BitMEX Review: Providing Sophisticated Trading Solutions for Cryptocurrencies

  • 21 September 2017
  • James Njau

Traders with an appetite for sophisticated trading and investment opportunities using Bitcoin can now smile because there are more than enough companies dedicated to making their wishes a reality. One of the leading names in the industry is BitMEX, a trading platform with an ever growing market cap, attracting the best of traders and investors across the globe.

When BitMEX started in 2014, it was nothing more than the dream of three cryptocurrency enthusiasts. Its name was inspired by the Mercantile Exchange (a Chicago derivative exchange Market).


With Arthur Hayes (CEO) Samuel Reed (CTO) and Ben Delo (COO), it has acquired an accumulated professional experience of over 40years. The company boasts of experts in high-frequency trading, real-time web applications, and cryptocurrency derivative trading.

Let’s get into details and look at what BitMEX offers and, of course, some answers to frequently asked questions.

Top 5 benefits of BitMEX

  • Secure

One of the most sort-after features in any exchanger or trading Bitcoins is security. Clearly, BitMEX does not compromise on this important feature, thanks to the system it has put in place. With its cold Bitcoin wallets plus a multi-signature address feature, you can rest assured that your funds are kept far from the influence of hackers and thieves.

  • Fast withdrawal process

It goes without saying that every trader and investor loves the convenience of fast and easy withdrawals. This is where BitMEX shines best! Thanks to its cutoff time for withdrawals, you not only enjoy a seamless process but also have a guarantee that your Bitcoins will be delivered to their wallets as fast as possible.

  • Affordable Fees

Unlike most exchanges that charge exorbitant fees for trading on their platform, BitMEX is different. Apart from the fees charged for every trade, it does not charge you when you deposit or withdraw your Bitcoins, which is awesome. However, keep in mind that the Blockchain load sets a network fee that is dynamically charged on your account.

  • Bankruptcy protection

You haven’t heard about this feature a lot, right? Well, we figured so, but we are going to tell you all about it, and how BitMEX utilizes it to make the platform even more reliable. You no longer have to worry about losing all of your funds and running out of options. Thanks to BitMEX’s sophisticated designs on its liquidation and margin procedures, you can be sure that your balance is always protected and that you won’t go bankrupt. Talk of second chances!

  • Easy to use


You will agree with us that getting started as a new trader can be a bit intimidating especially with the complex websites that are hard to navigate. Fortunately for BitMEX, the interface is user-friendly, and its responsiveness is super fast. What’s more is that you can even load it on your smartphone, whether you are an iOS die-hard or an Android fan. Now that is what convenience is all about!

Top 10 Questions about BitMEX

1. Does BitMEX provide support?

Definitely! BitMEX does have an impressive support system. You can enjoy a 24/7 support service that is available on multiple channels, including a ticket system, email, and even through social media; all designed for your convenience. With a support team that has a broad knowledge base in regard to trading and cryptocurrency, you can be sure to get all the help and answers you need at any time.

2. How do I get started trading with BitMEX?

First of all, BitMEX offers a straightforward platform that comes with instruments that are intuitively placed to give you the best value. Knowing your way around its platform is relatively easy and you can get started simply by registering. After depositing your funds, you can then click on an instrument to reveal order books as well as recent trades. You can also check out the total value of the USD on the short and long side, not to mention the underlying assets and the order quantity. In addition, the trading features are easy to set up and you can use a slider to increase your leverage whenever you want.

3. What fees does BitMEX charge?

Let’s be honest, most expert traders in the market will agree that getting reasonable fees while trading is a sure way to be at an advantage. The great news is that BitMEX offers a fee schedule that is not only detailed and extensive but also transparent. For example, with an 8-hour funding interval, Bitcoin Swaps on its platform will get a 100x leverage offer with a maker rebate fee of 0.025 percent and a 0.075 taker fee, which is great.

4. What does BitMEX Futures Contract mean?

Well, first of all, the idea of trading is based on making a profit or investing in commodities that will make a profit in the future. In that regard, BitMEX offers a Futures Contract that is simply an agreement to buy or sell an investment instrument at a certain price in the future.

5. What does perpetual swap contract mean?

This is an easy one simply because it is similar to a Futures Contract. It can be used to trade in the same way, but unlike the traditional Futures Contract, it does not come with an expiry date. This, therefore, puts you at an advantage since you can hold onto a position for however long you like.

6. Do all BitMEX products come with leverage?

Definitely yes! And although the leverage varies with the type of product, it offers up to 100:1 leverage making it one of the best offers you can find. How is the leverage determined? Well, it uses your initial margin which is simply the minimum deposit of your position in Bitcoins, plus a maintenance margin level. This way your account is not only protected from bankruptcy but also your position is maintained according to your minimum equity requirements.

7. What is BitMEX’s liquidation process?

BitMEX makes use of a liquidation process that is partial so as to avoid complete liquidation of your position while automatically reducing your maintenance margin. If you are trading on a low-risk limit tier, any of your open orders will be canceled and your position will only be liquidated when your maintenance margin requirement is not satisfied.

8. Is the liquidation process the same for those that use a higher risk Limit tier?

Okay, when it comes to users on a higher risk limit, the process is a little different. First of all, the process works to bring down your position to a lower risk limit, therefore reducing your lower margin requirement. Here is how it goes.

  • With your current position and while your order is still open, the liquidation engine will attempt to bring down your risk limit.
  • If this does not work, the liquidation engine will then cancel any open orders and try to reduce your risk limit further.
  • If your position is still in liquidation, the liquidation engine will continue and place a limit order to enable closure of your position at the set bankruptcy price.

9. How can I deposit funds to my account?

Assuming that you have already set up your account and are ready to deposit funds, all you have to do is to follow this simple process.

  • First under the account tab head on to the “Deposit” button and click on it. This will offer you a multi-signature address that you can use to deposit your Bitcoins.
  • It will then take a single confirmation alert and voila, your funds will be credited to your account.

Keep in mind that the minimum amount required to trade on BitMEX varies depending on the product and the initial margin. A good example is the $1 for 1% of the initial margin required for a XBTUSD giving you $0.01.

10. What security features does BitMEX provide?

When it’s all said and done, security remains a top priority for any trader or investor simply because a lot of value is at stake. BitMEX has come up with a strategy, developing a cold-multi signature wallet. What that simply means is that your Bitcoins will be kept offline and will also require two signatures before you can spend or withdraw. Unlike a hot wallet, this keeps your funds well protected from any malicious attack, giving you some peace of mind.

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