When it comes to cryptocurrencies, we are sometimes forced to wonder what is going to happen next. The reason why we say this is because so much has already been done in the field, that it now seems magical to believe that there are still things left to explore and innovations yet to be made. While it all started out with a simple experiment, one that involved Bitcoins and was conducted way back in 2009, today it has grown and extended by immeasurable proportions to take the shape of one gigantic industry that seems to exist everywhere in the world. No matter what the country or what the region of the world, people everywhere are talking of cryptocurrencies. And it isn’t just all talk, for people are actually lining up to invest their money in a good number of these cryptocurrencies, and the trend doesn’t seem to be slowing down at all.
With options like Bitcoins, Litecoins, Ethereum, Dash and many more, why would it? Almost all of these currencies have been proven time and again to provide fantastic returns for your money. They are easy to invest in, don’t ask for much and give out great profits. If these aren’t enough reasons to convince investors to shell out their money, we don’t know what will. Additionally, you don’t always have to directly invest money if you are not comfortable with that. Rather, you can even opt for a little more subtle ways of dealing in cryptocurrencies, such as cryptocurrency mining. Mining is a concept that has been around for centuries, but only very recently has it acquired this new technological form. This kind of mining doesn’t involve heavy machinery or going down into caves, but only asks you to purchase one mining rig. Once you do that and set it up, you will be all set to mine your Bitcoins, Litecoins or whatever other cryptocurrencies you are interested in. It is that simple. Obviously, though, there are still things to consider, and the overall profitability of the venture will ultimately depend on how you choose to tackle it and the amount of dedication you display.
Exchange Platforms: The Need
Now let us say you have chosen to buy cryptocurrencies, what do you think you need to look for next? Obviously, the very first thing you need is a platform which lets you buy the cryptocurrency you want. Fortunately, a number of those are available right now. With the great number of innovations and improvements that have been done in the field, we have also been able to develop comprehensive and effective platforms, in the shape of online websites, which when used in the proper manner will let you buy, sell or even trade in cryptocurrencies. The best part about these trading platforms or exchange services is that they do not ask for you to choose a single type of currency, for a lot of them, actually deal in multiple cryptocurrencies, and will serve you just as well no matter which one you choose to transact in.
Now before we go on to anything else, let us go over why we are writing this article. The purpose of this is to inform you of one such great cryptocurrency exchange service, the BitMEX trading platform. We will first cover the basics and features of BitMEX in one comprehensive review and then move on to a short discussion on the ins and outs of these services.
BitMEX markets itself as an international cryptocurrency exchange. Notice that they never talked about a specific cryptocurrency, but simply went with the term ‘cryptocurrency’. This is because BitMEX as a platform is truly diverse and lets the average user experiment with what they want to and gives them full freedom to actually test the waters of the cryptocurrency trade business. Owing to the same, they have multiple currencies on board and will easily let you trade in any of them. Additionally, the fact that they call themselves international is no joke. Their services are actually operational not just all over certain specific regions but almost all parts of the world. They are diverse, fast and quick at handling customer issues or complaints.
It was launched in 2014 by the company HDR Global Trading Ltd. The names of the owners are Arthur Hayes, Ben Delo, and Samuel Reed. In just the four years since its inception, BitMEX has managed to make a pretty good name for itself and actually do good business in a lot of countries. While it launched an ambitious but small project, today it commands significant market share and is one of the most premier cryptocurrency exchange services and trading platforms of the world.
However, there are also some limitations that come with the service. For instance, BitMEX won’t allow you to make flat-wire transfers currently. The service touts itself as a ‘cryptocurrency exclusive’ and they have really gone out of their way to maintain that reputation. The only option for you is to deal in Bitcoins or other cryptocurrencies, for deposits or withdrawals via flat wire transfers are not permitted.
Additionally, there is one more thing you need to worry about. While BitMEX is perfect for dealing with Bitcoins, you might face a little bit of a disadvantage when you use it to trade in other cryptocurrencies. BitMEX works on the principle of margin trading, so while Bitcoin transaction can earn you a leverage of up to 100x, which is great, transactions on altcoins will fetch leverage that might vary from transaction to transaction. For example, Ethereum offers only up to 50x leverage while Litecoin will only fetch you up to 33.3x leverage. To sum up, the Bitcoin is the only currency which will take you all the way and fetch you the full 100x leverage. Also, while making the transaction you must keep in mind that the cryptocurrency market happens to be pretty volatile and thus caution must be exercised.
Range of Cryptocurrencies
While we earlier stated that BitMEX works with a good range of cryptocurrencies and is pretty diverse in their currency offerings, there is, however, a bit of a drawback here when you look at it closely. In spite of the healthy number of cryptocurrencies on offer at BitMEX, it does fall somewhat short in this domain especially when you compare it to some of the other cryptocurrency exchange services out there. Platforms like Poloniex, Cryptopia, and Bittrex, for example, are much more open and accepting when it comes to servicing customers with Altcoins. In spite of the good frequency of new projects that keep coming up on BitMEX, for some reason the overall volume always remains low for all currencies except the Bitcoin. So if you are someone who wishes to not restrict themselves to just Bitcoins, and truly explore the options you have in the cryptocurrency domain, then perhaps you would be better off with one of the other options mentioned before.
To give you a basic idea of the number of cryptocurrencies BitMEX deals in, here are the names if a few of them; Bitcoin, Binary, Ethereum, Dash, Litecoin, Monero, Qtum, Tezos, Ripple, and Zcash.
As stated earlier, BitMEX was launched back in 2014 as a small but ambitious project and has managed to grow by leaps and bounds ever since. They made a spectacular show of running their business and have managed to command a good portion of the market share by sheer force of will and dedication.
Owing to the same, the liquidity for BitMEX is actually pretty high when it comes to Bitcoin transactions. They have the spot as well as the futures markets for Bitcoins and both of them have been performing exceedingly well and garnering great business for the company. However, the problem with the other currencies continues to put a stopper on BitMEX’s success since apart from Bitcoins, no other cryptocurrencies have been able to display decent ratings for the platform.
Now slippage is a technical term often used in trading to describe the quantity of the degree of price movement at the time of entering or exiting a particular position. The value of this particular quantity must always remain within preset limits for a particular currency on a certain platform so as to deem the transactions feasible and worth some value. Unfortunately for BitMEX, slippage values happen to be so large and uncontrollable on some pairs that short-term trades or even large volume entries or exits have been deemed completely unfeasible and worthless.
The biggest factor that one must keep in mind while deciding on a cryptocurrency exchange platform or trading service is the kind of security they are ready to dish out and the extent of efforts they are willing to make to keep your money and your currencies safe and secure.
Recently, there has been a rising trend of cyber thefts or virtual robberies where companies or individuals have suffered huge losses and went through a lot of troubles. A major cryptocurrency exchange service was recently attacked by hackers and robbed of cryptocurrencies worth millions. Since cryptocurrencies by design are made to be untraceable, it actually gets pretty difficult for the authorities to track down the culprits. Owing to the same, it is up to you, the customer to make sure you choose the right exchange platform, and before doing that, take great efforts in finding out if they are capable enough to handle your money.
Fortunately, one of the reasons why BitMEX prides itself so much on their services is because they have a really good security system. It happens to be one of their foremost strengths and is clearly listed on their website as one. A major support to this claim of theirs is that till date no security breach or hacking attempt has ever been able to get into their servers and mess with their vaults. They have always remained safe from all kinds of external attacks and have given their customers absolutely no reason to complain.
One of the reasons why they work so great and why their security is top notch is the fact that they carry out by hand processing at least once every day for all withdrawals that happen on their platform. This simply adds an extra layer of security to their system, making it almost impossible to breach.
Another thing you must know as far as their security measures are concerned is that the platform has been entirely designed, programmed and created using the kdb+ toolset, which is often used by major banking organizations in high-frequency trading applications. Now if banks themselves are relying on the same service which the BitMEX engines happen to use, then perhaps it wouldn’t be too much of a stretch to say that you can be pretty sure that your money and cryptocurrencies are pretty safe with them.
The engines of BitMEX have been designed to be excessively fast and reliable, something which is often seen lacking in a lot of other cryptocurrency exchange services in the market, and even BitMEX’s closest competitors.
In this day and age, we seem to have come really far when it comes to technological interventions and innovations. There seem to be absolutely no limits at what we can achieve if we collectively put our minds to it, as is quite evident by the wonderful gadgets and latest tech all around us in the world right now. However, there seem to be some domains which are possibly progressing slower than the others. An example of one such domain is that of the user interface in such trading platforms. Generally speaking, we don’t really have much fluid and smooth website experiences for trading platforms right now. Barring a few exceptions, a lot of our cryptocurrency exchange services seem to have not got the hang of making their website experience a smooth ride for their customers. This fact is actually pretty evident in the poor level of UI demonstrated in the interface for Poloniex and Bittrex, both of which are actually pretty successful companies who command a good range of the market share, especially when it comes to Altcoins.
As stated earlier, BitMEX doesn’t quite make the cut when it comes to Altcoin volumes. However, it does boast of a pretty strong graphics and engaging user interface that is majorly responsible for bringing in a lot of users to their platform. The level of services offered by BitMEX and Poloniex, for example, works quite differently. While Poloniex excels in Altcoin volumes and does great business when it comes to Litecoins, Dash and others, it does seem to fail when it comes to implementing a decent user experience on the website. BitMEX, on the other hand, isn’t nearly as strong when it comes to Altcoins, but does command a major customer following simply because it offers them a fantastic user interface.
With great command of usability as well as simplicity, BitMEX managed to brew a great concoction of a website and has even mastered mobile implementation. Their mobile portal features almost all of the services that you would find on the desktop version, and for some advanced traders, there is even an option titled ‘advanced UI’ which opens up even more functionalities and utilities for the users to control and make use of.
Worth mentioning here is the fact that BitMEX is one of the very exchange services to actually feature a full-fledged TradingView chart on their portal. This charting service offers a great many numbers of intuitive tools and happens to be a big improvement on what the other portals are currently offering.
Deposits and Withdrawals
As mentioned earlier, BitMEX only allows you to make deposits or withdrawals in Bitcoins. While deposits can be made conveniently at any time of the day, withdrawals, since they are processed by hand, only occur at a recurring time once every day. The aspect of hand processing was introduced by the makers of the platform in order to further strengthen their security protocols since it does provide some extra time to deal with or even cancel any fraudulent withdrawal requests. It also works because the system of hot wallets and usage of automated systems is a little more vulnerable and prone to being attacked by hackers or hacking attempts as compared to the hand-processing system.
BitMEX in the USA?
For the residents of the United States of America, the news isn’t that good. As of today, BitMEX isn’t ready to accept customers or traders from the USA on their platform. While it is possible to bypass this particular ruling through the use of VPN, or virtual private networks, but it is highly critical for the user to consider the pros, cons, and consequences of such an action if they do plan on going ahead with something like this. We recommend US residents to rather opt for other options that exist firmly within the United States legal framework. Also, ensure that you are at least 18 years of age in order to sign up as a trader.
BitMEX is great for Bitcoins. With a 100x margin leverage on Bitcoin spot and futures markets, and a stellar customer experience and user interface, you can’t possibly get better service than this if you are a Bitcoin trader. It does fall a little short when it comes to Altcoins, although for novice traders who are merely testing the waters, it might do you good to start with a service that adopts a customer-centric approach. As a result, we recommend BitMEX wholeheartedly and wish for you to have a great trading experience.
Cryptocurrency Exchange: The Way They Work
The mechanism for such trading platforms is actually very simple and straightforward. They don’t ask for much but do believe in giving out useful services that can benefit their customers. The very first thing they need is for you to log on to their websites. Once you do, you will find yourself guided seamlessly through the entire process. However, that does to some extent depend on the kind of service you have chosen. While some of them do believe that customer satisfaction is paramount and take great pains in making your website experience enjoyable and smooth, others might not be so considerate. Which is why, it becomes quite essential for you to choose just the right kind of service, which is not just top of the line when it comes to services offered, but also takes great care of its customers.
Things You Should Know
Now before you make the final choice on which service you are going to go with, we suggest you go over a few things first on your own. The very first thing you need to consider is that which is the currency that you are actually interested in dealing with. Let us suppose you are looking to trade in Litecoins, or perhaps are interested in buying some of those. In that case, you need to first search the platform and find out if they offer Litecoin based services. That, of course, should not be much hard to gauge, since these services generally tend to list such things right on the home page. Next, you might want to take a look at the transaction fee they are going to charge you. Unknown to some users, a lot of these services actually tend to charge a small transaction fee for every transaction that you carry out with the service. It will most definitely serve you well to have prior knowledge of such hidden charges and make sure that you choose a service that costs you the least amount of dollars. Finally, one last thing that you need to do is perhaps take a good look at some of the reviews that prior customers have left on the website or on other platforms. If the website is truly a good one, chances are that you will find some really positive customer reviews on the Internet confirming the same. If not, then once you look at customer reviews you will be duly informed of that too. Once you have been informed of the public opinion on the service, you will be much better equipped to make an informed decision for yourself.