Pros Explained

• Professional derivatives trading platform: BitMEX offers an institutional-grade crypto derivatives trading experience built by seasoned traders. 
• Up to 100x leverage on Bitcoin and Ethereum: BitMEX customers can use 20x to 100x leverage, depending on the asset. 
• Deep liquidity for Bitcoin perpetuals: BitMEX possesses some of the deepest liquidity for Bitcoin perpetual futures contracts in the market. 
• Low trading fees: BitMEX offers very low trading fees and a maker fee rebate. 

Cons Explained

• Only crypto-to-crypto trading: BitMEX users cannot deposit fiat currency into their trading accounts. 
• Lack of regulatory compliance: This Seychelles-based exchange is unregulated, and its founders are facing criminal charges in the U.S. for violating the Bank Secrecy Act. 
• Not available to U.S. customers: BitMEX is not regulated in the United States and is not available to U.S. customers.

Introduction

BitMEX is a leading crypto derivatives exchange that enables traders and investors to buy futures and perpetual swap contracts on a wide range of cryptocurrencies. Founded in 2014, the Seychelles-based crypto-only trading platform managed to establish itself as a leading crypto derivatives exchange known for deep liquidity and a professional trading dashboard. Experienced and professional traders lo🍌oking to execute crypto deriva😼tives trading strategies will find what they need on BitMEX.

Company Overview

BitMEX, which stands for Bitcoin Mercantile Exchange, was launched in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed to provide a professional-grade Bitcoin derivatives trading platform. Owned and operated by HDR Global Trading Limited out of Seychelles, BitMEX quickly established itself as the preferred leveraged trading platform for Bitcoin traders. 

In 2016, BitMEX created and launched perpetual leveraged swap contracts on Bitcoin to allow traders to trade Bitcoin futures with up to 100x leverage and no expiry date. The innovative new crypto derivative helped BitMEX become of the highest-volume Bitcoin exchanges i🐈n the world. 

Despite the trading platform's sophisticated user experience and product offering, BitMEX has not been without controversy. BitMEX has been subject to numerous lawsuits by former customers, alleging that BitMEX has engaged in market manipulation, money laundering, trading against its customers, and breaking international compliance laws. In 2020, the 澳洲幸运5官方开奖结果体彩网:Commodi🔥ty Futures Trading Commission (CFTC) also charged BitMEX for illegally operating a virtual currency exchange and breaking anti-money laundering laws while conducting business outside the U.S. and allowing U.S. customers to trade on the platform. 

As of 2023, BitMEX is trying to shake off its bad reputation and aims to become the world's largest regulated crypto derivatives exchange. In 2020, BitMEX introduced identity verification for all users, marking the first step in the exchange's new direction.

Cryptocurrencies Available on BitMEX

The ✱crypto derivatives exchange supports 23 digital currencies and tokens, including but nꦆot limited to: 

• Bitcoin (XBT)
• Ethereum (ETH)
• Dogecoin (DOGE)
• Litecoin (LTC)
• Bitcoin Cash (BCH)
• Binance Coin (BNB)
• Cardano (ADA)
• Polkadot (DOT)
• Shiba Inu (SHIB)
• Avalanche (AVAX)
  

Trading Experience

BitMEX is known for offering an institutional-grade trading platform for experienced users. While beginners may struggle with the platform’s professional setup, seasoned traders will likely find all the features they need to execute a wide array of crypto derivatives trading strategi🌠es.&nb♒sp;The trading platform’s standout features include the following: 

• The ability to trade bitcoin with 100x leverage
• 澳洲幸运5官方开奖结果体彩网:Low latency market data and trade execution 
• State-of-the-art crypto trading and pricing APIs 
• The option to place idle funds into BitMEX Earn to receive up to 10% APR

Fees

BitMEX offers some of the lowest fees in the crypto exchange landscape. Price takers pay only a 0.075% commission.

BitMEX doesn’t charge deposit fees or withdrawal fees for Bitcoin. Only Bitcoin network 💟fees apply for withdrawals. Tether USD deposits are also free of charge. However, BitMEX does charge withdrawal fees for USDT, which vary depending on Ethereum network fees. 

Security

BitMEX operates multi-signature wallets, holds all funds in c✤old storage, and at least two employees audit all withdrawals. Additionally, BitMEX deploys a multi-party computation (MPC) system that lets two or more parties complete a function on encrypted data without any information leaving the en☂crypted domain except for the desired outcome. BitMEX claims that the MPC prevents an attacker from stealing funds even if all of BitMEX’s systems are compromised. 

Opening a BitMEX Account

Opening a BitMEX account is fairly st𝄹raightforward. First, you’ll need to provide your email addreꦐss and a password. 

Next, you’ll complete the identity verification pr💞ocess. To get verified, you need to provide a photo of your ID, a presence capture video or selfie, your location, a declaration of your citizenship, and how you will fund your account. Ther🐲e is also an option for businesses to set up corporate accounts on BitMEX.

It’s important to note that BitMEX isn’t avail♛able to U.S. users. The exchange also does not provide services to customers in Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, and Sudan. Additionally, persons located in Seychelles, Bermuda, Hong Kong Special Administrative Region of the People’s Republic of China, Japan, Canada (in Ontario and Quebec), Burundi, Central African Republic, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Libya, Mali, Palestine, Somalia, South Sudan, Western Sahara, and Yemen are also prohibited from using BitMEX.

Customer Service

BitME♔X provides customer service via support tickets and email. Like many other crypto exchanges, it does not offer ꦺphone support. 

Customer Satisfaction

While experienced traders praised BitMEX’s professional trading experience in the early days of crypto when high-quality trading platforms were few and faꦫr between, the list of BitMEX user complaints has grown longer and longer as the years passed. 

Some users complain of market manipulation, problems withdrawing assets, and a 🥃complicated user experience. Some former users have even filed lawsuits against the exchange, alleging that BitMEX engages in market manipulation and trades against its clients. 

Moreover, due to the exchange’s incorporation in Se🐎ychelles, BitMEX was able to operate without having to ve🎶rify the identity of its users or requiring licenses in the jurisdictions where many of its customers were based.

As a result, the Seychelles-based exchange was hit with a $100 million fine from the CFTC and 澳洲🦂幸运5官方开奖结果体彩网:U.S. Financial Crimes Enforcemen🎃t Network (FinCEN) in 2021 for willfully violating the Bank Secrecy Act (BSA) and FinCEN regulations.

Additionally, all three of the exchange’s founders plead guilty to charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act in the Southern District of New York in 2022. They no longer work for the exchange. 

Account Management

BitMEX provides a web-based trading platform and a mobile app for Android and iOS. While the BitMEX mobile aꦬpp doesn’t have all of the exchange’s products and features, it allows users to seamlessly manage their trading positions on the go. 

In addition to individual customer accounts, BitMEX also supports corporate accounts. Corporate clients can benefit from individualizꩲed solutions, such as 24/7 customer support, consulting, or institutional crypto strategies. 

How BitMEX Compares to Other Cryptocurrenc🥃y Companies

BitMEX pioneered Bitcoin's perpetual futures contracts, establishing itself early as one of the leading Bitcoin derivatives trading platforms in the crypto market. However, the exchange’s initial lack of KYC procedures and the ability to take highly 澳洲幸运5官方开奖结果体彩网:leveraged positions gave BitMEX a re🎃putation as more of a casino than an exchange. 

While the Seychelles-based company has been trying to clean up its image in recent years, introducing an identity verification process in 2020 and parting ways with its founders who are facing criminal charges, othꩵer crypto exchanges have been able to grab a large share of the crypto derivatives pie. 🗹

Final Verdict

In the early days oꦺf crypto, BitMEX established itself as the go-to Bitcoin derivatives trading platform for p꧃rofessional investors. This exchange made a name for itself by allowing traders to take 100x leveraged positions on bitcoin and providing a highly professional crypto-to-crypto trading experience. 

However, it has made more headlines recently due to a lack of regulatory compliance, and its founders are facing criminal charges in the U.S. for violating the Bank Secrecy Act. Regardless, BitMEX has managed to retain a leading position as a crypto derivatives exchange and an institutional-grade trading dashboard. Inexperienced investors shoℱuld probably steer clear of BitMEX as its sophisticated trading dashboard and advanced financial products are likely to overwhelm new cryp♊to buyers.

Methodology 

Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels. Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.