In the cryptosphere, if any exchange platforms have actively contributed to the growth and development of the crypto ecosystem, then the name of Binance and BitMEX will surely make it to the top.
Both the exchanges have many firsts to their credit and are the leading exchanges in the crypto market.
Today, in this blog, we will compare both the exchanges and understand how they stand against each other in the derivatives trading segment and which platform is a better place to trade crypto futures and derivatives.
So, let’s dive in.
Bitmex vs. Binance: A Comprehensive Review
BitMEX or Bitcoin Mercantile Exchange is a peer-to-peer crypto derivatives platform established in 2014 and is registered in Seychelles.
It is one of the largest Bitcoin trading platforms, and its XBT/USD perpetual swap contract is the most traded derivative product of all time. The monthly average trading volume of the exchange is over $120 billion.
Binance is the leading derivatives trading platform in the market by trading volume and offers a wide variety of traders’ choices. It started its operation in China but later shifted to a crypto-friendly nation Malta.
In the cryptosphere, Binance is known for its stable trading platform, fast order matching engine, and higher leverage.
BitMEX vs. Binance Futures: Product Offering & Leverage
BitMEX offers trading on both perpetual swaps, traditional futures, and Quanto Futures. The perpetual swap contracts are offered in Bitcoin (XBT), Ethereum (ETH), and Ripple (XRP).
While, traditional futures contracts are available in 16 different cryptocurrencies and altcoins, including Bitcoin (XBT), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Stellar (XLM), Dogecoin (DOGE), etc.
It offers up to 100X initial leverage on XBT perpetual and traditional futures contracts and 50X on ETH, XRP (perpetual) contracts. On the rest of the trading pairs or futures contract, the leverage ranges between 20X-33.33X, depending on the type of contract.
Binance has a pretty wide range of product offerings in the derivatives segment. It includes:
- USDT-M Futures: These are USDT margined and settled perpetual and traditional futures contracts, on which traders can trade with leverage between 1-125X.
- COIN-M Futures: These are cryptocurrency-based perpetual contracts, margined and settled in Bitcoin and offer a maximum leverage of up to 125X.
- Binance Vanilla Options: These are European-style option contracts offered on BTC/USDT contracts. The leverage level depends on the time to expiry of the contract and strike price.
- Binance Leveraged Token: This option allows you to take a leveraged position to a cryptocurrency that can be traded on the spot market. The leverage is offered in the range of 1.25X to 4X.
Winner: Binance has a wide product range and offers higher leverage.
BitMEX & Binance Fees
The BitMEX follows a maker-taker fee pricing model with a flat-fee pricing structure for all its perpetual, traditional, and Quanto futures contracts. It offers a maker rebate of 0.025% and a taker fee of 0.075%.
It has no deposit and withdrawal fees, but the Bitcoin network fee will be applicable on withdrawal.
Binance too follows a maker-taker fee pricing model, similar to BitMEX. But, it has a tiered fee structure based on the last 30-day trading volume.
The tiered rate structure is divided into ten levels (VIP-0 to VIP-9). The initial level (VIP-0) with a cumulative trading volume less than 250BTC has a maker fee of 0.02% and a taker fee of 0.04%. In the last level (VIP-9), with a cumulative trading volume of more than 750,000 BTC, the maker fee is nil, and the taker fee reduces to 0.017%
Binance offers a discount of 10% on the trading fee when paying through BNB tokens.
Winner: Binance has a lower fee
BitMEX vs. Binance Volume
Liquidity is the key to any exchange for faster trade execution. Here, both the exchanges have a pretty deep order book and the highest liquidity level compared to any exchange in the market.
For instance, BitMEX’s XBT/USD is the most liquid market globally, and the platform clocks an average daily trading volume of over $3.6 billion.
On the other hand, Binance clocks over $45 billion in daily trading volume, the highest in the industry and almost twice that of the second-biggest exchange.
Winner: Binance is way ahead of BitMEX in terms of liquidity
BitMEX vs. Binance: Trading Platform
The trading platform matters a lot when you are trading in the crypto derivatives segment. It requires speed, a clean platform layout, and advanced capabilities.
BitMEX is an old player in the segment and understands this very well. The platform is written in the kdb+ database, which is very popular among major banks and financial institutions in high-frequency trading applications. The platform has a clean layout that includes an order book, charting system from tradingview, depth chart, recent trades, and trade-viewing window.
It offers various order types for users, including, Limit, Market, Stop-Limit, Stop-Market, Trailing-Stop, Take-Profit Limit, and Take Profit Market Order.
Binance has a very responsive trading platform that can process over 1.4 million trades per second and a latency rate of fewer than 5 milliseconds. The platform includes all the basic and advanced features.
The platform’s various order types include limit, market, stop-limit, stop-market, trailing-stop, and post-only orders.
Winner: Both exchanges have the best trading platform in the market.
BitMEX vs. Binance: Privacy and Security
BitMEX requires its users to complete the identity verification process, including uploading of photo ID, address proof, taking a selfie, and questions regarding the source of funds.
The security features of the exchange include:
- Uses multisig wallet address, and all storage is kept offline
- Two BitMEX employees audit every withdrawal request before sending
- The exchange system is secured using Amazon Web Services
- Uses various risk-management processes to ensure trading engine security
- Uses PGP encryption for all automated mail to keep communications secure
Binance is a non-KYC exchange, and users can trade freely without any restrictions.
It uses a multi-tiered security architecture to provide a safe and secure trading environment, two-factor authentication to prevent unauthorized account access from the user’s end, a combination of hot and cold wallet systems, and an insurance fund (SAFU) to cover losses from unexpected events.
Winner: Both platforms have deployed strong security measures.
BitMEX vs. Binance: Customer Support
BitMEX offers only email-support in five languages, including English, Chinese, Korean, Russian, and Japanese. You can contact the support team through different social media platforms like Telegram, Twitter, and Weibo.
You can also refer to the knowledge base to learn about the BitMEX platform.
Binance has a very detailed knowledge-based and FAQ section. The virtual chatbot feature on the website helps you to solve the commonly-faced issues.
Apart from all these, you can raise a support ticket by filling an online form on the website for specific issues.
Winner: Both exchanges have good customer support service
Binance vs. Bitmex: Which is Better?
Binance seems to have a clear edge over BitMEX in product offering, leverage, liquidity, and fees in this comparison guide. All the factors which are important to look after when selecting an exchange platform for derivatives trading.
However, both platforms are good and suitable for professional and experienced traders.
Selecting Binance will give you an edge due to the availability of multiple market types, fiat support, and access abundant resources. In short, Binance has established itself as the benchmark in the industry.
- 1 Bitmex vs. Binance: A Comprehensive Review
- 2 Binance vs. Bitmex: Which is Better?