BitMEX Review – Are They Safe or a Scam?

BitMEX is far from your usual cryptocurrency exchange. Registration is incredibly quick and there are a few unique contracts on offer:

• Futures – this is a derivative instrument that lets users buy bitcoin and some other cryptocurrencies at a predetermined price.
• Perpetual – Another derivative that mimics a margin-based spot market and is only available for Bitcoin.
• BitMEX Upside Profit Contracts – Another Bitcoin-only contract. It allows users to participate in the potential growth of Bitcoin.
• BitMEX Downside Profit Contracts – This contract allows users to participate in bitcoin values during a bear market.

If you’re wondering what a derivative is, we’ll give you a quick crash course: A derivative is basically a security in which its value is derived from another underlying asset. Essentially it mimics the value of other assets so you can trade them without having to actually own the asset. In this context a cryptocurrency or cryptocurrency pair. However, a derivative contract is a contract between two parties over the price fluctuation of that particular asset.

Currently, BitMEX derivative or futures for the following cryptocurrencies:

• Bitcoin
• Cardano
• Bitcoin Cash
• Ethereum
• Litecoin
• EOS Token
• Ripple

BitMEX also offers 100x leverage – higher than any other cryptocurrency exchange offering bitcoin trading. Other cryptocurrencies can only be traded with 20x leverage. Our deep dive into BitMEX uncovered some past promotions – it turns out BitMEX regularly runs bonuses and promotions such as 10% discounts to attract new registrations.

Open up the web platform and you’ll be faced with a rather intuitive interface. The dashboard is a touch cluttered but the amount of information displayed at once is very impressive and the display is clear – new traders will have no problem finding charting features, contract information, and market data with ease.

The app performs remarkably well. Our BitMEX reviewers were impressed by advanced biometric security features, the ability to easily swipe up to manage orders and positions, and the availability of multiple languages including simplified Chinese. We found that the BitMEX mobile app offered all of the same markets as well.

If owning cryptocurrencies is the most important component of your trading strategy, then this bitcoin exchange won’t be for you. There is only a small handful of coins available to trade and they are only tradable in contracts. You cannot actually buy Ethereum or Litecoin. So, you may find yourself registering with a second exchange to buy underlying assets that you actually wish to own.

Our BitMEX review dug up only one account type at this bitcoin exchange. That account will allow you to access the full range of trading functions and markets. This exchange does, however, operate a test interface on the bitcoin testnet – that means traders can practice mock trading on the same contracts available from BitMEX. The BitMEX testnet is a simulated environment in which traders can practice trading, including placing orders, using different strategies, and selling bitcoin. Think of the BitMEX testnet as a demo account.

The standard account requires an initial deposit of only 0.0001 XBT and allows commissions. Leverage is offered at 1:100 and you’ll see a minimal BTC spread of 0.1%. This type of account is very attractive to new traders, in our expert opinion, and there is plenty to like as an experienced trader too.

BitMEX only offers a single trading platform. It is of their own design and operates on both iOS and Android, as well as within a PC desktop browser. Recently, BitMEX also launched a dedicated mobile app for both iOS and Android devices. The APK can be downloaded directly from the BitMEX website. Otherwise the app is available within the Apple App Store and Google Play Store.

The trading platform is wonderfully streamlined, which makes sense considering it was built purely for the trading of cryptocurrency. We found a great variety of cryptocurrencies were available and shared across both the web trader and mobile app. Security features are of high standard for both platforms and the amount of information available on the web platform dashboard is quite astonishing.

BitMEX is once again quite unique in how this exchange handles deposits and withdrawals. This cryptocurrency exchange only allows for bitcoin deposits and withdrawals – no credit cards, e-wallets or wire transfers, just bitcoin. To assist bitcoin investors further, our BitMEX review noted zero deposit and withdrawal fees. However, there is a minimum network fee for making a bitcoin transaction and that is based on the blockchain load.

The minimum deposit is 0.001 BTC with no withdrawal limit. While deposits are unlimited, you can only make one withdrawal per day, owing to the way BitMEX conducts withdrawal processing manually for security purposes.

Our CryptoParrot BitMEX exchange review took careful note of the fee structure. BitMEX charges a variable taker fee depending on the specific contract taken. For example, our reviewers were charged a fee of 0.075% for a Bitcoin traditional futures contract.  In this instance the maker took a rebate at 0.025%. These are rather low fees when compared to that of other cryptocurrency exchanges in Canada.

Buying cryptocurrencies has the odd complication – nothing major, your details may not be clear when uploading KYC images or perhaps some unfortunate technical issues occur. Some brokers really neglect this very important component of offering a financial service or product. But not BitMEX. BitMEX ensures that you can receive help anytime it is needed.

Unlike some, BitMEX provides 24/7 support via multiple channels. Some of the unique channels available to contract this broker include:

• Weibo
• Webform
• Web Chat
• IRC
• Telegram

Support is available in English, Russian, Chinese, Korean, and Japanese language. The best way to contact this broker is via the website chat function. During our BitMEX review, response time was quick – typically an hour or so – and we never received any unhelpful automated replies either. BitMEX is a modern trading platform and is very active on social media – we were able to receive customer support through their Twitter page.

Of course, many issues customers typically request assistance on can be easily answered in the truly comprehensive Knowledge Base section we reviewed on the BitMEX website.

BitMEX supports users from around 200 unique countries including Australia, United Kingdom, South Africa, and India. This exchange certainly has a global reputation but is unfortunately unavailable in the US due to regulations. Now unfortunately at this stage, BitMEX currently do not have any notable regulatory licences and do not provide any deposit insurance protection. However, through our extensive BitMEX reviews, we uncovered no BitMEX scams online.

The company is registered in the Republic of Seychelles and holds a licence in that jurisdiction. BitMEX is also currently under investigation from the US CFTC and UK watchdogs for potentially illegal practices. This is rather concerning when considering if BitMEX is reliable. While nothing has come of these investigations, it has certainly affected the trust of this exciting and popular cryptocurrency exchange when checking other BitMEX reviews online. An unregulated operator is always a potential risk, so be sure to keep your eyes open for any red flags.

The history of this cryptocurrency exchange is somewhat rocky. One of the founders of BitMEX crypto is the UK’s very first bitcoin billionaire. In 2019, it was suggested this exchange was involved in illegal activity and in 2020, all three founders were indicted on U.S Bank Secrecy Act charges. This case is currently ongoing.

However, the security features at BitMEX are quite unique and are certainly an advantage of this exchange. For example, the bitcoin wallet this exchange operates uses a multi-signature deposit and withdrawal scheme. This is a very unique security feature and arguably the first of its kind. Our BitMEX review uncovered that in the event of a full system compromise, there are not enough private keys available for a cyber-criminal to actually steal any funds.

Users of the BitMEX mobile app will also be able to leverage Two-Factor Authorization to further protect access to their account.

The education features at this exchange are quite extensive. Just head to the Knowledge Base section to access plenty of guides and documentation on everything from getting started and making deposits, to genuine trading information. You can also search terms in the Knowledge Base to be directed to the correct education document you require. We scoured the Knowledge Base content and were impressed with the significant detail within the information provided.

BitMEX also provide a regularly updated blog with a large number of articles relating to trading, business, financial announcements, and even reviews of bitcoin mining technology.