by There are hundreds of ways to make money in crypto. And one of the most popular ways to earn is through trading altcoins, which is buying low and selling high for higher profits.
I have traded altcoins on several exchanges like Binance, Bitfinex and have realized profits on some altcoins.
Then, I found out about the BitMEX exchange, and its margin trading features which is even more rewarding, but highly risky too.
Binance and BitMEX are two unparalleled champions in the crypto exchange market, but they are actually for different purposes.
And many people miss this point and start trading on them which often results in the loss of their funds.
We must understand that both exchanges are for different purposes.
So which one to use? When, and why?
Page Contents
Binance vs. BitMex: Which Is Better?
It is crucial to compare Binance and BitMEX because these are two of the most popular cryptocurrency exchanges and a lot of us exchange many altcoins here, so it becomes imperative to look at them and understand all possibilities.
Another good reason for using two exchanges is that one can trade in numerous currencies through a single interface and hence need not make several wallets for each of the coins/tokens that you are trading.
But that doesn’t mean you keep your funds on Binance or BitMEX or any other exchange because they are centralized and not safe for storage purposes.
For storage of coins, we have been strong advocates of Ledger Nano X and Trezor and suggest these two to our readers.
Usecase
Binance – Best For Stop/Margin/Future Trading
Binance is a crypto-to-crypto exchange that came to existence in mid-2017, and ever since has captured a significant share of the cryptocurrency trading market share.
It consistently remains in the top #3 exchanges in terms of trading volume and currently trades more than 380 cryptocurrencies/pairs on it.
Plus, it has its native token called BNB for benefitting its users in the form of reduced fees if they opt to pay their trading fees in BNB. (More on this later)
And it is spot trading of cryptocurrencies where one can actually buy/sell on Binance and also one can deposit/withdraw these currencies easily. In 2019, Binance also introduced margin trading which makes it an idle place for margin traders as well.
BitMEX – Best For Margin Trading
BitMEX stands for Bitcoin Mercantile Exchange. It is a peer-to-peer trading platform that offers leveraged contracts that are bought and sold in Bitcoin.
It is different compared to Binance because on BitMEX futures contracts that mimic cryptocurrencies are bought and sold whereas on Binance actual spot trading takes place.
Margin trading a.k.a. leverage trading is a term used in the trading markets. Derivative market is another form of the trading market.
BitMEX is a derivative market for crypto instruments. Here is what derivative means:
A derivative is an instrument the value of which is derived from the value of one or more underlying, which can be commodities, precious metals, currency, bonds, stocks, stocks indices, etc. Four most common examples of derivative instruments are Forwards, Futures, Options, and Swaps. (Source-www.bseindia.com)
So along similar lines, BitMEX offers derivatives or futures contracts of some of the popular cryptocurrencies which are settled in BTC, which means one can only deposit/withdraw BTC from BitMEX.
Want to know more about Margin trading?
Read: What is Margin Trading in CryptoCurrency: Learn How to Get Started
The Team
Binance Team
The Binance team looks solid and the way they have expanded in the last one year is a testimonial to their abilities. Binance team comprises of veterans from crypto as well as the finance industry who have experience of running another crypto exchange before.
BitMEX Team
The team comprises of experienced developers, economists, and high-frequency algorithm traders, which makes it a reliable product.
HDR Global Trading Limited wholly owns BitMEX. HDR Global Trading Limited (hereinafter referred to as BitMEX) was incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles and operates from Hong Kong as of now.
You can learn more about the BitMEX team here.
Fee Structure
Binance Fee Structure
Binance fee structure is the most competitive and lowest in the crypto market (0.1% trading fee) and you can even reduce it further if you hold their native BNB token.
When you use BNB to pay for your trading fees, you will receive a significant discount according to the below-shown schedule. You can see their fee structure in detail here.
Plus, the added incentive to hold BNB token is that BNBs are burnt regularly by the Binance company thus increasing the value of tokens that you hold ultimately. More over, this token has more use cases such as:
- You can spend it online
- You can participate in IEO (Initial exchange offering)
BitMEX Fee Structure
BitMEX fees are not as straightforward, and it cannot be because it deals in futures contracts of different cryptocurrencies.
BitMEX’s fee also varies, depending on the cryptocurrency you are trading in and the type of contract it is. Here is the fee break-up for the same.
Note: BitMEX does not charge fees on deposits or withdrawals. When withdrawing Bitcoin, the minimum Bitcoin network fee is set dynamically based on blockchain load.
Supported Cryptocurrencies
Binance Supported Coins
Binance supports a plethora of coins/tokens and right the number of cryptocurrency pairs trading on Binance is 380.
And it is a crypto-to-crypto exchange which is why you will not find fiat pairs like USD or EUR, but you can easily buy other popular currencies like LTC, ETH, BCH, XRP or ADA on it if you have BTC.
Some of the cryptocurrency pairs trading on it are listed below:
| Bitcoin | BTC/USDT |
| Ethereum | ETH/USDT |
| EOS | EOS/USDT |
| Ethereum | ETH/BTC |
| Stellar | XLM/BTC |
| Bitcoin Cash | BCC/USDT |
| EOS | EOS/BTC |
| Ethereum Classic | ETC/USDT |
| NEO | NEO/USDT |
| Ethereum Classic | ETC/BTC |
| Stellar | XLM/USDT |
| Ontology | ONT/BTC |
| Bitcoin Cash | BCC/BTC |
| Cardano | ADA/USDT |
BitMEX Supported Coins
As I shared before, to leverage trade on BitMEX only BTC deposits are accepted, and no other currency is accepted for accounting sake.
All profit and loss numbers are also in BTC terms. That’s why it only provides BTC wallets to deposit and withdraw BTC.
You might find USD here and there but that is only for reference, and equivalent BTC is calculated during withdrawals.
Here is the list of coins with their leverage numbers that one can trade in futures on BitMEX exchange.
| Name Of Coin | Leverage |
| Bitcoin | 100x |
| Bitcoin Cash | 20x |
| Cardano | 20x |
| EOS Token | 20x |
| Ethereum | 50x |
| Litecoin | 33.33x |
| Ripple | 20x |
Supported Countries
Binance Supported Countries
Binance provides services to many countries around the world. They don’t serve in China where cryptocurrencies are banned. Also, Binance.com is not available for U.S citizen due to regulations and soon a U.S. variant of Binance called Binance.us is launching.
BitMEX Supported Countries
BitMEX is open for worldwide customers however US customers aren’t allowed to trade on BitMEX contracts because it is unregulated in the US.
But some US customers have been using BitMEX using VPNs, but BitMEX prohibits this. And still, some impersonators are using BitMEX as they have succeeded in tweaking the system.
Customer Support
Binance Customer Support
Binance’s customer support is exemplary if you compare it with BitMEX or another spot trading exchange as they provide support in more than 6 international languages including English.
Apart from that, you get standard support from their ticketing system that you can use anytime. Also, you can reach out to Binance support through their live chat support option as shown here in the restricted operating hours.
I advise you to go through their FAQ section as a lot of questions are answered there before reaching out to their support team.
BitMEX Customer Support
BitMEX customer support is better than what you generally see in this space as they have multiple channels through which customers can reach out to them. They also provide customer support 24/7 via the communication channels listed below:
They also have a comprehensive knowledge base in place to help you resolve some of the common pressing issues by yourself.
Conclusion: Binance Vs. BitMEX
Binance is a world-class crypto exchange, which is constantly innovating and becoming the go-to exchange for every purpose. BitMex on the other hand is around for years and is trusted by many margin traders. However, the Binance margin trading feature has made it a way better and more idle choice between these two.
Here is their Google trends chart:
Binance also has fully functional and elegant mobile apps for iOS and Android for spot trading whereas BitMEX also has one.
Apart from that, their UI is pretty standard and usable for their kind of trading. For example, you will find the right type of charts and indicators on BitMEX as well as Binance.
But if you ask me, Binance has an edge because its UI is more user-friendly. BitMEX’s UI looks quite outdated.
Lastly, Binance keeps launching its community initiative programs and airdrops to keep its community involved, but BitMEX doesn’t believe in that.
And this is because BitMEX is for more mature and veteran traders who understand margin trading and crypto trading whereas Binance is for beginners and advanced users who believe in spot trading.
Now it’s time to hear from you: So try out both of them and then come back here to let us know your views! Which exchange do you prefer and why? I’ll be waiting for your comments!
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Here are a few other hand-picked reviews that you should read next:
- Binance Review: Features, Fees in 2021 (Beginner’s Guide)
- BitMEX Review: Is It Still Safe in 2021? (Do not signup before reading this)
