Should You Opt for BitMEX Exchange for Trading Cryptocurrencies?

Should You Opt for BitMEX Exchange for Trading Cryptocurrencies?

BitMEX exchange is a peer-to-peer (P2P) crypto trading platform. It is an abbreviation for Bitcoin Mercantile Exchange and was established by ex-bankers who had plenty of experience in their relevant fields. This crypto exchange is quite popular in the industry, however, the reasons for its popularity are somewhat controversial.

The BitMEX exchange has an impressively high trading volume, but it also has had a dubious history.

Therefore, anyone interested in using this exchange should first take the time to take a look at all the major details and aspects of the exchange before they opt for it. It is a good practice to explore all features and attributes of a platform before you choose any exchange as it can help you determine how secure and suitable the exchange is for you.

Here are some details you should know about the exchange before you use it to trade crypto.

Team Working Behind BitMEX

Knowing about the team working behind a crypto exchange can give a lot of insight into what kind of exchange it is. Therefore, this BitMEX review talks about the team working behind the exchange. Which comprises of various kinds of high-frequency traders, economists and developers. These offer different types of contracts for traders who use the exchange.

Trading with Leverage

The BitMEX exchange is one of several trading platforms that supports leverage trading. This is a popular type of trading and a vast audience looks for platforms that support it.

Trading with leverage basically means the traders are allowed to borrow funds from the brokers. The borrowed amount is called leverage and it enables traders to place bigger trading positions than they would have been able to if they only used their funds.

Crypto trading is overall volatile and unpredictable and so is leverage trading, which is known to be a high-risk venture. Since the trading positions are bigger, the profits and losses are bigger as well and both come hand-in-hand, depending on how the trade goes.

BitMEX platform offers one of the highest leverages in the industry, which is up to 100x. Different exchanges offer different leverage ratios, therefore, you should be careful while choosing an exchange for leverage trading.

Swap and Futures Contracts

This BitMEX review sheds light on the fact that the exchange supports a few swap and futures contracts that are mentioned below, along with some of their details.

  • Downside profit contracts – the buyers of the contract are allowed to participate in the possible downside of an asset or instrument.
  • Perpetual contracts – a derivative product that does not have an expiry date or settlement. It copies a margin-based spot market and trades close near the underlying reference index price.
  • Traditional contracts or futures – also a derivatives product, which is an agreement of buying or selling an asset or commodity at a preset time and price.
  • Upside profit contracts – similar to the downside profit contracts where the buyers can take part in the possible upside of an asset or instrument.

Fee Structure of the Exchange

While learning about different BitMEX aspects. One of the details you should not miss out on is the fee structure of the exchange. Thoroughly analyzing the fee structure of an exchange is a good practice before using it as there are platforms that charge a high fee. Such platforms also sometimes include hidden charges that can put the trustworthiness of the exchange in question.

However, BitMEX fees are known to be simple and straightforward and free of any kind of additional charges.

The users are not required to pay any fee for making deposits or withdrawals. However, there is a minimum network fee implied when Bitcoin is withdrawn and it depends on the load on the blockchain network.

Liquidation on the Exchange

One of the controversial aspects of the exchange is BitMEX liquidation. A few years ago the exchange was reported to liquidate the positions of the users. No proper compensation was also offered by the exchange.

Is BitMEX Available in the USA?

BitMEX is a popular crypto trading platform and is used in several countries. However, this exchange, like many others, does not extend its services to the resident of the USA.

The United States has strict regulatory laws that prevent many crypto platforms from extending their operations to potential customers in the country. Therefore, if you are a potential BitMEX USA customer, it is important that you take a look at other platforms available in your country and region.

Supported Crypto Assets

The BitMEX exchange supports various digital currencies, some of which are mentioned below.

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Dash (DASH)
  • EOS Token (EOS)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • Monero (XMR)
  • Ripple Token (XRP)
  • Tron (TRX)
  • Zcash (ZEC)

Conclusion!

There are several exchanges in the crypto market, however, if you are interested in using BitMEX then you should know the above-mentioned details first.

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