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Bitmex Review 2024: Features, Fees & Security
Swen Keller
- URL: https://www.bitmex.com
- Headquarter: Seychelles
- Year Founded: 2014
- Platform App: Web/Mobile
- No. of Cryptocurrencies: 30+ including Bitcoin, Ethereum, USDT, BMEX Token
- Fiat Available: USD, EUR, and GBP
- Withdrawal Methods: Cryptocurrency wallet address
- Payment Methods: Credit card via MoonPay, BTCDirect, Mercuryo, Coinify, Xanpool, Wyre, Transak, and Indacoin powered by Onramper
- KYC Verification: Yes
- Native Token: Yes (BMEX Token)
Bitmex Review: Our Opinion
Our practical experience with this crypto exchange has shown us that it is best for advanced crypto traders, not beginners.
Newbies will find the crypto exchange clunky and difficult to navigate.
However, professional traders will have access to a large selection of advanced financial derivative leverage trading products such as margin trading, futures and perpetual contracts, etc.
Bitmex is limited in its offerings as the exchange only supports 30+ cryptocurrencies including its token and has had anti-money laundering charges of which its founders plead guilty.
This may discourage users looking for a crypto exchange free from major controversies.
Company Overview About the Bitmex Exchange
Bitmex was founded in 2014 and is headquartered in the Seychelles. Bitmex stands for Bitcoin Mercantile Exchange.
The cryptocurrency exchange is owned and operated by HDR Global Trading Limited. The company is registered in the Seychelles.
Bitmex was co-founded by Arthur Hayes, Ben Delo, and Samuel Reed.
The crypto derivatives trading platform offers margin trading, futures, and perpetual contracts on several cryptocurrencies including Bitcoin, Ethereum, and BMEX Token.
These derivatives trading platform products allow traders to bet on the price movements of cryptocurrencies without actually owning the cryptocurrencies.
Bitmex is no stranger to controversy like most popular crypto exchanges have been.
In 2019, a popular critic of cryptocurrencies Nouriel Roubini hinted that the derivatives trading platform was involved in illegal practices that allowed traders to take on too much risk.
A couple of days later, Bloomberg reported that the Commodity Futures Trading Commission was investigating Bitmex for violations of the Bank Secrecy Act. On the 1st of October 2020, Hayes, Reed, Delo, and Gregory Dwye were indicted for violating the Bank Secrecy Act of the United States on allegations that the four of them did not implement anti-money laundering measures.
In 2022, Arthur Hayes pled guilty to violating the Bank Secrecy Act, and the 4 were sentenced with varying penalties including a 2-year prison sentence for Hayes, 30 months probation for Delo, and a $10 million fine for Reeds.
Gregory Dwyer’s trial is still ongoing.
Pros
- Targets advanced traders
- Trading fee discounts are available
- Bitmex leverage is one of the highest in the industry
Cons
- Riddled with numerous controversies
- Low cryptocurrency selection
- Not beginner-friendly
Bitmex Review: Unique Features
Bitmex Mobile App
The Bitmex mobile app allows Bitmex users to analyze and trade contracts and instantly buy, sell, and convert over 30 cryptocurrencies on the go.
The mobile app has wallet and portfolio management features that enable you to view your balance and transaction history as well as make deposits and withdrawals.
The mobile app gives you access to derivatives and spot trading. You can access, monitor, and execute a traditional Futures Contract.
In the app, you can trade spot pairs with instant settlement and long or short crypto derivative contracts with up to 100x leverage.
You can go long or short on 45 trading pairs. These derivative contracts are tradeable as Perpetual swaps and/or Futures Contracts margined in Bitcoin, Ethereum, and Tether.
You can also keep tabs on your favorite cryptocurrency and track real-time market trends using real-time data and charts. These data and charts give you a detailed breakdown of every required information.
The Bitmex mobile app has a Crypto Converter which allows you to instantly convert one crypto asset to another Bitmex-supported coin.
To use the Crypto Converter you need to have completed the KYC verification.
Bitmex currently allows you to convert between USDT and Bitcoin, Bitcoin Cash and any of the following digital currencies: BCH, LTC, ETH, DOGE, XBT, USDT, LINK, UNI, MATIC, AXS, SUSHI, SHIB, APE, TRX, DAI, AAVE, FTM, MANA, SAND, BNB, AVAX, NEAR, DOT, XTZ, ADA, BMEX, USDC, and vise versa.
Crypto conversions on BitMEX are done using a combination of market prices available. Bitmex does not charge any conversion fees.
Also, the minimum and maximum conversion amount varies per cryptocurrency.
The minimum and maximum conversion amount for every currency is displayed in the input field on the order form.
All crypto conversions on Bitmex are instant.
Funds are instantly deposited into your wallet once the conversion is successful.
Bitmex Token (BMEX)
BMEX is the utility token of Bitmex.com. It is a functional utility token that fuels the Bitmex ecosystem.
BMEX trades on the Bitmex spot exchange as a BMEX/USDT pair and 2 perpetual swaps – BMEXUSD and BMEXUSDT.
BMEX is an ERC-20 token with a maximum supply of 450 million tokens.
All BMEX tokens were minted at once and vested for about 5 years.
The majority of BMEX tokens are spent on rewards to users and the growth of the Bitmex ecosystem.
BMEX token holders enjoy several benefits including trading fee discounts.
Holders of the token are entitled to lower trading fees on the Bitmex derivatives trading platform and order book spot exchange.
They enjoy up to 15% on trading fee discounts.
BMEX token holders also enjoy reimbursement of their withdrawal fees.
Aside from fee discounts, Bitmex Token holders are granted exclusive experiences, privileges, and merchandise.
The higher the number of BMEX you hold, the better the benefits.
Other benefits include staking rewards for the Bitmex Earn locked deposits, early and exclusive access to new Bitmex products, and preferential treatment for upcoming services like IEOS on the Bitmex spot market or lending rates.
That said, the implementation of a multi-coin margin on Bitmex in 2022 led to the use of BMEX as collateral for trading.
The BMEX token has a maximum supply of 450 million tokens.
Below is a breakdown of BMEX token allocation, vesting schedule, and use of the tokens under each allocation:
Airdrop & Launch: 5%
Product and Liquidity: 20%
Employee Incentives: 20%
Ecosystem Growth: 30%
Long-term Reserve: 25%
To create a continuous utility environment for BMEX holders and to improve the value of the token, the exchange burns some BMEX Tokens monthly.
Bitmex Affiliate Program
The Bitmex affiliate program is designed for influencers, crypto communities, content creators, trading platforms, and businesses that wish to join the Bitmex community.
Bitmex affiliates earn up to 45% commission when your referrals join and trade cryptocurrencies on BitMEX.
You also enjoy BMEX token rewards.
All commission earnings are credited to affiliates’ accounts on a Today+1 basis.
Joining the Bitmex affiliate program is easy. There are no minimum visitors or followers required to start.
However, the bigger your community is, the higher your payout percentage.
To join the Bitmex affiliate program, you need to sign up to Bitmex and complete onboarding.
Once this is done, you will be granted access to your affiliate link which you will be able to share with your community.
Aside from the benefits enjoyed by Bitmex affiliates, all users that join Bitmex through an affiliate link (Referees) enjoy a 10% fee discount for 6 months.
This is a one-time offer and it is only valid for the first 3 months.
Bitmex Review: Cryptocurrencies Available on BitMEX
Bitmex allows users to buy, sell, and convert over 30 cryptocurrencies. Supported cryptocurrencies include Bitcoin, Aave, Tether, ApeCoin, Ethereum, Avalanche, Bitcoin Cash, Ftm, Polkadot, Bitmex Token, Dogecoin, Polygon, Bimmace Coin, Decentraland, USD Coin, Tether, Tezos, Polygon, Shiba Inu, SushiSwap, etc.
Bitmex Review: Fees
Bitmex offers different trading fees depending on whether you’re trading on the derivative market or the spot market.
Spot Trading Fees
Bitmex charges a standard trading fee structure on all its spot products.
For high trading volumes, the cryptocurrency exchange offers discounted Taker and Maker fees based on the 30-day rolling average trading volume or the amount of BMEX Token staked.
That said, the normal trading fee is a 0.025% maker rebate and a 0.075% taker fee on the total amount being traded.
The trading fee discounts range from a 1% discount for 25 BMEX staked to a 15% discount for 1,000,000 BMEX staked.
For trading volume discounts, Bitmex exchange offers fee reductions that range from 0.075% to 0.0175% in taker fees for trading volumes of 1,000,000 to 100,000,000.
Derivatives Trading Fees
Bitmex offers a complex trading fee structure for its derivative products that varies based on the margin trading product, trading volume, and amount of Bitmex staked.
That said, the regular trading fee for XBT margined contracts and USDT margined contracts is 0.075% in taker fee 0.02% in maker fee 0.075% in taker fee, and 0.0175% in maker fee respectively.
As with Bitmex’s spot trading fees, users can get discounts on trading fees based on their 30-day monthly trading volume and the amount of Bitmex staked.
Users can get up to 15% discounts for staking the BMEX Token and maker rebates as high as -0.0175% for a 30-day rolling trading volume.
Deposits and Withdrawals
Bitmex does not charge deposit or withdrawal fees on Bitcoin.
However, there is a dynamic Bitcoin network fee that is charged based on the current network load.
There are also no fees charged on Tether deposits. But you’ll need to pay dynamic fees for withdrawing the same.
Buy Crypto Fees
Bitmex offers users the ability to buy cryptocurrency using a credit card but this isn’t directly offered by the crypto exchange. This means that the fees depend on the third-party payment processor involved.
Bitmex Review: Payment Methods
Bitmex, unlike most centralized crypto exchanges, does not allow users to buy digital assets directly on the platform using fiat currency.
Rather, it partners with Onramper, a third-party payment processor that enables users to buy crypto assets using their credit card via MoonPay, BTCDirect, Mercuryo, Coinify, Xanpool, Wyre, Transak, and Indacoin.
Alternatively, you can fund your Bitmex account by sending USDT or Bitcoin you already own from an external wallet.
Bitmex Review: Security
Based on our team’s firsthand trials with this crypto exchange, we can confirm that Bitmex is secure and has not suffered any security breach since its launch. Bitmex is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles.
The exchange is also registered and holds regulatory approval from the Organismo Agenti e Mediatori (OAM) in Italy as a provider of virtual currency and digital wallet services.
Bitmex stores users’ crypto assets in a combination of cold and hot wallets to ensure the security of users’ assets.
It also combines industry-state cryptography key management with rigorous operational security measures.
Bitmex has a robust security system and operational control measures that seek to insulate digital assets from human error, cyber attacks, and internal collusion.
It also eliminates a single point of failure.
That said, positions and margins in BitMEX are checked multiple times a minute and balances are cross-checked against on-chain records every 10 minutes.
This is to prevent flaws, bugs, or intrusions causing positions that do not match to be immediately identified and appropriately handled.
All transactions on the Bitmex exchange are protected by transaction rules.
These rules are enforced to ensure that any attack is blocked at a policy level. Also, no one actor in the system can successfully sign a withdrawal from the system.
Every transaction on Bitmex must have multiple signatures and interactions with an untampered HSM to be considered valid by the system.
Bitmex also uses multi-signature wallets with a set of private keys that control access to the BitMEX public address for its Bitcoin custody.
All transfers must be signed by a quorum of randomly nominated signers.
Bitmex does not store any private keys on the cloud server.
Also, no private is ever held in one place. The creation, signing, and revocation of private keys are done in a distributed manner between a threshold of co-signing components.
This means that even if the Bitmex system is compromised, there will not be enough private keys available for the hacker to steal funds.
Bitmex Review: Staking Rewards
Bitmex, like most crypto exchanges with a native token, offers rewards to traders who buy and stake the BMEX Token.
Users can get up to a 15% discount on trading fees by staking 1,000,000 BMEX Tokens.
Other rewards to be obtained for staking the BMEX Token include exclusive privileges and experiences such as early product access, tickets to sporting events, and BitMEX swag.
Users with staked BMEX Tokens of more than 500,000 BMEX also get access to VIP services.
Bitmex Review: Supported Countries
Bitmex is a global crypto exchange, available in over 100 countries. Some supported countries include Armenia, Albania Argentina, Bahrain, Bangladesh, Austria, British Virgin Islands, Bulgaria, Cameron, Burkina Faso, Cyprus, Costa Rica, Barbados, Denmark, Dominica, Croatia, Egypt, France, Germany, El Salvador, Malawi, Lebanon, Latvia, Nigeria, Peru, Oman, Niger, Norway, etc.
Trading and holding positions on Bitmex is not available to any individual or entity located, established, incorporated in, or a citizen or resident of the United States of America, Hong Kong, the Republic of Seychelles, Quebec (Canada), Iran, North Korea, Sudan, Cuba, Bermuda, Crimea, and Sevastopol.
Bitmex services are also not available in any state, country, or jurisdiction embargoed by the United States and where Bitmex Services are restricted or prohibited.
Bitmex Review: Opening a Bitmex Exchange Account
To open a Bitmex exchange account go to https://www.bitmex.com/.
Next, on the home screen enter your email address in the relevant space at the top of the page.
Hit on the Register button.
Select a password and choose your country of residence.
Tap the checkbox that affirms that you consent to their Terms of Use and Privacy Policy.
Hit the Register button.
Open your email inbox and click the Confirm Your Email button in the message from Bitmex.
That’s it! You’ve created a Bitmex exchange account but to participate in margin trading, execute a traditional futures contract, or perpetual swap contracts you’ll need to be 100% verified.
You will also need to affirm and verify that you are not a crypto trader from the United States.
Once you’re done with the verification you can use the derivatives trading platform.
Bitmex Review: Trading Experience
Bitmex is a derivatives trading platform that offers advanced products such as margin trading, futures contracts, traditional futures contracts, leveraged contracts, etc.
Based on our meticulous research of this crypto exchange we discovered that the crypto platform offers a trading experience best suited for experienced traders.
There is no onsite way to buy cryptocurrency instantly using fiat currency (only via third-party processors), which most newbies will be looking out for.
That said, for experienced traders, Bitmex offers a wide range of tools including advanced charting, trading fee discounts based on traded volume, technical indicators, and much more.
Bitmex Review: Customer Service
Bitmex offers customer support via a support form on the support page of the Bitmex website and mobile app.
The customer support team can also be contacted via email at support@bitmex.com.
Bitmex Review: Customer Satisfaction
Through our team’s extensive experimentation with this crypto exchange, we have found that Bitmex is best for advanced users. The platform has a complex interface that is not suitable for beginners.
That said, the customer support channels are limited and users have complained about delayed responses.
Bitmex Review: Does Bitmex Exchange offer Education?
The Bitmex exchange offers cryptocurrency education via its official YouTube channel called the Bitmex Academy.
This education center is only accessible via YouTube and isn’t on the official website.
The Academy covers topics on cryptocurrency at large, margin trading, various forms of leveraged trading, and the Bitmex platform.
Bitmex is Right for You If:
You want to execute margin trades
You are an advanced crypto trader
Understand the risk involved in leverage trading
Don’t mind trading a few crypto asset pairs in the spot market
Already have cryptocurrency
Bitmex Review: Conclusion
Bitmex (Bitcoin Mercantile Exchange) is an advanced leveraged trading platform that is best suited for professional traders interested in trading only exchange derivatives.
However, it is extremely limited in its crypto asset offering and doesn’t directly support instant buy and sell.
It has also faced regulatory challenges where it pleaded guilty to money laundering charges.
Bitmex offers a myriad of tools, but it’s essential to explore the broader landscape. Dive into our Deepcoin breakdown and see the industry’s best on our Best Crypto Exchanges page.
FAQ
Most frequent questions and answers
Bitmex is registered in the Seychelles.
Bitmex supports almost every nation in the world, excluding the United States, Cuba, Iran, Syria, North Korea, Crimea and Sevastopol, Donetsk People’s Republic, Luhansk People’s Republic of Ukraine, Kherson Oblast, and Zaporizhzhia Oblast.
Yes, Bitmex is still in operation, however, residents of the United States can no longer access the trading platform.
A Perpetual Contract is a derivaties product that is similar to a traditional futres contract but without an expiry date. It mimics a margin-based spot market and trade close to the underlying reference Index Price.
Yes, it is free to create a Bitmex account but trading on the exchange isn’t as you’ll be charged maker and taker fees.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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