Phemex Review - A platform founded by former Morgan Stanley managers

Phemex is one of the newer Bitcoin derivatives exchanges. It appears to be one of the most trusted and hassle-free platforms. Phemex was founded when its founders noticed a lack of professional etiquette, credibility and customer support in the cryptocurrency business. The platform seeks to mass-market derivatives traders at the institutional level.

Phemex's mission is to ensure that all, and not just, experienced traders trade efficiently without running any risk of confusion. They continue with the vision of becoming the best cryptocurrency platform available on the market, while offering quality investment advice.

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Basic information

Phemex reviews

Phemex allows users from all over the world to trade digital currencies through a medium that is secure and not too complicated to navigate. Phemex's efficiency is relatively high, as it is currently ranked as the 6th largest stock exchange by daily trading volume. It is possible to trade various trading strategies safely here.

Phemex is a cryptocurrency trading platform founded by eight former Morgan Stanley executives and aims to provide its customers with a seamless and secure space for crypto domain trading. The advantages of the platform include:

• One of the best things about Phemex is that it is extremely user-friendly and even a non-specialist should have no problem browsing the web and starting a business.
• Another useful feature of Phemex is that you do not need a completed KYC to start using the platform.
• Phemex also offers a spot exchange without any fees. Users have loved this feature of the site.
• The site offers a demo Phemex account, so users can trade without any associated risk.
• Derivatives exchanges are traded with up to 100-fold leverage and settlement in BTC or USDT.
• There is a Phemex mobile app that allows you to use it anytime, anywhere.
• Phemex offers its new users a relatively generous welcome program. People who open a Phemex account can expect to receive a lot of bonuses and resources to get started on the platform.
• The user has the option to receive up to 25 percent interest on the USD deposit to a fixed or flexible savings account.
• Another advantage of Phemex is that its customer service team runs 24/7 and ensures user satisfaction every time.

Former Morgan Stanley executives launched their product on November 25, 2019 in Singapore. From the date of its launch Phemex has seen tremendous amounts of support, growth and sponsorship from cryptocurrency traders around the world, with thousands of users signing up for the platform since day one.

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The company attributes the reason for this massive success and continued growth to its user approach to doing business and operating its cryptocurrency trading platform. The company also announced in its latest report to shareholders that it will continue to invest in the aggressive expansion and growth of the trading platform.

Phemex welcome bonuses

Phemex offers new users one of the highest bonuses for performing various tasks on the platform.

1. First deposit: Phemex users will receive a bonus for their first deposit. If you deposit at least 0.003 BTC or 0.04 ETH for the first time, you will receive a $ 10 bonus.
2. WITHocial media: As part of its growth plan, Phemex is offering users a $ 10 bonus for following the company on Twitter and for retweet on your account.
3. Advanced bonus: the maximum bonus that can be obtained from this task is 60 $ and at least 0.2 BTC or equivalent in other cryptocurrencies would be required for eligibility.

In addition, Phemex also offers you a $ 10 spot trading bonus of $ 500 per order and a $ 10 bonus per transaction. on margins BTCUSD-BTC contracts worth $ 5,000 or more. In total, you can earn up to $ 100 in bonuses.

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Phemex fees

As mentioned above, when it comes to spot trading, Phemex has adopted a zero trading fee model. Instead, they only charge a monthly premium membership (prices are $ 9.99 for 30 days, $ 19.99 for 90 days, and $ 69.99 for 365 days). Becoming a Premium Member will also allow you to set up conditional instant orders, enjoy unlimited hourly withdrawals, and give your friends a trial premium membership.

In terms of contract trading, Phemex distinguishes between "takers" and "makers". Let's describe these concepts quickly. Each trade takes place between two parties: the maker - the maker whose order exists in the order book before the trade, and the recipient - the taker, who places the order. We call creators "creators" because their orders create liquidity in the market. Beneficiaries are those who "take" this liquidity by combining the creators' orders with their own.

At Phemex, recipients are charged 0.075 % per order. This is an average fee. Sure, there are exchanges that offer even lower fees for trading contracts, but there are also many exchanges that charge much higher fees.

As for the creators, their fee is -0.025 %. This basically means that every macro gets paid for trading. To be precise, let's say you're the creator of the order where you buy a $ 1,000 derivative contract. This means that instead of $ 1,000, you only have to pay $ 997.50. This is really very competitive.

Fees for using the trading shoe are 0.1% platform. There are no deposit and withdrawal fees when transferring funds from one sub-account to another.

Deposits are free and Phemex does not charge any of its own fees when withdrawing cryptocurrencies from your platform account. So the only fee you have to think about when choosing is network fees. Network fees are fees paid to the miners of the relevant crypto / blockchain, not fees paid to the stock exchange itself.

Phemex tutorial

The Phemex trading platform was created with simplicity in mind and can be used by both beginners and experienced traders.

Registration

The registration process at Phemex is relatively easy.

• The first step in the Phemex registration process is to go to the official website of the trading platform.
• Once you are on the site, you must enter your email along with a strong enough password that you will also remember.
• Once you're done providing this information, you'll need to confirm that the email you provided is valid. You will be able to do so by clicking on the specific link provided by Phemex in your inbox.
• Make sure the email you enter is active and secure, as all information related to your Phemex accounts, such as OTP codes, various relevant alerts and security updates, along with 2FA authentication, will only be sent to your email .

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Login

Now that you have registered with Phemex, you will need to log in to your account to begin your cryptocurrency trading journey. The login process is easy and secure. The site uses 2FA authentication along with OTP and other relevant measures to make sure that your account is not attacked by hackers.

• As a first step, you need to visit the Phemex website.
• Once you are on the homepage of the site, you must click on the "Log in" button.
• After clicking the login, you will be prompted to enter the email and password you used to register on the site.
• You will then be asked to enter a one-time password that has been sent to your inbox.
• You'll need to go to your inbox, copy the OTPs, and paste them into the appropriate fields on the site to complete the sign-in process.

Phemex subaccounts

Phemex is also one of the few cryptocurrency trading platforms that offers users the ability to create and manage multiple sub-accounts on their trading platform.

These sub-accounts come with very important features that can help traders better manage their trading accounts, test more strategies, separate their trading funds and generally achieve better market results.

These sub-accounts also give merchants the ability to fine-tune the business environment of individual accounts. In this way, traders can change the permissions, leverage, balances and margin levels of individual accounts to better suit the strategy they are trading on without affecting other accounts.

• As a first step, you must go to Phemex.com/sub-accounts.
• Once you're on that website, you'll be able to create or delete or switch between the different sub-accounts you have. If you have only one sub-account, you will be able to manage it in the same way.

Another way to get to the subaccounts page is:

• Log in to your Phemex account first.
• Once logged in, you must click on your profile icon in the upper right corner of the page and click on 'Sub-accounts'.

Spot trading

Unlike contract trading, where you speculate and bet on the price of any particular cryptocurrency or asset without having to hold the asset itself, spot trading is the direct purchase and sale of those cryptocurrencies.

Something remarkable about Phemex spot trading services is that they offer a zero-charge model. On most exchanges, when you buy or sell a cryptocurrency, you must pay a fee, which is normally between 0.10 - 0.25 %.

On the Spot tab, you will also find a tool that allows you to instantly convert your Cryptocurrencies to USD, USDT, ETH and vice versa. It also provides you with real-time conversion bids. Unfortunately, it does not support all listed cryptocurrencies.

Leverage trading

Phemex allows you to trade leverage in its crypto derivatives. This means that you can gain more exposure to a certain increase or decrease in the price of cryptocurrency without actually holding the required amount of assets. You achieve this by "leveraging" your store. Simply put, it means that you will borrow from the stock exchange to bet more. You can get up to 100x leverage on this platform.

However, leverage transactions are risky. For example, let's say you have $ 100 in your trading account and you've bet that amount on a BTC long. If BTC increased by 10 %, you would earn $ 10. If you use 100x leverage, your starting position of $ 100 becomes $ 10,000, so you earn another $ 1,000 instead ($ 990 more than if you didn't use your trade). However, the more leverage you use, the shorter the distance to your liquidation price. This means that if the price of BTC moves in the opposite direction (for this example it goes down), then it is enough for it to drop by only a very small percentage to lose the entire $ 100 you started. In general, the higher the leverage you use, the smaller the reverse price movement must be for you to lose your investment.

Margin requirement

Phemex offers a standard margin requirement for opening and maintaining stores.

• For BTC / USD and GOLD / USD: Opening new stores on these pairs requires an initial margin of 1 % +. You need a maintenance margin of 0.5 % + to keep the position open.
• For ETH / USD, XRP / USD, LINK / USD, XTZ / USD, LTC / USD: To open a trade, you need an initial margin of 5 % + and a maintenance margin of 1 % + to keep the trade open.

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Risk management

Phemex offers users a range of tools to protect their business accounts and manage risk. It includes:

1. Sub-account isolation: This feature allows you to set different margin requirements, leverage and isolated trading balance on your various sub-accounts. In this way, trades in one account do not affect the leverage, balance or margin available for trading in another account.
2.  Stop-loss and Take profits: This feature allows you to reduce your risk by setting a predetermined exit point for your trades, whether profit or loss. This tool is very important for traders who do not want to sit actively and monitor their open positions throughout the day.
3. Trailing Stops: This feature takes the stop-loss tool to a new level by allowing you to set a predefined number of pips.

Phemex negative balance protection

Negative balance protection is an important risk management function that Phemex uses to protect its clients from accumulating losses that exceed their initial deposit. This feature is automatically implemented in your account when you are over-indebted, have a massive drawdown and have no margin available to maintain your open positions.

With this feature, Phemex will automatically begin closing and liquidating your open trades, starting with the highest draw, to free up margin for the rest of your open position and continue.

Understanding the concept of excessive leverage, margin requirement and negative balance protection is very important on your business journey.

Phemex earn crypto

Phemex offers additional solutions that allow consumers to use their cryptocurrencies and digital assets. Investors can make money on their cryptocurrencies with a fixed and flexible Saving Asset Management product. Earn Crypto users can deposit and withdraw their cryptocurrencies and digital assets at one-day intervals without being penalized. Users can earn up to 25 % Annual Percentage Yield (APY) from their resources as long as they remain on the platform.

Learn & Earn

Another way to make money is Learn & Earn. Learn & Earn is a Phemex training program that simply compensates you for learning new knowledge about cryptocurrencies, blockchains and platforms.

The program is divided into several basic courses, each of which has its own set of sub-lessons. Lessons include introductory passages and videos. Once you've read the content or watched the short video, you can take a quiz and test your new knowledge. If you answer all the questions correctly, you will be rewarded!

The first set of courses focuses on how to use the features of the Phemex platform, along with some basic knowledge of cryptocurrencies.

Mobile application

This platform is not only available for desktops. Most merchants in the cryptoworld today conduct their trades via a computer (about 70 % or so). However, there are naturally people who want to do the same from their smartphone. Their own mobile business application is cutting-edge in terms of security, speed and stability. This app is available for free to Android users as well as iOS phones in the Google Play Store and iPhone App Store.

The mobile business application comes with a lot of built-in tools and features, which makes it very easy and efficient to use for your business activities on the go. These features include:

• Very clean and easy to use trading interface suitable for beginners and experienced traders.
• Mobile version of Trading view charts for price analysis and decision making.
• Indicators and drawing tools for your technical analysis.
• Availability of multiple time frames, making the application suitable for both scalpers and long-term traders.
• Availability of advanced order types, limit orders and purchase orders.

Using the application, traders can place new orders, close running positions, monitor and edit their running trades, and complete other forms of transactions on the Phemex platform on the go.

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Deposits and withdrawals

Phemex Wallet allows its users to withdraw and deposit with credit cards and BTC, USDT and ETH. There is also a certain minimum withdrawal limit, set at 0.002 BTC.

Users can put cryptocurrencies in their wallets and work their way up from there. Users can also swap BTC to their trading account in USD at a real time rate to trade contracts settled in USD.

Phemex also works with Banxa, Koinal, Coinify, MoonPay and Mercuryo processors, so You have different payment options (from bank transfers to Apple Pay) and rates to suit your needs.

Choices are a breeze for customers. All the user has to do is enter the address of their wallet, the number of cryptocurrencies they want to select, and then complete the transaction using the common 2FA functions. Unfortunately, unlike other exchanges such as Coinbase, there seems to be no way to add bitcoin addresses to the white list. This could be seen as a security flaw.

Safety

The team behind the platform has already proven itself in the business world and has more than 40 years of experience in providing high-frequency technology. As they often point out, they are led by eight former Morgan Stanley executives, which gives the platform a high level of credibility.

The platform uses the HD Cold Wallet System to secure funding. All funds are regularly sent to one wallet with many signatures via an offline signature. Phemex does not have its own hosting service, but uses Amazon Web Service (AWS) Cloud, an industry leader in cloud services and security. Business zones are separated from the internal network by a layer of firewalls. The platform is also secured with SSL technology and uses PCI scanning.

The contract trading platform consists of two main elements: CrossEngine and TradingEngine, which combine customer orders based on time priority and price.

Consumers will not experience any unexpected system outages. This is due to its recovery technology, which provides customers with 99,99% availability.

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Phemex customer support

Their help center is surprisingly well managed, with a number of helpful articles, frequently asked questions, tutorials, and recent blog posts. You can find most of the answers about the platform here. The support team is available via email, live chat and the Telegram community. The CEO is also available on Telegram and Twitter, but on most exchanges this is a nice marketing ploy, nothing more. Unfortunately, the company does not offer any direct telephone support.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.