September 20, 2020

MANUAL: BITMEX EXCHANGE

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

BITMEX HISTORY AND REPUTATION

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

CEO and actuallythe face of the exchange is Arthur Hayes. He earned a degree in economics from the University of Pennsylvania's Wharton Business School, then went to Hong Kong to practice at Deutsche Bank, where he later became a derivative trader. In early 2013, Hayes quit Deutsche Bank and switched to CitiBank, but he only worked there for a few months. It was then on the Internet that Hayes came across an article about Bitcoin, which ultimately changed his life forever.

Ben Case graduated from Oxford University withMaster's degree in mathematics and computer science. He has more than a decade of experience developing high-frequency trading systems for companies such as JPMorgan and IBM. In 2019, the 34-year-old Case became the youngest British 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 to be one ofthe safest cryptocurrency platforms - until now, the exchange has never been hacked by hackers. The exchange also encountered mass withdrawals of user funds several times, but processed them quite successfully, so it cannot be said that BitMEX is an adherent of “partial reservation”. The exchange owns its own insurance fund, which is now managed by more than 31,000 bitcoins - it 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 leverage transaction). Instead, BitMEX uses its insurance fund to ensure that the winning party will receive the expected profit, even if the losing party’s losses do not cover the winning party’s profit.

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

In general, trading on BitMEX is substantiallyIt differs from trading on the spot market, but, fortunately, the exchange has detailed documentation in Russian, which is recommended for all traders to familiarize themselves with 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 mail andcome up with a password (use a complex password, try not to reuse old passwords). Please note that according to the 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 variouscryptocurrencies, the exchange itself works only with bitcoin - account replenishment and withdrawal is 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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