BitMEX.com Review 2020 – Scam or Not?
One of the most talked about crypto trading websites today is BitMEX.com.But what makes them so popular in the online crypto trading world? Today, we will be looking into their website with pinpoint precision and provide you guys with detailed information on how to create an account, how to trade, and generally know what makes them the largest crypto trading website today. Without further delay, let’s talk about that!
- About the Company
- Getting Started with BitMEX.com
- Available Order Types
- Deposits & Withdrawals
- Trading Fees
- Supported Trading Pairs
- Website Features/Interface
- Customer Support
- Supported Countries
- Exchange Security
- User Experience
- Frequently Asked Questions – FAQ
- Pros and Cons
The website has been operating since 2014 and has their base operations setup in Hong Kong. Though we ’re unable to verify the physical address of the website, we have confirmed key personalities behind this successful crypto trading website. Leading the pack is Arthur Hayes, CEO of BitMEX which is an experienced derivatives trader and banker. Alongside his leadership are CTO Samuel Reed and Ben Delo, the company’s CSO. Samuel Reed is an expert in creating fast, real-time web applications that are perfect for the ever-changing trading website niche. Ben Delo, on the other hand, is an expert in creating high-frequency trading systems that acts as the binding agent for the three talents behind this amazing website.
Just recently, Arthur Hayes, CEO of BitMEX was invited in the show Fast Money by CNBC and explained why BTC would reach up to $50,000 in the near future. Please click the picture above to be redirected to the original video posted by CNBC on Twitter.
Getting Started with BitMEX.com
Now that we’ve talked a little about the website, let’s try and create an account with them! The first thing that we need to do is head on to their website www.bitmex.com and register an account. To create an account with them all you need to have is an active email address that you can use to confirm the registration and you’re good to go. After providing the active email address, please provide the country of residence so that the website may determine if you are eligible to create an account with them or not.
Not all countries are permitted to deposit but are still able to create an account with the website. If you are one of those people that are unable to create an account with BitMEX.com then we strongly advise you to create an account under their test website which is quite awesome, to be honest.
Shown above are the official and test net logo’s of BitMEX
Their test net website is able to provide users with the experience that they would originally get if they have an account with the official website. To create an account with the test net website, just visit testnet.bitmex.com
Another great thing about BitMEX.com is that they support anonymous trading. This means that the website does not require KYC in order for a trade to experience the full potential of their services at the moment. This can change any time though.
The signup process on both official and test website are easy and hassle-free. It would not be a problem for people that just want to create an account so that they can snoop around the website and know more about them. If you haven’t created an account with them yet, why not create one now so that you can explore the website with us?
Trading with BitMEX.com and available Order Types
Now that we have BitMEX accounts, it’s time to look into their trading platform! Both of the websites (official and test website) have the exact same design and all the useful tabs and buttons are located at the exact positions. This makes it easier to shift from one website to another without having to sacrifice any important aspect of the real trading platform. The only difference is the color of the logo used on both websites. The official website has a red and blue logo while the test website has a green and blue logo to differentiate them from one another.
To place an order, all you need to do is head on to the left-hand side column where the “Place Order” tab is located. Here you will be able to place an order easily by clicking on the order method you want to go with. They have seven order types that you can choose from which we will be discussed below:
- Limit – Limit Order or just simply “Limit” is the most common order type that any crypto trader knows. This order type can be found in almost all online crypto trading websites today. And the function lets the trader buy or sell at a given price or a much better one for a larger profit.
- Market – Market Orders are orders that are best placed or used when you have a good internet connection. This is because market orders make use of micro trades which helps you execute the best price on the market in just a few seconds. If the trader has latency problems, then we would not recommend using this order type.
- Stop Market – A Stop Market order or Stop Order is an order that is made when it reaches a specific entered amount on the order tab. The trigger price is what creates the stop market order and becomes a market order once the stop price is obtained.
- Stop Limit – Just like the stop order mentioned above but this option allows the trader to set the price of your order once the price is achieved. If your trigger amount does not match any orders on the book then your position will remain open until it is filled.
- Trailing Stop – A Trailing Stop Order sets the stop price at a specific amount below the market price with an attached trailing amount. How does this work? Once the price of the chosen market rises, the stop price rises by the trail amount but if it goes the other way around (falls) then the stop loss price doesn’t change at the same time a market order is made when the stop price is achieved.
- Take Profit Limit/Market– Take Profit Limit works like a stop order but triggers are set in the opposite direction. Traders will be able to use this order option to setup an exit position or use it as an entry for a new position in the future.
Once an order option has been chosen, you just need to click on the quantity and the option that goes with the order that you are going to make. After entering the quantity details, the next thing you want to do is click to either buy or sell crypto from the market.
On the lower part of the order tab, we have the leverage option which can be used by professional traders to have margin trades. We emphasized “professional traders” because leverage trading is a very risky option that is not advisable for new traders.
If you are a professional trader and you completely understand the risks involved in trading with leverage then this part of the order tab will be of great help to you.
The maximum leverage provided by the website is 1:100. This means that for every $1 trade, the website will be able to provide a maximum leverage of $100 which also means that the trader needs to put up 1% of the trade; which is really huge in comparison to most of the crypto trading websites today.
Available Crypto to trade in BitMEX: BTC, ADA, BCH, EOS, ETH, LTC, XRP
Mentioned above are the available currencies that can be traded on the website. Now unlike other websites today that offer fiat deposit methods, this website only accepts BTC deposits which we will be talking about below. Trading with the website is both an eye opener for new traders and an experience at the same time. It literally isn’t that hard to just create an account and jump right into it. The trading aspect and the exploration of the website go hand in hand perfectly that it’s uncanny even to the experienced trader.
Getting your money in and out of the website
Now that we’ve talked about the website, how to create an account, and of course, how to trade; the question still remains, how do you get your funds in and out of the website? As mentioned earlier, the website only accepts crypto deposits and doesn’t have any options for Fiat.
To deposit funds into your account, just simply click the Account tab located on the upper part of the website. The website doesn’t charge any fees for funds that you want to deposit but they do charge for withdrawals.
For withdrawals, users will be able to choose between a range of network fees that they want to pay for. If you want a faster fund transfers out of your account then you need to pay a higher network fee. The minimum fee is BTC 0.001 and the maximum is BTC 0.05. This dynamic feature is shown on the screenshot above.
Withdrawals are being processed manually once per day, this means that you need to submit your withdrawal request before 13:00 UTC to be included in that day’s withdrawal request batch. This method might be slow compared to automated withdrawal systems but BitMEX takes withdrawal security seriously and the processes require manual checking and validating.
Let’s talk about FEES! There are a lot of fees involved when talking about an online crypto exchange website. BitMEX.com isn’t an exception and knowing how much you need to pay per transaction is as important as knowing how to get your money and in out. Below are the fees that can be found on their fees tab which can be accessed on the lower part of their website.
- Perpetual Contracts – For perpetual contracts the charge for BTC with a leverage of 1:100 would be -0.0250% for the Maker and 0.0750% for the Taker. Long funding is 0.0100% and short funding is -0.0100% with a funding interval of every eight hours.
- Traditional Futures – For traditional futures, please see the screenshot above.
- Upside Profit Contracts – For BTC with the leverage of 1x the maker fee is free, taker fee is free, and there’s also no charge for the settlement fee.
- Downside Profit Contracts – The same goes for downside profit contracts with the leverage of 1x. The maker fee is free; taker and settlement fee are free as well.
For those of you who are not familiar with the Maker and Taker fees then here’s a very short explanation: Maker fees are settled when you add liquidity by placing a limit order (on the order book) below the ticker price for a buy option and above the ticket price for sell. Taker fees on the other hand are settled when you take out liquidity from the order book by placing an order that is executed against an order on the book.
New users can save on the trading fees for half a year when they use a promo discount code like this one when they sign up. Bitmex discounts the trading fees by -10 for them.
Supported Trading Pairs
At this point, we generally have an idea how to create an account and go around their website and explore their trading platform. We would just like to point out that the design of their platform is impressive. It’s got a lot of important tabs but does not clutter! If you have gone through more than ten websites that offer the same services as BitMEX does, then you would know what we mean by this. It’s definitely not “Simple” since you have all the important tabs located in one place and the charts are updated by the millisecond. This gives the trader that “control” feel and gives you the confidence to trade and profit from the moves that you are about to take.
The reason behind this is the BitMEX software that they are using. The BitMEX market maker is an adaptation of the popular software Liquidbot which is written in Python. The bot allows the traders to get a hold of two-sided markets which also supports permanent API keys which is great for seasoned trading veterans that want to run their own trading strategies.
Unlike other exchanges in where they would have their own currency running the joint, here at BitMEX.com they generally use BTC which is great since it doesn’t create a synthetic market within the trading platform itself. Traders will really get the feel of trading real-time BTC and another crypto from the market. Read more here.
In all our reviews, we have always stressed how important it is to have an awesome customer support. This is because having a solid channel to get a hold onto when things go crazy is the key to any successful online business today. It would be impossible to see online businesses going more than a year without having a good customer support. The website has been operating since 2014 and that has been a good four years, without proper support, will they be able to reach two years?
Customer support starts from the really basic FAQ page. The FAQ page here at BitMEX.com provides all the necessary answers to questions that are mostly being asked by new traders like what are the different contracts being offered online, what are the available leverage and what does leverage do, how to get liquidation and all of the important things that new traders ask.
For other channels, they also have Weibo, WeChat, Telegram, Twitter, and Reddit pages. The website does not offer any phone number to call but customers will be able to submit a ticket and get a reply to the registered email used within 24 hours of submitting a ticket. Multiple languages are supported which include Chinese, French, Korean, and Japanese aside from the default English language.
All countries except:
- United States of America
- Québec in Canada
- Hong Kong
- Crimea and Sevastopol
- North Korea
Security can be often confused with simple passwords that you provide once you create an account. A simple password connected to your registered email can be easily breached. That is why most of the websites today offer Two-Factor Authentication features that provide additional security to their customers’ accounts.
To access the security tab all you need to do is click your account name found on the upper left hand side of the website and choose “Account & Security” tab which will then redirect you to a page wherein you will be able to change your personal info, contact info and of course, choose which 2FA you want to activate. BitMEX.com provides two options namely Google Authenticator and Yubikey depending on your preference.
The website also offers strict IP pinning, safe session duration (which auto logs out the account for a given time if not active) and of course, PGP Key for added extra security for people that want to have this feature turned on. All of these security features can be found under the Account tab and is very easy to understand and go around with.
Now comes the most interesting part of this review, what do people say about BitMEX.com? There are a lot of mixed reviews about the website but good for us, there are only a few negative comments regarding their service. One that has caught our attention was the issue of a user having issues with his/her funds which can be followed through the website that they purposely made due to this issue. Click on this link to be redirected to that website.
Issues like these are the ones that we need to be aware of before committing to any online websites today. This ensures us that it is really important to read about the website beforehand and know more about them first to be properly educated on other people’s user experience.
On the other hand – there are scam accusations about every broker and exchange on the internet. In our experience over the last 2 years, Bitmex.com is a very reliable and trustworthy exchange.
FAQ – Frequently asked questions about BitMEX
In which countries is BitMEX allowed?
Can US citizens use BitMEX?
How do you use BitMEX in the US?
Does BitMEX need KYC?
What coins are supported on BitMEX?
Can you buy bitcoin on BitMEX?
How do you withdraw money from BitMEX?
How long is BitMEX withdrawal?
How do I deposit into BitMEX?
What happens when you get liquidated on BitMEX?
What happens when BitMEX futures expire?
What is the maximum leverage on BitMEX?
What is the funding rate on BitMEX?
What is a perpetual swap on BitMEX?
What are the fees on BitMEX?
How high are the fees on BitMEX compared to other exchanges?
Pros and Cons
- Futures & Derivatives trading
- No KYC / Anonymous Trading possible
- Leverage of up to 1:100
- Test trading platform
- Advanced Interface not for beginners
- Does not accept Fiat deposits/withdrawals
BitMEX Review Conclusion
Overall, the website gives us an idea on how a proper crypto exchange website should work. They have everything that you need within reach. They even have a test website wherein new traders or experienced ones can look into how their trading platform works before committing to the website. If you are looking for a trading platform that has a good amount of order types and offers leverage then this website is the perfect one for you!