Selecting a cryptocurrency trading platform can be difficult. There are many factors to consider, including the platform’s functionality, the forecasting application, trading pairs, fees, protection, and customer service. Phemex is one of the most common spot exchange platforms throughout the globe and it is well renowned for charging no fees to exchange digital currencies. In this Phemex analysis, we intend to provide you with reliable and up-to-date details, including many of the factors why you should trade on Phemex. So, let’s get started:
Table of Contents
FACTS TO KNOW ABOUT PHEMEX
Phemex was established in Singapore on November 25th, 2019, and is owned by Phemex Financial Pte. Ltd. Their ultimate purpose is to be the most trusted cryptocurrency derivatives trading marketplace throughout the globe while maintaining a user-friendly approach. Like several other related crypto firms, the business is offshore, licensed in the British Virgin Islands. The causes for this are largely commercial – lenient regulatory requirements and significantly lower tax rates. Phemex has gained over 50,000 new subscribers in a short period of time and has more than $700 million in daily trading volume, placing it as one of the top 10 derivative markets on the Coin market cap rankings.
Since launching their offering, the ex-Morgan Stanley executives have been seeking to concentrate on a much more user-centric strategy for the derivatives trading platform. Phemex aims to offer institutional-level derivatives trading to a large number of traders. The ex-Wall Street squad hopes to put their trading expertise to use by broadening the array of crypto derivative brokerage choices for traders and investors respectively.
Phemex’s goal is not only to promote crypto trading, but to also narrow the gap between conventional trading and crypto trading by providing products such as stock indices, inflation rates, Futures and options, resources, and other commodity markets. All of their product offerings are built to optimize and reduce the barriers to entry for novice investors to provide the most user-friendly platform possible.
WHY SHOULD I CHOOSE TO TRADE ON PHEMEX?
Phemex provides a variety of intriguing facilities. The business started as a digital currency derivatives exchange, selling things like Bitcoin perpetual contracts. Here are some of the major reasons why you should choose to trade on Phemex:
- On these materials, Phemex enables maximum leverage of 100x. This implies you can retain a spot worth 100 times your initial investment. A very slight shift in value in a reverse way, on the other hand, will trigger you to be forced to liquidate and losing all of your assets. Bit MEX and By Bit already have this form of leverage. Leveraged goods are very dangerous and should be used with caution.
- Phemex provides tools including taking profit and stop loss conditional orders to help you handle the danger. With these commands, you will identify and develop your investment strategies while also optimizing revenue streams.
- Phemex will also deliver a novel zero-fee spot trading service beginning in May 2020. It allows you to trade BTC, ETH, XRP, LINK, XTZ, LTC, ADA, TRX, ONT, BCH, and NEO versus USDT without paying any premiums. In comparison, most common exchanges charge 0.10-0.50 percent when you buy or sell a virtual currency.
- In addition, the network can handle 300,000 transactions per second. This ensures that even during times of high uncertainty, you can rest assured that your transactions will be executed.
- Ultimately, Phemex has an application for both Android and iOS. Bit MEX, the biggest rival, doesn’t even have that.
To begin trading with Phemex, the authentication procedure is simple and only requires a few moments. There is no price to open an account or keep a wallet with Phemex. To begin, simply follow the given steps:
- Visit the Phemex website at https://www.phemex.com.
- In the upper right corner, select the ‘Register’ key.
- Enter the email address and create a secure passcode.
- Use the verification code to confirm your email address.
- Sign in to Phemex with your latest login details.
Phemex doesn’t necessitate KYC verification. Phemex verification is seamless and does not entail any prolonged authentication inconveniences or official documentation to verify your identity. It is ideal for traders who value their privacy.
DEPOSIT METHOD ON PHEMEX
Phemex formerly did not consider any other deposit form other than cryptocurrency, so new investors were unable to trade here. However, as of June 18, 2020, they have collaborated with Banxa, a payment system that recognizes credit and debit card transactions of cryptocurrency. Phemex has also collaborated with Koinal, Coinify, Moon Pay, and Mercuryo. You can choose from a range of payment methods (from cash deposits to Apple Pay) and prices to suit your requirements.
Phemex exchange enables you to move virtual currency straight from a crypto hardware wallet to the digital asset payment network to start trading. The wallet protects Bitcoin and USDT deposits. The amount of time it takes for a transaction to enter the wallet is determined by the crypto asset, the number of verifications needed, and the blockchain system workload.
To make a deposit into Phemex, go through the following steps:
- Sign in to your profile at Phemex.com.
- Go to the ‘Assets’ page in the upper right corner.
- Pick the cryptocurrency or stable coin to deposit by clicking ‘Deposit.’
- Make a note of and copy the special wallet address for the coin you’ve chosen.
- Alternatively, you can scan the QR code or copy and paste the URL.
- Choose the desired amount and submit it to the Phemex wallet address.
The withdrawal process is simple; simply enter your wallet address and the sum of Bitcoin you wish to withdraw. The 2FA mechanism is in place, but there is no way to build a whitelist of trusted IP addresses. That is a disadvantage since most of the rivalry portals, such as Coinbase Pro or Bit Mex, provide that opportunity. Also, the withdrawal pace can be a stumbling block at times, and it normally takes few hours. The withdrawal process occurs three times a day, at 8 a.m., 4 p.m., and 12 a.m. UTC. Withdrawals to be made at least 30 minutes until the next interval.
BUYING AND SELLING
There is no direct transfer of BTC among purchasers and dealers since it is a derivatives network. Agreements are now resolved in the underlying securities and stated in USD. Phemex, like other platforms, accepts three types of orders: ‘Market,’ ‘Limit,’ and ‘Conditional’ exchange. A trader can open or close a position by selecting one of these options. Traders may also select the amount of leverage they wish to employ. To implement an order, investors can select one of 3 choices: ‘Fill or Kill,’ ‘Immediate or Cancel,’ or ‘Good till Cancelled.’
The Phemex trading platform was built with ease of use in mind, and it can be used by both novice and seasoned traders. The Phemex broker firm was able to offer one of the greatest exchange platforms in the crypto industry by using cutting-edge web creation and security technologies. Regardless of the uncertainty in the crypto market, this system is still reliable, stable, and productive to use. And, unlike many of the larger crypto brokers, such as Bit Mex, Phemex has yet to experience any instances of network crashing or freezing since its introduction.
The Phemex trading platform is made up of two main components: the Cross Engine and the Trading Engine, which align client orders depending on value and time preference. Their Cross Engine is equipped to control 300,000 TPS with a network performance of less than one millisecond.
All of the common investing tools are available, as is an infinite number of indicators per table. Customers can create the system to their tastes, and there is a demo-trading feature for a quick inside look at all of the Phemex offerings without committing any money. However, certain components, such as time frames on the trading view chart, are not entirely customizable. Overall, Phemex has a good interface approach, which is close to that of most systems. Traders with slow internet connections can enjoy the ping indicator, which is shown in the lower-left corner of the User interface.
Phemex also allows people to access new deals, close old ones, or track and adjust an available spot when on the move. Their custom-built mobile exchanging application is unrivaled in the level of protection, pace, and reliability. This application is free for both Android and iOS devices to download from the Google Play Store and the iPhone App Store. The mobile trading app includes a plethora of built-in tools, functionalities, and qualities that make using it for financial transactions when out and about simple and effective. These characteristics are as follows:
- A very nice and minimal trading application that is ideal for both novice and seasoned investors.
- For market analysis and decision making, a mobile site of the trading view charts is available.
- There are a plethora of built-in metrics and drawing methods for your technical study.
- The app’s flexibility of several timeframes makes it ideal for both scalpers and long-term traders.
- Advanced order forms, limit orders, and buy stop orders are now available.
Traders may use the application to position new orders, close open positions, track and modify their open trades, and fulfill other kinds of payments on the Phemex marketplace while on the go.
TRADING FEES AND BONUSES
On Phemex, exchange charges are fixed at -0.025 percent for market makers and 0.075 percent for market takers. An unfavorable market maker fee indicates that the platform is rewarding you for bringing liquidity to the order book. Market takers pay slightly higher fees since the marketplace allows people to fill order books and thereby generate more liquidity.
A further critical fee to consider is funding costs. Every 8 hours, a funding fee is charged. Depending on a lot of factors, the algorithm decides whether the funding fee is favorable or unfavorable. If the funding fee is favorable, the long positions will give a sum to the short positions. If it’s unfavorable, it implies that shorts outnumber longs. To be specific, this is a payment made amongst dealers and is not imposed by Phemex.
There are no extra charges for overnight trades. When you withdraw BTC from the Phemex trading site, you must accept the regular 0.0005 BTC system transaction fee. Phemex does not charge any fees for withdrawals on its own.
In consideration of its spot trading markets, Phemex boasts an impressive membership rather to take advantage of its zero trading fees model. Plans start at $9.99 per month for 30 days, $19.99 per month for 90 days, and $69.99 per year. By being a premium user, you can also gain access to conditional spot orders, unlimited hourly withdrawals, and the opportunity to gift premium trials to mates. When you do not have a subscription, the regular charge is 0.10 percent.
BONUSES ON PHEMEX
Phemex offers a variety of incentives to entice potential clients. Any new consumer earns a 7-day Premium Trial membership. Phemex is offering a limited time offer in which you will earn an additional bonus of up to $ 700 based on your deposit:
- With a deposit of 0.2 BTC, you will earn 100 USD.
- With a deposit of 0.5 BTC, you will earn 400 USD.
- Deposit 1 BTC and earn 500 USD in return.
- With a deposit of 1.5 BTC, you will earn 600 USD.
In addition, by completing small tasks, you can earn a bonus of $ 100:
- For a deposit of 0.2 BTC or more, you will earn $80.
- Get $10 off a spot order of more than USD 500.
- Receive $10 for every USD 5,000 or more BTC/USD transaction.
PHEMEX REVIEW – CONCLUSION
Phemex provides a plethora of advantages and prospects for cryptocurrency traders, with few disadvantages. The platform is simple to use and appropriate for both new and seasoned traders. Phemex’s key strengths are twofold: the ability to build sub-accounts inside a current account and their user-friendly style – which isn’t assured in the future as the business grows. These factors will help it achieve a competitive edge over other platforms in the long term, such as Bitmex and Bybit.
Even though Phemex is a comparatively new platform, it offers users numerous advantages and privileges There are fewer disadvantages in this case. This exchange is simple to understand and implement. Phemex is unique in that it allows users to build sub-accounts. This could provide Phemex with a competitive advantage over other trading platforms.
Phemex has a centralized Deterministic Cold Wallet System that assigns specific cold wallet deposit handles to each client in terms of protection. All deposits are collected regularly and sent to the company’s multi-signature cold wallet via offline signing. The network secures its servers using Amazon Web Service (AWS) Cloud, which is a pioneering industry norm that raises protection and stability standards. Phemex also uses encryption to divide trading zones inside its internal network.
Yes! The platform provides a one-of-a-kind mechanism for building sub-accounts inside an existing account, allowing you to carry both short and long positions. Each sub-account should have its balance and degree of permission, allowing you to isolate various trading strategies. They can also be used with trading robots and to move balances from one sub-account to another. The sub-account function is popular with quantitative trading groups, and it is expected to offer L3 market data in the coming years.
Phemex supports a limited number of currencies, including Bitcoin, Ethereum, Ripple, and LINK, which can be exchanged against the USDT – Tether. Contracts are listed in USDT since there are no actual Bitcoin transactions during the buying/selling phase.
If you are not persuaded to join Phemex, you may be interested in learning a little more about the direct competitors or alternatives such as Binance, Cex.io, PrimeXBT, PrimeBit, and Bitfinex.
Phemex does not allow US citizens to exchange on its futures contract platform, as specified in section 36 Legal Compliance of the Phemex Terms of Service. This is because stringent laws in the United States essentially prohibit the usage of virtual currency derivatives exchanges due to the unpredictable aspect of the high risks associated. There are forums where people discuss using a Vpn provider to get around the Phemex restriction for US customers, but we do not suggest it.
Yes, you can buy Bitcoin with cash through peer-to-peer, you can find someone locally to buy from in person. The other way is to buy Bitcoin with cash at a Bitcoin ATM.
Buying Bitcoin isn’t free of risk. Volatility in price makes it riskier but that volatility can potentially make it more profitable too.
You may buy any amount, 0.5 BTC as well as 0.1 BTC, or any lower you can afford. That is absolutely up to you.
If you’re looking to buy Bitcoin anonymously then the easiest way would be to buy Bitcoin through Bybit. You do not need any id.
Yes, you can buy bitcoin instantly with a credit card through the app and web platform.