Do not forget when 100x leverage-supplying crypto derivatives exchange Bitmex offered a double-page advert spread in the times of London to mark the 10 year anniversary of the bitcoin white paper? the advert that used a log chart—as opposed to a linear chart—to represent bitcoin’s vertiginous overdue 2018 price drop as a minor correction?
The UK marketing standards authority didn’t just like the log chart, and has upheld its criticism against the advert in a choice made public today. certainly, it says Bitmex’s use of the chart exaggerates bitcoin’s achievement and did not illustrate the “chance” of investing.
log charts range from linear charts in that their y-axes increase exponentially; Bitmex’s log chart indicates will increase by way of fragments of pennies at the lowest of the y-axis, and increases by way of the thousandfold at the pinnacle of the y-axis.
“This meant that the space on the top of the graph between 10,000 and 100,000 represented a alternate of $90,000,” wrote the watchdog. “whereas the equal space in addition down the graph represented simplest fractions of one dollar.”
adjustments in the hundreds in the end take up the equal visible real estate as a great deal smaller modifications, warping viewers’ experience of the long-time period trade. as the toes notes, linear charts show a miles deadlier plunge:
accordingly, the advertising requirements authority’s complaint: all of us uninformed approximately the nature of such charts might be misled into questioning that bitcoin had loved an tremendous surge over ten years before a negligible decline—an insignificant diversion from its wellknown skyward trajectory.
the enterprise delivered that Bitmex’s very own arguments—namely that using the chart became to “commemorate” bitcoin’s birthday and now not to shill an investment—have been inadequate.
“in addition,” it writes, “we did not remember that the textual content alongside the graph which said that bitcoin became ‘nonetheless very a whole lot an test’, that ‘the street beforehand will be hard’ or ‘fee volatility’ mitigated the overpowering impact approximately bitcoin’s fee created via the graph.”
Bitmex is also reportedly below scrutiny from the u.s. commodities and futures buying and selling fee, which is investigating the exchange for illegally assisting us clients, in line with bloomberg.
BitMEX Records $534 Million in Fund Outflows in July
crypto derivatives platform Bitmex has recorded an outflow of $524 million from its trading platform in july, making it the worst month for the exchange.
in step with the records compiled by using tokenanalyst, the outflow of funds at the derivatives trade remained at the higher facet than inflows. but, final month, this parent skyrocketed from beneath $one hundred million inside the previous month.
at the opposite, final 12 months, despite the dominance of the bear on the crypto buying and selling market, the change brought in $1.3 billion in price range and the inflow of budget became always more than the outflow from the change.
Bitmex had $524m net outflows in july. it had by no means had more than $100m in a unmarried month.
2018 brought in $1.3b, and there has been no longer a single month in which outflows had been greater than inflows.
— ceteris paribus (@ceterispar1bus) august 4, 2019
seychelles-registered Bitmex is one of the most important crypto derivatives platforms, onboarding buyers in the main from asian markets. it gives leverage as much as 100x for its futures contracts. in keeping with its internet site, the platform treated $5.32 billion well worth futures contracts trades in the last 24 hours, while the figure for the closing 30 days is $136.sixty three billion.
the exchange, but, isn’t allowed to offer its offerings inside the america because it calls for a license from the commodities and futures fee (cftc) to operate in the usa.
remaining month, bloomberg revealed that the us futures marketplace watchdog is investigating on the trade below the suspicion of the provision of its services to the united states-primarily based clients.
this might be one of the key factors in the back of the large boom of the outgoing finances from the alternate.
but, the character of the research isn’t always but referred to as neither cftc nor Bitmex discovered something officially.
earlier this year, arther hayes, the co-founder and ceo of Bitmex, discovered that the change is thinking about to expand its offerings by means of launching a cryptocurrency alternatives platform.
Trading cryptocurrencies is more interesting than trading equities or other forms of traditional assets. The volatility of cryptocurrencies drives massive price movements that would probably give Wall Street stocks traders a collective heart attack. Trading cryptocurrency derivatives, however, adds another layer of sophistication to cryptocurrency trading because profits or losses tend to be exponentially magnified.
Cryptocurrency derivatives trading is a fast-paced game, and the quality of your trading experience is largely dependent on the exchange on which you conduct your trading. This piece compares BitMEX and Bybit, two of the most popular cryptocurrency derivatives trading platforms in the market with a view to helping you choose the best place to trade crypto derivatives.
BitMEX, founded in 2014 is a peer-to-peer trading platform for cryptocurrency products. BitMEX and the BMEX mobile apps are owned and operated by a Seychelles incorporated entity called HDR Global Trading Limited. BitMEX’s founding team is made of three individuals with experience in equities derivatives trading, web development, and market-making.
Bybit, established in 2018 is a cryptocurrency derivative trading platform registered in the British Virgin Islands. It has its headquarters in Singapore and it also operates out of Hong Kong and Taiwan. Bybit has individual clients and retail from all over the world including North America, Europe, Russia, Japan, South Korea, and Southeast Asia. In late June 2019, it revealed that it’s trading volume hit $1billion and $2billion USD on consecutive days.
Bybit was founded by Ben Zhou, an experienced quantitative and margin trading professional who believes that there were too many inefficient markets in crypto derivatives trading and he thinks that traders deserved a better exchange that really gave them what they needed.
Both Bybit and BitMEX are created as platforms for trading cryptocurrency derivatives. A derivative is a trading instrument that derives its value from an underlying instrument. The most popular crypto derivatives are futures, options, and swaps.
Derivatives trading is also bundled with leverage (also called margin) trading to provide traders with a multiplier effect on the value of the actual money they spent on a contract. BitMEX
On BitMEX, traders buy “Long” or sell “Short” perpetual contacts as limit, market, or stock market orders. The UI is somewhat crowded, and beginners might be overwhelmed by the information overload and lack of guiding prompts and tips. However, BitMEX offers traders up to 100X leverage; hence, what you could argue that the high leverage makes up for the lack of a user-friendly interface.
you can trade perpetual contracts on BTC, ETH, EOS, and XRP. The exchange says it is already working on supporting derivative trading on a long list of other cryptocurrencies as well. ByBit also offers up to 100X leverage on its trades.
The trading layout is user-friendly with compartmentalized panes for different information and actions. There’s a non-intrusive tutorial that provides navigation tips which could be very helpful to new users or beginner traders.
Bybit is also making a strategic move that eases new users and beginners into its platform with a bonus policy that helps new users to try the platform with no risk for the first time. After creating an account, following Bybit on Twitter, will earn you $10 welcome bonus. You’ll get an additional $50 bonus after your initial deposit. The $60 bonus can then be used to test the market until you are comfortable with risking your money in a trade.
Fees could potentially eat into your profit or widen your loss. BitMEX charges a negative – 0.0250% maker fee and a 0.0750% taker fee. A negative fee suggests that you will be given a rebate on the trade. BitMEX also charges its users long and short funding fees as seen in the chart below.
Bybit, traders are charged a negative -0.0250% maker fee which suggests that the trader will earn a rebate for making a trade. Bybit also charges a 0.0750% taker fees which is the same amount charged on BitMEX. Bybit says it does not pay or receive any of the funding fees on its perpetual contracts. Bybit doesn’t charge any deposit or withdrawal fees.
BitMEX currently supports BTC, BCH, ADA, EOS, ETH, LTC, and XRP. The leverages that it offer on trades also vary for different cryptocurrencies. You should also note that only BTC deposits are accepted on BitMEX. The exchange also records profits and losses in BTC terms; hence, withdrawals is only possible in BTC as part of what it calls ease of accounting.
In contrast, Bybit only provides supports for BTC, ETH, EOS, and XRP – it promises to add other coins in the coming months. Bybit charges a flat -0.0250% maker rebate and 0.0750% taker fees on all the coins its supports. The best part is that Bybit allows traders to make deposits and withdrawals in all the cryptocurrencies that it supports.
BitMEX customer support available via its website is primarily a web-based support ticketing system. It claims to provide support for the English, Chinese, Russian, Korean, and Japanese languages. In addition, it seems to have a chat-based support on third party instant messaging platforms such as Wechat, Weibo, and Telegram (Russian).
Bybit’s motto is “We listen, We care, We improve.” This motto is a core element in how Bybit’s customer support functions. It offers 24/7 customer service live chat right there on its website. In addition, users can reach out to support via email or reach out to one of its social media accounts on 8 of the biggest social media platforms in the world.
From the foregoing, BitMEX only takes the lead in for listing two more cryptocurrencies than Bybit However, Bybit has a cheaper and straightforward fee structure as opposed to BitMEX’ staggered fee structure. Bybit has 24/7 live chat which is better than opening a support ticket on BitMEX.
However, Bybit is still relatively new in the market, we will be back after one year to see if its service has improved or deteriorated from current levels.
Disclaimer: This article is strictly for educational purposes and should not be construed as financial advice.