BitMEX is a crypto trading platform founded by ex-bankers. It is well-known in the crypto space, however, the reasons for its popularity are somewhat conflicting. Therefore, if you are interested in using this exchange, it is essential that you take your time and learn about its advantages and disadvantages first.
This is a suitable and helpful practice that should be followed, regardless of the platform you want to choose for crypto investing or trading. As a novice crypto investor or trader, you should know what kind of exchange you are looking for. If you are familiar with your criteria and requirements, you can gather information about all your available options and choose a platform that checks all the boxes for you.
Similarly, if you want to use the BitMEX exchange then here are some of its benefits and drawbacks that can help you decide whether it is a suitable platform for you or not.
Pros of BitMEX
Every exchange offers some benefits to the users. They might not be major at times but they can meet the requirements of the investors or traders looking to use that exchange. This brief BitMEX review also focuses on some of the benefits you can enjoy if you choose to trade crypto assets.
Security Has Never Been Breached
The crypto space is an unpredictable place that comes with several risks. Unless you know how to manage those risks or choose a secure platform, you can have a stressful and difficult experience of buying or trading crypto.
This is why it is important to use an exchange that prioritizes the safety of the users and has been developed in a way that reduces the risks, if it cannot eliminate them all.
Regardless of the controversies revolving around the exchange, BitMEX is one of the platforms that has never suffered from a security breach of any kind. Even some of the popular and now biggest exchanges have had unfortunate incidents. However, this exchange has never been hacked since its establishment in 2014.
If security is a major priority for you then you should consider using an exchange that offers utmost security to the users.
No Need for KYC
One of the additional security systems used by several cryptocurrency exchanges in the market is KYC that stands for knowing your customer. This is an extensive identification process that requires the users to verify their identity before they can register with the platform and use it.
This verification process requires essential identity documents, which narrows down the possibility for scammers to access the exchange and compromise the funds and information of the registered users.
However, this process also limits the audience who can access the exchange and open anonymous accounts. Therefore, the BitMEX exchange does not require its users to go through this kind of verification process and uses other security systems for utmost safety.
BitMEX is one of the trading platforms in the crypto space that is known for its notable trading volume and high liquidity. Both these factors are often looked for by the people who want to start trading crypto.
Even though there have been allegations regarding BitMEX liquidation of users’ funds, this platform does offer a high liquidity, which is not offer by many other platforms.
Fees and Leverage Trading
Another benefit of the exchange you should know about is the fair and straightforward BitMEX fees structure. Choosing a platform with a fair and transparent fees structure is important as many platforms include additional charges without notifying the users beforehand. However, you are likely to face no such complications with BitMEX as it does not charge any fee for deposits or withdrawals and only requires the users to pay a minimum network fee.
It also supports leverage trading and offers up to 100x leverage to the traders.
Cons of the Exchange
There are likely to be a few benefits as well as drawbacks of every crypto exchange that you come across. However, it is not necessary that the cons are substantial or damaging. Regardless, you should be familiar with them.
Unsuitable for Beginners
If you are new to the crypto space then this is a major aspect you need to consider. Every exchange is not compatible with beginners and experts alike and BitMEX is one of such platforms. Therefore, if you are a novice trader, you should look for a more suitable exchange.
U.S. Traders Not Accepted
Just like several other crypto exchanges, the BitMEX exchange does not offer its services to residents of the USA. If you are in the States, it is suitable that you look for a platform available in your country or region.
Despite the fact that BitMEX is a well-known name, it is helpful and crucial that you learn about its pros and cons so you can make an informed decision. Being careful while choosing an exchange is essential.