BitMEX 101 – An Exchange for Professional Traders
BitMEX stands for Bitcoin Mercantile Exchange. It was founded in 2014 under the company HDR (Hayes, Delo and Reed). It is a trading platform which is operating in Hong Kong and registered in Seychelles.It is a bitcoin derivative exchange which offers margin trading for experienced and professional bitcoin traders with the highest leverage on the market which is up to 100:1 including the whole package of the future contracts.
The biggest advantage of margin trading is that we can actually leverage a position without the need to hold the required bitcoins or crypto assets.BitMEX has such powers which can turn collapsing markets, which no longer have the power to get up, into a profitable trading opportunity. Also, this exchange allows making short trades which means profits even when the Bitcoin goes down.It is a cryptocurrency only service with bitcoin as a major trading option which means that it only accepts deposits and withdrawals of the bitcoin.
However, customers can access few altcoins. It is a worldwide exchange and allows operations worldwide except few countries which are United States, Cuba, Crimes, Sevastopol, Iran, Syria and North Korea but it does not support all the currencies. It supports only three currencies namely US dollar (USD), Japanese Yen (JPY) and Chinese Yuan ( CNY). BitMEX is surely not the best exchange for everyone but if one has complete knowledge of how to use cryptocurrency then BitMEX can be the best to trade bitcoins. Bitcoin swaps offer leverage 100% with taker fee of 0.075 percent and maker rebate of 0.025 percent.The long funding fee is 0.0245 percent while short funding brings a rebate of 0.0245 percent. However, there is no fee for deposits or withdrawals.
On an average, these fees are not that high can be afforded by everyone. Therefore, one can also make a really good return by investing in it.It is one of the largest trading platforms with a daily trading volume of over 35,000 BTC and over 5,40,000 accesses monthly with a trading history of over $34 billion worth of bitcoin since its inception.
ADVANTAGES OF BitMEX EXCHANGE
Some of the advantages of BitMEX exchange are:
- SECURITY: The most important advantage of BitMEX is that it is fully secure. The customers get many benefits from it like he/she can see the owner of the platform and can also check on how the funds are kept and used which is not possible with other exchanges. Also, it stores coins in cold storage, in case of any theft or hacking.It has a system to check risks too by ensuring that the total of account holdings on bitcoin website is zero.Amazon Web Services security is used to protect the servers from SMS and two-factor authentication. There are no scam reports till date. All these things make it fully secure.
- HANDLING SPEED: Another advantage is the handling speed. All the customers get the replies within 24 hours as they have a super fast engine. Also, automatic security audits are done after every transaction or placement of an order. Also, they have an active customer service. Customers can directly mail them and within 24 hours they get their response which is great.
- HIGH LEVERAGE : BitMAX allows their users to leverage their position on the platform.Leverage is the ability to place orders that are bigger than the users’ existing balance. Higher profit can be earned through this as compared to placing an order with only the wallet balance.The BitMAX platform allows the users to set their leverage level by using the leverage slider. It offers a maximum leverage of 1:100 which is quite high as compared to the average offered by other exchanges which is not more than 1:20.
The team behind BitMEX exchange consists of various former bankers and cryptocurrency and financial experts. The founders are best-of-class professionals in finance, web development and also high-frequency algorithmic trading.
- ARTHUR HAYES: Co-founder and the CEO of the exchange
- SAMUEL REED: Co-founder and the CTO of the exchange
- BEN DELO: COO of the exchange
Clearly, BitMEX is not a platform for amateur investors. Only those investors will be able to use it who have complete knowledge about how to deal in cryptocurrencies and other things. Most of the users and investors have complained of its really complex website. Therefore, it is tough for users to easily get used to this interface and to even navigate the website. However, this platform provides a wide range of tools and once users get an experience of the platform, they are surely going to appreciate the interface.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.