Kucoin vs BitMEX: What Works Better For Canadians?

However, BitMEX does have an array of advantages above its counterparts. For example, in terms of trades, BitMEX’s high leverage, low margin, and small minimum contract amount are much better than the rest. Overall, BitMEX is a market-leading and highly regarded trading platform. However, it is imperative to note that this is for advanced users, and its learning curb isn’t as forgiving as most trading platforms. The Bitcoin Mercantile Exchange, or BitMEX for short, is an exchange platform launched in 2014 by HDR Global Trading Inc., in Victoria, Republic of Seychelles. Its platform mainly deals with margin-trading for cryptocurrency and is widely known for its quality services, albeit a complex one at that.

As we’ve mentioned prior, BitMEX’s services pertain to selling Bitcoin futures and contracts through the use of leveraged trading. This means that traders do not actually trade Bitcoin itself; rather, they buy and sell contracts for the cryptocurrency at a leveraged rate. BitMEX has an insurance fund that is designed to ensure that winnings can be paid out as safely as possible. Those who trade on BitMEX do not trade directly with the broker, but with other traders, since it is a P2P trading platform. Longs are thus offset directly against shorts, the platform only provides the technical framework for this, so to speak.

Why National Bank Financial – Wealth Management stands out from other brokerages

Both Kucoin and BitMEX offer derivatives trading which puts both platforms in a grey area when it comes to compliance. If you overlook that, BitMEX is the winner when it comes to futures and perpetual contracts trading whereas Kucoin is the winner when it comes to trading crypto to crypto. BitMEX has slightly lower trading fees, but Kucoin offers hundreds of cryptocurrencies and trading pairs (sign up for Kucoin here).

• For each currency pair which they support, BitMEX margin trading provides a chart section with a lot of features, so traders don’t necessarily need to use another professional charting tool parallel.
• In June, 2021, the Ontario Securities Commission stated that Kucoin was illegally offering its residents securities and derivatives trading, but Kucoin did not respond to this.
• We have to say that for total beginners using the platform can be a bit tricky since the system works differently to other broker platforms.
• This means that traders do not actually trade Bitcoin itself; rather, they buy and sell contracts for the cryptocurrency at a leveraged rate.
• Though it’s not based in any one country, Binance runs a massive trading operation where everyday clients buy and sell digital tokens worth tens of billions of dollars outside the oversight of government watchdogs.

In the central platform area the BTC deposit address of your account is placed (BitMEX only accepts deposits in BTC). On the top right, you can access your account & security options, where you can set a two-factor authentication. If you’re completely new to the kind of margin trading BitMEX offers, our more in-depth guide for beginners about BitMEX Bitcoin Trading might be helpful for you. This post explains the Bitcoin margin trading broker’s trading concept from scratch for trading beginners, if you have no clue at all how you should use the platform and it’s orders section. BitMEX CTO Samuel Reed was already arrested in the US state of Massachusetts shortly after the charges against the crypto trading platform came to light in October 2020.

Markets

This is done for the receipt of the difference between the price of the digital currency and strike on the maturity date, that is if it should prove positive. However, they have no expiry date, and since Perpetual Contracts mimic a margin-based spot market, they would trade closer to the underlying reference Index Price. You may need to transfer your Bitcoins to other services in order to withdraw into centralized currency.

You can actuallt manipulate them to liquidate you while counter tradibg your own pisition as a hedge as their behaviour is that reliable. However often price moves on mex are often not reflected on the main market as seen often on xrp. You are trading agaist an in bittrex house trading desk that can spike price anywhere. When i close mu acciunt they tried to access the exchange i withdrew using same email and password. Thankfully i use different passwords and never use 2fa with mex as you are undermining money on other exchanges.

bitmex-swagger dependencies

Ideal for those who want to leverage on Bitcoin, both buying or selling. It’s a bit complicated to understand the way it works, but they are reliable and professional, with very good support. The entire point of this “exchange” is to put people up against each other (zero sum game) while extracting fees and liquidations from them over time. Check the growth of their ridiculous insurance fund if you do not believe me. In 2019, Zhou helped incorporate Binance.US, a separate company that caters to American clients.

This would solidify the platform’s security as this would make it impossible for any party involved to conduct illicit and fraudulent activity. The first one they trade in Future Contracts, which are agreements to buy or sell at a speculated price on a specific time in the future. BitMEX also withdrew operations in Ontario, but was not officially named by the OSC. BitMEX is still operational in other Canadian provinces but it is facing legal trouble with the USA due to allegedly offering securities trading illegally. BitMEX withdrew operations in Ontario, but was not officially named by the OSC. In 2020, $275 million worth of crypto was stolen from Kucoin by North Korean hackers.

Mobile and Desktop Trading

Most contract platforms offer advanced tools that aren’t necessary for beginners to use, and thereby, add more confusion instead of real value to newbie traders. Currently, one must be informed that BitMEX does not support fiat currency. This means both profits and losses are displayed for Bitcoin despite also working with other digital currencies. This explains why with deposits and withdrawals can only be done for Bitcoin. These contracts behave very much like Upside Profit Contracts except that traders participate in a potential downside of the value of a cryptocurrency. Downside Profit Contracts cannot be sold short, unlike the Upside Profit Contracts, and can only be held as long positions.

The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services. BitMEX caters crypto-focused services with Bitcoin as its priority. If Bitcoin doesn’t appeal to clients, they may resort to other cryptocurrencies such as Bitcoin Cash, Cardano, EOS, Ripple, Ethereum, Litecoin, and Tron. Since it has an in-depth focus on Bitcoin, it allows a spot and futures trading method under such as other virtual coins are left with only futures markets as an option.