BitMex is a leading cryptocurrency exchange located in Hong Kong and registered in Seychelles. Founded in 2014 by web developers Arthur Hayes, Ben Delo and Samuel Reed, the exchange lists all major cryptocurrencies. BitMex has often attracted both negative and positive praise from its users. Read an independent, fact-based review of the exchange’s operating methods below.
BitMex Exchange : A Bitcoin Trading Platform Review 2018
How it Works
BitMex (Bitcoin Mercantile Exchange) has an easy registration process. Simply provide an email address and create login details. Set a strong password and enable 2-factor authentication. For security reasons, you will also be asked to provide the following details:
- National ID
- Phone and postal addresses
After creating an account, fund your account with Bitcoins. All accounts are funded using Bitcoins. BitMex accepts traders from virtually every country around the world.
- Ethereum and Ethereum classic
- Bitcoin Cash
Although BitMex is most popular as a peer to peer cryptocurrency trading platform, it offers several additional services which include:
- Leverage trading- members can borrow up to 100 percent the amount they have to trade other cryptocurrencies.
- Wallets- members can hold their cryptocurrencies in a wallet provided by the exchange.
- Trading educational materials- New members can learn how to trade on the platform before risking their money.
- Bot trading- members, can deploy bots to execute transactions on BitMex.
BitMex is the highest ranking exchange on Coinmarketcap based on 24-hour trading volumes. At the time of writing, the exchange leads with a total trading volume of $4.2 billion. OKEx is the second largest exchange with a trading volume of $1.36 billion. Huobi and Binance come in at the 3rd and 4th position respectively.
Fees on BitMex.com are categorized into three: fees based on perpetual contracts, traditional futures and prediction markets. You can learn what the terms mean in this review. BitMex has some of the lowest fees in the industry. Their Bitcoin maker fee, for example, is 0.025% while the taker fee is 0.075%. Most other cryptocurrencies on the platform have a maker fee of 0.05% and a taker fee of 0.25%. Bitcoin Cash, Ethereum, Litecoin, Zcash and all other altcoins have the same type of fee system. There is also a settlement fee of 0.25% for all altcoins. Bitcoin’s settlement fee is a low 0.05%.
All deposits and withdrawals are currently free. However, the usual miner’s fee has to be paid for a transaction to be processed. Compared to other exchanges, BitMex’s fees are pleasing. GDAX, for example, charges a 0.25% taker fee with 0% maker fee. Cex.io also charges 0.25% per trade. Only Binance has a lower fee of 0.05% per trade when trading with their in-house cryptocurrency, Binance coin.
Like many cryptocurrency exchanges, BitMex has a load of customers who love the platform and a few people who dislike the service. Most of the negative opinions about BitMex come from users who found the user interface on the platform not beginner friendly. The exchange averages a score rating of 4.5/5 on and 8/10 in several out reputed review sites.
Despite the high reviews, BitMex lacks an active community on cryptocurrency forums like Reddit and bitcointalk.org. One of the major reasons is that most traders on the site are all expert traders and that the site is always responsive to their queries. Traders who use the platform hardly ever report any challenges.
BitMex has a highly active customer support team. The team provides communication through emails, which is the usual communication system for many exchanges. On average, BitMex responds to an email within one hour. For short and quick questions, customers can communicate with a support team in their live chat section. The platform also avails an announcement tab to provide general updates about their platform and services.
BitMex keeps the details of their security system available to everyone. They also provide a guide on how to communicate with them privately. The exchange has a message on their homepage that says that all of their customers’ Bitcoins are stored in a cold storage platform. They have also made it clear that their website is secured by Amazon web services and that their trading engine is similar to the security system used by banks. Finding any kind of information on BitMex is fairly easy.
Pros and Cons
- High leverage
BitMex provides a Bitcoin leverage of 100% of the trading amount. They have 50% leverage for ethereum, 33.3% leverage for litecoin and 25% leverage for Monero. All other coins have a 20% leverage except Zcash whose leverage amount is 5%.
- Multiple advanced features
BitMex is a great exchange for experienced traders that already know how to work with limit and stop orders, post only orders, hidden orders, close on trigger orders and iceberg orders. However, the platform also offers educational materials to help beginners.
- The high amount of liquidity
Few exchanges in the world come close to BitMex’s trading volumes. Thousands of traders are always active on the platform. This ensures the supply and demand of different coins are always balanced and that the fees are kept to a minimum.
- Low Trading Fees
The exchange has highly competitive fees. Once a beginner understands how to navigate through the platform, they are not likely to move to another exchange.
- Not Beginner Friendly
The biggest complaint about BitMex is that it is difficult to understand for beginners. However, after reading the materials provided on the site, it should be easy to navigate through the system.
Verdict: Should you trade on BitMex?
If you are an experienced cryptocurrency day trader and you can navigate through the BitMex platform, this is a great exchange. BitMex was developed by a team of web developers who continuously work on the platform to keep it responsive. The withdrawal fees, which were a source of complaint a few months ago, are now bearable. With the addition of live updates and a quick customer support team, BitMex is an exchange worth using.
BitMex continuously proves to be the best exchange by resolving any challenges their members report. They have advanced security systems all-round and welcome traders from any part of the world. If they keep up their great services, BitMex will continue to grow. Thank you for reading this article. Visit our website often to read more intriguing content.