What Is BitMEX?
BitMEX is a cryptocurrency exchange and derivatives trading platform known for its advanced features and high liquidity. It is particularly popular among experienced traders due to its professional setup and the ability to offer up to 100x leverage on Bitcoin and altcoin trades.
Company Overview
BitMEX, short for Bitcoin Mercantile Exchange, is a cryptocurrency exchange and derivative trading platform. It was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, with financing from family and friends. The platform is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles.
BitMEX offers a variety of cryptocurrency-based financial products, including perpetual contracts, futures contracts, and options contracts. These products allow traders to bet on the price movements of cryptocurrencies like Bitcoin, Ethereum, and others, without actually owning the underlying assets. In 2016, the exchange introduced perpetual futures, which became its most popular derivative product.
BitMEX has faced legal challenges in the past. In 2020, the U.S. charged the founders of BitMEX with failing to prevent money laundering. Arthur Hayes, the former CEO of BitMEX, turned himself in to face U.S. charges for violating the Bank Secrecy Act in April 2021.
BitMEX User-Interface
The BitMEX web interface is professional and customizable, allowing traders to rearrange, resize, and remove widgets from the Trade page. This flexibility enables users to tailor the interface to their specific trading needs and preferences. BitMEX’s web interface also supports a feature called Multicharting, which allows traders to monitor multiple instruments all in one place, as well as manage orders and positions across these instruments. This feature is particularly useful for traders who engage in multi-asset trading.
BitMEX Mobile App
The app allows users to manage all critical account features, including wallet and portfolio management, trade derivatives and spot, and access real-time data and charts. The mobile app also features an intuitive chart display, enabling users to track real-time price movements with just a few taps. Moreover, BitMEX Mobile is continually updated with new features and enhancements, ensuring that users always have access to the latest tools and functionalities.
Trading Pairs and Fees
BitMEX primarily focuses on Bitcoin trading, but it also offers futures contracts for other cryptocurrencies (ETH, ADA, LINK, XRP, DOGE, ARB, AVAX, SOL, SHIB, etc). However, the range of crypto assets is not as wide as some of its competitors. The platform only accepts Bitcoin for deposits and withdrawals.
BitMEX’s fee structure is competitive. The platform charges a maker fee of -0.025% and a taker fee of 0.075% for Bitcoin perpetual contracts. For traditional futures, the maker fee is -0.025%, and the taker fee is 0.05%. These fees can vary for different cryptocurrencies to find the complete list of fees you can visit this page.
BitMEX does offer trading fee discount if you stake BMEX token.
What are the BMEX staking discounts?
Staking BMEX tokens on BitMEX offers several benefits, with one of the primary ones being taker fee discounts of up to 15%. The more BMEX tokens you stake, the higher your taker fee discount. These discounts apply in addition to any Average Daily Volume (ADV)–based fees and discounts.
In addition to taker fee discounts, staking BMEX tokens can also lead to reductions in maker fees. For larger staked amounts, you can guarantee a maximum fee level. The exact discounts and rebates on taker and maker fees depend on the number of BMEX tokens staked. For instance, staking 1,000 BMEX tokens can lead to a 4% taker fee discount and a guaranteed maker fee of 0.0190%. Staking 1,000,000 BMEX tokens can lead to a 15% taker fee discount and a guaranteed maker fee of -0.0040%.
Apart from trading fee discounts, staking BMEX tokens also offers other benefits such as refunds on withdrawal fees, exclusive privileges and experiences like early product access, BitMEX swag, tickets to sports events, and VIP services for users who hold more than 500,000 BMEX.
BitMEX Trading Volume (24H)
24H trading volume on 30th December 2023 at the time of publication of this article, was around $644M. Making BitMEX the 38th Largest cryptocurrency exchange in the world.
BitMEX Proof of Reserves
BitMEX conducts a Proof of Reserve & Liability (PORL) process twice a week, providing a transparent record of its Bitcoin reserves and liabilities. The process involves publishing a file containing the balances of all BitMEX addresses, along with the locking scripts used to derive the address from exchange keys. This file can be considered as proof of company reserves and proof that the funds are spendable.
BitMEX’s Proof of Reserves process is designed to demonstrate that the company has access to all the funds, assuming the company has access to the private keys associated with the public keys. This is proven each day when the company conducts withdrawals. In addition to the Proof of Reserves, BitMEX also provides a Proof of Liabilities. This process involves publishing a file that contains the liabilities of the company to its users. You can find their audit and Proof of Reserves (PoR) here.
Pros and Cons
Pros
- High Liquidity: BitMEX offers one of the largest liquidity crypto trading environments.
- Advanced Trading Features: The platform provides advanced trading features, including up to 100x leverage on Bitcoin and altcoin trades.
- Security: BitMEX takes security seriously, offering multi-signature withdrawals and deposits, and using Amazon Web Services for additional security.
- Customer Support: BitMEX provides 24/7 customer support via a ticketing system, and in English, Chinese, Turkish, and Russian.
Cons
- Not Beginner-Friendly: The platform’s advanced features may be overwhelming for beginners.
- Limited Crypto Assets: The range of crypto assets is not as wide as some of its competitors.
- Set Withdrawal Times: Withdrawals are only carried out at a set time of day.
What is the process for depositing funds on BitMEX?
After the required network confirmation(s), your funds will be credited to your account. BitMEX does not charge any fees for deposits. However, BitMEX only accepts Bitcoin for deposits and withdrawals, and all Bitcoin is stored in a cold multi-signature wallet for security purposes.
For depositing other cryptocurrencies like USDT, you can select the appropriate currency under the ‘Deposit’ section in your wallet and follow the instructions provided. Remember that while BitMEX does not charge deposit fees, the Bitcoin network may require a transaction fee, which is set dynamically based on blockchain load. BitMEX also supports multi-network support for USDT (SOL) withdrawals and deposits, allowing users to deposit and withdraw USDT via the Solana network, in addition to Ethereum and TRON.
Can BitMEX users purchase Cryptocurrency using Credit or Debit Card?
Yes, BitMEX users can purchase cryptocurrencies using a credit or debit card. BitMEX has partnered with Banxa and Mercuryo, third-party payment processors, to facilitate these transactions. Users can purchase Bitcoin (XBT) or Tether (USDT) using Visa or Mastercard credit/debit cards and the user can select the method of payment i.e. Skrill, Revolut etc. The purchased cryptocurrency is then credited directly into the user’s BitMEX wallet. In addition to credit and debit cards, BitMEX also accepts Apple Pay and electronic fund transfers for these transactions.
Can U.S. customers trade on BitMEX?
No, Due to BitMEX’s Restricted Jurisdiction Policy, access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated, or otherwise established in, or a citizen or a resident of, the United States of America.
Comparison with Other Exchanges
Binance
Binance is one of the largest and most popular cryptocurrency exchanges. It offers a wider range of cryptocurrencies for trading compared to BitMEX. Binance also has a higher overall score of 9.8 compared to BitMEX’s 6.0, indicating a better user experience and more comprehensive features.
Kraken
Kraken is another well-known cryptocurrency exchange. It has a lower trading fee percentage of up to 0.26% compared to BitMEX. Kraken also has a larger active user base and accepts a higher number of cryptocurrencies.
Coinbase
Coinbase is a user-friendly exchange that is suitable for beginners. It supports a wide range of cryptocurrencies and offers a variety of services, including a wallet, an advanced trading platform (Coinbase Pro), and more. However, its trading fees can be higher compared to other exchanges.
In conclusion, BitMEX is a robust platform for experienced traders looking for high liquidity and advanced trading features. However, beginners or those looking for a wider range of crypto assets may find other exchanges like Binance, Kraken, or Coinbase more suitable.
What Trading Pairs Are Available on BitMEX
BitMEX offers a variety of trading pairs for its users (No. Markets 136 trading pairs). The most active trading pair on BitMEX is BTC/USDT. Other trading pairs include BMEX/USDT, SOL/USDT, and ETH/BTC. Please note that the number of available trading pairs can change over time as the exchange adds or removes certain pairs.
BitMEX Sign Up
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Frequently Asked Questions (FAQs)
What is the maximum leverage available on BitMEX?
The maximum leverage available on BitMEX is up to 100x on its Perpetual Bitcoin / USD Perpetual Contract. This means that traders can buy as much as 100 Bitcoin of contracts with only 1 Bitcoin to back it. However, the amount of leverage BitMEX offers varies from product to product, as leverage is determined by the Initial Margin and Maintenance Margin levels.
What is the minimum deposit required to trade with 100x leverage on BitMEX?
The minimum amount to trade on BitMEX varies from product to product and is determined by the Initial Margin. For the XBTUSD contract, for example, the minimum is calculated as USD 1 multiplied by the Initial Margin percentage, which is 1%, resulting in a minimum of $0.01. At a hypothetical XBT/USD price of $600, this would equal 0.00001667 XB. The actual minimum deposit required to trade with 100x leverage would depend on the price of Bitcoin at the time of the trade, as leverage is a function of the Initial Margin requirement.
How long does it take for funds to be credited to a BitMEX account after depositing?
Deposits on BitMEX are credited after the transaction receives a certain number of network confirmations on the blockchain. For Bitcoin (XBT), deposits are credited after 1 network confirmation. For Ethereum (ETH) and ERC20 tokens, deposits are credited after 12 confirmations. The time it takes for these confirmations to occur can vary depending on the congestion of the network. On average, this process can take anywhere from 10 minutes to a couple of hours.
