Stop Using BitMEX: Trade With These 4 Alternatives Instead

BitMEX has been a popular cryptocurrency trading exchange for quite some time. Might we add, for good reason too. It is the largest and most widely used margin trading platform in the world. However, if you're reading this article, then you will have experienced the following pains on BitMEX:

  • You are frustrated with the 'System Overload' and 'downtime' that has resulted in liquidation 
  • You are worried about the price manipulation that occurs
  • You are concerned about the recent security breach that resulted in your emailed being leaked

Thankfully, you do not have to put up with these frustrations any longer. There are several Bitmex alternatives you can choose from today including zero-free crypto exchanges.

Want to know which crypto exchanges are better?

bitmex

BitMEX Overview

BitMEX is one of the most popular and widely used leverage exchanges. Users can buy and sell contracts for cryptocurrencies (not the actual coins themselves) combined with margin trading up to 100 times. This means only Bitcoin deposits and withdrawals are permitted. It is a platform for cryptocurrency digital traders looking to increase their BTC holdings by trading the market.

Related article: BitMEX Review – Is It Still Reliable in 2019? (Do Not Sign Up Until You’ve Read This)

BitMEX Frustrations

System Overload Error

The infamous 'System Overload Error' on BitMEX has been ongoing on for quite a few years now. In a nutshell, there is a cap on the maximum number of requests that can enter BitMEX engine queue that means new requests (orders) are rejected until the queue has reduced. This results in the “System Overload” error message that appears in the bottom right of the screen. 

bitmex error

During periods of load spikes caused by sudden volatility in the market, new orders are not fulfilled within the acceptable response time and are rejected due to the overload on the BitMEX server. Users are not able to enter into a position or worse yet, their position is liquidation because they couldn't set a stop-loss order in time before the network overload.

While BitMEX have repeatedly announced improving the performance of their engine is the highest priority, it appears nothing has changed and is still occurring. Based on the number of complaints on Reddit, we can only assume this has caused several traders on BitMEX to lose money or profit potential. We also love the fact the feared BitMEX system overload error has even become a popular meme. 

bitmex submission error

Price Manipulation

BitMEX has been the center of many accusations for manipulating the price of BTC. As the most liquid crypto exchanges on the market, BitMEX does have a lot of influence on the Bitcoin price across other exchanges.

In a down-trend, consistently declining volume leads to a lower fee revenue for the exchange. This can provide an incentive for exchanges to manipulate the market to earn revenue through liquidations as opposed to collecting trading fees. 

We are not pointing the finger here, but there have been several cases such as the flash crash on Bitstamp where the price of Bitcoin lost about $4,000 in value within a few days that result in a high number of liquidations on BitMEX. 

Sources have stated that a whale or group of traders collectively acted to crash the market by putting in a massive sell move of 15,000 ETH on Bitstamp. This is relevant as BitMEX collects price for contracts from Bitstamp, Kraken and Coinbase Pro which have much lower liquidity than BitMEX.

The sudden drop in prices on Bitstamp resulted in BitMEX contracts being liquidated in a matter of seconds. We will finish the point with a question, 'why does BitMEX, the largest derivatives exchange in the world, collect price data from low liquidity providers?'  

Email Data Leak

BitMEX was compromised as recent as November 2019 that sparked panic among bitcoin traders and investors after accidentally exposing thousands of its users' email addresses. The crypto exchange's Twitter account was then compromised shortly after to top it all off.

Staff at the exchange issued a statement explaining that they had attempted to BCC its customers on a newsletter. Unfortunately, they used the CC address. While this doesn’t necessarily explain the Twitter fiasco, customers could see the private addresses of other traders.

bitmex leak

If you still want to continue trading with BitMEX, you might want to have a look at your security preferences and turn on Two Factor Authentication immediately.

However, this does not mean all is well. The BitMEX email leak has exposed its users to targeted phishing attacks that could use personal information and/or gain unauthorized access to customer's digital assets. This includes other personal accounts that are linked to the leaked email address.

Top Crypto Exchange Like BitMEX

We have done extensive research to find BitMEX alternatives that are comparable in terms of available assets, maximum leverage, trading fees, liquidity, and overall trading experience.

The best BitMEX alternatives are:

1. Bybit

Bybit is aiming to revolutionize today’s cryptocurrency market by combining the best of cryptocurrencies and traditional finance to bring about the industry’s safest, most reliable, fairest, and most user-friendly exchange to date. It is competing in the same space as BitMEX and growing in popularity and daily volume fast.

Why Trade With Bybit?

You should trade with Bybit if:

  • You are tired of 'system overload' and downtime on BitMEX
  • You want fair and transparent trading fees
  • You are familiar with using TradingView charts and advanced tools
  • You want to adjust take-profit and stop-loss prices on the chart
  • You are frustrated with price manipulation on other exchanges 
  • You want to paper trade with real crypto markets and prices
  • You want to participate in global trading competitions with huge prizes

ByBit's claim to fame is 'No server downtime' stating their system functionality is available up to 99.99%. 

bybit interface

Bybit promises that the data of accounts and transactions will not be compromised due to system errors mainly due to the State-of-the-Art Matching Engine at 100,000 transactions per second which can complete a trade within 10 microseconds. 

Read: ByBit Review (the BitMEX KILLER) – Should You Make The Switch?

Bybit has also come out and guaranteed to bear the full cost of financial loss due to system error or as a result of downtime. This is obviously about BitMEX to attract its customers – we think its working too!

2. Prime XBT

Prime XBT is a popular Bitcoin-based cryptocurrency trading exchange that allows speculating on traditional financial products. Traders can trade a broad spectrum of markets including Forex (FX), cryptocurrency, commodities and indices using Bitcoin as collateral. 

This is something not many cryptocurrency exchanges can offer and has separated itself from the likes of BitMEX. 

primeXBT

Why Trade With Prime XBT?

You should trade with Prime XBT if:

  • You want to earn Bitcoin by trading Forex (FX), commodities and indices
  • You want fair and competitive trading fees
  • You like having the ability for quad screen display
  • You like fast, responsive and smooth charting interfaces
  • You want to trade with leverage up to 100x 
  • You are looking for a global crypto exchange
  • You need a leverage crypto platform that is safe
prime xbt chart

Founded in 2018, Prime XBT has experienced exponential growth and currently serve clients in more than 150 countries and an average daily volume of $375,000,000. The exchange provides  access to top-tier liquidity and wide range of trading tools while maintaining security, liquidity, enabling a safe and efficient trading environment for everyone.

Also read: Prime XBT Review (2019): Is It Safe? Bitcoin, Trading & Fees

Prime XBT supports multiple price charts display up to quad screen. Not all cryptocurrency exchanges can provide this functionality. Traders can configure the charting interface to suit their style. For example, you can use the quad chart display to view multiple time frames.

3. FTX  

FTX is a relatively new platform to enter into the market that has been built by traders, for traders. The platform differentiates itself from its competitors by offering a wide variety of indices and leveraged tokens that can be traded on the futures or options market. 

While the daily average trading volume is smaller than competitors, the gap will not last for long. Through innovation, the platform offers new and exciting ways to invest and speculate on cryptocurrency that make it a better alternative to BitMEX.

ftx interface

Why Trade With FTX?

You should trade with FTX if:

  • You are tired of 'system overload' and downtime on BitMEX
  • You want to trade the world's first cryptocurrency index futures and leverage tokens 
  • You want the option for trades to be settled using Stablecoins
  • You want competitive trading fees
  • You want to trade with high leverage up to 101x
  • You are familiar with using TradingView charts and advanced tools
  • You are a professional trader and want to rank on the FTX Leaderboard
FTX features

A unique feature on FTX that BiMEX does not offer is the innovative assets that are available to FTX users. Leveraged Tokens are one example which are ERC20 tokens that have leveraged exposure already applied to cryptocurrency assets.

Must read: FTX Exchange Review – Should You Make the Switch?

There are even EFTs that have leveraged exposure to numerous existing and popular cryptocurrency assets. Also, trading FTX Leverage Tokens requires no margin.

4. Delta Exchange

Delta Exchange is an altcoins-focused emerging cryptocurrency derivatives exchange that enables investors across the globe to trade Futures and Perpetual swaps on Bitcoin and other leading altcoins with up to 100x leverage. 

Many of the altcoin perpetual swaps listed on Delta are exclusive to the exchange. Delta Exchange is the go-to place for trading altcoin derivatives. So, if you want to long/short altcoins such as:

  • ATOM
  • MATIC
  • ENJ
  • EOS
  • XTZ
  • TOMO
  • LINK
  • RVN
  • BAT
delta exchange

Why Trade With Delta Exchange?

  • Delta Exchange offers some exciting features for margin trading along with higher liquidity and competitive trading fees.
  • You want to trade altcoins like Ethereum, EOS, ENJ, MATIC, XTZ, LINK, ATOM, Raven and many more with leverage
  • Stablecoin Settled Contracts: All the futures and perpetual contracts on Delta Exchange are margined and settled in one of the two digital assets: either Bitcoin or USDC(Stablecoin). Settlement in stablecoin is a very useful feature for traders, especially in a bear market. Delta Exchange was the first exchange globally to offer stablecoin-settled futures.
  • You want to trade crypto futures and perpetual contracts with leverage up to 100x
  • You are familiar with using TradingView charts and advanced tools
  • You like an exchange with advanced order types with a well laid out and responsive trading interface

The Delta Exchange team brings a wealth of knowledge and experience from top global financial companies such as Barclays, Citi, UBS and Macquarie. You can read more about the team by clicking here

delta Exchange

You cannot purchase Bitcoin directly on Delta Exchange. Trade profit and loss are settled in Bitcoin so you will need to make a BTC deposit before trading.

The security and safety of client funds is one of the most important considerations when looking for alternate crypto trading platforms. Delta Exchange prides itself on its enterprise-grade security with client funds stored offline in multi-signature wallets.

Conclusion: Alternative Crypto Exchanges To BitMEX

There are many popular leveraged trading exchanges that offer unique and different products each day. You no longer have to stick to the same exchange and have a plethora of options to join an alternative crypto trading exchange such as the reputable exchanges listed above.

There is no harm signing up to a different exchange and trialing it out and do encourage you to give the above exchanges a go.

In fact, you will be pleasantly surprised with the trading experience and will not return to BitMEX once you make the swap.

If you have any questions or comments or would like to add another suggestion to this list, share your thoughts in the comments below.

And if you find this post useful, do share it with your network!

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Kevin
Kevin is the founder of hedgewithcrypto and is passionate about blockchain technology. He has been involved with Bitcoin since 2016 after discovering it's potential as an alternative to fiat currency. He is also a trader with over 8 years of experience and is now trading crypto using various platforms. Now, he is focussed on helping others learn about cryptocurrencies via hedgewithcrypto.

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