Everything You Need to Know About BitMEX

BitMEX is a crypto exchange that offers a few services to the customers. Read our blog to know more about the exchange and whether it is suitable for you.

BitMEX was established by ex-bankers and has quite the reputation in the crypto market. It is one of the prominent exchanges in the market, however, it has been outperformed by other major exchanges such as Bybit.

One of the reasons is that its credibility and security offered to the users have been questioned several times. However, the BitMEX exchange was created as a peer-to-peer trading platform that offered the purchase and selling of leverage contracts in Bitcoin.

However, if you are interested in using this exchange and it is your first time of stepping into the crypto space then you should know some more details of the platform. Here is what you should know about the exchange.

Futures and Swap Contracts on BitMEX

BitMEX is a popular exchange that offers several types of swap contracts, that are mentioned here in detail.

· Traditional Contracts – it is an agreement to buy or sell a digital currency or other instruments at a specific time in the future at a price that is already fixed.

· Perpetual Contracts – this is similar to Traditional Contracts however one difference is that it does not have a specific time limit or expiry.

· Upside Profit Contracts – this type of contract allows the buyers to participate in the possible upside of the underlying instrument.

· Downside Profit Contracts – this is similar to upside profit contracts, the only difference being that it allows buyers to participate in the possible downside of the underlying instrument.

Fee Structure of the Exchange

BitMEX fees is one of the major factors you should know if you are looking to choose the exchange. The exchange offers a straightforward fee structure and around 100x leverage. The amount of leverage on the BitMEX exchange varies from product to product.

This exchange also does not charge any withdrawal or deposit fees. However, there is a Network fee that you should consider. The network fee is based on the network load on the blockchain while withdrawing BTC.

The minimum deposit you can make on BitMEX is 0.001 BTC, whereas, there are no limits in withdrawals.

BitMEX in the U.S.A.

One of the major factors every potential user of the exchange should know is that it is not available for crypto investors or traders living in the U.S.A. The exchange has been prohibited to offer services in the United States due to the regulatory law complications in the country. Therefore, instead of opting for BitMEX U.S.A you can look for other suitable options available in the country.

Crypto Assets Supported by the Exchange

One of the differences between crypto exchanges is that different platforms support a varying number of digital assets. Therefore, this is one of the most important factors you need to consider before you choose an exchange.

Before you choose any exchange, BitMEX in this case, you should know the cryptocurrencies supported by the exchange. Here are the supported digital assets on the exchange.

· 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)

You can find more details as such if you take a look at a detailed BitMEX review before opting for an exchange.

Liquidation on the Exchange

BitMEX liquidation is yet another factor you need to know about if you are interested in using the exchange. Liquidation basically means the closing of one’s company or account. This is something crypto investors and traders try to avoid as liquidation means they can possibly lose their funds and any profits made.

While many exchanges work on compensating the users in case of sudden liquidation, BitMEX is not one of those exchanges. A while ago, the exchange made headlines after the users faced some technical difficulties while using the exchange. They were not properly compensated and the exchange’s stance was not appropriate according to many.

Therefore, if you are stepping into the crypto space for the first time then you should know details as such.

No KYC Required to Register

KYC (know your customer) is a way for the exchange to know more details about the users, which is used to strengthen the security offered to the customers. However, KYC can sometimes make it difficult for users to sign up. However, if the exchange has latest security systems and it does not use KYC then the security of the users can still remain intact.

BitMEX is an exchange that does not require KYC and makes it easy for people to sign up.

Also Read: Guide on How to Sell Bitcoin in 2021

Conclusion!

BitMEX is a popular crypto exchange, however, it has seen some ups and downs since it was created. This highlights the question, whether it is a suitable exchange to use or not. If you are looking for a crypto exchange, you should know the details mentioned above before you settle on BitMEX.