Phemex is a Bitcoin, futures, and options exchange featuring advanced trading features such as 100x account leverage. One of the primary aims of the exchange is to bring professional banking level service and quality to cryptocurrency exchanges. The founding team comprises of Ex-Morgan Stanley banking executives who decades worth of experience in algorithm trading and exchange design. They aim to bring higher efficiency order matching and account security to the Phemex exchange. Phemex also boasts to be the fastest cryptocurrency derivatives exchange, with a custom-built order matching engine that minimizes downtime and overload. This is important to protect users and trades, as exchanges can experience downtimes and “overload” during volatile periods.
Settlement Currencies
Phemex has two different types of settlement currencies. For the BTC/USD trading pair, the contract is settled via BTC. This means that Bitcoin is the underlying asset that is tracked by the exchange. To trade with this pair, the account needs to be funded with Bitcoin in the BTC wallet.
Other trading pairs such as ETH/USD and LINK/USD are settled via USD. For these pairs to be traded, the account must be funded in USD.
Exchange Trade Reliability
In our tests, we found that orders were executed with high speed and efficiency. We can definitely feel a very low delay between order submission and execution. Something important to note is that cryptocurrency prices fluctuate very quickly, so it is common for limit orders placed outside of the spread price to not be immediately filled. We tested with array of market and limit orders and found the exchange to have a very response latency.
Currently Phemex has a push notification to notify trader once an exchange has been filled. To see all the notifications, it is important to allow browser notifications from Phemex.com.
As Phemex is a relatively new exchange, we are holding off from giving high ratings for Phemex exchange until it can be “battle tested” during voilatile periods in crypto.
Phemex Premium User
Phemex offers a robust spot exchange for easy buying of Bitcoin, Ethereum and other cryptocurrencies. What’s special about Phemex is that the exchange offers free trades for users who purchase a monthly premium pass. This is the first in the cryptocurrency exchange space, as many other exchanges charge 0.075% for each trade – a fee which can really add up.
Exchange Wallet and Assets
Phemex has two distinct wallets to store BTC and USD account balances. BTC can be directly deposited into the BTC wallet via on-chain transactions to fund the account. Phemex currently has a generous bonus $75 USD trading offer for new accounts that fund the account with at least 0.2 BTC.
The reason why there are two different accounts on Phemex it is needed for different trading pairs. The BTC/USD trading pair is settled in BTC, so it can only be traded with Bitcoin Balance in the BTC Trade account. The reverse is true for all the other trading pairs such as LINK/USD which is traded via USD trade account balance.
Luckily, it is possible to exchange account balance between the BTC and USD accounts via the “Fund Account” option on the exchange. This will allow the direct conversion of BTC balance to USD balance (and vice versa).
Simulated Trading
Phemex has a helpful simulated trading feature for new users. This allows users to get familiar with the system and interface without spending any money. Users will be able to trade with simulated funds on the exact same interface as regular phemex. This means they can test their trading strategies without the fear of losing any money. In addition, users can also test out advanced features such as limit orders or conditional orders.
Exchange Security
Phemex has a state of the art security system to safeguard client funds. They have a cold wallet storage which is offline and impenetrable to hackers. This is currently the industry standard to safeguard user funds from online hacker attacks and unauthorized withdraws. User accounts are protected by 2FA using Google Authenticatior for additional account security.
Team
Phemex has an international team comprised of Ex-Morgan Stanley executives. CEO Jack Tao has worked as a VP and Software Engineer at Morgan Stanley for 12 years with experience in Equity algorithm trading and BSX. This knowledge and experience is crucial in the cryptocurrency exchange trading space as exchanges need to be both responsive and robust.
References
Boxmining – Phemex Exchange Review