BitMEX

Based in: Seychelles
Founded: 2014
URL: https://www.bitmex.com
Rating: 7/10

BitMEX is generally considered trustworthy with some caveats.

Key Facts

BitMEX (Bitcoin Mercantile Exchange) was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. Primarily a derivatives trading platform, BitMEX allows users to trade various cryptocurrency contracts, including perpetual swaps and futures contracts. Its main attraction lies in its advanced trading features, such as high leverage options, which allow traders to control larger positions than their account balance would otherwise allow. This makes it a popular platform for experienced traders (and degens) looking to speculate on cryptocurrency price movements without necessarily owning the underlying assets.

One of the key features of BitMEX is its leverage system, where users can trade with leverage as high as 100x on certain contracts. This means that a trader can open positions much larger than their initial investment, amplifying both potential profits and risks. BitMEX is particularly known for its focus on Bitcoin trading, offering contracts that track the price of Bitcoin and other digital assets. However, its offerings have expanded to include contracts for various altcoins like Ethereum and Litecoin as well.

BitMEX operates under a system known as "perpetual swaps," which are similar to futures contracts but don't have an expiry date. This allows traders to hold their positions indefinitely, provided they maintain the necessary margin. In addition to these derivatives, BitMEX offers a robust matching engine and liquidity tools, making it an appealing platform for professional traders seeking to execute large orders with minimal slippage.

Despite its popularity, BitMEX has faced some controversy and legal challenges. In 2020, the U.S. Commodity Futures Trading Commission (CFTC) charged the company with operating an unregistered trading platform and violating anti-money laundering regulations. In response to these legal issues, the company made efforts to improve its compliance practices and increase transparency, though it has faced criticism for not fully complying with U.S. regulations in the past.