Both BitMEX and Bitfinex are reputable, stable trading platforms and exchanges. How do they measure up? Read on to find out.
BitMEX is operated by HDR Global Trading Limited and registered on the Seychelles. Admittedly, this does not make it particularly trustworthy. Yet, seeing as cryptocurrencies aren’t really regulated anywhere, this isn’t that much of a downside. Most platforms earn their credibility with time, and this one has been around for almost 5 years.
All balances, deposits, and withdrawals at BitMEX are in Bitcoin. There is no minimum deposit requirement or withdrawal limit.
This platform offers a perpetual swap function between XBT and USD, which is similar to a futures contract. It also features upside and downside contracts. Investments in these assets involve a fixed strike price and initial premium payment. Taking short positions isn’t permitted. The difference between the strike prices is around $2000, but it can vary.
This broker offers a maximum leverage of 1:100, and a fee is charged on it every 8 hours. Users can change their leverage per position. They can also set maximum losses, after which their positions are liquidated.
This platform charges 0.075% of the total volume of the transaction for market takers and -0.025% for market makers at present. “Takers” and “markers” refer to different types of traders in terms of liquidity. Those trading at the market are charged a fee, while those who trade passively get small rebates. BitMEX also charges a settlement fee of 0.05% on futures.
Bitfinex is operated by a company based on the British Virgin Islands. Unlike BitMEX, it has fallen victim to hacking, and quite publicly at that. Bitfinex clients lost a total of USD 72 million in Bitcoin in 2016 – the second-biggest hack in cryptocurrency exchange history. The exchange had to pay a fine to the US Commodity Futures Trading Commission. They also issued tokens to compensate the victims as a promise to repay them once able to do so. And they did – eventually – in full. This has contributed to the exchange’s credibility to a great extent.
Like BitMEX, Bitfinex does not accept clients from the US. These were banned from registering and trading on the site effective November 9 2017.
Investors can trade most major coins, including Bitcoin, Ethereum, EOS, Litecoin, Iota, OmiseGO, Ethereum Classic, Dash, Zcash, Monero, Ripple, and Santiment. The minimum initial deposit is not specified.
Bitfinex allows short-selling and margin trading of cryptocurrencies. The maximum leverage is way below that of BitMEX – just 1:3,3.
Bitfinex charges 0.10% for the “makers” and 0.20% for the “takers”.