Founded by HDR Global Trading Limited (founded by former bankers Arthur Hayes, Samuel Reed and Ben Delo) in 2014, BitMEX is an exchange operating in Hong Kong and registered in the Seychelles.
Sign up for Bitmex here
BitMEX is one of the largest Bitcoin trading platforms currently in operation, with a daily trading volume of over 230,000 BTC and over 9 million monthly visits and a transaction history worth over $50 billion in Bitcoin since. since its establishment.
Unlike many other exchanges, BitMEX only accepts deposits through Bitcoin, which can then be used to buy a variety of other coins. BitMEX specializes in sophisticated financial operations such as margin trading, which is trading with margin (leverage). Like many exchanges that operate through cryptocurrencies, BitMEX is currently unregulated in any jurisdiction.
How to register for BitMEX
To create an account on BitMEX, users must first register with the site through this link. Registration only requires an email address, and therefore an anonymous email address can be used to register. However, the email address must be a genuine one as the user will receive an email to confirm the registration to verify the account. Once a user is registered, there is no transaction limit. Traders 18 years of age or older can only register.
However, it should be noted that BitMEX does not accept any US-based traders and will use IP checks to verify that the user is not located in the US. While some US users have bypassed this by using a VPN, US individuals should not sign up for the BitMEX service, especially as alternative deals are available to active US customers. within the legal framework of the United States.
How to use BitMEX
BitMEX allows users to trade cryptocurrencies against a number of fiat currencies, namely the US Dollar, Japanese Yen, and Chinese Yuan. BitMEX allows users to trade several different cryptocurrencies, namely Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, Monero, Ripple, Tezos, and Zcash.
The trading platform on BitMEX is intuitive and easy to use for those familiar with similar markets. However, it is not for beginners. The interface looks a bit dated when compared to newer exchanges like Binance and Huobi,.
Once the user has registered to the platform, they should click Trade and all the trading instruments will be displayed below.
Clicking on a specific tool will open the order book, recent deals, and order slip on the left. The order book shows three columns – the bid value for the underlying asset, the number of orders, and the total USD value of all orders, both short and long.
The widgets on the trading platform can be changed according to the user’s viewing preferences, allowing the user to have full control over what is displayed. It also has a built-in feature that provides TradingView charts. This offers a wide range of charting tools and is considered an improvement on the many offers available from many competitors.
Once the trade is done, all orders can be easily viewed in the trading platform interface. There are tabs where users can select Active Orders, view Stops, check Orders Filled (total or partial) and transaction history. On the Active Orders and Stop tabs, the trader can cancel any order, by clicking the “Cancel” button. The user also sees all currently open positions, with an analysis if it is in black or red.
BitMEX uses a method called auto-deleveraging to ensure that liquidated positions can be closed even in a volatile market. Automatic removal means that if a position goes bust with no available liquidity, the upside of removing the position is, in order of profit and leverage, the most leveraged position first. queue. Traders are always shown where they sit in an auto-cancellation queue, if necessary.
Although the BitMEX platform is optimized for mobile devices, it only has an (unofficial) Android app. There are currently no iOS apps available. However, users should use it on the desktop if possible.
BitMEX offers a variety of order types to its users including:
Limit Orders (Limit Order) : an order to be executed if a certain price is reached
Market Order (Market order): an order to be executed at the current market price
Stop Limit Order (Limit Stop Order): like a stop order, but allows the user to set the price of the Order after the Stop Price is activated.
Stop Market Order (Market Stop Order) : this is a stop order that does not enter the order book, which remains unseen until the market is triggered.
Trailing Stop Order (Stop Order) : similar to a Market Stop order, but here the user sets a trailing value used to place market orders.
Take Profit Limit Order ( Profit Limit Order ) : can be used, similar to a Stop Order, to set a target price for a position. In this case, it involves taking a profit, rather than a stop loss
Take Profit Market Order (Profit market order: same as the previous one, but in this case the triggered order will be a market order, and not a limit.
The exchange offers margin trading in all cryptocurrencies displayed on the website. It also offers to trade with futures and derivatives – swaps.
Futures and Swaps Trading
A futures contract is an agreement to buy or sell a certain asset in the future at a predetermined price. On BitMEX, users can use up to 100x for certain contracts.
Perpetual swaps are similar to futures, except that there is no expiry date for them and no settlement. Additionally, they trade close to the underlying Index Price, which, unlike futures, can diverge significantly from the Index Price.
BitMEX also offers binary chain contracts ( Binary ), which are prediction-based contracts that can only settle at 0 or 100. In essence, a binary chain contract is a more complex bet on a certain event. The only binary bet engine currently available is related to the next 1mb block on the Bitcoin blockchain. Binary contracts are traded with no leverage, 0% maker fee, 0.25% taker fee and 0.25% settlement fee.
Bitmex Leverage (Bitmex Leverage)
BitMEX allows its traders to take advantage of their positions on the platform. Leverage is the ability to place orders larger than the user’s available balance. This can lead to a higher profit than placing an order with just the wallet balance. Trading under such conditions is called margin trading (Margin Trading).
There are two types of Margin Trading: Isolated and Cross-Margin. Isolated allows users to choose how much of their wallet should be used to hold their position after placing an order. However, Cross-Margin offers that all funds in a user’s wallet can be used to hold their position and therefore extreme caution is required.
The BitMEX platform allows users to set leverage using the leverage slider. Maximum leverage 1:100 is available (on Bitcoin and Bitcoin Cash). This is quite a high leverage for cryptocurrency, with the average offered by other exchanges rarely exceeding 1:20.
For traditional futures trading, BitMEX has a simple fee schedule. As noted, in terms of leverage offered, BitMEX offers leverage up to 100%, with the amount of leverage varying from product to product. However, it should be noted that trading is at the highest leverage and is intended for professional investors who are familiar with speculative trading. Fees and leverage are as follows:However, there are additional fees for hidden/iceberg orders. A hidden order pays a fee to the recipient until the entire amount of hiding is done completely. After that, the order will go back to normal and the user will receive a refund from the manufacturer for the unhidden amount.
Deposits and Withdrawals (Deposits and Withdrawals)
BitMEX does not charge fees for deposits or withdrawals. However, when withdrawing Bitcoin, the minimum Network fee is based on the blockchain load. Therefore, the only cost is that of the banks or the cryptocurrency network.
As previously noted, BitMEX only accepts Bitcoin deposits, and thus Bitcoin acts as collateral on trading contracts, regardless of whether the transaction involves Bitcoin or not. The minimum deposit is 0.001 BTC. There is no limit on withdrawals, but withdrawals are also only possible in Bitcoin. To make a withdrawal, all the user needs to do is insert the amount to withdraw and the wallet address to complete the transfer.
Deposits can be made 24/7 but withdrawals are processed manually at a periodic time once per day. Withdrawals are processed manually to increase the protection of user funds by providing extra time (and email notification) to cancel any fraudulent withdrawal requests, as well as bypassing the use of the system. Automated systems & hot wallets may be more vulnerable.
Is BitMEX safe?
BitMEX is considered to have a strong level of security. The platform uses multi-signature deposits and withdrawals that can only be used by BitMEX partners. BitMEX also uses Amazon Web Services to secure servers with text messaging and two-factor authentication, as well as hardware tokens.BitMEX also has a risk check system, which requires that the sum of all accounts held on the site be zero. Otherwise, all trading will be stopped immediately. As previously noted, withdrawals are all individually checked by staff, and private keys are never stored in the cloud. Deposit addresses are externally verified to ensure that they contain matching keys. If not, there is an instant shutdown system.
In addition, the BitMEX trading platform is written in kdb+, a database and toolkit popular among major banks in high-frequency trading applications. The BitMEX engine seems to be faster and more reliable than some of its competitors, such as Poloniex and Bittrex.
They have email notifications and PGP encryption is used for all communication.
This exchange has never been hacked in the past.
BitMEX Customer Support
The trading platform has 24/7 support across multiple channels, including email, ticketing systems and social media. A typical response time from the customer support team is around an hour, and customer support responses generally indicate that customer service responses are helpful and are not limited to customer service responses. automatic recovery.
BitMEX also provides a knowledge base and Frequently Asked Questions (FAQs) which, although they are not necessarily always helpful, can assist and direct users to the necessary channels to receive support.
BitMEX also provides trading instructions which can be accessed here.
BitMEX is clearly not a platform not for amateur investors. The interface is very complex and as a result it can be very difficult for users to get used to the platform and even navigate the site.
However, the platform offers a wide range of tools, and once users have experience with the platform, they will appreciate the vast range of information the platform has to offer.
In the next post, we will share our margin trading experiences on Bitmex, please read.
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