In this article, we will introduce you to the best cryptocurrency swap trading platforms. We will go through what a perpetual swap is, where to trade and compare two of the best platforms in terms of:
• Fees
• User-friendly (Interface)
• Security
• Trading products (Number of different swap)
In this article, we will compare BitMEX and OKex Bitcoin perpetual swaps.
Perpetual Swaps function similarly to future contracts. Both allow you to speculate the direction of the price of digital assets. However, the major difference is that perpetual swaps do not have an expiry date. Perpetual means it is never settled; it goes on and on. In other words, there is no set date at which one has to buy or sell an underlying asset. That means you can open a position and close it as soon as a few minutes or as long as three years.
BitMEX Perpetual Swaps trading
BitMEX, short for Bitcoin Mercantile Exchange, was the first crypto exchange to launch perpetual swaps for its users. It is a P2P trading platform that allows seasoned, professional traders to take positions against each other on Bitcoin futures and swaps. The exchange was founded in 2014 and is based out of Hong Kong, China.
Former bankers and experts in derivative trading, namely Arthur Hayes, Samuel Reed, and Ben Delo, are hailed as the brilliant masterminds behind this successful trading platform.
The maximum leverage user can take out is 1:100, which is much higher than other exchanges. Also, BitMEX doesn’t support any fiat currency. It only accepts deposits and withdrawals in Bitcoin.
BitMEX Fees
No fees are charged for making deposits or for withdrawals. The fees on perpetual swaps are currently -0.025% for the market makers and 0.075% for the market takers. These are some of the best trading fees around.
BitMEX User-Friendliness
BitMEX’s interface requires a stiff learning curve for newbies. Its intuitive platform is definitely designed for advanced traders and speculators. And, since it allows high-volume and high-frequency trading, this is not a platform for those who are new to cryptocurrencies.
BitMEX Security
Regarding security features, BitMEX has quite a good setup. Despite being in operation since 2014, the website hasn’t experienced any major hack. The company stores funds in cold, multisignature wallets that can only be accessed if a majority of partners allow it. BitMEX is built on top of an enterprise-class kdb+ database – the same toolset used by traditional banks. Withdrawals are processed manually once a day for maximum security. Furthermore, all email communication with BitMEX is protected through PGP encryption.
BitMEX trading products
Currently, the following assets are available:
Bitcoin XBT/BTC – Sport and Futures
Ethereum (ETH) – Futures
Ethereum Classic (ETC) – Classic Futures
Binary (B) – Futures
Bitcoin/Yen (XBJ) – Futures
Ripple (XRP) – Futures
Litecoin (LTC) – Futures
Zcash (ZEC) – Futures
Monero (XMR) – Futures
Tezos (XTZ) – Futures
OKex Perpetual Swaps trading
OKEx is a Malta-based cryptocurrency exchange – the brainchild of a Chinese Bitcoin mogul Star Xu. The second largest cryptocurrency exchange by daily trading volume is a subsidiary of the famous OKCoin exchange. OKEx offers Bitcoin futures with multiple leverage choice. The company’s impressive list of investors includes Tim Draper, a legendary venture capitalist based in Silicon Valley. The backing of such a revered figure makes OKEx one of the most trusted exchanges.
OKex Fees
OKEx offers some of the lowest fees in the market. Taker orders are charged a fee of 0.20%. Maker orders are rebated at 0.15%. This is slightly below BitMEX's fees. However, unlike BitMEX, there are fees charged for making a deposit and withdrawals. The fees vary from digital asset to digital asset. Deposits can be made through credit card or wire transfer.
OKex User-friendliness
OKEx has done a great job building an intuitive user interface. Its user interface for future trading is pretty clean and simple. It will never take a lot of time for a new user to get familiar with the interface of this platform.
OKex Security
Since OKEx is a custodial exchange, storing your coins present a high risk. The platform encourages users to activate two-factor identification. And, similar to BitMEX, OKEx has yet to suffer any major hacking attacks. However, BitMEX appears to have stronger levels of security than OKEx.
OKex Trading Products
BTC
ETH
LTC
Conclusion - perpetual swap trading
Both BitMEX and OKEx are reputable exchanged that excel in different areas. However, both platforms are clearly not intended for the inexperienced investor. They are most suited for pro-traders and high rollers.
When it comes to BitMEX, there is no way to deposit and withdraw in fiat currencies. Therefore, OKEx is perfect if you want a quick way to make deposits using a credit card or wire transfer. It also offers lower trading fees than BitMEX.
Armed with that information, you can choose whichever serves your purpose.