Bitmex Review

Bitmex is the world’s first cryptocurrency derivative trading company. The founder is Hayes, who used to work in the bank of Hong Kong. He used to do bitcoin arbitrage became a millionnaire within six months. After that, he created the bitcoin derivative trading exchange called BitMEX. Hayes is the legend of cryptocurrency derivative trading. He designed two systems to improve the experience of a derivative trading exchange, which has become the core systems or other derivative trading exchanges. The two systems are the Insurance Pool and the Double Price Mechanism.

In traditional contract trading, a user needs to compensate for the loss of the over the margin. The insurance pool solved this issue in the crypto derivative tradings. It will automatically close the open deals slightly earlier than the margin call price. The differences are automatically going to the Insurance Pool as a fund to pay some rare late closed trades, which are Over Margin. The user will not necessarily pay back the loss over the margin.

Bitmex used to be the No.1 derivative trading exchange but now became the No.11. Bybit replaced Bitmex and became the No.1 derivative trading platform.

The overall rating of Bitmex customer reviews is 2.6/5 stars. The main reason are Bitmex customer support is very lousy. Many customers complained the company doesn’t care about the customers. It’s just like a machine, traders play, have fun, that’s all. Because of the lousy customer service, Bybit used it against Bitmex as a slogan that says “We Listen, We Care, We Do”. It works very well, and results show many Bitmex traders went to Bybit, making Bybit override Bitmex as the market leader within 8 months. Even more ironic is that the slogan improved and became the model of Bybit, “Listen Care Improve”.

Bitmex doesn’t provide any spot trading nor purchase bitcoin by fiat currencies. Customers must have bitcoins so they can trade on Bitmex. It’s using bitcoin as a settlement, and the calculation is very complex. The derivative trading platform is a crypto exchange, and most cryptos are using blockchain technology that cannot be tracked sources, which caused Bitmexis under the investigation of the FBI.

Although Bitmex is registered in Hong Kong, most Bitmex users are from the US. The founder is a US citizen as well. The US does not allow Bitmex to target US customers unless it applied for the trading license of the US. Bitmex had to close all US customers’ accounts, with no customer support Bitmex is in a downtrend since then.

Bitmex affiliate payout is not attractive. The overall maximum payout is 20%, compared with bybit 40% overall payout.  

Traders like to compare Bitmex with Bybit because Bybit is like an enhancement edition of Bitmex. Except for the color and logos, the user interface is the same. Both have insurance pools and use a double price mechanism. Bybit used to learn from Bitmex. Bitmex cannot provide service in the US, Bybit neither. Bitmex trading is very complex. Bitmex trading volume used to be the No.1 derivative trading but out of 30 of the overall trading volume. Bybit is also the same. Now, Binance is the No.1 derivative trading platform. Bybit has to provide spot trading to prevent its own customers leading to Binance. Bitmex has no strength to do further development to catch up with the crypto trend.

Bybit has replaced Bitmex as the leader of crypto derivative trading exchanges.

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There’s no doubt that Bitmex will be out of the market. The direction of Bitmex will be closed or sold. Unless Bitmex changed the company culture, otherwise no way to stop the company is on a downtrend. Someone used to contact the person in charge of Bitmex for company development suggestions and strategy. He contacted the old CEO, new CEO, and head of marketing, but no one replied.

Bitmex used to be a legend of crypto exchange. It’s less of further development, ignores customers demands and government policy change forcing this company to be outdated. The trading volume of BitMEX used to be ranked at No.1 of derivative trading, then overridden by Bybit, now dropped to No.11.  Unless a hero airdrops to Bitmex to rescue the company,  otherwise it will be out of 100 soon. The probability that a hero will appear on Bitmex is rare because in Bitmex no one cares about it. Legend will become a story and the stepping stone of other cryptos derivative trading exchanges’ development.