Bitmex Exchange Review | Is It A First-Class Trading Platform?
Jack Moreau
Feb 2024
9 min read
Fact checked
If you're wondering if to use Bitmex or another exchange from the many options out there, then this review is for you. We've done a comprehensive research on Bitmex where we have examined it's features, security measures, trading services and fees and more. Regardless of whether you're an experienced trader or just starting out, our impartial analysis can help you determine if Bitmex is the right exchange for your trading needs.
BitMEX is a notorious cryptocurrency exchange founded in 2014 by Arthur Hayes and Ben Delo. The platform provides access to global financial markets through cryptocurrencies and has a unique approach to trading.
Unlike traditional exchanges, BitMEX deals exclusively with digital assets and does not support fiat currencies. BitMEX offers high leverage options up to 100X for trading making it a go-to option for experienced traders looking for high volatility.
Bitmex exchange
Trading on BitMEX is done through leveraged contracts that allow users to control larger positions than what their account balance would normally allow.
BitMEX offers support for only 10-20 cryptocurrencies and the platform is available to use in most countries besides the US, Ontario, Japan, and Russian citizens.
Bitmex has also faced multiple controversies in the past. One of the most significant controversies occurred in 2019 when the US Commodity Futures Trading Commission (CFTC) charged Bitmex with illegally operating a derivatives trading platform.
Another controversy occurred in 2020 when the US Department of Justice (DOJ) charged Hayes and several other Bitmex executives with violating the Bank Secrecy Act (BSA). The DOJ alleged that Hayes and his colleagues knew that Bitmex was being used to launder money but took no action to prevent it.
While BitMEX is not exactly a good option to use for beginners, it maybe worth considering for more degen traders who want to trade on this notorious exchange.
Bitmex app
Bitmex KYC Requirements
Bitmex requires KYC verification from all of its users to access its trading services. However, the sign-up process is simple and only requires an email and password. Once the verification process is complete, users can access all of Bitmex's features.
Bitmex KYC
The verification process on Bitmex can take up to 72 hours to complete, but some users have reported being verified in as little as an hour.
Despite the potentially lengthy verification process, Bitmex's popularity remains strong due to its advanced trading features and high liquidity.
Bitmex Products & Services
Bitmex exchange offers a variety of trading options such as spot trading, perpetual contracts on BTC against USD, futures trading, and margin trading for BTC, ETH, XRP. The platform is well-known for providing advanced trading features that cater to institutional investors and experienced traders.
Bitmex derivatives trading
Bitmex offers up to 100X leverage and is one of the few exchanges that allows for such high leverage trading. This feature makes Bitmex an attractive platform for traders who are looking to take on more risk.
Bitmex's perpetual contracts allow traders to trade without an expiry date, making it an attractive option for those looking to hold positions for the long term.
The exchange has an average daily spot trading volume of only $1 million which shows that the exchanges best days are behind it.
Bitmex is suitabe for advanced traders and institutional investors due to its advanced trading features and high leverage trading options. However, novice users might experience a steep learning curve due to the platform's complexity.
There are two ways to buy cryptocurrencies on Bitmex, either crypto to crypto or by buying crypto with card. When it comes to buying crypto with card, Bitmex offers that option through third-party provider Onramper.
Buy crypto with Onramper on Bitmex
Onramper aggregates a range of other third-party payment providers and let's user select the best one for their needs. Users should of course know that buying crypto via third-party providers is the most expensive way to acquires cryptocurrencies with fees ranging up to 6-7%.
Buy crypto with card on Bitmex
Bitmex does not support the purchase of cryptocurrencies through bank deposits or P2P trading.
When it comes to trading fees, Bitmex charges a competitive 0.075% maker fee for spot trading and a very competitive 0.02% taker fee.
These are some of the lowest fees on the market and makes it a great option for those looking to save on fees.
For futures trading, Bitmex charges a 0.075% maker fee and a 0.02% taker fee. While the Bitmex spot trading fees are lower than exchanges such as OKX and Binance, their futures trading fees are however higher.
Bitmex Deposit Methods
When it comes to depositing fiat currencies on Bitmex, unfortunately, it is not possible. This exchange only allows for the buying of crypto directly via Onramper. However, if you are already holding crypto, you can easily deposit it onto the platform for trading.
While it may be a disappointment for those looking to invest with fiat, Bitmex has established itself as a popular choice for those looking to trade cryptocurrencies with leverage.
How to withdraw from Bitmex?
While Bitmex does not offer fiat deposits or withdrawals, user of course have the option of withdrawing their cryptocurrencies with competitive fees. For Bitcoin withdrawals, Bitmex charges a fee of 0.00005 BTC which is relatively low compared to other exchanges.
Is Bitmex Safe?
When it comes to security, Bitmex has implemented a combination of cold and hot wallets and industry strength cryptography key management to ensure that user funds are as safe as possible. In fact, 95% of all funds are stored in offline cold wallets.
In addition to its use of cold wallets, Bitmex also supports two-factor authentication (2FA) and uses AES-256 encryption to further protect user accounts.
The platform is also ISO 27001 certified and has a bug bounty program, which incentivizes white hat hackers to identify and report vulnerabilities in the system.
One of the most notable security features that Bitmex has implemented is its proof of reserves system. Twice a week, the company provides evidence of the assets that it holds, which helps to ensure that user funds are always backed 1:1.
However, it's worth noting that Bitmex has had some security issues in the past. The platform had a data compromise in 2019 and was hit with RICO accusations in 2020, which resulted in a $100 million fine. As such, the company has still not acquired any licenses from known regulators.
In conclusion, BitMEX offers a range of advanced trading features but liquidity is low and so is the number of cryptocurrencies they offer.
BitMEX offers up to 100X leverage and is one of the few exchanges that allows for such high leverage trading.
BitMEX also offers low spot trading fees with a 0.075% maker fee and a 0.02% taker fee, making it a competitive option for traders looking for low fees.
While BitMEX does not support fiat deposits or withdrawals, it allows for crypto withdrawals with competitive fees.
The platform takes security seriously, with a combination of cold and hot wallets, 2FA, and proof of reserves system to ensure the safety of user funds.
BitMEX is really an exchange for experienced traders who don't mind some extra risk taking both in terms of the platform they are using and in their trading strategies.
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Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.
