BitMEX vs FTX

So, you’re in to trading crypto?

This comparison will look into the differences & similarities between two popular cryptocurrency derivatives exchanges; BitMEX & FTX.

Let’s be honest, you want to find the right exchange for you – and everyone’s needs are different.

For this reason, this comparison is unbiased and fact-based, to help you make the right decision.

I know that comparisons can be lengthy and boring, so for those who don’t want to read the full thing can go ahead and sign up to the winner (in our opinion) right away.

BitMEX Overview

BitMEX is one of the world’s leading cryptocurrency exchanges. It was early to the market and quickly picked up a good reputation for having great liquidity and and an easy-to-use interface.

The CEO of BitMEX – Arthur Hayes, is extremely active on Twitter which has built a name for the exchange, since transparency is key within the cryptocurrency industry.

Overall, it’s a good exchange for those looking to trade leveraged cryptocurrency contracts.

It only takes minutes to set up an account & there are no KYC checks necessary, but this raise some questions about the legitimacy of the exchange in the eyes of regulatory bodies.

Trading on BitMEX is fairly simple, but can be highly risky since many people don’t understand how to trade with leverage.

It’s common for people to use BitMEX to effectively gamble on the price of Bitcoin by using 100x leverage, this has meant that some people have made millions on their, but the majority lose everything if they’re not careful.

There’s now a negative (but slightly humorous) stigma attached with the exchange and how people get ‘rekt’ there – yes, spelt incorrectly.

On the other hand, those who aren’t of a gambling nature can profit from the exchange, if they take the time to learn how to trade safely on leverage (the key is using low leverage).

There is another thing to think about, which has annoyed many traders over the years on BitMEX, but it doesn’t seem to deter people – order submission errors.

Let me explain a little bit more. As BitMEX is a popular and frequently used exchange, sometimes their servers can’t handle the traffic and at high levels of volatility, many traders have trouble completing orders.

So long as you understand this and try to trade more macro moves, this shouldn’t affect you – it only really affects the day traders or the panic buyers/sellers.

Check out our full review of the BitMEX exchange.

FTX Overview

The new kid on the block.

FTX started up in 2019 (5 years after BitMEX launched) – so there’s no doubt that this exchange lacks experience within the market and hasn’t yet stood the test of time.

Don’t let this put you off though, it has been built from the ground up by super experienced individuals and is backed by a large digital asset research arm; Alameda Research.

FTX is different to a lot of other cryptocurrency exchanges, since it offers the world’s first altcoin index future contracts.

The exchange is growing popular very quickly, due to it’s large levels of liquidity and the huge range of assets available to trade.

They’ve even got ‘MOON’ or ‘DOOM’ contracts which is a nice spin on the bullish & bearish terms commonly used. It could be said that this attracts a different client base (younger) and could potentially be seen as a less professional exchange.

We think they’re being smart and placing themselves correctly within the market, and targeting the most appropriate audience.

So what about the exchange itself?

It’s pretty quick to register on FTX, and it does require KYC to deposit and trade, which may put some users off. But this is a good thing in our opinion for the sustainability of the exchange.

One thing we don’t like about the registration process is the fact that you don’t have to verify your email address, this means that if you do enter the wrong one by accident, you’ll have to reach out to their support to change it.

Trading is pretty simple too, but you can’t change leverage on the main trading screen like you can on BitMEX (you have to do it on your account settings).

Another highlight of the exchange is the stablecoin settlement, unlike BitMEX, you can settle your positions in a stable cryptocurrency, this protects you from Bitcoin volatility.

The support is pretty swift too, we made a test request and it got resolved on the same day, although it will be interesting to see if they can keep up with this when the exchange becomes more popular.

Don’t worry about safety either, similarly to BitMEX, FTX is a transparent exchange too. The team is super active on social media and really listens to the community when it comes to making improvements on the exchange.

Lots of people are saying new or better UI. What are the things you want most from a UI redesign?

— SBF (@SBF_Alameda) September 19, 2019

To conclude, FTX is a great exchange for those who want to trade a variety of different digital assets with leverage in a new & exciting way.

You can read our full review of FTX here.

The Facts

Enough talk about the exchanges, let’s get into the cold hard facts about BitMEX & FTX.