BitMEX is a cryptocurrency derivatives exchange founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. The name stands for Bitcoin Mercantile Exchange. It offers trading of futures contracts and perpetual swaps for various cryptocurrencies. BitMEX gained popularity for its high leverage options and user-friendly platform. However, it faced regulatory challenges and controversies over the years.
BitMex is a popular cryptocurrency derivatives exchange that offers several benefits for traders. Compared to its direct competitors, it boasts certain features that set it apart.
One of the key benefits of using BitMex is its high leverage options. Traders can access up to 100x leverage on certain contracts, allowing them to amplify their profits. This feature surpasses what some of its competitors currently offer.
Another advantage is the wide range of cryptocurrency derivative contracts available on the platform. BitMex supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and more. Traders have the ability to trade futures contracts, perpetual swaps, and options on these cryptocurrencies, providing them with diverse investment opportunities.
BitMex also has a user-friendly trading interface that is designed to cater to both experienced and novice traders. The platform offers advanced trading features such as stop-loss orders, take-profit orders, and trailing stops. Additionally, it provides real-time market data, order book depth, and other tools to assist traders in making informed decisions.
In terms of security, BitMex has implemented robust measures to protect its users' funds. These include multi-signature wallets, offline cold storage, and advanced encryption protocols. The platform has a solid reputation for maintaining the security and integrity of its users' assets.
While BitMex offers these advantages, it's important to note that there are other reputable cryptocurrency derivatives exchanges such as Binance Futures, Bybit, and FTX. Traders should carefully evaluate their requirements and compare the features and fees offered by each platform to determine which one best suits their needs.
BitMEX is a cryptocurrency derivatives exchange that allows users to trade various digital assets with high leverage. The platform offers futures contracts and perpetual swaps, allowing traders to profit from both rising and falling markets. Behind the scenes, BitMEX utilizes a combination of cutting-edge technologies to power its operations.
BitMEX does not operate on a specific blockchain. However, it primarily relies on the Bitcoin blockchain to handle its transactions. Users can deposit Bitcoin into their BitMEX wallet to start trading.
The platform's functioning revolves around a couple of key features. Firstly, it offers margin trading, which means users can trade with more capital than they actually possess. This amplifies both potential profits and losses. Secondly, BitMEX offers a unique product called perpetual swaps, which are similar to futures contracts but without an expiry date. These swaps provide continuous trading opportunities and avoid the need for rolling contracts.
To ensure fairness and accuracy, BitMEX utilizes a sophisticated trading engine capable of handling a high volume of transactions in real-time. They use a self-developed matching algorithm that takes into account factors such as price, quantity, and time priority when executing trades.
It's worth noting that BitMEX has faced regulatory challenges and controversy in the past, but it remains a popular platform for experienced traders looking to engage in leveraged cryptocurrency trading.
Overall, BitMEX operates using the Bitcoin blockchain as the backbone for its transactions and employs margin trading, perpetual swaps, and a robust matching algorithm to provide a comprehensive trading experience for its users.
DIA adopts a comprehensive approach to sourcing trade data from various types of exchanges in the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems. The specific process employed by DIA depends on the type of exchange being considered.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scrapers that directly collect trades from the exchange databases. This is done using Rest APIs or WebSocket APIs. The frequency of data collection varies depending on the exchange, ranging from 1 to 7 seconds. By retrieving the data as close to the source as possible, DIA ensures high precision and up-to-date information.
In the case of decentralized exchanges, DIA takes a different approach. It collects data from the underlying blockchains by subscribing to swap events in liquidity pools. This allows DIA to retrieve trading data directly from the blockchain itself, ensuring enhanced accuracy and transparency. Popular decentralized exchange sources for DIA include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data from integrated marketplaces' smart contracts. The retrieval period for this data ranges from 20 seconds to 1 minute, covering real-time NFT transactions on the platforms. By obtaining data directly from the NFT marketplaces' smart contracts, DIA ensures precision and eliminates the reliance on potentially unreliable bids and offers. Integrated NFT exchanges for DIA include Blur, X2Y2, OpenSea, and TofuNFT.
This comprehensive data management strategy employed by DIA enables them to provide highly accurate and customizable price feeds for traders, investors, and other participants in the blockchain ecosystem.
DIA uses a two-step process to build price oracles using BitMex trade data, depending on whether we are referring to a DeFi or NFT exchange.
For DeFi exchanges, the first step is data cleaning and outlier detection. This ensures that the price estimation process is resilient against trades with prices significantly different from the current market price. Outliers can occur due to market manipulation, errors, or flash crashes. DIA applies an Interquartile Range (IR) filter to analyze and sort trades by price, excluding any trades that fall outside an acceptable range relative to the interquartile range. This helps remove outliers and ensures that only trades within the "middle" quartiles are used for further processing.
The second step involves applying price determination methodologies. DIA uses different filters to retrieve a single USD price value for each asset. One example is the Volume Weighted Average Price (VWAP), which takes into account the different volumes of trades. Another example is the Moving Average with Interquartile Range Filter (MAIR), which creates blocks of trades ordered by timestamp and calculates a weighted average price for each block.
On the other hand, for NFT exchanges, the process is different. DIA determines the floor price of an NFT collection by processing the on-chain trade data in two steps. Firstly, the data is passed through cleansing filters to exclude outliers and manipulation techniques. Secondly, a pricing methodology is applied to determine the final price point.
DIA offers various pricing methodologies for NFT collections. The simplest methodology is the Floor Price, which provides the lowest sale price recorded on the blockchain during a given time window. However, this methodology can be manipulated by malicious market actors. To address this, DIA offers advanced methodologies such as the Moving Average of Floor Price, which calculates the moving average of a collection's floor price. Additional filters, such as the interquartile range outlier detection filter, are also applied to filter out malicious behavior.
DIA is open to discussing custom filters and methodologies for specific use cases beyond the implemented techniques.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.