BitMEX

Website
Centralized, Hong Kong

When established2014
Registration linkLet's Go

BitMEX is one of the world’s most popular – and most controversial – bitcoin exchanges. The exchange is famous for offering margin trading and leveraged bitcoin trading, allowing users to trade with up to 100x leverage. Describing itself as “bitcoin’s most advanced trading platform”, BitMEX also does not require users to complete KYC or AML verification prior to trading. The Seychelles-incorporated company allows users to trade through desktop and mobile apps from multiple countries. Although BitMEX does not officially allow users from the United States, the exchange remains one of the most popular non-KYC exchanges for users around the world.

About BitMEX Exchange

Today, BitMEX offers speculative bitcoin perpetual trading with up to 100x leverage, no expiry, and low fees. Other contract types include Ethereum and Ethereum Classic futures contracts with up to 50x leverage. One of the key promises made by the BitMEX team is that users can participate in market rallies and declines “for only a fraction of the coin price, with no margin calls / liquidation price.”

If you want to enjoy crypto margin trading, then BitMEX is one of the biggest and most popular options available today. It’s one of the world’s highest-volume crypto exchanges. With that in mind, let’s take a closer look at how BitMEX works, what makes it special, and how you can get started trading on the platform.

P2P / CentralizedCentral
FunctionTrading
Established2014
Volume$3.2 Billion+
Pairs75+
OwnersHDR Global Trading Limited (100x Group)
LocaleHong Kong
FiatYes
Trust Level5/10
Support7/10
Security History100%
Coin Listing ProcessClosed
KYC/AML RequirementsYes
Fees0.075% to 15%
Benefits100x leverage trading on bitcoin futures
Reputation5/10

BitMEX Establishment

BitMEX was founded in 2014 by Arthur Hayes (Co-Founder and CEO), Ben Delo (Co-Founder and CSO), and Samuel Reed (Co-Founder and CTO). Co-founder and CEO Arthur Hayes graduated with a degree in economics from the Wharton School of Business before living in Hong Kong as an equity derivatives trader. He worked as a market maker for Deutsche Bank and Citibank’s Exchange Traded Funds (ETF) businesses, acquiring extensive research in equity index futures, forwards, and swaps, among other products. Using that experience, Hayes teamed up with Delo and Reed to launch BitMEX in 2014.

BitMEX Trading Volumes

CoinMarketCap reports that BitMEX has $900 million in 24 hour trading volume in its BTC/USD pair alone. However, BitMEX also offers ETH 7.95% Ethereum / USD ETHUSD $ 1,335.47
$106.177.95%
Volume 31.77 b Change $106.17 Open $1,335.47 Circulating 114.31 m Market Cap 152.66 b
7 h Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough 10 h Russian Crypto Exchange, Livecoin, Shuts Down After Alleged Christmas Eve Hack 13 h ETH Supply on Exchanges Has Been Declining Since May; Reaching Nov. 2018 Levels
and ETC 3.68% Ethereum Classic / USD ETCUSD $ 8.02
$0.303.68%
Volume 1.22 b Change $0.30 Open $8.02 Circulating 116.31 m Market Cap 932.48 m
6 d Grayscale Reopens Deposits for New Investors In Its Crypto Trusts; Excludes Ethereum & XRP 1 w IOHK Expands Project Catalyst, Updates Cardano's Daedalus Wallet for Ledger App; ADA Pumps 4 w Crypto Exchange EXMO Hacked; BTC, ETH, XRP, ZEC, USDT, and ETC Stolen By Attacker
futures contract trading, so the actual trading volume may exceed $3 billion.

Number Of Coin Pairs On BitMEX

BitMEX is best-known for its BTC/USD coin pair, including the XBT bitcoin perpetual futures contract available with up to 100x leverage. BitMEX also recently started offering ETH and ETC futures contracts with up to 50x leverage.

Who Owns BitMEX?

BitMEX is owned by HDR Global Trading Limited, which is an incorporated entity in the Republic of Seychelles.

BitMEX Features, Benefits, & Reputation

BitMEX is best-known for its 100x leverage on XBT perpetual futures contracts. All contracts are bought and paid out in bitcoin. BitMEX was the first to introduce the idea of a “perpetual contract”, which is a high-leverage contract that never expires. Other crypto exchanges have introduced similar products, although BitMEX was the first to offer it.

BitMEX is also known for its lax attitudes towards user verification. The exchange has no KYC or AML requirements, making it easy for users around the world to sign up with little issue. Users from the United States are officially blocked from trading on the platform, although many users report having no issue accessing the platform using a proxy.

The leveraged bitcoin trading on BitMEX allows you to theoretically pay just 1% initial margin. That means you can buy 1 BTC with 0.01 BTC by buying a 100x leveraged position. You can short the price of bitcoin, profiting as the price of bitcoin falls, by selling the contract, in which case the most you can lose is your margin. You can also go long on the price of bitcoin, profiting as the price rises.

Although originally known for its bitcoin/USD futures contracts, BitMEX has recently launched Ethereum futures, including Ethereum (ETH) and Ethereum Classic (ETC) futures contracts with up to 50x leverage.

BitMEX KYC & AML Requirements

BitMEX does not require users to undergo Know Your Customer (KYC) or Anti-Money Laundering (AML) verification of any sort. This is one reason why BitMEX has grown in popularity significantly over the last few months.

BitMEX Fiat Acceptance

Although BitMEX does not officially accept customers from the United States, the exchange does most of its business in US Dollars. The BTC/USD pair is the most popular pair on the platform. All contracts are closed and opened in bitcoin, however.

BitMEX Trust Level

BitMEX is more controversial than your average cryptocurrency exchange. In 2018, the platform admitted that it was trading against its customers in order to provide liquidity. Automated trading systems bought and sold contracts on BitMEX to create liquidity for real users – a practice typically known as wash trading. It’s a way to generate artificial activity in the market. Overall, BitMEX is slightly more transparent than certain other cryptocurrency exchanges. We know the founders of the company, for example, and have basic information about how the company operates. However, the Seychelles-based corporation has limited transparency overall. Because BitMEX is not based in the EU or the United States, it does not need to comply with financial services provider laws in either region.

BitMEX Customer Experience & Support

BitMEX has mixed ratings for customer experience and support. The company has a FAQs page and knowledge base. Users can also submit a ticket to the company if they can’t get an answer through the FAQs page or knowledge base. It does not appear that BitMEX maintains a cell center or similar facility to handle customer concerns. Some users claim their support tickets were answered promptly, while others claim they waited for weeks to have their support tickets answered.

BitMEX Security History

BitMEX has never been hacked, nor has the exchange suffered any public security breach. As far as the internet knows, BitMEX has a clean operating history. You can find complaints online from users who claim they were unable to withdraw profits or access funds deposited into the platform. However, similar complaints can be found for virtually every exchange in the world.

BitMEX Listing Procedures

BitMEX seems to focus primarily on bitcoin BTC 1.90% Bitcoin / USD BTCUSD $ 36,702.44
$697.351.90%
Volume 53.49 b Change $697.35 Open $36,702.44 Circulating 18.6 m Market Cap 682.82 b
5 h CoinShares Poised to Launch Exchange-Traded BITC; Bitcoin Hovers Below $40k' Inflection Point' 7 h Nvidia Looks to Fire Up Its Crypto Mining GPU Production; If Demand is Good Enough 8 h Mempool & Bitcoin Fees Holding Steady as BTC Payments Hit New Highs
and the US Dollar. This has been BitMEX’s specialty since launch, and the exchange appears to have little desire to move away from this pair. Although BitMEX has recently introduced ETH and ETC trading with up to 50x leverage, it seems unlikely that they will launch support for other altcoins in the near future. With that in mind, we know little about BitMEX’s listing procedures or how they work.

BitMEX Conclusion

BitMEX is one of the world’s largest cryptocurrency exchanges, accounting for more than $3 billion in trading volume on a daily basis. The exchange is known most for its 100x leveraged trading, allowing users to take an enormous short or long position on bitcoin futures with just 1% down as collateral. The exchange is also one of the more controversial major exchanges because of its lack of KYC and AML verification. Despite this controversy, BitMEX remains the world’s most popular bitcoin futures exchange and has the largest liquidity pool on the market today.


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