BitMEX Exchange Review with Pros and Cons – Is it Safe?

BitMEX is the biggest margin trading exchange, where you have the ability to short or long popular cryptocurrencies.

Please note that you should only use BitMEX if you have solid trading experience, and even then, only trade with what you can afford to lose.

Table of Contents

  1. When did they start?
  2. Do we know the founders?
  3. How secure is it, is there 2FA, etc.?
  4. Is it insured, if not, is there a backup fund?
  5. What does the exchange focus on?
  6. Does it hold IEOs?
  7. What are the fees?

START AND FOUNDER

BitMEX was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed.

Arthur Hayes is the current CEO, with Samuel Reed being the CTO, and Ben Delo is the CSO.

BitMEX is located in Hong Kong.

SECURITY

You have the ability to secure yourself using 2FA.

They run a first-of-its-kind multisig deposit/withdrawal scheme. All of the BitMEX addresses use that, and they are all kept offline.

Every single withdraw is audited by at least 2 BitMEX employees before sending it out, so in case they get hacked, the hackers should not be able to steal the funds unless the hack is done by multiple rogue employees.

Withdrawals are only processed once a day, which can be slow for some; however, this is used to make the exchange more secure.

BACKUP FUNDS

BitMEX has an insurance fund that grows every day. Currently, it is over 25,000 BTC. It is used to avoid Auto-Deleveraging in traders positions.

In case of a hack, this can also be used to compensate users of any lost balance.

THE EXCHANGES FOCUS

BitMEX focuses on providing a secure margin trading experience, with the ability to short or long popular cryptocurrencies, mainly Bitcoin.

They currently do not hold Initial Exchange Offerings, and that is not likely to change in the future, as they focus on trading, not launching new projects.

FEES

Their maker fee is 0.0250%, while their taker fee is 0.0750%.

When you place a new order in the order book, and it is not filled instantly, it is called a Maker trade; meanwhile, if you fill someone else’s order, it is called a Taker trade. By charging less for maker trades, they help the exchange get more liquidity.

Please note that you will be charged extra if you decide to use leverage.

WARNING

If you are new to trading with leverage, please start with 1x, there is no reason to rush anything while trading. If you are borrowing other people’s money to trade, and the trade doesn’t go to your way, you WILL get liquidated eventually.

Disclosure: The links in this review are referral links, which means that at no additional cost to you, you are helping this website to keep running, and that allows us to work on quality, fact-based reporting. We are trying our hardest not to include any shady exchanges with fake volumes, or questionable practices. You will only find exchanges that we would also personally use. We did not contact any of them before writing these reviews, and we rated them to our best knowledge.

BitMEX

7.8

Ease of Use

6.6/10

Security

8.7/10

Fees

8.1/10

Pros

  • One of the most secure exchanges
  • Gives you the option to margin trade
  • Ability to go either long or short

Cons

  • High learning curve