Home Digital World Is BitMEX a Suitable Exchange to Buy or Trade Crypto?

Is BitMEX a Suitable Exchange to Buy or Trade Crypto?

by Jay

BitMEX is one of the peer-to-peer trading platforms that was established in 2014. It has been in the crypto space for quite some time, which is why people are familiar with it. However, apart from the features that it offers to the users, this exchange is also known for some major allegations.

Even though the exchange has had some controversial connotation with its reputation, it does offer a few important features to the users. This is why anyone looking to use the BitMEX exchange should have some information about the platform and what it offers to the users.

Here are some essential details you should know so you can determine whether this is a suitable exchange for you or not.

BitMEX Team

Despite the allegations surrounding the exchange, it is still operational and offers its services to all crypto investors and traders. The team of the exchange is composed of experienced people that are economists, developers and high-frequency traders. This diverse team of experts offers different kinds of contracts for the crypto traders who choose the exchange.

Trading with Leverage

Leverage trading is a trading strategy that is quite easily available for the crypto traders. Several platforms now offer leverage trading, which allows traders to borrow funds from the brokers and use a small portion of their own funds to place bigger trades.

The possibility of getting big rewards comes with that of high risks as well, which is why one should not indulge in leverage trading without proper information or without using a proper cryptocurrencies exchange .

BitMEX is one of the crypto exchanges that allows its users to trade with up to 100x leverage. It offers two types of margin trading:

  • Isolated
  • Cross-margin

Contracts Available on the Platform

In this short BitMEX review you can also learn about the contracts that are available on the platform. As a trader you can trade the available swap. And futures contracts that are mentioned below in a bit more detail.

  • Downside Profit Contracts – available only for Bitcoin and allows buyers to be a part of the potential downside of an instrument.
  • Perpetual Contracts – only available for Bitcoin and has no expiry date. These contracts trade quite close to the reference Index Price and copy the spot market that is based on margin.
  • Traditional Contracts or Futures – available for Bitcoin and other digital assets and is a derivatives product. This can be seen as an agreement to buy or sell any kind of commodity or asset at a specific time and price.
  • Upside Profit Contracts – only available for Bitcoin and allows buyers to be a part of any potential upside of the instrument.

Fee Charged by the Exchange

BitMEX also charges a fee that the users have to pay, similar to every other cryptocurrency exchange in the market. However, the amount of fee charged by an exchange. The nature of the fee is what differentiates one platform from another.

Therefore, if you want to use this exchange you need to know about BitMEX fees so you can determine if it is suitable for you to use or not.

The fee structure of the exchange is quite straightforward and transparent. It also follows the market maker and taker fee model, according to which:

  • Market makers have to pay -0.025% fee
  • Market takers have to pay 0.075% fee

Is BitMEX a Secure Exchange?

The security offered by an exchange is one of the most important and major concerns of the users. The crypto market is not only volatile but it can also be unsafe, especially for people who are new to the crypto space.

Since there are numerous crypto exchanges in the market, there is no guarantee that every exchange prioritizes the security of the users. There are some platforms that do not take the security of the users so seriously due to which the fraudsters can operate easily.

There is always a chance of a cyber failure of some kind as well. Therefore, the risks cannot be completely eliminated but they can be reduced to a great extent if the right platform is used.

This is why people often look for the security offered by an exchange, which is BitMEX in this case. However, the security offered by this platform is somewhat controversial as the platform. It has been accused of leaking user data, giving advantages to certain investors. Traders and also practicing BitMEX liquidation for some customers.

Information such as this is important to know if you intend on using this exchange.


The security, transparent fee, trading tools, customer support. Available trading options are a few things you need to consider before choosing an exchange. Every novice party should have the information about BitMEX as mentioned above if they intend on using this exchange.

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