trade anonymously – makes this a highly desirable site for serious traders.
- the site has one of the largest trading volumes for Bitcoin in the sector. If the proof of a site’s good reputation is in the level of custom and return patrons – then the BitMEX reputation is excellent.
- withdrawals and deposits are free.
- the fee structure is complex – as complex as the trading options available. This means that the cost of using the site can accrue quickly – and with little sense of transparency. The site is meant for experienced financial operatives – so this fee structure is not likely to phase seasoned users.
- customer service responses tend to be less than helpful, with most being handled by a chatbot and therefore not addressing the personalised need of the patron.
Overall, our BitMEX review is positive! The site has an excellent reputation for security and safety. There is also a good level of choice for the seasoned trader.