BitMEX Exchange Review – Trade Bitcoin Futures with High Leverage

Bitmex Review printed screen

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.

 

FIATS ACCEPTED

CRYPTOS ACCEPTED

DEPOSIT METHODS

BitMEX

Crypto Only

BTC, ADA, BCH, EOS, ETH, LTC, TRX, XRP

Crypto Wallets Only

CEX.io

USD, EUR, GBP, RUB

BTC, ETH, BCH, XRP, LTC, TRX, and 8 others

Bank Transfers, Credit Cards, Crypto Wallets

Bitfinex

USD, GBP, EUR, JPY

BTC, ETH, BCH, XRP, LTC, TRX, and 152 others

Bank Transfers, Crypto Wallets

Poloniex

USD only

BTC, ETH, BCH, XRP, LTC, TRX, and 48 others

Bank Transfers, Crypto Wallets

Kraken

USD, CAD, EUR, GBP, JPY

BTC, ETH, BCH, XRP, LTC, and 18 others

Bank Transfers, Crypto Wallets

PrimeXBT

USD, EUR, AUD, JPY, CHF, GBP

BTC, ETH, LTC, XRP, EOS

Credit Cards

DeltaExchange

Crypto Only

BTC

Crypto Wallets Only

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.

BitMEX Swaps and Futures

BitMEX swaps and futures are contracts based on crypto’s price forecasts. You create orders and hope that your predictions will turn true and earn a profit based on price differences. Swaps and futures are very similar but differ in few important aspects.

When your order does not have a specific date where the order would be closed, you are using perpetual swaps contract. In a sense, there is no trade going on exactly since buyers are not buying and sellers are not selling. However, you are keeping funds alive by holding the order. As such, you receive rebates (funding rates) if your order is categorized as a market maker.

Futures contracts, on the other hand, are predetermined orders where you specify what value of Bitcoin will be at a specific date in the future. You are betting that price will fall or grow from its current state and plan to make money out of it. Here is how it works:

Step 1: You create an order using the current price and release it.

Step 2: Specify a limit price based on your TA (technical analysis) and FA (fundamental analysis) findings. Be sure to use charts available at BitMEX, which are highly customizable and have many indicators at your disposal.

Step 3: Follow through price changes and see how close market trends are pushing crypto’s value towards your limit close price.

Step 4: Either your order will be completed once the price reaches the limit or you can close the order in the future if you are satisfied with the profit you can get before limit price is reached.

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

BitMEX leverage rate is one of the highest 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 is the table on margin trading rates that you can borrow from the platform.

CRYPTO

POSSIBLE LEVERAGE RATES

Bitcoin (XBT)

1x – 100x

Bitcoin Cash (BCH)

1x – 20x

Cardano (ADA)

1x – 20x

EOS Token (EOS)

1x – 20x

Ethereum (ETH)

1x – 50x

Litecoin (LTC)

1x – 33.33x

Ripple (XRP)

1x – 20x

Tron (TRX)

1x – 20x

 

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:

  • BTC/USD
  • ADA/BTC
  • BCH/BTC
  • EOS/BTC
  • ETH/USD
  • LTC/BTC
  • TRX/BTC
  • XRP/USD

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 Pros And Cons

Pros

  • Leverage rate of 100x or Bitcoin
  • No verification demands
  • Competitive fees and rebate rates
  • Possibility to Short Bitcoin

Cons

  • Large leverage rates carry very high liquidation price limits
  • No fiat trade or deposits
  • Small number of trading pairs to choose from

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.

Compare: Bitfinex review and PrimeXBT Review

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