BitMEX Review

Cryptocurrency trading or digital currency trading is altering views every passing day. Some believe that it a perfect substitute to traditional mediums of trade while others consider it a hide for criminals. Whatever the views are, the popularity of crypto trading cannot be ignored anyways particularly after the emergence of Bitcoin in 2009. Moreover, finding a reliable crypto trading platform has also been a hard nut to crack but there are certain crypto trading platforms such as BitMEX where you can invest and trade safely. Let’s find out more about the dependability of BitMEX exchange in our BitMEX review.

What is BitMEX?

World’s most advanced Bitcoin trading service, BitMEX is a peer-to-peer (P2P) crypto trading platform that only supports prices, gains, and losses in Bitcoin. Established in 2014 and owned by HDR Global Trading Limited, BitMEX claims as high leverage as up to 100×, trading without expiries, verified customer base, and multi-factor security.

BitMEX, with its leveraged perpetual and futures contracts, is determined to guide crypto traders through the high way of knowledge, confidence, and accuracy.

The vision set by BitMEX exchange is to develop a modern digital financial system. As a leading crypto derivatives trading platform, BitMEX is continuously grinding to broaden its financial borders by offering innovations with conventional futures, perpetual swaps, and futures products. Currently, BitMEX has all the bragging rights because of conducting the business of billions of US dollars every day; its most traded cryptocurrency ever, XBTUSD perpetual swap; Open Source Developer Grant Program; and a profitable crypto ecosystem of 100x Group companies which was founded in July 2020.

How BitMEX Works

BitMEX was launched in 2014, but it has professionals having more than 40 years of experience at its back. It endorses trading on global financial markets in Bitcoin only and not in fiat currency. No physical trade of Bitcoin is possible on BitMEX and numerous contracts are bought and sold in Bitcoin.

How to Get Registered?

You must have a genuine email address to get registered on BitMEX because you have to verify your email account. Go to http://bitmex.com and click the green button “Register” in the right upper corner or simply press “Register for a Free Account”.

The US residents are not allowed to trade on BitMEX. So, if you are from the US and thinking to trade on BitMEX, have another thought coming.

After the signing up process, you will have access to all the available trading tools, once you click on “Trade”. You should be aware of Margin Terminology, and BitMEX recommends reading and comprehensively understand the following guides before start trading.

  • Perpetual Contracts Guide
  • Futures Guide
  • Auto Deleveraging
  • Fair Price Marking
  • Liquidation
  • Risk Limits

BitMEX Features

Liquid Markets

BitMEX has some of the most liquid markets available in the industry. it means many buyers and sellers are there to transactions are lower in cost.

Partners Program

To empower your trading experience, BitMEX is building an ecosystem including trading software, brokers, data providers, etc. This program is designed to benefit you with trading rebates, commercial licenses, and approved recognition. The partners of this program are:

  1. Brokers
  • HASH CIB
  1. Data providers
  • Coinigy
  • CryptoSquawk
  • Drakdoo
  • Kaiko
  1. Index Constituents
  • Paxos
  1. Trading Signals
  • Cryptorg
  1. Trading Software
  • Stacked

However, the members of this partner program cannot get benefits from other BitMEX exchange programs and there will be no rebate if the partners are unable to arrive at a Blue or Black standard.

Grant Program

Open Source Grant Program is launched for the developers who work on Bitcoin, NodeJS, Java, and Kubernetes. There are also smaller grants which are non-developer grants and are granted for the production of educational materials, technical workshops, etc.

100× Ventures

BitMEX has established 100× Group companies to take digital financial services to the next level. Some core points of focus of this program are:

  • To create financial products with certain returns
  • Enabling cryptocurrency to fiat transactions
  • 24/7 trading strategies for algorithmic and automated trading

API Keys

BitMEX has REST API and WebSocket API. All market data and user data are available so that the developers have access to build any kind of application.

Automated Trading Engines

  • BitMEX Market Maker

This BitMEX software is to tailor your trading strategies at no cost. With the help of this bot, you can estimate two sided-markets. This market-making bot supports API keys and can create, query, and cancel orders.

  • BotVS

BotVS is another trading engine fully supported by BitMEX API. It is the largest algorithmic crypto trading platform in China.

Charting

BitMEX platform has a third-party online charting service for its clients allowing them to follow markets in the best and fastest possible manner. These charting platforms connect various exchanges and with efficiency and ease of use support all types of markets, stocks, futures, indexes, currencies, forex, options, live price, and market data.

These charting platforms are:

  • Sierra Chart
  • Trading View
  • Coinigy
  • Crptowatch

Security

BitMEX is concerned about the security of its users because crypto trading demands a high level of security.

  • Reporting Issues

If you face any security issue you can report them on https://hackerone.com/bitmex

  • Wallet security

To ensure your wallet security, BitMEX runs multi-signature security technology. All BitMEX signatures are kept offline to guarantee their safety from hackers. The platform stores all funds in deep cold storage. All withdrawals are audited by hand and all deposit addresses are confirmed by an external service.

Other types of securities offered by BitMEX are:

  • System security
  • Trading Engine security
  • Communication security

PNL Guide

BitMEX exchange offers a Profit and Loss Guide (PNL Guide) to guide its users throughout their trading experience on BitMEX. This Guide is about:

  • Buying and Selling
  • Funding Fees
  • Trading Fees
  • Realized PNL Accounting

Fair Price Marking

Fair price marking is a unique feature of BitMEX to avoid unnecessary liquidations. However, this price tool is effective for Liquidation Price and Unrealised PNL, and not for Realised PNL.

Mobile App

For a user-friendly trading experience, the BitMEX app is downloadable from App Store or Google Play Store in over 140 countries worldwide.

Affiliate Program

BitMEX affiliate program offers the following benefits:

  • Limited-term fee discount for referrals
  • As an affiliate, you get a percentage of commissions

When a person completes his registration within 7 days of his referral, you will get credit for the account.

Payout Structure

Blog and Social Media

BitMEX blog is a useful feature to keep you up-to-date about the recent and upcoming developments on the platform. Besides, BitMEX is present on every prominent social media platform so that the BitMEX community may stay connected for discussing, and sharing ideas.

Social media platforms where BitMEX is present.

  • Reddit
  • Telegram
  • Twitter
  • Weibo
  • YouTube

Deposit and Withdrawal Fees

BitMEX charges no fee on deposit and withdrawal except the minimum Bitcoin Network fee.

BitMEX KYC

For the safety of its customers, and to keep the platform from fraud and misuse, BitMEX offers KYC verification.

Cold Storage

BitMEX prefers the safety of its users against intrusion and hacking. It boasts its cold storage where not even a single Bitcoin is lost since the platform is originated.

Up to 100× Leverage

All the BitMEX products are offered with leverage. The highest leverage 100× is offered on its most popular XBTUSD Perpetual swap while other products have different leverage levels.

Testnet Account

You can better understand the BitMEX exchange trading system through its demo account.

Two-factor Authentication

A two-factor security check secures your account. Email notifications are enabled to keep in touch with relevant events.

BitMEX Products

BitMEX Perpetual Contracts

Perpetual Swap is a unique product of BitMEX exchange as BitMEX is the very first company to launch it. It is like a Futures contract but the differences between them can be determined as follows:

  • Perpetual swap offers no expiry or settlement as compared to Futures contracts with 3 months and 6 months’ maximum expiry date and Perpetual contracts are settled when you exit the trade.
  • Perpetual contracts are similar to the margin-based spot market and their trading is close to Index Price while Futures contracts trade at different prices
  • Every Perpetual contract has its own details. The details include:
  • Reference Index
  • Funding Rate
  • Maximum Leverage

Leverage

You do not need to post 100% of collateral as margin, so you can trade with leverage up to 100× on some contracts. All margins on BitMEX are designated to Bitcoin.

Payout

Perpetual contracts available on BitMEX have Inverse and Quanto payouts.

Perpetual Contracts on BitMEX

Contract Summary

Quanto Perpetual Contracts

A Quanto contract is a derivative denominated in one currency. Quanto Perpetual Contracts are available in USDs and Tether. Quanto contracts are easy to understand and trade. This perpetual contract has a fixed Bitcoin multiplier while the underlying margin and PNL are in Bitcoin. You can go long or short the COIN/USDT exchange rate. You will get or lost Bitcoin when the exchange rate changes. Leverage is between 25× and 50× for most Perpetuals.

Inverse Perpetual Contracts

On BitMEX, these contracts are quoted in US dollars while profits and loss are determined in Bitcoin. Every inverse contract has a value of $1 of Bitcoin. Traders can go long or short with Bitcoin only as the margin is in Bitcoin. XBTUSD is an inverse perpetual contract with up to 100× high leverage.

Key Components of Perpetual Markets

  • Multiplier
  • Position marking
  • Initial and Maintenance Margin
  • Funding

BitMEX Futures

Along with Perpetual contracts, BitMEX offers derivatives products, Futures contracts. These contracts have a cash-basis or physical settlement. There are several Futures Contracts available on BitMEX with a cash settlement.

Leverage

Like BitMEX Perpetuals, you do not need to post 100% of collateral as margin for Futures. So, you can trade with leverage up to 100× on some contracts. All margins on BitMEX are assigned to Bitcoin.

Payout

Futures contracts available on BitMEX have Inverse, Quanto, and linear payouts.

Futures Contracts on BitMEX

Contract Summary

Quanto and Inverse Contracts

Quanto and Inverse futures are similar to Perpetual Quanto and Inverse contracts.

Linear Contract

Linear Futures are offered in Bitcoin and used for altcoin futures. Every linear contract values 1 unit of the underlying. Dollar value is displayed Contract Details. The leverage range falls between 20× and 50×.

Key Components of Futures Markets

  • Multiplier
  • Position Marking
  • Initial and Maintenance Margin
  • Settlement
  • Basis

BitMEX Fees

As BitMEX exchange supports trading in Bitcoin only, so is the case with its fees. It displays its fee structure in Bitcoin and you cannot understand what you are paying actually. BitMEX uses a market maker/taker system. Market makers are those who provide liquidity while market takers use the liquidity already available. Market makers will receive a rebate (negative fee), and the market takers will pay a varying fee.

Perpetual Contracts Fees

Traditional Futures Fees

Quanto Futures Fees

Other Fees

Funding

On Perpetual Contracts, funding is commuted between longs and shorts. BitMEX exchange does not charge any fee on paid or received funding. Paid is denoted by a positive amount in your Trade History while the negative amount means received funding.

Deposit and Withdrawal Fees

Deposits and withdrawals are fee-less on BitMEX exchange. Only a minimum Bitcoin Network fee is applicable which is bound to blockchain load.

Hidden and Iceberg Orders Fees

  • Hidden Orders pay the taker fee
  • Iceberg Orders pay the taker fee until they become normal orders

BitMEX Exchange vs Competitors

The top competitors of BitMEX are Bitfinex, OKCoin, BTCC Pro, BitVC, CryptoFacilities.

The tables below show the comparison in terms of products offered, leverage and margin, reference price and settlement, and contract sizes.

BitMEX Bitcoin Products

ProductCurrencyContract LengthSettlementMaximum Leverage
XBT PerpetualUSDPerpetualNever100×
XBT Quarterly FutureUSDThree MonthsLast Friday of the Expiry Month at 12:00 UTC100×
XBT Biquarterly FutureUSDSix MonthsLast Friday of the Expiry Month at 12:00 UTC100×

Competitors’ Products

ExchangeContract LengthContract TypeLiquidation EventContract Loss Mechanism
BitMEXPerpetual / QuarterlyInverseIndex Mark PriceAuto-Deleveraging
BitfinexMargin ProductLinearLast Traded PriceSocialized Loss and Token Issuance
OKCoinWeekly / BiWeekly / QuarterlyInverseLast Traded PriceFull Account Clawback
BTCC ProPerpetualLinearLast Traded PriceAuto-Deleveraging
BitVCWeeklyInverseLast Traded PriceAuto-Deleveraging
CryptoFacilities1W, 2W, 3W, 1M, 3M, 6M, 9MInverseIndex Mark Price (+/- Premium / Discount)Auto-Deleveraging

Leverage and Margin

ExchangeMax LeverageInitial MarginMaintenance Margin
BitMEX100×1%0.50%
Bitfinex3.33×30%15%
OKCoin20×5%1%
BTCC Pro20×5%1%
BitVC20×5%1%
CryptoFacilities50× (Turbo)2%1.75%

Reference Price and Settlement

Contract Sizes

ExchangeMinimum Contract SizeBitcoin Equivalent
BitMEX USD Perpetuals1 USD~ 0.0007 XBT
BitMEX USD Futures1 USD~ 0.0007 XBT
Bitfinex0.01 XBT 
OKCoin100 USD~ 0.07 XBT
BTCC Pro1 XBT 
BitVC100 CNY~ 0.012 XBT
CryptoFacilities1 XBT 

BitMEX Competitors

  • Binance
  • Bittrex
  • Poloniex
  • Kraken
  • UPHOLD
  • Coinbase
  • Kucoin
  • CEX.IO
  • HitBTC
  • LocalBitcoins
  • NiceHash
  • C-Cex
  • Cryptopia
  • Gemini
  • BitBay

PROS
  • Unique Perpetual Swap with no expiry and 100× leverage
  • Cold storage to secure funds
  • High leverage contracts
  • 100× Ventures
  • Affiliate program
  • Mobile app
  • No deposit and withdrawal fees
  • Competitive trading fees
  • KYC verification
  • Test trading available
CONS
  • Confusing user interface
  • Not for beginners
  • No fiat deposits and withdrawals available
  • Advanced finance knowledge needed
  • Not authorized by CFTC (Commodities Futures Trading Commission). It means US residents are not allowed to trade on BitMEX
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