Binance vs BitMex
Best Crypto Exchange Guide 2020
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The crypto market is a haven for crypto enthusiasts and new investors who love passive new passive income stream. Whether it’s staking or trading, everyone can find a crypto investment plan alongside one or several exchanges. However, trading of altcoins remains the most popular source of crypto income.
I have traded altcoins on Binance and Bitfines. I’ve enjoyed the process of making some profits while gaining experience.
I then discovered Bitmex exchange a few months ago and realized it has margin trading features that were more rewarding but on the same note more risky.
Binance and Bitmex, are among the leading crypto trading sites. They record the highest trading volumes daily within the crypto market compared to other exchanges.
Let’s see what these two exchanges have to offer the crypto world.
Binance or Bitmex ?
Binance and Bitmex are among the most popular cryptocurrency exchange platforms. Almost all serious crypto traders have both Binance and BitMex trading accounts or either of the two.
Both sites enable the traders to buy and sell several crypto coins on a single interface, and therefore they don't have to create several wallets for each of the tokens and altcoins they are exchanging.
The differences between BitMex and Binance can be analyzed in terms of fee structure, customer support, supported countries, supported cryptocurrencies, use case, the support team, security, merits and demerits, and user experience.
Binance offers its clients with the most competitive and lowest trading fee in the crypto market (a trading fee of 0.1%). The fee can be reduced even further if one holds their native BNB token.
When you pay your trading fees using BNB, you will be rewarded with a significant discount.
Binance Company increases the value of the BNBs token by burning them regularly. Burning is done so that the value of the token you hold remains competitive with those that are available in the market. Additionally, this particular token has other uses, such as:
It enables you to participate in the Initial Exchange Offering (IEO)
It can be used for shopping online.
It can be staked in launchpool
New features every month!
Bitmex fees are not as straight forward as compared to Binance. This is so because it takes into consideration the future contracts of the numerous cryptocurrencies available on its platform.
Secondly, the variation in fees is also brought about by the type of contract and the cryptocurrency you are trading in.
Details for BitMEX fees are shown below:
Deposits and withdrawals are free.
When making your withdrawals, the minimum fee charged will be determined by the load of the blockchain and mempool.
Countries in which you can use Binance:
You can use the Binance exchange platform from almost all countries around the world. However, its services are not available to Chinese citizens because cryptocurrencies are banned in China. Also, Binance.com doesn’t operate in the United States because the regulative environment is not that supportive.
Countries in which you can use Bitmex:
Just like Binance, Bitmex provides its services to almost all counties in the world; except in, the US where the government considers Bitmex unregulated. US crypto traders are not allowed to use BitMEX.
One of the most important things to take into consideration before trading or exchanging in these cryptocurrency platforms is the kind of customer support given by the trading site. This will help in bridging the gap between the company and the client.
Binance customer support
Binance provides the best customer support compared to Bitmex or any other crypto trading platform. They have a support centre with more than six international languages with English included.
Registered customers can seek assistance through email because an integrated live chat system is not yet incorporated in their website. They can also be contacted through their social media accounts Facebook, Twitter, and WeChat stores.
But before reaching them, you must go through their FAQ section because a lot of questions are always answered at this point.
Bitmex customer support
Bitmex offers exemplary customer service, as well. They provide their clients with numerous methods to reach out to them. Additionally, they assist their clients 24/7 via the following communication channels:
WeChat (id: BitMEX Support Ticketing System)
You can also check their FAQ sections before contacting them for assistance.
Binance supported coins
Binance supports the trading of numerous coins and tokens. The exact number of cryptocurrency pairs of Binance totals up to 360.
You will find all popular cryptocurrencies, including BCH, ETH, XRP, or the ADA. With such a wide variety of trading pairs, everyone is assured ease of trading their preferred crypto pairs.
Bitmex supported coins
Bitmex only allows BTC deposits and withdrawals. They do so to enable leverage on the trade. You cannot deposit fiat currency; therefore, it's not an entry-level exchange. It provides a BTC wallet where you can copy the address and send some Bitcoins to start trading.
Binance: best for future trading/margin
Binance is primarily a crypto to crypto exchange platform that came into existence in mid-2017. Since its development, it has captured a fair share of the crypto trading market.
Besides, the site has been consistently ranked among the top 3 trading sites in terms of the trading volume.
Additionally, it has a native token known as the BNB. The main advantage of BNB is to waiver the number of fees paid for trading purposes.
Binance is a trading spot of different cryptocurrencies, where one can sell or buy, and it also makes it easy to withdraw or deposit currencies from the platform. Sometime in 2019, Binance introduced margin trading to its system, which made it even more competitive.
Bitmex: best for margin trading
Unlike Binance, where actual spot trading is happening., BitMex is a peer to peer exchange platform that deals with leveraged contracts that are sold, and the payment is in bitcoins.
You may have come across terms like margin trading, leverage trading or derivative market while navigating through the crypto world. Bitmex is a derivative market. What does the derivative market mean?
Well, a derivative is an instrument of which is derived from the value of one or more underlying, which can be commodities, precious metals currency, bonds, stocks, indices, among others. Four typical examples of derivative instruments are Forwards, Futures, options, and swaps. (Quoted from )
Bitmex offers derivatives contracts of some of the most widespread cryptocurrencies which are then paid for in BTC; that’s why you can only deposit or withdraw BTC from BitMEX.
Binance team consists of experts from the crypto world as well as the finance industry who have the knowledge and understanding of running a crypto exchange platform before. The team also looks solid; this can be attributed to the fact that they have been able to expand and grow for the last year.
This incredible team comprises of skillful developers, experienced economist, and knowledgeable high-frequency algorithm traders, this makes Bitmex a consistent product in the market.
Pros and cons
It is a Bitcoin centered exchange
Very low fees
A myriad of coins to exchange with
No lags experienced with website
Has been hacked one time (but compensated their users)
Different domain for the US, European, and the rest of the world
Future and derivative trading
Leverage of to 1:100
Test trading platform
Advanced interface not friendly to beginners
Does not accept fiat deposits/ withdrawals
The features provided on this site are excellent and user friendly. A visitor visiting their web page will have an easy time exploring the site since it only takes a few seconds to familiarize yourself with available content and the usages.
In 2019, about $40 million of bitcoin was stolen from Binance website via a hacking incident along with 2FA and API token codes. The hackers employed all the possible techniques ranging from phishing to the use of viruses to attack the system.
The good news is that Binance fully compensated its clients, and they were also very transparent about the event in front of the public. Additionally, they followed up the event to prevent it from happening again in the future. They employed ways of eliminating all vulnerabilities and assured their traders of high security.
Most websites that are developed today have the two-factor authentication method that enhances the security of the site and safety of its client’s accounts.
To access the security tab on Bitmex website, you need to click on the account name located on the upper left corner of the website. Then go ahead and click on the "Accounts and security" tab, after clicking you will then be directed to a webpage in which you will be able to update your contact info, personal info as well as choose which 2FA you want to activate.
Bitmex has additional security features such as, it offers a strict IP address which enables the users of the platform to have a safe session. Secondly, the PGP key which provides extra security to those visiting the platform at any particular time.
Note: all these security features can be found when you click under the account tab, and they are effortless to use and understand.
Binance user experience
Just as I mentioned above, the site has a friendly user interface, and it is effortless to navigate through. Also, the website doesn't experience any lag issue, which makes it great.
What are the public opinions about the site? After the hacking incident in 2019, several fake news has been in circulation about Binance all over the internet. But the most exciting part is that these were just people's opinions with no evidence whatsoever. It has not affected the operation of the site that much.
Bitmex user experience
What are the public opinions about Bitmex? Well, just like any other website, there are mixed reviews and reactions from the public. But, luckily for them they a lot of positive reviews concerning the services they offer.
On the same note, any digital currency exchange site has, at some point, experienced scam accusations. But for Bitmex, they have been a very trustworthy and reliable trading website.
We can look at the fantastic features of Binance and also explored through their website to better understand how it operates.
Well, is Binance a safe place to carry out business? In my opinion, yes. At the time of writing this blog, Binance is one of the most trusted crypto trading and exchange platforms.
On the other hand, Bitmex gives us a general overview of how a crypto trading site should look like since they have everything within reach. If you are a experienced trader and looking forward to investing in the crypto space, then BitMEX is the trading site you should go for. It offers a wide range of order types and leverage that you will love.