Phemex Exchange Review
Phemex.com Review: How to Exchange, Fees, Deposit, Pros, and Cons
Phemex is a Singapore-based cryptocurrency exchange and derivative platform. The platform is currently one of the most reputable and trusted exchange websites. According to information on the website, the Phemex team is led by former Morgan Stanley members. Jack, the CEO, is a global development leader with a track record of building algorithmic trading platforms.
Phemex.com was launched in 2019, and it has grown to become one of the most reputable bitcoin futures trading platforms today. The platform has received an incredible number of support from fans all over the world. In fact, Phemex attained its first thousand users on the day of the first launch. Furthermore, statistics on SimilarWeb show that more than 1.6 million people visit Phemex.com monthly.
Following the results of the April 2022 Digital Assets Research, Phemex is now among 14 exchanges, including Binance, considered Watchlist Exchanges and is poised for potential future inclusion on the Vetted Exchanges list. Its inclusion on this list is testimony to the website's credibility, trust, and user-centric approach.
Pro-features on Phemex.com
Phemex's sub-account feature allows traders to own another Phemex within the original account. Like we said earlier, this website is user-centered, and this feature proves that they want users to enjoy the same functionality they enjoy with modern applications. This feature is unique in the crypto world, and the advantage is that a user has the opportunity to hold long and short positions. Since each account has a separate balance, a user can use one account to test a new strategy without the risk of losing all their assets at once.
Phemex offers a trading fee similar to its competitors and the industry standard. That is, maker-taker fees of 0.025% and 0.075%.
100x Leverage trading
If you are familiar with leverage trading on websites like Binance, you may be happy to learn that Phemex offers 100X leverage trading across seven trading pairs which can be traded on a margin. Leverage trading pairs on Phemex include:
- BTC / USD
- XRP / USD
- ETH / USD
- LINK / USD
- GOLD / USD
- XTZ / USD
- LTC / USD
If you are not familiar with leverage trading, here is what it means on Phemex
What does 100x leverage trading mean on Phemex?
Leveraged trading is when you use borrowed capital (like FIAT or crypto) to trade financial assets and cryptocurrencies on an exchange platform. Phemex is one of the many cryptocurrency trading sites that allow this type of trading.
You may be wondering if trading with borrowed assets is a good idea. The answer is that it depends. When a leveraged trader works, the trader can make up to 100X of their capital. And if it fails, they may lose all the invested assets. So people who enjoy leverage trading on Phemex or other exchange sites know the risk. Ultimately, risk management is key- and this applies to every aspect of cryptocurrency trading.
Phemex Negative Balance Protection
How cool is it to know that you can never incur a loss that is more than your initial deposit? You deposit $100 on the spot, you cannot lose more than $100, but you can earn more. That is how the Negative Balance protection feature on Phemex works. Phemex uses this feature to protect your account from taking more losses.
What's great about this feature is that it takes action automatically without your intervention. How it works is that the feature is activated when you are over-leverages; it scans your account and closes or liquidates all open trades, starting with the trades with the highest drawdowns. This way, Phemex creates more margins for active trades.
Over leveraging, margin requirements, and negative balance protection are all critical concepts to understand early in your trading career because misusing any of these tools can result in massive losses. Be sure to check Phemex guides or other sources to master these tools.
While it is most enjoyable on desktop, you can also access Phemex.com on mobile. On the mobile interface, you can open or close trades, track and tweak an opened trade as you from anywhere with your mobile phone.
Like the desktop app, Phemex's mobile platform is available on any type of device. In addition, the platform is safe, secure, and highly responsive.
Optional KYC verification
To start trading on Phemex, you do not need to do any Know Your Customer (KYC) process. This process usually requires submitting certain data and information about yourself to the website. Crypto users are often skeptical about this process because of scams. Phemex makes registration so easy by making the KYC process optional. You can choose to complete the KYC process to unlock more bonuses.
Data and asset security
Whether you are trading on desktop or mobile, the Phemex website is safe and secure. For one, the site is SSL encrypted, so your data cannot be exposed to or stolen by third-party sites. The website has never come under a hacker's attack, so that's another positive.
Aside from that, you'd also like to know that the Phemex team is among the industry leaders in the crypto world. They have a combined 40 years of experience building digital assets.
Lastly, Phemex stores its cloud data and is hosted on Amazon Web Services, which is probably the best cloud and hosting service on the market. This is fortified further with a two-factor authentication system, a cold wallet system, and PCI scanning technology.
Phemex traders have access to a lot of helpful resources on the website. If you scroll to the end of the website, you will see a support section where various means of getting help are listed. If you click "help center," you will be directed to a section with a myriad of articles and user guides. This page also features the official emails.
The interesting part is that Phemex has separate emails for different types of complaints, unlike most crypto sites that generally use one email. One Phemex, you get a separate email for support, product feedback, Reporting issues, bugs, and complaints.
Other subsections to get help on the platform include the learn & earn section, the crypto blog, fees & conditions, API Documentation, and Contract References.
The Phemex Academy is like a University of crypto. You may think it's dedicated to learning how Phemex works alone, No. Phemex academy covers everything crypto. In the Academy, you can learn about new and existing cryptocurrency projects, technical analysis of trading, Defi products, the metaverse, and lots more. So even if you're not a trader, you can visit Phemex Academy to learn about crypto generally.
Phemex Bonus system explained
If you have been trading on other crypto websites, you may be wondering how the bonus system on Phemex works and how it is different from other crypto sites. Here is an explanation.
Most of the bonus packages on Phemex are exclusively reserved for new users. The package is one of the highest bonus systems we've seen among crypto sites. This bonus is given to new or existing users who complete certain tasks on the website.
Account Opening Bonus
When you open your first Phemex today, you will get a $20 bonus. After the signup process, the bonus is sent to your trading balance. You will have access to the bonus instantly, and you can start trading with it on Phemex.
First Deposit Bonus
To qualify for this bonus, you should deposit at least 0.003 BTC or 0.04 ETH in your Phemex trading account. The system will automatically credit you an additional bonus of $20, which you can use to trade.
Social Media Mention Bonus
If you get so excited about the account opening and first deposit bonus, you can give Phemex a shout-out on Twitter or Facebook. In return, they will give you an additional $10 bonus. This is way better than the typical referral system, where you may never get anything if your referee does not spend money on the website.
For spot trading, you will be rewarded with a $10 bonus when you place a single spot order bearing a value of 500 USDT or more. For contact trading, you will get $10 in return when you make a single trade on BTC/USD-BTC Margin contracts with a value of $5,000 or more.
How to signup on Phemex
Follow the steps below to signup on Phemex:
- Go to Phemex.com on your browser or mobile
- Click "Register Now" on the top right corner
- You can also input your email address into the address bar on the homepage
- Enter your email address and set a password
- Check your email for a verification code
- Copy the code and input it into the page
- Complete the short onboarding process
- Select "I have crypto" if you only want to trade on the website
- Select the options under "I want to buy crypto" to buy cryptocurrency with a credit card or bank transfer
From there, the system will redirect you to a page where you can complete the process. You're officially a Phemex user.
How to login to Phemex
The login process for Phemex is straightforward. Follow this login procedure:
- Visit Phemex.com
- Click "Login" and enter your registered email address
- Input the OTP code sent to your email address
You want to set up the 2FA security on the website to protect your account. Here is how
- Go to account settings
- Click on "Security" on the left nav-bar
- Go to Google Authenticator and click "bind"
- Complete three processes to bind
- Download google authenticator or open it if you already have it
- Scan or type the authentication code into the app
- Input the 6-digit verification code generated.
That's it; you have just added another layer of security to your account. Each time you attempt a login, you will need to provide an authentication code.
Cons of Phemex.com
Phemex has everything you need to trade and make money with crypto, but you may be concerned about the following issues:
Not available in the US and other countries
Phemex is not registered in the USA. Also, Americans are prohibited from trading on this platform. Other restricted countries are:
- Quebec (Canada)
- North Korea
No fiat trading
Unlike some of its competitors, Phemex gives no room for trading in any fiat currency. All trades are made and settled in BTC.
How to make a BTC deposit on Phemex
You need to deposit BTC to open trades on Phemex; here is how:
- Log in to Phemex.com
- Look to the top right corner of the page and click "Assets"
- On the left side of the menu, click "Deposit"
- Select BTC from the drop-down menu and press "Continue"
- Copy the BTC wallet address on the screen or scan the QR code in your personal BTC wallet
- Input the number of BTC you wish to deposit and complete the transaction
The BTC will be transferred to your account immediately.
Trading Gold/USD On Phemex
Phemex is one of the few cryptocurrency trading sites that allows users to trade commodities like gold. The platform started the GOLD/USD pair on the 30th of March 2020 and is now one of the trusted places for such trades.
The GOLD/USD pair in Phemex is offered at a maximum of 100x leverage. Smart traders buy into this margin when the cryptocurrency market is experiencing high volatility and price increases.
Using Phemex on desktop
The desktop browser mode allows you to perform more actions than the mobile option. Aside from the prohibited countries, you can access Phemex globally without using a VPN.
You will appreciate using Phemex's technical analysis tool and indicators, among other things. On the platform, this makes forecasting and technical analysis a breeze. Custom-built indicators can also simply be created and imported into the platform.
Here are some other features you will enjoy on the desktop version:
- Price alert
- Conditional orders
- Limit orders
- Manage open and running orders from one access panel.
- Export trading history
Who owns Phemex?
Does my crypto bonus expire?
No, the crypto bonus does not expire. You cannot withdraw the bonus directly. What you should do is open trading positions with the bonus and withdraw the profit.
How can I deposit on Phemex?
There are slightly different procedures to deposit different crypto on Phemex. Read this guide on the website to learn more.
Is Phemex Exchange Regulated?
At the moment, Phemex is not regulated. The company anticipates regulation via the Monetary Authority of Singapore (MAS) and SEBA for custody of customer assets.
Why did Phemex block US traders?
The decision to restrict US traders from Phemex is taken because the US authorities do not approve of crypto derivatives exchange websites like Phemex.
Is Phemex Legit?
Every indication shows that Phemex is a legitimate trading and exchange platform. It was founded by eight former Morgan Stanley executives with a combined 40+ years of experience in offering very stable HFT (high-frequency technology). With the prospects of being listed on the vetted exchange list, users can expect more excitement with Phemex.
Are Phemex fees higher than other platforms?
When it comes to fees, Phemex is well within the spectrum of its competitors. You can sign-up for the premium membership to trade without fees.
What currency does Phemex support?
Phemex supports Bitcoin, Ethereum, Ripple, and LINK that can be traded against the USDT – Tether.