If you’re looking to get into trading Bitcoin futures, you’ve probably come across Bitmex, and maybe wondering if it’s the right choice for you. Let’s get into it.
UPDATE AUGUST 2020: Starting August 28th, 2020 Bitmex will require KYC (Know Your Customer) on all accounts.
UPDATE OCT 01, 2020:
Bitmex has been under investigation by the CFTC for a while now and the ball has finally dropped. At the moment Bitmex is being charged by the US federal trade commission for “facilitating unregistered trading” and other violations. One of the co-founders has recently been arrested. BECAUSE OF THIS WE NO LONGER RECOMMEND USING BITMEX AS A TRADING PLATFORM.
After checking their platform today, the order book is a fraction of what it used to be, as it seems many traders are looking elsewhere. There are plenty of other options, so check out our CRYPTO EXCHANGE PAGE for more information. We will post further updates as they come along.
Margin Trading
Bitmex offers leveraged trading products, meaning you’re able to ‘borrow’ from the exchange in order to increase the size of your position. Bitmex offers up to 100x leverage on Bitcoin derivates.
Bitmex also allows you to trade LONG, or SHORT. Meaning you can make a profit on price movements up or down.
Bitmex also offers contracts on several ALT coins:
- Cardano (ADA)
- Bitcoin Cash (BCH)
- EOS Token (EOS)
- Ethereum (ETH)
- Litecoin (LTC)
- Tron (TRX)
- Ripple (XRP)
- Tezos (XTZ)
Do I recommend using it?
To be frank; yes I do recommend Bitmex; but the platform has many advanced features and may take some getting used to. If you’re already a seasoned trader you may be excited at all the different order types and functions that the platform offers. Noobs, will likely be intimidated by some of the language and difficult to understand nuances of the Bitmex platform. Nevertheless, the learning curve isn’t that steep and after some time you’ll find yourself comfortable using it.
Pros:
High Liquidity:
Bitmex is one of the biggest Bitcoin margin trading platforms there is. Therefore, you’ll have access to high liquidity. Meaning you’ll be able to buy and sell your contracts at almost any price.
User Interface:
I’ve used many other exchanges, and the user interface at Bitmex is quite good. It’s easy on the eyes and once you get used to it, you’ll probably come to like it a lot.
Easy to Register:
All you need to sign up is an email, that it. After you deposit your BTC you can start trading right away. This is changing after August 28, 2020. You will be required to provide full KYC.
Top Notch Security:
Bitmex is built well. Using a coding system that banks use, known as kdb+. They use multi-signature wallets, which keeps the funds safe and secure. Furthermore, they have a huge team of industry experts working for them to make sure things are running safe and secure.
Cons:
System Overload:
Some of my trader friends complain of the system overloading and not being able to place order at really high volume moments. This does happen, but not that often. This can be avoided by having your orders and stops placed up front, rather than scrambling to place orders when the trade engine is going to be working at maximum capacity.
Has a Learning Curve:
If you’re a beginner, or not used to margin trading terminology, then Bitmex is going to look very confusing. Cross leverage or Isolated? Close on Trigger ? Post Only ? There are a lot of things which will look unfamiliary. Luckily Bitmex has a large database of information explaining the features they offer on their exchange. Moreover, there is lots of information available elsewhere which explains how some of these features work. After some time though, you’ll familiarize yourself with the platform and it should feel a lot more comfortable to use.
Conclusion
Overall, Bitmex is a great option for trading leveraged contracts of Bitcoin and other Alt coins. It’s my preferred exchange, but there are many new exchanges opening all the time. Bitmex may be the king of the hill for now, but only time will tell if they can hold on to that role. The advanced order features will be welcomed by professional traders, but will look confusing and hard to use to newcomers.
Click here to register an account and get 10% off your trading fees for 6 months !