BitMex is a short form of Bitcoin Mercantile Exchange. It provides leverage trading of cryptocurrencies. It does not provide crypto coin exchange rather trading of crypto coins vs another crypto coin. Its offerings are complicated and not designed to serve a beginner trader. The origin of this broker is from Seychelles and this fact will not inspire many traders. Furthermore, the broker is unregulated and has many problems associated with it. In this BitMex review, we will shed light on them one by one. We advise you not to miss any word of this review to protect your cryptocurrency from any sort of scam.
The firm that operates and has ownership of the trademark BitMex is HDR Global Trading Limited situated in the Indian Oceanic island of Seychelles. The cryptocurrency trading and brokerage services do not have or have very little regulations. It offers perpetual swaps that can be compared to CFDs. But all the trade is performed under the bitcoins. It applies harsh fees on perpetual swaps like -0.025% on market makers and 0.075% on market takers. Also, a settlement fee of 0.25% for the settlement of each trade. The trading platform offered is web-based and the charts available by the third party called Trading View. Sadly, only transactions via bitcoins are facilitated by this broker. While we were performing research for this particular review of BitMex we critically analysed it. The trading, trading terms and conditions, reading jargons of this broker are quite complicated. It will confuse any ordinary trader. There are terms like perpetual swaps, futures, upside/downside contracts, binary predictions and more. They seem easy terms but quite difficult to understand. Also, considering the volatile nature of the bitcoin’s traders must be aware of every bit of it or else their investments are at the risk.
Is BitMex scam or legit?
Cryptocurrency trading market is not regulated by any financial body as cryptocurrency itself is a decentralised currency. However, many scam brokers are present in the market that are operational from the overseas territory. Furthermore, Seychelles is the territory where forex trading is not regulated and many scam forex brokers are from this area. On this ground, we can say that this broker may be a potential scam cryptocurrency broker. Trading conditions are unclear and salty commission is charged. Trading with such broker is not easy and we can only say that keep a safe distance from overseas-based cryptocurrency brokers.