Phemex review
Phemex, founded in 2019, is one of the latest cryptocurrency and derivatives exchanges to join the industry. Already, they have gained a significant market share and offer interesting promotions. They directly compete with big names such as BitMEX, ByBit, and Binance. Can Phemex become a replacement for these exchanges? The availability of Phemex is subjected to regulation.
In this Phemex review you will learn all about the exchange, how to trade on it, and additional background information. You are also welcome to leave your own review at the end.
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What is Phemex?
On top of being a cryptocurrency exchange with spot markets like Bitvavo, Phemex is also a derivatives exchange. A derivative is a financial product that imitates the same value or price as a target cryptocurrency. For example, the price of a Bitcoin derivative matches the price of a real bitcoin. Through these derivatives you can speculate on the price of Bitcoin without actually needing to buy or sell the coin itself.
These exchanges are very popular with experienced traders as they allow you to trade with leverage. Leveraged financial instruments are very risky, but offer you more potential for quicker profits. At the same time, you could also lose your money extremely fast. One of the reasons for Phemex’s launch is due to the ongoing and persistent consistency issues that afflict other competitors such as BitMEX.
Phemex’s founders come from Morgan Stanley, a well-known business bank in America. Their goal is to make the crypto scene as reliable and secure as the traditional finance scene. Their mission is to become the world’s most reliable cryptocurrency and derivatives exchange.
Phemex does not only want to facilitate crypto trading, but also wants to bridge the gap that exists with traditional finance by offering products such as stock indexes, interest rates, Forex, energy, and other commodities. All of their services and products are designed with simplifying and lowering the entry barrier for new traders in mind to ultimately build the most user-friendly platform.
Why should you choose Phemex?
Phemex offers a number of interesting services. The company began as a cryptocurrency derivatives exchange offering products such as Bitcoin perpetual contracts.
Phemex allows a maximum leverage of 100x on these products. This means that you can hold a position worth 100x more than your original investment. However, a very small change in price in the opposite direction can cause you to get liquidated and lose all your funds. This type of leverage is already offered by BitMEX and ByBit. Leveraged products are incredibly risky and must be used with careful consideration.
To help you manage this risk, Phemex offers tools such as take profit and stop loss conditional orders. With these orders you can define and improve your trading strategies while maximizing opportunities for profit.
Since May of 2020 Phemex also offer an innovative zero-fee spot trading service. With it, you can trade BTC, ETH, XRP, LINK, XTZ, LTC, ADA, TRX, ONT, BCH, and NEO against USDT on the platform without having to pay any commissions. Compare this to most popular exchanges that charge 0.10-0.50% each time you buy or sell a cryptocurrency.
The platform can also process 300,000 trades per second. This means that in times of high volatility you can feel secure knowing that your trades will definitely process. Unlike the constant outages we see happening at BitMEX all the time.
Finally, Phemex also has its own app for Android and iOS. The main competitor BitMEX does not have this. Please continue to read our Phemex review to learn more about this platform.
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How to create a Phemex account?
Creating an account is incredibly easy:
- First go to the Phemex.com registration page.
- Enter your email address and password.
- Your Invitation Code is HUDHN
- Click on Continue, then you receive a verification email and code.
- Enter the code in the next window that appears.
That’s it. It’s a very simple registration process, and as with many derivatives exchanges it’s not mandatory to complete a KYC.
How does Phemex work?
You’ve already created an account and are now logged in. What can you do? You can start by buying Bitcoins or coins. It is possible to buy 6 different cryptocurrencies using the multiple portals that allow you to easily pay with credit card, SEPA, bank transfer, and more. Each payment processors charges their own fees. In our opinion, it is still cheaper to buy Bitcoin at a broker. If you don’t have BTC yet, you can buy Bitcoin with various easy payment methods from places such as Bitvavo. This is the cheapest exchange in Europe and only charges 0.25% in fees.
Depositing Bitcoin at Phemex
If you already own Bitcoin or you purchase it at a different exchange first, you can still transfer this to your Phemex Wallet in a few simple steps:
- Log in to Phemex, go to Assets and click on Deposit.
- Click on Continue.
- Here you see your unique Bitcoin wallet address.
- Enter this address in the withdraw page of your other exchange or wallet. Check this guide how to buy Bitcoin with easy payment methods.
- Enter how much you want to send to Phemex. Please copy the address carefully. Mistakes can cause your BTC to be lost forever.
- Click Continue and confirm the transaction in the email notification.
After 1 confirmation on the network, your BTC will be confirmed and you can begin trading on Phemex. It is currently possible to deposit the following cryptos:
Next, you can then use these cryptocurrencies to make spot trades or to purchase perpetual contracts.
Perpetual contracts differ from other futures contracts in that they do not expire, whereas futures contracts have a specific expiration date. This is why you can buy or sell perpetual contracts and close them whenever you want.
At Phemex, the Bitcoin perpetual contract is normally referred to as BTC/USD. Each BTC/USD perpetual contracts is worth $1. So when you buy $1,000 worth of BTC/USD contracts, it is as if you are buying $1,000 worth of BTC.
Phemex has three ways to place orders for BTC/USD perpetual contracts: limit orders, market orders, and conditional orders. Broadly speaking, the three methods work as follows:
Limit order
When you choose to use a limit order, you set a price (also called the limit price). This means that you will only buy or sell at the specified price. If the limit price is never achieved, then the order will not be filled.
Conditional order
This is somewhat similar to limit orders. The only difference is that it has a trigger price, meaning that the order will not even active or be “triggered” until your specified price is reached. This is used by professional and advanced traders.
Market order
These types of orders are executed directly from the order book and filled at the best available market price. Choosing a market order means that you order will immediately fill at the best available price.
Phemex fees
We will handle all the charged fees in this Phemex review. The trading fees on Phemex are set at -0.025% for market makers and 0.075% for market takers. A negative market maker fee means that the exchange actually rewards you for adding liquidity to the order book. The fees for market takers are somewhat higher because the platform encourages users to fill the order books and thus create a higher liquidity. We see that quite often in the market.
Another important fee to take into account is funding fees. A funding fee is applied every 8 hours. The system determines if the funding fee is positive or negative based on multiple factors. If the funding fee is positive, it means that the long positions will pay a percentage to the shorts. And if it’s negative, it means that shorts pay longs. To be clear, this is a fee that is paid between traders and not charged by Phemex at all.
There are no overnight fees.
When withdrawing BTC from the Phemex trading platform, you pay the standard minimum 0.0005 BTC network transaction. Phemex does not actually charge its own withdrawals fees.
In terms of its spot trading markets, to benefit from its zero trading fees model, Phemex offers you a premium membership instead. Plans start at $9.99 for 30 days, $19.99 for 90 days, and $69.99 for 365 days. By becoming a premium member you also get access to conditional spot orders, hourly withdrawals with no limits, and the ability to gift premium trials to friends. The standard fee is 0.10% when you don’t have the membership.
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Phemex bonuses
Phemex has multiple bonuses to attract new customers. Every single new user receives a Premium Trial membership for 7 days.
Phemex has a special promotion for new and existing users until December 22, 2020. Based on your deposit you can receive an extra bonus of up to $ 700:
- Deposit 0.2 BTC and receive 100 USD.
- Deposit 0.5 BTC and receive 400 USD.
- Deposit 1 BTC and receive 500 USD.
- Deposit 1.5 BTC and receive 600 USD.
On top of that, a bonus totaling $ 100 is available by doing small tasks:
- Receive $80 for a deposit of 0.2 BTC or more.
- Receive $10 for a spot order greater than 500 USD
- Receive $10 for a BTC/USD trade of USD 5,000 or more
We will update our Phemex review when there are new bonuses or free Bitcoin deals.
Is Phemex safe?
This is perhaps the most important question of all, especially since you are trading with real money and the exchange is relatively new. You definitely want to know if they are able to keep your funds safe and if they have safeguards against hackers.
The answer is that they take their security very seriously (as they should). All assets are 100% stored on cold wallets. Each withdrawal is monitored thoroughly by the team and needs to be approved by 2 human offline signatures. Based on the advanced experience of the founders in Wall Street risk management, they are able to quickly detect any malicious actions and take rapid action to protect their users’ assets and the platform.
Another sign that Phemex is safe is that the core team consists of ex-managers and developers from Morgan Stanley. This shows confidence in the market. The CEO of Phemex, Jack Tao, worked for 11 years at Morgan Stanley as a VP specializing in developing algorithmic trading platforms. His experience on the field has helped Phemex develop into one of the most professional trading platforms available.
Whether this is enough to beat the competition remains up to you. Currently, Phemex already ranks higher on CoinMarketCap than Deribit, Kraken, and Bitfinex in terms of trading volume. They are a top 10 derivatives exchange.
Exclusive 700 USD Bonus for new Phemex users + Free Phemex Premium
Do you want to share your own Phemex review? Please leave your own experience below.
Contact details:
Phemex LLC
100 Tras Street,
#16-01 100AM
Singapore
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I like the potential for a high leverage strategy with intelligence for building wealth conservatively. Stop-loss is an example of wealth-building intelligence. I am willing to see just how smart the pre-intelligence tool-set is? It would be great to see profit from bitcoin volatility both ways.
Tell us what you think of Phemex.
What are the Phemex fees?
For contract trading a maker fee of 0.025% and a taker fee of 0.075% will be charged. For spot trading you can subscribe to a monthly membership model or they will charge a fee of 0.1%.
Which currencies can you trade?
For spot trading you can trade Bitcoin, Ethereum, Tron, Chainlink, Ripple, USDT, Tezos, Litecoin, Cardano, Tron, Ontology, Bitcoin Cash and NEO. Contract trading is only possible for BTC/USD.
How do I contact the Phemex support?
You can contact the support 24/7. This can be done via the live chat on the website or via support@phemex.com.
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