Why Does BitMEX Suck in 50 Words
BitMEX has a ton of poor reviews stating that they engaged in illicit or unethical practices that cost their users significant amounts of money. The fact that they are not regulated strictly and are incorporated in Seychelles takes away from their trustworthiness as well.
Why BitMEX Doesn’t Suck in 50 Words?
The platform is designed for advanced traders and offers some high-level features that make the system unique. The amount of leverage permitted, liquidity available, and different options for derivative trading make this the perfect platform for any advanced trader.
Is BitMEX a Scam?
There are numerous accounts of people claiming they’ve been scammed on BitMEX. This comes from several sources and covers various forms of misconduct. Some claim that the site shuts down at times which is meant to purposely hurt the trader, others claim that profitable positions are liquidated or that BitMEX uses bots to trade against the trader and that price manipulation is an everyday occurrence. All of this is not a good sign for the likelihood of scams occurring.
Should I Open an Account with BitMEX?
BitMEX a Bitcoin-based, peer-to-peer (P2P) trading platform that is wholly owned by HDR Global Trading Limited, a company incorporated in the Republic of Seychelles with company number 148707. There is no evidence that a financial watchdog is supervising the company’s actions. The owners operate the company from Hong Kong and founded it in 2014.
There are a lot of different options out there for cryptocurrency traders. Some are good for experts and others are more suitable for beginners, and it is very important to find a platform that fits your unique needs. BitMEX is designed to offer all the most advanced and risky features for those who really know what they’re doing.
BitMEX has a lot of positive features that help to attract traders despite the bad publicity it has gotten for what many allege to be illegal practices: good charts offered by TradingView, a multitude of order types (limits, market, stops, etc.), and probably the most attractive: 100x leverage for XBT (Bitcoin) perpetual contracts. However, to understand what BitMEX has to offer you have to go through confusing and complicated explanations, so the prior trading experience is almost a must and I cannot imagine a complete newbie getting started with BitMEX as their first exchange. It’s complicated, to say the least – and this comes from an FX/CFD/BO trader with 10-year experience in the markets.
Another thing that many take issue with is the deposit methods available. BitMEX only permits deposits with Bitcoin. No other cryptocurrencies or fiat currencies are accepted. This further fuels the belief that parts of the operation are illegal and they need to be paid in Bitcoin because of how difficult it would be to regulate by the authorities.
The allegations of misconduct mostly discuss how the platform seems to automatically trigger sell-offs by manipulating prices. With the leverage they offer (up to 100x), it is easy to trigger a stop-loss order and solidify those losses for the client (and gains for the platform). All of this is very hard to verify, but regardless, this is not a platform for beginners. The interface is decent but is not encouraging to a fluid newbie experience.
Overall, BitMEX is a risk for a multitude of reasons. First, there is the chance that it is a total scam and the owners are manipulating prices in order to trigger sell-offs. But also, there’s the fact that it is only really suitable for top traders who have lots of experience in this world. That is not everyone, and before you use it, you should make sure it is you.
BitMEX Online Presence And Reputation
The founder and CEO, Arthur Hayes appeared on CNBC’s Fast Money, he is active on Twitter and the exchange (through Hayes or other representatives) keeps in the spotlight by participating regularly in Blockchain Summits and other types of gatherings. It’s safe to say that BitMEX has a strong online presence but their reputation is mixed and, as outlined above, many people are complaining about price manipulation and other bad practices. This is not something that can be easily proven so we don’t have a definitive answer but it’s certain that you should use caution around this exchange.
BitMEX Special Features
By far the most interesting feature is the huge 100x leverage offered by this exchange. This is actually the highest leverage offered by a mainstream exchange from the crypto world (BitMEX is ranked 2nd in the world by reported volume in CoinMarketCap rankings).
BitMEX Overall Ratings
User Friendliness 14/20
The website is translated into 5 languages but it is difficult to navigate and the information it contains is geared towards advanced traders. This is not at all newbie-friendly, but a testnet (demo environment) is available, which is a good thing. Mobile apps are not present and US clients are not accepted. KYC is not required for opening an account.
Range Of Markets And Volume 16/20
BitMEX offers perpetual contracts (no expiration) for Bitcoin (which is named XBT on their platform) and Ethereum, as well as traditional futures on Cardano, Bitcoin Cash, EOS, Litecoin, Tron and Ripple. Max leverage for XBT is 100x while Ethereum goes as high as 50x. According to their reported volume (almost $7 billion daily at the time of writing), BitMEX is the second-largest crypto exchange in the world!
Perpetual contracts for XBT and ETH carry a fee of 0.0750% for the taker and -0.0250% for the maker. A negative fee means that the trader will receive a rebate but please make sure you fully understand their conditions. Traditional futures carry a higher taker fee of 0.2500% for most assets (XBT futures are still charged 0.0750%). Maker fee rebates are also lower.
Deposits And Withdrawals 15/20
The only supported cryptocurrency for deposits/withdrawals is Bitcoin, so traders’ balances will be shown in this crypto. There are no fees other than the normal blockchain network fee and all withdrawals are processed manually once a day. For a withdrawal to be processed during the same day, it has to be submitted by 13:00 UTC.
BitMEX Extras 18/20
Very high leverage, huge volume, a very complicated platform, and a controversial reputation make this exchange one of the most talked-about on the web. Love it or hate it, BitMEX is one of a kind!