BitMex Review: The Next Generation of Bitcoin Trading Products
BitMex is a widely known Bitcoin futures exchange as it is a go-to exchange for advanced traders and speculators alike. As a matter of fact, BitMex tops the charts when it comes to margin trading and related activity.
Let’s take a step back to its inception. Arthur Hayes, a former Citibank trader together with Samuel Reed and Ben Delo started BitMex in 2014. The name is actually an acronym for The Bitcoin Mercantile Exchange. The exchange is based in Hong Kong. That said, the team registered the holding company in Seychelles, probably for tax efficiency.
First, the important thing to highlight on our BitMex review is that it is a margin trading exchange. Accordingly, you can trade leveraged positions relying on coins placed on the margin. It goes without saying that margin trading can be risky and is not for beginners. The upside is that it is possible to earn big on such a high leverage. This is especially true in the case of BitMEX where the leverage is 100 times.
Notably, a feature called bespoke futures contracts allows you to trade on future coin prices. Margin trading is advantageous because a trader can effectively short the price of the cryptocurrency. In the event that there is a fall in the price of the respective coin, you can make money in the process by short-selling
Notably, BitMex does not accept fiat deposits. You can only fund your BitMex account using Bitcoin and the same holds for withdrawals. Moreover, another major structural difference from large exchanges like Binance is that positions are marked in bitcoin. This means that although you can margin trade in altcoins, your profit will be in Bitcoin. As such, having Bitcoin is essential to navigate all facets of BitMex seamlessly.
BitMex is therefore much more efficient for traders as compared to an average investor interested primarily in buying and holding.
What are the advantages of BitMex trading?
Let’s look at some of the advantages of BitMex trading.
- There is a high volume of coin at all times.
- A high leverage on margin trading. This gives you the possibility of great returns.
- There is a great customer-support infrastructure which is a bonus for such a sophisticated exchange.
- BitMex trading is very secure and you have the option of anonymity. This is because BitMex stores Bitcoin in cold storage and also uses two-factor authentication.
The BitMex exchange guide has shown that while dynamic, this exchange is specialized to certain traders. This is because you are trading in quite volatile assets that have a high leverage. Nonetheless, for traders familiar with marginal trading, BitMex trading is an excellent option.
video Thanks to Vin Ferretti