BitMEX, which stands for Bitcoin Mercantile Exchange, is a cryptocurrency exchange and derivative trading platform. The platform specialises in sophisticated financial operations like margin trading which entails trading with leverage.
At BitMEX, crypto derivative instruments such as commodities, precious metals, currency, bonds, stocks, stocks indices, etc are bought and sold on margin trading.By way of explanation, margin trading is the practice of borrowing additional money or cryptocurrency by leveraging the number of cryptocurrencies that you already have to purchase more cryptocurrencies.
I believe this practical example will suffice: supposing you set out to invest $2000 in BTC, but only $1000 is at your disposal. To get the extra $1000, you can borrow that via the margin of 2:1 ( this basically implies that for every dollar you own ,you will get extra one dollar to invest. This is what is termed leverage or extra margin).
It will interest to know that BitMEX is the only exchange in the market that offers 100x leverage.This implies that for every BTC you have, you can leverage up to 100x and trade as though you have 100 BTC at your disposal.Hence, Leverage gives the opportunity to place orders that are larger than the users’ existing balance. This could result into a higher profit when compared with placing an order with only the wallet balance
Types Of Contracts On BitMEX
Traditional futures contract is a derivative product involving a consensus to purchase or give out a currency, commodity or other instruments at a predetermined price at a an indicated time in the future. This is open for BTC and other supported altcoins
unlike traditional futures contract, perpetual contracts don’t have expiration and settlement. Perpetual contracts have a lot to do with a margin-based spot market.However, this is exclusively open for BTC.
BitMEX Upside Profit Contracts:
buyers of the contract to participate in the potential upside of the underlying instrument. This is available only for BTC.
BitMEX Downside Profit Contracts:
its importance lies in the fact it permits buyers of the contract to get involved in the potential downside of the underlying instrument. This is equally available only for BTC
Deposit and Withdrawal
Bitmex only accepts deposits through Bitcoin, which which can then be utilised to buy a variety of other cryptocurrencies. Of course, all profit and loss numbers are rendered also in BTC terms. This explains why it only makes provision for BTC wallets for deposit and withdraw.
Note that BitMEX does not charge payment or fees on deposits or withdrawals. But when withdrawing Bitcoin, the minimum Network fee is dependent on blockchain load. Thus, the only costs incurable are those from the quarters of the banks or the cryptocurrency networks.
It is noteworthy BitMEX only accepts deposits in Bitcoin.Hence, Bitcoin effectively functions as collateral on trading contracts. The minimum deposit is 0.001 BTC. Also, there is no limit to which you can withdraw but withdrawals are only in Bitcoin. In order to withdraw, users only need to insert the amount they want to withdraw and the wallet address to facilitate the transfer.
Deposits can be undertaken on the basis 24/7.Withdrawals can also be processed by hand at a recurring time once per day..
BitMEX fee is not a fixed one.It greatly varies depending on the cryptocurrency you are trading in and the type of contract it is. The fact is that BitMEX does not charge fees on deposits or withdrawals. When trying to withdraw from Bitcoin, the minimum Bitcoin network fee is set dynamically with respects to the blockchain load.
Regarding traditional futures trading, BitMEX has a simple fee schedule. In line with the leverage offered, BitMEX provides up to 100% leverage, with the amount off leverage varying from product to product..
How to register on Bitmex
In the bid to own an account on BitMEX, users are under compulsion to register with the website. The process is not tedious and tasking.Registration just requires an email address.In most cases, an anonymous email address is preferable for registration. However, the email address must be a true address; this is because users will receive an email to confirm registration in order to verify the account. The moment the users are registered, there are no limits to trading. Traders must be at least 18 years of age to sign up.
It should however be noted that BitMEX does not allow any US-based traders and will definitely employ IP checks to ascertain that users are not based in the US. Though some US users have circumvented this rule with the use of a VPN, it is not advisable that US individuals opt for BitMEX service.This is due to the fact that alternative exchanges are available to meet the needs of US customers that operates within the US legal framework.