Bitmex and Binance are both reputed cryptocurrency exchanges. But the way they function and their purpose is not a complete match. Binance is a lot bigger than Bitmex and has a lot of advantages over Bitmex in certain functions.
But they serve two different roles in the cryptocurrency economy, with some overlap. In this article, we will discuss how they are similar and areas of difference. Armed with that information, you can choose whichever serves your purpose.
Binance started in China but moved to Japan after the Chinese government’s crackdown on cryptocurrency economy. The company took the ICO route for funding and uses their native coin BNB for fee payment.
The company has different levels of verification based on the value of withdrawal. Apart from enabling Google authentication, you will need to submit identity documents to be able to transact at a higher value. To move to the next level, you will have to undergo a manual verification.
Binance has one of the cheapest transaction charges among cryptocurrency exchanges and it goes down even further if you pay them with their native coin. They have a huge set of currency pairings to buy/sell. They are also expected to announce withdrawals in Euro soon.
Bitmex is owned by HDR Global, a Seychelles registered company. It operates out of office in Hong Kong. Bitmex is more of a derivative exchange that focuses on being a platform for experienced traders. It does not have any native coins and only Bitcoin is accepted within the platform. All deposits, withdrawals and fees are dealt in bitcoin.
Unlike Binance, Bitmex has a very low need for verification. To start an account, you just need a valid email id and you are good to start. Using Bitcoin and staying away from all fiat currency has enabled them to stay away from most regulatory controls. Apart from the Seychelles money laundering act, no other rules are applicable. The company has banned US residents from opening an account to stay away from the regulatory requirement that comes with US citizens participation.
One of Bitmex’s biggest advantage is their 100x margin at little to no documentation. This feature has allowed Bitmex to become the favourite among high-frequency traders and other risk takers.
Advantages aside, Bitmex is not for beginners and they are better off at a simpler operation like Binance.