Bitmex vs Coinbase | Why Coinbase Is Safer, Better & Easier
Jack Moreau
Apr 2024
9 min read
Fact checked
Are you not sure if you should trade on Bitmex or Coinbase? We've got you covered. Our thorough comparison takes a closer look at key factors such as sign up processes, KYC requirements, country availability, trading fees, product offerings and overall user experience. Keep reading so that you can make sure to choose the best exchange!
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
When it comes to cryptocurrency exchanges, there are many options to choose from. Bitmex is an infamous trading exchange that is well known by professional traders while Coinbase is one of the biggest exchanges in the world. Let's dive deeper into the basics.
Bitmex is a trading platform that was founded in 2014 by Arthur Hayes and Ben Delo. The platform deals exclusively with digital assets and does not support fiat currencies. Bitmex offers high leverage options for trading with up to 100x leverage available.
Bitmex exchange
The platform is popular for its advanced trading features, including perpetual contracts. Bitmex is estimated to have over 1 million users and supports a limited selection of only 10-20 cryptocurrencies like Bitcoin, Ethereum, USDT and a few others.
In contrast, Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsa and is a leading US-based exchange and wallet service known for its user-friendly interface, security, and regulatory compliance.
Coinbase exchange
The platform supports +200 cryptocurrencies large caps such as as Bitcoin, Ethereum, Cosmos, Solana as well as multiple altcoins. Coinbase offers an average range of services such as spot trading, recurring buys, staking, and Coinbase Learn & Earn, an educational program that rewards users for learning about cryptocurrencies.
Coinbase app
Coinbase is one of the biggest exchanges in the world, with over 100 million users mainly based in the US and Europe. The exchange targets mainly beginners new to the world of cryptocurrency which is the opposite of Bitmex that focuses on professional traders.
Bitmex vs Coinbase Signup & KYC
When it comes to trading cryptocurrencies, one question users must ask and know is whether KYC is required to trade on the platform. While Bitmex and Coinbase are two very different exchanges, both require KYC verification for their users.
First up, Bitmex. Signing up for Bitmex is easy as only an email and password is needed. However, in order to access their trading services, KYC verification is mandatory. The verification process can take up to 72 hours once users have submitted personal information, identity, country of residence etc. This on the longer end compared to many other exchanges. But once verified, users can trade to their heart's content.
KYC on Bitmex
Similar to Bitmex, Coinbase also requires all their users to complete KYC. To signup on Coinbase goes quickly, users just need to fill in their full name, email and password and then confirm their email address.
Coinbase signup
Once done, they can continue to the KYC process which takes a few minutes to complete as more information and uploading an ID is required. The verification process typically just takes a few minutes on Coinbase but can take up to a few hours.
Bitmex vs Coinbase Products & Services
Coinbase interface
Bitmex offers spot trading which allows users to instantly buy and sell cryptocurrencies like Bitcoin. Additionally, Bitmex features perpetual contracts for Bitcoin and other cryptocurrencies against the US dollar, letting users trade without an expiration date.
Derivatives trading on Bitmex
The platform also provides futures trading, which allows users to speculate on the future prices of cryptocurrencies and potentially profit from market fluctuations. Furthermore, Bitmex offers margin trading for Bitcoin, Ethereum, and Ripple, giving users the ability to trade with borrowed funds and potentially earn higher profits.
Coinbase is very different with a product range tailored mostly to what is allowed by US regulators. These services include spot trading, allowing users to buy and sell popular cryptocurrencies like Bitcoin and Ethereum, as well as lending and borrowing options for those who want to earn interest or get loans using their digital assets.
Coinbase cryptocurrencies
Coinbase also has its own Web 3 wallet, making it safer and easier for users to manage their cryptocurrencies. They even offer their ownCoinbase Card which lets users spend their digital assets in everyday purchases.
Coinbase Visa Card
Recently, Coinbase stepped into the world of non-fungible tokens (NFTs) to meet the increasing demand for digital art and collectibles.
Coinbase NFTs
With liquidity on Coinbase frequently in the top 5 category, users in 23 US states can access up to 3x leverage on USD-quoted books.
Coinbase Pro
Overall, Bitmex is more geared towards advanced traders who are looking for high leverage and futures trading while Coinbase is more suited for beginners who want to buy and sell crypto, earn interest and trade some NFTs.
When it comes to trading fees, Bitmex and Coinbase have some key differences to keep in mind. Starting with Bitmex, they charge a maker fee of 0.075% and a taker fee of 0.02% for both spot and futures trading. They also offer trading fee rebates to those whose trades exceed $1,000,000 during a 30-day period or who stake a sufficient amount of BMEX tokens.
Bitmex fees
Now let's talk about Coinbase. This exchange charges a higher maker fee of 0.40% and an even higher taker fee of 0.60% for spot trading. For those whose monthly trade volume exceeds $10,000, they will automatically begin trading with lower fees.
When it comes to deposit methods, Bitmex and Coinbase offer very different options for their users.
Bitmex, unfortunately, does not support the deposit of fiat currencies at all. This means that if you want to buy cryptocurrency on this exchange, you either have to buy via a third-party provider (expensive) or you can simply buy somewhere else and then deposit for free on Bitmex.
Buy crypto on Bitmex with Onramper
Coinbase is a lot more beginner-friendly and offers a wider range of fiat currencies and deposit methods. You can deposit funds into your Coinbase account using three different fiat currencies including USD, EUR and GBP.
Coinbase fiat deposit
The deposit methods available on Coinbase include ACH, wire transfers (USD), SEPA (EUR) and Swift (GBP), so you have plenty of options to choose from depending on your preferences.
The ACH deposit method is free but if you're depositing using wire transfer, there is a $10 fee to be aware of. For those who want to deposit Euros with SEPA, they have a small deposit fee of 0.15 EUR. And for Swift even better, those deposits are entirely free.
Overall, Coinbase is a great option if you're looking for an exchange that's easy and cheap to deposit fiat currencies while Bitmex is not.
Let's take a closer look at what each exchange has to offer. Starting with Bitmex, fiat withdrawals are not available. However, users can still withdraw their cryptocurrencies. For example, withdrawing Bitcoin incurs a small withdrawal fee of 0.00005 BTC while withdrawals for other cryptocurrencies are typically free.
On the other hand, Coinbase offers a variety of fiat withdrawal methods including ACH, Wire, SEPA, and Swift. Each method has its own associated fees such as a $25 USD fee for Wire withdrawals and a 0.15 EUR fee for SEPA withdrawals. However, ACH withdrawals are free of charge.
Bitmex and Coinbase could not be more different. One is an infamous exchange designed for degen traders and the other is the most regulated exchange in the world with an offering tailored for beginners. Bitmex is a trading platform that exclusively deals with digital assets and offers high leverage options with up to 100x leverage available.
Coinbase offers a much wider range of cryptocurrencies than Bitmex but does not offer the same futures products or leverage. What it does offer is more retailed friendly products like spot trading, staking, Coinbase Learn & Earn, Coinbase Card and an NFT marketplace.
When it comes to trading fees, both Coinbase and Bitmex offers trading fee rebates for high-volume traders, but Bitmex offers much lower spot fees than Coinbase. In terms of deposit methods, Bitmex doesn't support fiat currencies while Coinbase supports three different fiat currencies and offers multiple deposit methods like ACH, wire transfers, SEPA, and Swift.
Overall, the choice between Bitmex and Coinbase is quite easy. If you are a beginner, Bitmex is not for you. If you are a professional trader, well then, Bitmex is actually not for you either as Binane, OKX or Bybit are better options.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
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.
