While there are several profitable ways of trading altcoins, buying low and selling high is the most common strategy for earning consistently high profits. But there’s more to trading than that and this article is going to expand a little on two top cryptocurrency exchanges and how they can take you beyond the traditional trade. We’ll also express what each brings to the table as far as trading advantages, fee structures and more.
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Binance vs. Bitmex: Which Crypto Exchange is Better?
Don’t be fooled by the question about which exchange is better. The truth is that there are advantages for both.
BitMEX’s margin trading features are quite rewarding but with the potential reward comes higher risk. Though Binance and BitMEX are two top cryptocurrency exchanges, they actually serve different purposes. If traders miss this point, they can incur losses. So let’s dive right and compare.
Your trading style, goals, tools you like to use, and risk assessment play a vital role in which exchange you are more likely to use on a regular basis. This certainly does not mean you have to pick one over the other.
Getting back to Binance and BitMEX. Being that these are two of the most popular cryptocurrency exchanges for altcoin day traders and HODLers, it’s imperative to ask more questions to see which one is best for you.
What is Binance’s biggest advantage?
One can trade in numerous crypto currencies and participate in launchpad token sales through a single interface using Binance. Binance is the first choice for spot trading and it has captured significant market share through this activity.
It consistently ranks in the top three cryptocurrency exchanges in terms of trading volume, and offers more than 400 trading pairs on an easy-to-use interface.
Its native token, BNB, helps users in getting discounts on trading fees. In 2019, Binance also introduced margin trading which makes it an ideal platform due to its high liquidity. However, the interface is premature for professional margin traders.
What is BitMEX known for?
BitMEX is most popular in the crypto community for margin trading. BitMEX stands for Bitcoin Mercantile Exchange and it is a leading peer-to-peer trading platform that offers leveraged contracts that are bought and sold in Bitcoin.
BitMEX futures contracts mimic the buying and selling of cryptocurrencies whereas on Binance actual spot trading takes place. BitMEX is a derivative market for crypto instruments. 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.
On comparing the two projects and their development teams, we conclude that 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’s team comprises of experienced developers, economists, and high-frequency algorithm traders, which makes it a reliable product.
Comparing Fee Structures
Binance’s fee structure is the most competitive and lowest in the crypto market and traders get further discounts on paying in BNB. Plus, the added incentive for holding BNB tokens is that BNBs are burnt regularly by Binance and this increases the value of tokens that you hold ultimately.
BitMEX’s fee structure is not as straightforward because it deals in futures contracts of different cryptocurrencies. The fee varies, depending on the cryptocurrency you are trading in and the type of contract it is.
Binance’s customer support is exemplary if you compare it with BitMEX or any other spot trading exchange as they provide support in over six international languages including English. Apart from that, you get the standard support from their ticketing system that you can use anytime.
BitMEX customer support is better as they have multiple channels through which customers can reach out to them. They also provide customer support 24/7 via Support Ticketing System, Weibo, Wechat, IRC and Telegram. They have a comprehensive knowledge base in place to help you resolve some of the common pressing issues by yourself.
While BitMEX is for veteran and margin traders, Binance is recommended for spot trading and beginners.
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