BitMEX Review 2024

BitMEX is a cryptocurrency exchange for those interested in trading derivatives, including futures and perpetual contracts with a big leverage of up to x100. In terms of spot trading, the choice of currencies at the platform is rather modest. The company’s daily trading volumes reach an equivalent of several billion US dollars.

The crypto exchange was established in 2013. It is owned and operated by HDR Global Trading Limited, a company registered in the Seychelles. The authors were unable to obtain information about the exchange holding an international or a local license at the time this article was written. However, the information about the place of registration of the owner of the exchange points to its offshore jurisdiction. Accordingly, its operation is not regulated by any authorities.

BitMEX provides a wide range of services to its clients, including spot trading, contracts and also passive income options. The platform offers access to a small number of trading pairs, while deposits and withdrawals are possible only in Bitcoin (they are marked at the website of the exchange as XBT). No fees are charged on these kinds of transactions.

According to coinmarketcap.com/rankings/exchanges/, the clients of the exchange have access to 32 markets and 15 types of currencies. The average liquidity value is 427, which is considered an average indicator. The weekly traffic on the crypto exchange is over 520,000 people.

One of the key features of the cryptocurrency exchange is that in the majority of trading options, Takers are charged with a rather low fee of 0.075%. At the same time, Makers can expect to receive a cash back of 0.01%. In terms of Bitcoin margin trading, traders can use a leverage of up to x100. For other currencies, the indicator is somewhat lower.

BitMEX rating

Total score	7
Commissions	8
Security and regulation	6
Markets	7
Passive income	6
Account opening	8
Deposit and withdrawal	6
Trading platforms	9
Analytics	7
Education	8
Customer support	6
Bonuses	6

BitMEX Pros and Cons

Basic information

BitMEX offers rather loyal conditions in terms of commissions and fees. The crypto exchange does not charge deposit and withdrawal fees. The trading fee in most cases is less than 0.1% for takers. Makers are not required to pay a fee on transactions involving derivatives. In spot trading, the fees are up to 0.1% for Takers and Makers.

There is an opportunity to receive a discount and reduce the fee you have to pay for each type of trading. This requires increasing your daily trading volume. We will discuss this below.

Comparing the fees of the exchange with those of competitors, it is worth noting that they may not seem as low for beginners. However, with the increase of the trading volume, you will be able to receive better conditions and make trading more profitable.

Trading fees

The amount of trading fees at BitMEX depends on the chosen type of trading. There are the following conditions for trading derivatives and contracts:

• Taker fee is always 0.075%;
• Maker receives a rebate in the amount of 0.01%.

In addition, there are discounts for users. By increasing their rolling daily trading volumes (ADV), traders are assigned new tiers. For example, upon reaching the trading volume of USD 1,000,000 or higher, the second tier (Tier I) becomes available to a trader. In this case, Taker fee discount is 33.33% for trading derivatives. The third tier (Tier T) becomes available once you reach an ADV that is equal or higher than USD 5,000,000, etc. There are a total of six tiers. Once you’ve reached the last tier, the discount will amount to 66.67%. Users also receive discounts for staking BMEX, the native token of the cryptocurrency exchange. By using all offers, a trader’s maximum discount may reach 71.6695%.

The other option is spot trading. With minimum investment, Taker and Maker fees are fixed at 0.1%. However, you can receive a discount by increasing your trading volume. For example, once you achieve a daily trading volume of USD 100,000, you will move to the next tier and reduce your fee by 0.01% for Taker and 0.05% for Maker. Once you reach the sixth tier, the Taker fee will be 0.03%, and Maker fee – 0.00%. Similar to derivatives, there are additional discounts for staking BMEX. By staking BMEX you can reduce the Taker fee up to 0.0255%.

Non-trading fees

The exchange does not charge a deposit or withdrawal fee on its users. In case of withdrawal, however, you will have to only pay the Bitcoin blockchain fee.

Before you become a client of this crypto exchange, users should know that all transactions at the exchange are performed exclusively in XBT (Bitcoin). You cannot use fiat money, for example US dollars for deposits or withdrawals. At the same time, such currencies are available for trading derivatives.

Average fee compared to competitors

In this case, the average indicator is used for both categories in spot trading and without taking into account the discounts.

Margin lending

BitMEX provides leverage for all types of trading. The maximum leverage is available on transactions with Bitcoin, which is x100. For other currencies, the leverage is lower. For example, for Ethereum, it is x50, Cardano – x20, etc. You can find out the details on the exchange’s website.

When using leverage, traders need to remember about the margin. Specifically, there is an initial market, which is a specific percentage of the lending amount. There is also a supporting margin, which is always lower. The first figure indicates the amount of funds that must be available on the user's account in order for him/her to be able to open a position. And the second value is the amount that must remain on the account throughout the entire lending period. If the available cryptocurrency on the account turns out to be lower at some point, the position may be liquidated. The margin value depends on the peculiarities of the transaction and is controlled directly by the exchange.

BitMEX is positioned as a reliable and absolutely secure supplier of trading services. However, we should look into this issue a bit deeper. The exchange is owned by HDR Global Trading Limited, which was established in 1994. The company is registered in the Seychelles. All products of the exchanges are registered under the BMEX brand.

There is no information about the official license on the website of the crypto exchange. If you ask customer support this question, they do not provide an answer. All of this indicates that the company operates from an offshore territory and does not have any official documents. Accordingly, it is not regulated.

In terms of technical security of the exchange, it is at a rather high level. The website employs two-factor authentication (2FA) that allows the exchange to protect personal information of users. However, each client of the exchange must turn this feature on independently. There is a detailed guide on how to do it on the website.

In addition, all users pass verification, providing relevant information about their identity. Thanks to this, the exchange minimizes the number of scammers among clients and also protects the system from the appearance of double accounts, which is often done to launder money.

Also, special security technologies are used to keep the funds of the cryptocurrency users safe, for example cold wallets, which are not connected to the Internet. As of now, it is the most reliable option for storing cryptocurrencies. Representatives of BitMEX claim that the exchange has not been hacked in the entire time of its existence.

It cannot be said that BitMEX offers a wide choice of assets. However, both beginners and experienced traders will be able to find suitable and profitable markets on the platform. For each of the categories, good conditions, including low fees and an opportunity to earn additional discounts will be an advantage.

In terms of the choice of available cryptocurrencies, the exchange is behind its competitors. The platform offers only 15 altcoins, including Cardano, Bitcoin Cash, Ethereum, Chainlink, Litecoin, etc. However, the main focus is on Bitcoin (XBT) as the conditions of working with it turn out to be most favorable.

Pros and Cons of Market Diversity on BitMEX

BitMEX markets

Cryptocurrencies (spot)

In spot trading, you can choose between two order types: Limit and Market. The difference between them is rather simple. If you choose a Limit Order, the stop transaction is prepared in advance. A user sets not only the amount, but also the desired price of the chosen currency. A trade is triggered once the currency reaches the specified price. As for Market Orders, the trade is performed instantly at the price that is relevant at that specific moment of time.

For spot trading, BitMEX offers only the most popular cryptocurrencies. Less popular options, and also new altcoins are not available. As for available trading pairs, there were only 7 at the time this review was being prepared.

Cryptocurrencies (derivatives)

Derivatives trading offers an opportunity to buy perpetual or futures contracts offered by the exchange. The most popular option is XBT/USD. There are also other offers, for example ETH/USD, XBT/USDT and others. There are a total of over 90 options. At that, the buyer does not get to use the purchased assets, but an equivalent amount is written off his/her account. When the contract term expires, the following happens:

• If the bought currency grows in price over this period, the buyer is paid the difference between the original price and the latest (current) price;
• If the currency price declines, the buyer must cover the difference.

Notably, leverage can change depending on the type of trading for certain cryptocurrencies.

You can earn passive income on the exchange by using the BitMEX EARN option. It is available to all users, but requires a separate registration. In order to gain access to this option, you need to click EARN in the top menu of the website. You can also use a direct link: www.bitmex.com/earn. There is also a short guide on how to use this earning option featured on the page.

This is how BitMEX EARN works:

• First you deposit a certain amount in cryptocurrency, or you can buy cryptocurrency directly at the exchange.
• Next, you need to choose the product of the list of available ones: XBT or USDT.
• Now, all you need is to confirm your action.

After that, a user needs to wait for the maturity date to come and redeem his/her principal back together with earnings. The indicative APR is 1.25% for XBT and 2.00 for USDT. You can use these indicators in order to calculate potential profitability of the offer. However, you need to keep in mind that APR is not a constant number, because the final redemption amount is always determined at the time of the purchase.

It is important to keep in mind that only verified users can use BitMEX EARN. In addition, the invested money cannot be assigned to repay the margin, as it will be rejected in this case.

Overall, the exchange does not provide too many offers that allow you to earn passive income.

In order to start trading on BitMEX, you will need to register at the cryptocurrency exchange. You will need to fill out a small electronic questionnaire, which won’t take you longer than a minute. And then, you will need to pass the verification procedure, i.e. verify your identity. This is a mandatory step to ensure proper level of security at the cryptocurrency exchange.

The verification form opens automatically, which makes the process much easier. Verified users have access to all features of the cryptocurrency exchange, including quick withdrawal and participation in promotions.

Residents of which countries can trade at the exchange?

Trading at the BitMEX exchange is allowed for residents of all countries, except for the United States of America, and also people who hold a U.S. passport, as specified directly in the registration form.

Notably, if a user tries to enter false information relating to his country of registration at this stage, it will be discovered during verification, as he/she will have to provide a copy of their passport with proof of address.

How to open an account on BitMEX:
a step-by-step guide

Users are offered a step-by-step registration guide that makes the registration process much simpler for a novice trader. It is better to review it beforehand, in order to avoid making mistakes that will prevent you from using the features of the exchange fully.

Step

1

In order to open the special registration form, click Register at the top right corner of the website. www.bitmex.com

Step

2

On the next page, enter your email and password. A password must consist of at least 12 symbols of any type. You will also need to tick the box accepting the Terms of Service and confirming that you understand the Privacy Policy. Once you’ve done that, click the blue Register button.

Step

3

Right after that, you will receive a letter with a link to your email. Click on it to continue the procedure. Once you click on the link, you will be taken to the website of the exchange, where the system will offer you to log in. The data is entered automatically, you only need to click Log In.

Step

4

In order to complete the process you need to pass verification. The instructions for it are offered in the next electronic form that opens automatically. A user needs to provide certain personal information and also verify his/her identity with a copy of a passport or other ID.

Once you’ve entered the required information, you will need to wait for your personal information to be verified. If you’ve submitted the documents correctly and they raise no doubts or questions, you will become a full-fledged client of the exchange and will be able to start trading.

Minimum deposit

Account types

Once you’ve successfully registered and got verified, you have access to your main account. You can only deposit Bitcoin to the account. It is a universal account for all types of trading.

Also, every user of BitMEX can use a demo account. You don’t need to put money on it, as there is virtual money already there. Trading on a demo account is an excellent opportunity to discover the platform, test your knowledge of the cryptocurrency market, train and test the strategies by changing the settings of the interface and specific processes. The features of the demo account are absolutely the same as on the main account, although you cannot earn real money on it.

Only XBT (Bitcoin) is available for depositing funds to BitMEX. Also, it is the only cryptocurrency you can withdraw. However, trading pairs with other cryptocurrencies are available for trading. Payment instruments include cryptocurrency wallets and other specialized services.

The minimum deposit is – 0.0001 Bitcoin or 10,000 Satoshi. No withdrawal limits are set, although the exchange’s administrators reserve the right to regulate those amounts. Deposit and withdrawal fees are not charged (except for the Bitcoin Network fee). The money is deposited to the account almost instantly. Withdrawal also does not take longer than a few minutes. In certain cases, some delays may be observed, but they are due to the choice of the payment channel.

It is quite clear that the exchange offers a very small choice of deposit and withdrawal methods. Convenient limits and no fees could compensate for this drawback.