Is BitMEX a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether BitMEX is a good crypto exchange to start trading with. In this article you will learn whether BitMEX is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker BitMEX
The BitMEX brokerage is a peer-to-peer (P2P) trading platform for cryptocurrency and other digital market assets. It is part of the HDR Global Trading Limited holding group. The company is headquartered in Seychelles with global offices. This is one of the largest cryptocurrency exchanges, with a trading volume of over $3 billion (60 thousand BTC) per day. The XBTUSD Perpetual Contract is the main exchange product and the most traded in the industry. BitMEX is expanding its offer with new perpetual contracts, traditional futures, and quantum futures instruments.
| 💰 Account currency: | XBT |
| 🚀 Minimum deposit: | 0,0001 XBT |
| ⚖️ Leverage: | Up to 1:100 |
| 💱 Spread: | From 0 |
| 🔧 Instruments: | Cryptocurrencies, US dollar |
| 💹 Margin Call / Stop Out: | No |
BitMEX Pros and Cons
👍 Advantages of trading with BitMEX:
•High-trade value and liquidity level;
•simplified registration procedure;
•margin trading with leverage up to 1:100;
•you can use short positions;
•world-class security system by Amazon Web Services;
•high speed transfer speed for fund replenishment and withdrawal;
•powerful analytical and reference system integrated into your personal account.
👎 Disadvantages of BitMEX:
•funds deposits and withdrawals are only in Bitcoins;
•the trading terms (e.g., the “liquidation trigger” is the index marking price) may be unfamiliar to some users;
•the risk of serious losses due to the high leverage abuse.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for BitMEX Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. BitMEX offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform, integration with NinjaTrader is possible (up to 8th edition) |
| 📊 Accounts: | Standard |
| 💰 Account currency: | XBT |
| 💵 Replenishment / Withdrawal: | Bank cards and accounts, cryptocurrency wallets, third-party services |
| 🚀 Minimum deposit: | 0,0001 XBT |
| ⚖️ Leverage: | Up to 1:100 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | No |
| 💱 Spread: | From 0 |
| 🔧 Instruments: | Cryptocurrencies, US dollar |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | Yes |
| 📋 Orders execution: | n/a |
| ⭐ Trading features: | All contracts are in Bitcoins |
| 🎁 Contests and bonuses: | n/a |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of BitMEX commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
The BitMEX cryptocurrency exchange fees depend on several dynamic factors. They differ for perpetual contracts, futures, and quantum futures. Factors affecting the size of the commission for a specific instrument are: leverage, maker, taker, financial longs and shorts, and funding interval. The exchange doesn’t take a commission for funds deposit/withdrawal.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From 0.075% per market order | No |
Investment programs of BitMEX
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. BitMEX offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
The BitMEX cryptocurrency exchange doesn’t provide an opportunity for generating passive income. The company does not have any investment programs and all services are focused on generating income directly from the purchase/sale of the cryptocurrency asset selected.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
BitMEX affiliate program:
BitMEX has a standard program for attracting referrals. The user gets a part of the commission from the transactions of the users attracted. The number of payments (part of the commission) depends on the number of referrals and their trading volume, for example:
over 0XBT – 10%;
over 1,000XBT– 15%;
over 10,000XBT– 20%.
Referrals get a temporary discount on commissions for their trades. Payments are made daily at 12:00 UTC.
Conclusion. Is BitMEX good for beginners?
The BitMEX cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, BitMEX could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.