BitMEX Cryptocurrency Exchange Most Comprehensive Guide 2018

BitMEX Cryptocurrency Exchange Most Comprehensive Guide 2018

in Cryptocurrency

BitMEX (stands for Bitcoin Mercantile Exchange) is a cryptocurrency exchange with a 100x leverage on trades. The Hong Kong company was launched in November 2014 by bankers Authur Hayes, Samuel Reed, and Ben Delo. The total amount of all the transactions is $26.5 billion. 

BitMEX is mainly focused on future contracts and margin trading. 

Contents

  1. How to sign up and create an account
  2. BitMEX interface
  3. BitMEX security measures
  4. How to deposit and withdraw money
  5. How and where to place an order
  6. How to leverage a position
  7. Futures 
  8. Swaps
  9. BitMEX fees
  10. Available currencies
  11. BitMEX customer support 
  12. BitMEX Android wallet 
  13. BitMEX Pros
  14. BitMEX cons
  15. Conclusion

 


How to sign up and create an account

Bitmex crypto exchange

  • Complete the sign-up form, then click the "Register" button

  • Click the verification link sent to your email address

Bitmex registration

Bitmex crypto exchange registration


BitMEX interface

The interface of the BitMEX cryptocurrency exchange is easy to understand. Let's divide it into 8 zones: 

Bitmex crypto exchange interface

  • 1. Limit order/Stop order zone where you can place an order to buy or to sell cryptocurrency 
  • 2. Leverage zone where you can leverage your money up to 100x
  • 3. Perpetual Contract zone which is similar to traditional Futures contracts. For more information look here
  • 4. Orderbook where you can take an order to sell or buy cryptocurrency
  • 5. Candlestick chart. Besides, you can choose any one which is suitable for you: 

Bitmex candlestick chart

  • 6. Shows the history of recent trades
  • 7. Here you can choose a cryptocurrency to trade on BitMEX 
  • 8. The history of your trading activity

Which is more, you can arrange the widgets of the crypto exchange according to your preferences in the "My preferences" section of the left bar menu. Here is how it looks like: 

my preferences section


BitMEX security measures

To ensure the customer funds safety the company launched multisig deposit and withdrawal addresses schemes. They are hand-checked by the employees and are verified externally to be sure they contain matching keys. If they don't the system shuts down. 

  • Besides, the BitMEX trading engine is similar to the toolset of the major banks and is written in kdb+
  • All the trading operations on the crypto exchange is under full risk checks protection
  • There is also an option to turn on PGP encryption on emails
  • Two-factor authentification
  • All customers funds are kept in cold storage
  • The crypto exchange hasn't been hacked 

To apply all the mentioned measures, just go to your account settings 

Bitmex security


How to deposit and withdraw money

To make a deposit click on your account button in the top bar, then select "Deposit" in the drop down menu. You will see a QR code and a text address below the code to make a transfer. 

Bitmex crypto exchange deposit

Note that BitMEX accepts only Bitcoin deposits and withdrawals. 

To make a withdrawal just insert the amount and a Bitcoin address, then click on the "Withdraw" button.  

Bitmex crypto exchange withdrawal


How and where to place an order

Bitmex place order

BitMEX has several types of orders: 

  • Limit — when the given price is achieved the order takes place
  • Market — the order is applied at the current market price
  • Stop Limit — the same as the stop order but you can set the order price
  • Stop Market order is not seen in the orderbook and takes place when the market reaches the trigger. 
  • Trailing Stop — reminds a Stop Order but the users set trailing value here. 
  • Take Profit Limit — again, reminds a Stop Order, where a user should set a target price on a position to get a gain and not to cut losses
  • Take Profit Market — the same as to take profit limit, but the market order is triggered. 

You can zoom the order section to manage your orders. In the zoomed section you can see the Stops, check the Orders Filled, select Active Orders, cancel any orders and see the history log. 

Bitmex orders


How to leverage a position

To increase the amount of your money you can borrow some from an exchange which is called leveraging. For example, you invested $50 and borrowed another $50 from an exchange. That means you 2x (2:1) leveraged your profit/loss. Read here about the margin trading

Bitmex Margin trading

BitMEX supports Isolated and Cross-Margin trading. 

  • Isolated trading allows choosing the amount of your wallet which you will use to hold a position after you place the order. 
  • Cross-Margin trading takes all the money in your wallet to hold a position, so be careful to use it. 

The BitMEX platform allows users to set up to 100x leverage with the help of the leverage slider while the other exchanges usually offer 20x. 

BitMEX also supports Futures and Swaps trading. 


Futures 

Usually to make a future contract you should make an agreement on buying or selling an asset in the future at a certain price. On BitMEX you can leverage up 100x the similar contracts. 
The fees are the following: 

Bitmex fees


Swaps

Swaps (perpetual swaps) are similar to the futures but they don't have a date of expiration and trade close to the underlying reference Index Price. 

Besides the cryptocurrencies for future trading, BitMEX  uses the fiats, the most popular of which is, of course, USD.

Binary series (B-series) contracts are prediction futures contracts that can be settled at 0 or 100. B-series is a complicated instrument and is not recommended for beginners. B-series don't have a leverage, a 0% maker fee, a 0.25% taker fee and 0.25% settlement fee. 


BitMEX fees

Bitmex no fees

The fees for the contracts are mentioned above. As to the deposits/withdrawal fees, it doesn't have any. 

The exception is a hidden order which always pays the taker fee until the entire hidden quantity is completely executed.  


Available currencies

BitMEX is available worldwide except for the USA, Cuba, Iran, Crimea, Syria and North Korea

It supports only three fiats: 

  • US dollar (USD)
  • Japanese Yen (JPY)
  • Chinese Yuan (CNY) 

As to the crypto coins, the only trading option is Bitcoin. Customers can also use: 

  • DASH
  • Monero
  • Ethereum (ETH) 
  • Ethereum Classic (ETC) 
  • Litecoin (LTC) 
  • Ripple (XRP) 
  • Tezos 
  • Qtum 
  • Zcash 

BitMEX customer support 

BitMEX trading platform has a 24/7 support and is full of useful information, F.A.Q.s and guides all over the website. It seems that BitMEX managers aim to educate their customers. 

There are also the following ways of communication on the website: 

  • e-mail ticket support
  • Live announcements on the top left
  • A live chat — trollbox — in the bottom right of the screen where traders can communicate 

The usual response time is about an hour. 

Bitmex support


BitMEX Android wallet 

BitMEX has an unofficial Android app, called BitMEX Lite.  

Bitmex Android


BitMEX Pros

  • 100x leverage on margin trading
  • Multisignature wallets
  • All withdrawals are manually processed
  • kbd+ platform 
  • Bitcoin spot and futures high liquidity
  • Good charting tools and user interface 
  • Competitive fees
  • No hacks 

BitMEX cons

  • Not for beginners
  • Not worldwide
  • No deposits and withdrawals in fiats
  • Low volume on altcoin assets
  • No mobile app
  • Bitcoin only payment method

Conclusion

BitMEX is unfriendly to beginners and that is a fact. However, an experienced user can find here a pack of tools set in one place which is invaluable. 

However, BitMEX has some drawbacks such as verification process. Many users complaint that email verification is not enough because users' emails can be hacked or stolen, and they are right. 

Anyway, BitMEX team has created a smooth trading platform and always keep their customers informed. I am sure they know all their downsides and will fix them in the near future. 

 

 

 


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