BitMex Review 2023: Leveraged Crypto Trading Is it Safe? Pros & Cons

It’s a simulation where you can practice trading without any risks. Yes, BitMEX does offer negative balance protection.Consider the following instance – you trade margin cross, and your account’s balance is used to cover any potential loss. Every BitMEX system requires multiple authentication forms to grant access, including hardware tokens. While individual systems can communicate with each other, they can only do so across approved secure channels that are monitored 24/7. In summary, all you need is an email address, consent that you are over 18 years old, and confirmation that you don’t live in the US to use BitMEX.

If you’re an experienced trader, you won’t have any issues with this. You probably know that the US is very strict when it comes to cryptocurrencies and trading platforms, especially when it comes to decentralized/not regulated ones. That’s why it might be difficult for US citizens to find a truly good crypto exchange platform that would allow them to trade without worrying about legalities. BitMEX Margin trading is a type of trading method when you practice trading financial assets using the money that you borrowed from a broker. BitMEX offers margin trading with up to 100x leverage for its Bitcoin/USD Perpetual Contract. It means that by investing $10, you can trade as if you have $1000.

• And that’s because very few people know how to margin trade cryptocurrencies and not many reviews are available for the same.
• This means that with an investment of just $10, traders can effectively trade as if they had $1000.
• Every function that is used on the website is exposed via the API.
• Traders looking for a high risk, high reward platform can look no further than BitMEX.

There are reportedly ways around this for US customers using a secure VPN. But, this is prohibited by BitMEX policy, and BitMEX does not recommend this option. BitMEX is recommending finding another crypto exchange in the USA to use or trade. Perpetual contracts by BitMEX do not impose any expiry on trading futures as they use margin-based spot bitmex review trading practices on BTC index prices. While an unregulated operator is not necessarily unsafe, a lack of regulation is a red flag that it certainly might be. Questions have to be asked as to why the operator hasn’t sought regulation, or why haven’t they been able to successfully achieve a licence in the event they have gone for regulation.

This information about BitMEX exchange might scare you off of using this platform. If that’s the case, you can always check out other top-rated cryptocurrency exchanges that offer robust security. BitMEX is short for Bitcoin Mercantile Exchange, and as the name states, it’s a crypto exchange platform that enables derivative trading.

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A funding mechanism is used to anchor the Perpetual Swap mark prices to the spot price. Perpetual Swap is a crypto asset derivative product that mimics the spot market price. Traders can long or short a position to profit from the increase or decline of a coin’s price.

This works in a similar way to a loan, allowing traders to maximize their potential profits. Leveraged margin trading is a big part of Bitmex https://forex-reviews.org/ and leverage of up to x100 is available on Bitcoin contracts. Ethereum contracts can access leverage of up to x50 and Monero x25.

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In dollar terms, CME’s BTC volumes increased by 108.6% to $50.1bn. Generally, it seems like customer support at BitMex is amongst the most knowledgeable in the market. Their team is polite, courteous, speak English well, and they try to cater to the expanding market and attempts to take the pressure off their customer service. As such, trader A can only make 1 BTC ($4,000) in profits, perhaps making him/her feel slightly disappointed.

The BitMEX mobile web wallet can also be used to make deposits with barcodes. BitMEX Upside Profit is a smart contract that allows traders to participate during the potential upsides of financial instruments such as BTC. Under the regulations of the Commodity Future Trading Commission, the BitMEX trading engine helps people in trading currency directly. It helps generate value for Bitcoin and other crypto coins, which are not the actual coins.

Overall Conclusion – BitMEX Crypto Exchange stands out from the crowd

This makes intuitive sense, as the world is on a dollar standard, and less dollars required to buy 1 Bitcoin means more people can hit that hurdle. Therefore, this has made owning certain amounts of Bitcoin a lot more achievable. This followed a period of levelling off during COVID as the price of Bitcoin went parabolic, surging from $7,000 at the start of 2020 to nearly 10X that by late 2021. The one million addresses represent just over 2% of the total number of non-zero addresses on the Bitcoin network. To be clear, one Bitcoin address is not equal to one person, so this doesn’t necessarily mean 1 million people own 1 Bitcoin. Certain individuals are in control of multiple Bitcoin addresses, while some addresses may belong to institutions or groups of people.

Ultimately, by engaging in this particular derivative, you are speculating that the underlying cryptocurrency will go down in value before a pre-defined time period. In reality, the general consensus is that US citizens do in fact use the platform for their trading endeavours, not least because BitMEX users are able to open an account anonymously. Even with the platform utilizing IP detection software, US users simply need to install a VPN. In addition to individual customer accounts, BitMEX also supports corporate accounts. Corporate clients can benefit from individualized solutions, such as 24/7 customer support, consulting, or institutional crypto strategies.

Trading Payments – Funding your Account

BitMEX was also one of the first exchanges to provide Bitcoin perpetual futures trading contracts. In the early days of crypto, BitMEX established itself as the go-to Bitcoin derivatives trading platform for professional investors. This exchange made a name for itself by allowing traders to take 100x leveraged positions on bitcoin and providing a highly professional crypto-to-crypto trading experience. Registered under the International Business Companies Act, BitMEX is a trading platform designed for experienced traders in margin trading and leverage trading. The platform is used for building perpetual contracts on margin trading. BitMEX is a unique cryptocurrency exchange that provides users with derivative contracts on bitcoin and several other major cryptocurrencies.

This the fund, which BitMex set up to ensure that liquidation orders related to leveraged positions are filled. According to the media reports, it has increased to holding over 31,300 bitcoins or approximately $314 million in 2019. Live update features, such as the announcement tab and the live chat function, provide that little extra bonus in making sure you never miss out on crucial news. The fees round things off to make the exchange an attractive all-around package. Support is offered via an email ticket, which is pretty standard for the industry.

In order to access the funds held in cold storage, BitMEX has installed a multi-signature protocol. This means that of the three individuals that have access to the wallet, at least two of them must sign the transaction for the wallet to release the funds. ETH/USD – Funding is -0.07%As the funding rate is negative (-), this means that those currently short on Ethereum will need to pay a funding fee of 0.07%. The fee is based on the amount you currently have outstanding on your trade. The funding fee is then paid to those that are long on Ethereum as a rebate.

The web-based trading platform is solely designed for desktop use – which is certainly not a dealbreaker since the interface is too complex to work with on a mobile phone. If you’ve used other trading platforms, you will agree that it is not beginner-friendly while the interface is intuitive. BitMEX ensures that every withdrawal is audited by hand – not once, but twice before it’s finalized.Also, private keys are not stored on servers, making the funds that much secure. Every deposit address that the exchange platform encounters is verified by a third-party service, ensuring that the addresses contain the keys managed by the company’s founders. Despite its many advantages, BitMEX has some drawbacks that should be taken into consideration. These include high fees for certain transactions, a lack of customer support, and a complex user interface that can be difficult to navigate.

BitMEX is a Hong Kong-based cryptocurrency derivatives exchange that enables futures trading with up to 100x leverage. In addition to its flagship Bitcoin-based perpetual contract and futures contracts, BitMEX also offers leveraged trading on other cryptocurrencies such as Litecoin, Ethereum and XRP. Bitcoin is the only cryptocurrency supported by BitMEX for deposits and withdrawals.