June 18, 2024

MANUAL: BITMEX EXCHANGE

Bitcoin Mercantile Exchange or BitMEX is a trading platform for experienced crypto traders that allows you tobuy and sell cryptocurrency contracts (and not the coins themselves) in combination with margin trading (leverage trading).

BITMEX HISTORY AND REPUTATION

The BitMEX exchange was launched in 2014 by three experts in finance, trading and web development - Arthur Hayes, Ben Delo and Samuel Reed. The exchange is operated by HDR(Hayes, Delo, Reed)Global Trading, which operates under the jurisdiction of the Seychelles (that is, it is an offshore company).

Chief Executive Officer and in factThe face of the exchange is Arthur Hayes. He received a degree in economics from the Wharton School of Business at the University of Pennsylvania, after which he went to Hong Kong to interning at Deutsche Bank, where he later became a derivatives trader. In early 2013, Hayes left Deutsche Bank for CitiBank, but he only worked there for a few months. It was then that Hayes came across an article on the internet about Bitcoin that would ultimately change his life forever.

Ben Delo graduated from Oxford University withMaster's degree in mathematics and computer science. He has over ten years of experience developing high frequency trading systems for companies such as JPMorgan and IBM. In 2019, 34-year-old Delo became Britain's youngest self-made billionaire.

Samuel Reed is the technical director of BitMEX. He graduated from the University of Washington and Lee with a degree in computer science. Reed served as CTO of two technology companies: Tixelated and Global Brand Solutions from Hong Kong.

Over the years, BitMEX has proven itself to be one of thethe most secure cryptocurrency platforms - so far the exchange has never been hacked by hackers. Also, the exchange several times encountered mass withdrawals of user funds, but processed them quite successfully, so it cannot be said that BitMEX is an adherent of “fractional reserves”. The exchange owns its own insurance fund, which currently has over 31,000 Bitcoin under management, which is used to cover liquidated positions on the platform. The exchange does not require payments from traders who have a negative account balance (when they are liquidated in a leveraged trade). Instead, BitMEX uses its insurance fund to ensure that the winning party to a trade receives the expected profit, even if the losing party's losses do not cover the winning party's profits.

On the other hand, thanks to the ability to conductmargin trading with 100x leverage on a very volatile cryptocurrency market, many traders equate trading on the stock exchange to gambling. The exchange is known for liquidating positions worth hundreds of millions of dollars, so trading on it is only recommended for experienced traders. And even those traders who have trading experience, for example, on the Bitcoin spot market, are recommended to first practice on the test version of the platform - https://testnet.bitmex.com. Since Testnet BitMEX operates independently from the main BitMEX platform, a demo account must be created separately.

Overall, trading on BitMEX is significantlydiffers from trading on the spot market, but, fortunately, the exchange has detailed documentation in Russian, which is recommended for all traders to read, regardless of trading experience, since the instruments presented on the exchange have many nuances.

An important advantage of BitMEX is anonymity - you only need email to register on the exchange.

To get started, go to the official BitMEX website - https://www.bitmex.com. We recommend immediately changing the interface language to Russian:

 

After that, click on the “Register” button:

 

On this page you need to indicate your email andcreate a password (use a complex password, try not to reuse old passwords). Please note that according to its terms of service, BitMEX does not provide its services to users from a number of jurisdictions, including the United States, Hong Kong and Crimea.

 

After that, you will need to confirm your mail in a letter from BitMEX.

After entering the exchange you will be met by the interface,which may frighten newcomers, but again, BitMEX is an exchange for experienced taders, and before proceeding with real trading, it is better to practice on a demo account. Immediately after entering the exchange, we recommend switching to the “main parameters” (for this you need to click on the username in the upper right corner), optionally change the color scheme, and the control panel view to “advanced”. After that, click on the “account and security” button. In the “security” section, we recommend that you enable two-factor authentication immediately (using the Google Authenticator or Authy application).

Another feature of BitMEX is completelyadaptive interface that you can configure “for yourself” - enable / disable windows, move and resize them. The side panel is separately configured - by clicking on the settings button you can move it to the left side or remove it altogether.

 

 

DEPOSIT AND WITHDRAWAL OF FUNDS

Although BitMEX provides contracts for differentcryptocurrencies, the exchange itself only works with Bitcoin - deposits and withdrawals are carried out only in this cryptocurrency and this situation is unlikely to change in the near future.

To replenish the account you need to click on the balance and go to the “Deposit” section:

 

After that, a window will open with your depositthe bitcoin address to which the coins will be transferred. The deposit will be credited along with one confirmation in the network, after which you can start trading on the exchange.

If depositing funds to the exchange is availablearound the clock, the withdrawal occurs only once during the day, at 13:00 UTC (16:00 Moscow time). BitMEX does not charge a commission for depositing / withdrawing funds (only a Bitcoin network commission is charged, which is set depending on the blockchain load).

BITMEX ADVANTAGES AND DISADVANTAGES

The main advantages of the BitMEX exchange are:

  • High trading volumes;
  • Support for the Russian language and the availability of detailed documentation on trading on the exchange;
  • Simple registration procedure and anonymity;
  • Adaptive interface that can be configured "for you";
  • The possibility of margin trading with high leverage.
  • The disadvantages include:

  • Periodic malfunctions of the platform, especially during periods of high volatility in the market;
  • Deposit and withdrawal of funds only in bitcoin;
  • The exchange is far from “strict regulatory standards” and is managed by a company under the jurisdiction of Seychelles, so users must consider the risks involved.
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