We made this BitMEX review for crypto trade starters that are interested in margin trading and exchange. Through careful analysis, we provide vitally important information that investors should know about before depositing Bitcoin at BitMEX. These include:
- Account registration
- Payment methods and fees
- BitMEX margin trading, swap, and futures contracts
- Margin lending
- Available trading pairs
- BitMEX Support and Security
- BitMEX liquidity and trade volume
Finally, we provide detailed pros and cons of Bitcoin trading at BitMEX. This will help potential crypto traders to compare the platform with other, similar sites.
BitMEX Account Registration
BitMEX account registration is quite simple. You provide email address and password that protects your balance from hackers. Much like with other exchanges, you need to verify your email address and whitelist the IP address.
What makes BitMEX special, however, is the lack of KYC (Know-Your-Customer) policies. The company does not require any sort of identity verification documents. Thus, all trades, deposits, and withdrawals within BitMEX platform are anonymous.
BitMEX Payment Methods and Fees
BitMEX payment methods and fees policies reflect the lack of KYC policy setup. At this platform, fiats are not accepted. Thus, it is not possible to deposit or withdraw USD or EUR within the website.
Only cryptocurrencies can be deposited. Crypto wallets are the only getaway you have when it comes to inbound and outbound transfers.
On the side of BitMEX fees, the platform implements simple maker and taker structure. The range goes from -0.05% to 0.075%.
The cost (or a rebate) depends on whether you are adding liquidity or deducting it, on chosen trading pair, and leverage rate. You also pay a settlement fee of 0.05% if you are leveraging BTC on 100x rate.
How to do Leverage trading with BitMEX?
Below we will provide a step-by-step guide on how to do leverage trading on BitMEX.
Step 2: Deposit Bitcoin to BitMEX. Go to account in the header menu and then Deposit.
Step 3: Now you need to choose what trading product you want. In the screenshot below, you can see the available cryptocurrencies for trading. You can get to this view by click on the BitMEX logo in the upper right corner. If you browse between the cryptocurrencies you can see different trading products coming up in the row below.
In the screenshot below, Bitcoin is marked. Below there is a row describing that the following trading products are available for Bitcoin
- Perpetual up to 100x leverage
- Sep 25 up to 100x leverage
- Dec 25 up to 100x leverage
- Mar 26 up to 100x leverage
Step 4: Now you have selected the cryptocurrency you want to trader. Also, you have marked what product you want to trader in the row below the cryptocurreny.
Now its time to inspect the left column.
You can go ahead and buy or shell the cryptocurrency right away with the default parameters. However you have the ability to change the order as well.
1. You can do limit order (You set your limit price yourself and the order is triggered if the market reaches that price)
2. You can do market order and you will buy the cryptocurrency to the current price in the market immediately
3. You can go for Stop Market order. You place an order that will go into the order book when a specified price is reached in the market.
Lets say we go for a market order this time. The only thing we need to set now is the leverage.
Step 4: Change the leverage bar to what leverage you want.
After this, hit the green buy button, or the red sell button.
You go long with the green button if you want to profit from an increasing price.
You go short with the red button if you want to profit from a decreasing price.
Important step: Take a look at liquidation value. If trends did not match your expectations, BitMEX may close your order if it passes through the liquidation price limit. Thus, you would incur a loss. It is a good idea to set stop-loss as to limit potential losses if market is unstable.
BitMEX Margin Lending
BitMEX margin lending is what we consider a perpetual swap contract. You provide liquidity to the market by keeping your order live for a considerable time. The payout occurs every 8 hours and the rate level depends on market trends. Most of the time, you will receive payment since you are using short order contract. Market trends go up and down all the time, providing you a fair chance of constant earnings.
To engage in margin lending, follow these steps:
Step 1: Create a short (sell) order at the market price. Do not use leverage, price limit functions, or any other tools.
Step 2: Periodically check market trends and price movements. Should market go bananas, get a close look at the liquidation price. Although it should be far away from the reach, it would do you good if things go awry to close the order and limit your losses.
Step 3: Keep order alive by not doing anything. Check your balance every 8 hours and see whether you got payments or fees.
BitMEX Leverage Trading Products
BitMEX is offering the highest leverage in the market. Bitcoin holds the greatest leverage trade that platform offers, standing at 100x. Leverage trade is essentially a short-term loan that you take form the BitMEX’s market pool. The pool consists of all those traders that lend out coins, as described in the previous section. From there, you can use lingering funds to power up your trades.
Below you can see what leverage is available for each cryptocurrency
- Bitcoin up to 100x leverage
- Cardano up to 25x leverage
- Bitcoin Cash up to 25x leverage
- EOS Token up to 25x leverage
- Ethereum up to 50x leverage
- Chainlink up to 33x leverage
- Litecoin up to 33x leverage
- Tron up to 20x leverage
- Ripple up to 50x leverage
- Tezos up to 33x leverage
Take into account that the liquidation price is a lot closer to your closing price as leverage rate gets bigger. Thus, 100x leverage order could land you very close to order closure, incurring massive losses. As you can earn 100 times bigger profits, so can you make 100 times bigger loss.
BitMEX Trading Pairs
BitMEX trading pairs reflect both fiat and crypto markets. However, when compared to some other platforms, BitMEX might come out as lacking in products. This is especially true if we compare BitMEX with Bitfinex or Poloniex. Nevertheless, there are few choices available to you while trading cryptos at BitMEX. Trade pairings include:
Be advised that all fees are payable in XBT, even if you trade with other cryptocurrencies.
BitMEX Customer Support and Security
BitMEX employs basic support and security features for traders operating within its platform. The company offers standard 2FA and API tools that are used to protect accounts from unauthorized third-party breaches. You also have activity logs and email notifications to alarm you should someone break through your defenses.
On the side of the support, here are few ways to reach BitMEX employees:
- Email/ticket system
- Social media (Reddit and Twitter)
- Trollbox (chat with other traders and moderators might come up)
The Trollbox, although very useful, is not a live chat support feature. It serves mostly as a community forum, where traders can ask for help with their orders. Experienced traders might help you out if you have some doubts regarding how BitMEX
BitMEX Market Liquidity
BitMEX market liquidity is one of the highest in the crypto market right now. On a daily basis, traders generate a volume of 298 million BTCs, the equivalent of over $3 billion value. Suffice to say, it is quite liquid, with market alive and fluctuating.
BitMEX VS Bybit
BitMEX has been an old player in the crypto derivative market and is the largest Bitcoin derivative platform by trading volume. However, there are coming many new trading sites, like ByBit.
ByBit is definitely challenging BitMEX and many think they are doing a really good job. ByBit offers lower fees, more trading paris with 100x leverage, aggregated liquidity, more user friendly interface and a big sign up bonus. Remember, always ask yourself if new crypto trading platforms are legit. We did summarize a security review and ask ourselves if ByBit is safe to use?
BitMEX Pros And Cons
BitMEX Review Conclusion
Overall, as a BitMEX review conclusion, we deem platform a good starting point for beginners that are interested in bitcoin lending. It is very simple and a good Bitcoin passive income source for those that are still learning how to trade cryptocurrencies.
However, 100x leverage rate is oriented towards experienced traders and starters could lose a lot of money if their guesses prove to be incorrect.