The Pros & Cons of using Bitmex

As bitcoin begins to regain ground, the interest in the cryptocurrency is resurfacing as a potential commodity for trading. The crypto bull run is predicted to start once again towards the close of 2018 and this is why platforms like Bitmex are gaining popularity among experienced traders.

But why should anyone choose Bitmex when there are hundreds of such exchanges all over the internet?

 We can think of several reasons why Bitmex is the best place to trade in bitcoin and other cryptocurrencies.

  1. Security

Very few high-value exchanges can boast of the security that Bitmex offers. They have never been hacked and have not lost a single bitcoin due to fraud or theft. Apart from a strict multi-signature cold vault policy, Bitmex does not use a hot wallet at all. Even if they get hacked, all the bitcoin are safe in a separate, air-gapped system that is completely disconnected from everything else. None of the passwords are stored in the cloud. Each withdrawal is manually verified by two Bitmex employees before it is processed. Every fund withdrawal from cold storage needs at least two of the three partners to sign in.

  1. Leverage

 Very few exchanges can boast of a 100x margin and Bitmex is one of them. If you have one XBT, you can leverage it to 100x. But be mindful that 100x means a risk of a very high reward or very high loss.

  1. Minimal verification

 Cryptocurrency world thrives on anonymity. Bitmex uses only bitcoin for trades to protect that anonymity. You only need to provide your name and email id to start an account. There is no need for a lengthy KYC verification.

There are some disadvantages to Bitmex that you should be aware of before registering.

  1. Not beginner friendly

Bitmex is for serious and experienced traders only. You need to know how to read the charts and market sentiments before you can use Bitmex effectively. As a beginner, you are bound to lose money if you don’t know how to handle markets.

  1. Not available for US residents

Sometime in 2017, Bitmex banned US-based residents from its platform. If you try to open a new account from a US-based IP, you will be disappointed. The United States wants every trading entity to register with CFTC. To avoid that regulatory hurdle, Bitmex refuses service to all American residents.

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