Cryptocurrency exchanges are slowly becoming more commonplace, with millions of investors looking for the most seamless platforms on which to trade. However, some of the more useful options can be challenging and hard to understand. Below, we cover the basics of a popular platform in a BitMEX guide. This BitMEX tutorial covers a range of commonly asked questions about BitMEX that are sure to help you with your investment opportunities.
What is BitMEX? How to SIGN UP to BitMEX?
BitMEX stands for Bitcoin Mercantile Exchange. It is a peer-to-peer derivatives cryptocurrency products trading platform. It is wholly owned by HDR Global Trading Limited, a Republic of Seychelles incorporated entity.
Derivatives, margin, leverage, what do these words mean?
A derivative is a financial security with a value that is dependent on or derived from an underlying asset. Some common derivatives that are traded are stocks, bonds, currencies, and now, cryptocurrencies.
Margin Trading refers to borrowing funds to trade a financial asset. The borrowed funds act as collateral and the trader can trade the asset with a larger position, but increased risk. More on this risk soon.
Leverage refers to the degree of which you are borrowing money in your trading. The higher the leverage, the larger your position. With this larger position comes increased risk.
Please, follow these steps for a quick and easy registration process.
- Visit BitMEX here
- Click ‘Register’ in the top right-hand corner
- Enter your name, email address, country of residence, password, and tick the box to accept the terms of service.
- Verify your email address by clicking on the link in the email you receive
- Access your order book, recent trades, the chart and depth chart, BitMEX live trading, and everything you need to place an order on the main screen.
How to deposit money into your BitMEX account?
Your Bitcoin Deposit Address works similarly to a bank account number. You can use it to receive Bitcoins in your exchange wallet. The minimum deposit amount is 0.0001 XBT, and BitMEX only accepts deposits of Bitcoin. All deposit addresses are also
Under the Account tab, click on the Deposit link where you will be provided a multi-signature address to deposit Bitcoin.
Copy the unique multi-signature Bitcoin Deposit Address you wish to transfer Bitcoin to your BitMEX account.
Good news, BitMEX does not charge fees on deposits.
Also, BitMEX does not charge fees on withdrawals. When withdrawing Bitcoin, the minimum Bitcoin Network fee is set dynamically based on blockchain load and can be viewed on the Withdrawal Page.
What is the Minimum Deposit to trade on BitMEX?
The minimum amount to trade on BitMEX varies from product to product depending on the Initial Margin. For XBTUSD (for example) it is $1 USD * 1% (Initial Margin) = $0.01. At a XBT/USD price of $600 this equals 0.00001667 XBT.
How to BUY Bitcoin (cryptocurrencies) on BitMEX?
Learning how to buy Bitcoin and other cryptocurrencies on BitMEX takes practice. What’s more, you don’t so much as “buy it.” Instead, you deposit Bitcoin into your BitMEX account, then use it with or without leverage to trade for profits or losses. You can also use a BitMEX bot to help with the process.
BitMEX is a more advanced trading platform where, once you deposit Bitcoin, you then have to select from various order options to see which is going to be the more successful option. This may differ on a daily basis.
What are the BitMEX deposit and withdrawal fees?
The schedule for BitMEX deposit and withdrawal fees is straightforward, but it differs for each cryptocurrency. For example, for Bitcoin, there are five types of fee and a leveraging maximum.
Initial Margin: one percent
Maintenance Fee: 0.5 percent
Maker Fee: -0.025 percent (you receive money)
Taker Fee: 0.075 percent
Settlement Fee: 0.05 percent
Leverage Maximum: 100x
How reliable is BitMEX? Is it safe?
If you are considering BitMEX’ future, wondering whether it’s going to be a worthwhile exchange for using in the long term, then you will quickly learn that it is. Most user feedback is positive, and security is fairly stringent. For example, multi-signature deposits are a requirement, and only BitMEX partners can use the withdrawal schemes. What’s more, all withdrawals are manually checked to be sure of their efficacy.
Amazon Web Services protects the servers, all the while utilizing hardware tokens, two-factor authentication, and text messages as well. Finally, all account holdings must be at zero. If they aren’t, trading ceases. Verification is also carried out externally of deposit addresses, making sure all keys match.
Who owns the exchange ‘BitMEX’?
BitMEX is owned by Arthur Hayes, Ben Delo, and Samuel Reed. Arthur is an experienced equity derivatives trader and banker, Ben builds market making and high-frequency trading systems, and Samuel is an expert in fast, real-time web applications.
Does BitMEX offer leverage?
Yes, BitMEX offers leverage on all of its products except UP and DOWN contracts.
One of the primary reasons for driving seasoned investors to BitMEX, or for beginners to learn how to use BitMEX, is the leverage feature. A rarity on any exchange, the leverage feature allows investors to trade using more than only what’s in their wallet.
However, the higher the leverage amount, the closer your liquidation figure is to your investment. Therefore, if you make a poor trading decision, you may end up losing it all. On the opposite side of the spectrum, the leverage feature of BitMEX is so popular because if you make the right trading decisions, you can make it big – all by leveraging up to 100 times your original wallet figure.
How much leverage does BitMEX offer?
The amount of leverage BitMEX offers varies from product to product. Leverage is determined by the Initial Margin and Maintenance Margin Levels. These levels specify the minimum equity you must hold in your account to enter and maintain positions. Leverage is not a fixed multiplier but rather a minimum equity requirement.
The highest leverage BitMEX offers is up to 100x leverage on its Daily Bitcoin / JPY Futures Contract and the Perpetual Bitcoin / USD Perpetual Contract.
The PROS & CONS of using BitMEX
Advanced platform for seasoned traders
Great demo trade platform to practice risk free
Challenging for beginners
You can only trade in Bitcoin
BitMEX is one of the most advanced Bitcoin trading platforms in existence, with a significant portion of the trading population using it for at least some of their Bitcoin investing ventures. While it’s more advanced, meaning beginners may need to look at BitMEX guides for dummies, it offers a whole host of features to help people become successful Bitcoin traders. What are you waiting for? Register here and get trading today!