BitMEX Review (Dec 2022): Why We Don’t Like It

June 16, 2022
Reviews

BitMEX is a fairly advanced cryptocurrency exchange and trading platform that will grant its users access to multiple order types and state-of-the-art crypto trading and crypto pricing APIs. However, it's not a crypto exchange I'd recommend using in Canada, considering its limited array of supported cryptocurrencies, the fact that it has been banned from operating in Ontario and Quebec by the OSC, and how limited its customer support is.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than BitMEX. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

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What Is BitMEX?

BitMEX is an advanced cryptocurrency exchange and trading platform that lets its users buy, sell, and trade different crypto tokens. It was created in Seychelles in 2014 by Arthur Hayes, Ben Delo and Samuel Reed, all of which have backgrounds in finance, trading, and web development respectively.

There have been controversies around the exchange, however, as Hayes, Reed, Delo, and Gregory Dwyer were indicted on charges of violating the U.S. Bank Secrecy Act after allegations that they failed to implement anti-money laundering measures.

The exchange currently supports 9 different crypto tokens, and it has many features that seasoned crypto traders will find useful, such as a professional derivatives trading platform, margin trading with up to 100x leverage, and more.

To start off this BitMEX review, let’s take a deeper look at BitMEX’s pros, cons and features.

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BitMEX Pros & Cons

BitMEX Pros

  • Has advanced trading features for experienced crypto investors.
  • Competitive trading fee rates.
  • Has no deposit or withdrawal fees.
  • Robust security.
  • Offers derivatives trading.
  • Offers margin trading with up to 100x leverage.
  • Has very good liquidity for Bitcoin perpetual.

BitMEX Cons

  • Has a limited array of supported cryptocurrencies (9).
  • The exchange does not operate in Ontario or Quebec.
  • Has a surprising lack of regulation overall.
  • Not beginner-friendly.
  • Very limited customer support.

BitMEX Features

1. BitMEX Desktop Platform

BitMEX has a pretty advanced trading platform that will benefit experienced crypto traders the most. You'll be able to trade between the supported cryptocurrencies that the exchange offers with very low latency, have access to derivatives trading that includes crypto perpetual and futures trading, and you also can engage in leverage trading with up to 100x leverage in Bitcoin, which is something that not a lot of crypto platforms offer.

Additionally, you'll be granted access to top-notch crypto trading and crypto pricing APIs that will help you have an edge over the competition, and you can even place idle crypto holdings into the BitMEX Earn platform to receive up to 10% interest on them. You can also place a wide variety of order types, such as market orders, limit orders, stop orders, take profit orders, hidden orders, iceberg orders, close on trigger orders, and pegged orders.

The platform's fees are also very competitive, and you can expect to pay 0.075% on the lowest tier for taker fees with no deposit or withdrawal fees to worry about. However, this platform will be very hard for beginners to use, so it can be considered a pretty specific platform that is not exactly for everyone in the crypto trading world.

2. BitMEX Mobile App

BitMEX also has a well-designed mobile app that will let you do everything that you can do on the desktop platform, complete with the multiple order types, leveraged trading, and derivatives trading as well. However, bear in mind that your phone's display might make reading the advanced charts more difficult as it's smaller than a desktop screen.

The app also has very good ratings, despite having few reviews. You can expect to see 4.6 out of 5 stars based on 370 reviews on the Google Play Store and 5 out of 5 stars based on 4 reviews on the Apple Store respectively, indicating widespread customer satisfaction with the app.

3. BitMEX Security Features

In terms of regulation, things don't bode very well for BitMEX: they are not a registered Money Services Business with the Financial Reports Analysis Centre of Canada (FINTRAC), and they're also not a registered firm with the Ontario Securities Commission (OSC). In fact, the OSC has banned Bitmex from working in Ontario and Quebec in 2020, which means that about a third of Canada's population cannot use the exchange.

Things change once we start talking about the security features that the exchange provides, however, and the difference is just night and day: BitMEX runs a secure multi-party computation (MPC) system and a multi-signature deposit and withdrawal scheme, has manual Bitcoin withdrawal confirmations with the supervision of at least two BitMEX employees, uses multi-signature Bitcoin addresses, has a 100% cold storage policy, and has deposit address verifications that are provided by an external service. If the public keys do not match during these verifications, the exchange is shut down immediately and trading is halted for everyone; a commitment to security seldom seen in crypto exchanges today.

Additionally, BitMEX has support for two-factor authentication (2FA) and biometric login options (such as face recognition) to strengthen your account's security, and the platform has undergone thorough security audits that have earned it the coveted ISO/IEC 27001 security certification. However, be aware that 2FA and biometric logins can be enabled and disabled at will, so the efficacy of these safety measures is entirely on you.

Lastly, BitMEX uses an insurance fund to avoid auto-deleveraging traders’ positions. The insurance fund grows from liquidations that the platform is able to execute in the market at a price better than the bankruptcy price of that particular position.

4. BitMEX Customer Support

Unfortunately, customer support is an area where BitMEX falls short: you can only reach the exchange's support team through ticket submission and email, and the platform doesn't offer any phone support or have a live chat feature, which is mind-boggling. It attempts to compensate for this by having a thorough FAQ section, but if your inquiry falls outside of the FAQ section's knowledge base, it might take a while to get your problem solved.

  • Phone: Not Available
  • Email: support@bitmex.com (24 hours)
  • Live chat: Not Available

The exchange also has a big social media presence, and you'll be able to reach them through channels such as Discord, Reddit, Telegram, Twitter, YouTube, and Instagram. Keep in mind, however, that the customer support that you can get from these channels will be somewhat limited, as that is not the primary purpose of these social media platforms.

5. BitMEX's Own Token, BMEX

One unique feature that BitMEX has is its own crypto token, BMEX. Holding BMEX will lead to quite the rewards and benefits: for instance, you can expect to receive additional taker fee discounts, exclusive privileges such as early access to future BitMEX features and tickets to different sports events, and even VIP services for large Token holders above 500,000 BMEX.

Considering that it's not too hard to hold BMEX in your BitMEX account, this is a convenient feature that you should seek to take full advantage of.

Cryptocurrencies On BitMEX

Currently, BitMEX only supports 9 different crypto assets, not counting BMEX: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), ApeCoin (APE), Axie Infinity Shard (AXS), Chainlink (LINK), Polygon (MATIC), SushiSwap (SUSHI), and Uniswap (UNI). This array of supported crypto is quite limited, so if you're looking to invest in other popular altcoins, you'll have to look elsewhere.

BitMEX Fees

Trading Fees

BitMEX has a tiered fee structure that is, luckily, quite easy to understand. That fee structure looks more or less like this:

Tier30-Day Trading Volume (USD)Maker FeeTaker FeeDiscount
BLess than 1,000,000-0.0100%0.075%No discount
I1,000,000 or more-0.0100%0.050%33.33%
T5,000,000 or more-0.0100%0.040%46.67%
M10,000,000 or more-0.0100%0.035%53.33%
E25,000,000 or more-0.0100%0.030%60%
X50,000,000 or more-0.0100%0.025%66.67%

Additionally, the exchange has no deposit or withdrawal fees to worry about, and you'll only have to pay a very small fee when withdrawing due to network costs.

3 Exchanges I Recommend Over BitMEX

BitMEX isn’t a bad exchange, but it’s also not the best in Canada: considering its limited array of supported cryptocurrencies, the fact that it has been banned from operating in Ontario and Quebec by the OSC, and how limited its customer support is, I'd be hesitant to recommend it as a top crypto exchange options for Canadians to use.

That’s why I recommend any of these three exchanges over BitMEX:

  1. ZenGo: With 0% trading fees up to $1,000, best-in-class security, and 24/7 customer support, ZenGo is our #1-rated crypto exchange in Canada. Sign up by December 9, 2022 to open your free account.
  2. VirgoCX: With support for more than 50 cryptocurrencies, instant account verification, and a beautiful website and app, VirgoCX is our #1-rated crypto exchange in Canada. Get your $20 signup bonus with VirgoCX here.
  3. CoinSmart: With trading fees at 0.2%, quick deposits and withdrawals, and strong customer support, CoinSmart is my backup exchange in case I ever need something that VirgoCX can't provide. Get your $50 signup bonus with CoinSmart here.

Here's a quick summary of these three exchanges:

#1 Best Overall

Trading Fees: 0% up to $1,000
Security: Best in class
Customer Support: Excellent

Ultimate security + lowest fees.

★★★★★

Rated 4.9/5

#2 In Canada

Spreads: 0.5% – 1%
Security: 95% cold storage
Signup bonus: $20

Low fees + solid platform.

★★★★★

Rated 4.5/5

Good All-Around

Trading fees: 0.2% (Medium)
Security: 95% cold storage
Signup bonus: $50

Average fees, good platform.

★★★★

Rated 4.4/5

How To Withdraw From BitMEX

To withdraw crypto from BitMEX, follow these steps:

  • Login to your BitMEX account.
  • Click the Withdraw option to the left.
  • Enter your wallet address and the amount you wish to withdraw.
  • Thoroughly check the withdrawal details before confirming.
  • Click on Confirm once you've done the previous step.

In Summary

BitMEX is a fairly advanced cryptocurrency exchange and trading platform that will grant its users access to multiple order types and state-of-the-art crypto trading and crypto pricing APIs. However, it's not a crypto exchange I'd recommend using in Canada, considering its limited array of supported cryptocurrencies, the fact that it has been banned from operating in Ontario and Quebec by the OSC, and how limited its customer support is.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than BitMEX. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

SECURE MY CRYPTO FOR FREE
Sign up by December 9, 2022.

BitMEX FAQs

Is BitMEX Safe & Secure?

Yes, trading with BitMEX is completely safe and secure. The platform runs a secure multi-party computation (MPC) system with a multi-signature deposit & withdrawal scheme, has manual Bitcoin withdrawal confirmations with the supervision of at least two BitMEX employees, and has a 100% cold storage policy.

Is BitMEX Legit?

Yes, BitMEX is legit for several reasons: the platform prohibits users from being involved in or initiating any form of market manipulation, conducts thorough surveillance on all trading activities, and has industry-standard security measures such as 2FA and biometric logins.

Is BitMEX Legal In Canada?

Yes, BitMEX operates legally in Canada. However, it's not available to users in Ontario and Quebec due to being banned by the Ontario Securities Commission (OSC), and it also isn't registered as a Money Services Business (MSB) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Is BitMEX Trustworthy?

Yes, BitMEX is a trustworthy exchange for several reasons: the platform prohibits users from being involved in or initiating any form of market manipulation, conducts thorough surveillance on all trading activities, and has industry-standard security measures such as 2FA and biometric logins.

Does BitMEX Verify Accounts Instantly?

Yes, BitMEX does verify some accounts instantly, though if your account needs to go through the manual verification process for some reason, these are the documents you’ll need to provide:

  • A photo of a government-issued ID (such as a passport).
  • A video or a selfie of yourself.
  • Use your web browser or upload another official document to verify your location.
  • A funding method for your account.

Is BitMEX Good For Canadians?

BitMEX is a decent exchange for Canadians, though if you’re looking for the best overall trading experience, I recommend using CoinSmart, Bitbuy or Newton instead. Each of them offers quite a bit more than BitMEX, and I’m confident you’ll have a better experience with them.

How Well Is BitMEX Reviewed On Reddit?

Reddit’s review of BitMEX is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt.

Can I Buy Dogecoin With BitMEX?

No, you cannot buy Dogecoin with BitMEX. If you want to buy Dogecoin, I suggest using CoinSmart, Bitbuy or Newton instead.

Is BitMEX Insured?

Yes, BitMEX’s crypto holdings are insured: the platform has an insurance fund set up to avoid auto-deleveraging traders’ positions.

BitMEX Referral Code

You don’t need a referral code to get your signup bonus with BitMEX. Simply sign up using our signup bonus link and then deposit $100 or more into your account.

Does BitMEX report to the CRA?

No. Considering BitMEX is not a registered Money Services Business (MSB) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), you'll have to report any crypto revenue you make to the Canada Revenue Agency (CRA) yourself.

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