BitMEX is a Peer-to-Peer Cryptocurrency Trading Platform aimed at professionals
who are looking to trade cryptocurrency derivatives.
The company was built in 2014
by an elite group of people with over 40 years of combined experience in finance.
And ever since then it has been constantly evolving, to the point where it is currently being considered as the world's largest Bitcoin trading exchange by volume.
BitMEX offers up to 100x
leverage on some of its products, which means that you can buy as much as 100 Bitcoin of contracts with only 1 Bitcoin to back it.
Be very careful though. With high leverage comes accelerated profit, but also the potential for accelerated loss.
Since Bitcoin is the only currency accepted on BitMEX, your profit and loss is calculated in Bitcoin, even if you're buying and selling altcoin contracts.
By not offering support for fiat currencies, like the dollar or the euro for example, BitMEX can afford not to charge any deposit / withdrawal fees.
There are two types of BitMEX products. Perpetual Contracts and Futures Contracts.
A Perpetual Contract is a product similar to a traditional Futures Contract in how it trades, but does not have an expiry, so you can hold a position for as long as you like.
A Futures Contract is an agreement to buy or sell a commodity, currency or other instrument at a predetermined price / future date.
BitMEX runs a first-of-its-kind multisignature deposit and withdrawal scheme.
All its addresses are multisignature, and can only be accessed by a majority of BitMEX partners.
Two out of three partners are required to sign any transaction before any funds may be spent.
Even in the event of a full system compromise, including web servers, trading engine, and database, there would not be enough keys available for an attacker to steal funds.
Additionally, each and every withdrawal on BitMEX is checked by hand by at least two BitMEX employees before sending. No private keys are kept on any cloud server.
All deposit addresses sent by the BitMEX system are verified by an external service to ensure they contain the keys controlled by the founders. If the public keys do not match, the system is shut down immediately and trading is halted.
The BitMEX trading engine is written in kdb+
, a database and toolset used frequently by major banks in high-frequency trading applications.
This engine allows BitMEX to reach unprecedented speed and reliability.
Rather than use its speed just to execute more transactions per second, BitMEX does a full risk check after each and every order placement, trade, settlement, deposit, and withdrawal.
At all times, all accounts in the system must sum to zero.
If they do not, trading is immediately halted for all users.