EMX is a cryptocurrency exchange that gives traders exposure to the global derivatives market. It was founded in 2017 by the name of EverMarkets, which evolved to EMX and was formally launched in 2019.
The platform supports futures contracts that encompass traditional equity indices, major fiat currency pairings, and tangible commodities like gold and oil. Therefore, EMX is one of the first institutional-grade cryptocurrency derivatives trading platform to bridge the gap with conventional derivatives. The company provides allows trades on equities, commodities, and digital assets without the need to convert them into fiat first.
One of the unique competitive advantages that EMX has over its rival exchanges is that it provides its users with the facility to purchase and sell derivative contacts using blockchain assets. Traditionally, this was done by engaging a traditional broker. However, the process was long, cumbersome, and expensive. EMX relieves traders from this tedious process by providing a convenient and easy-to-use online platform for this purpose.
Through EMX, traders can get access to real-world assets such as S&P500, gold, silver, euro, Nikkei and yuan, etc. It is the only exchange available today which offers futures or swaps on these assets and can be collateralized in Bitcoin.
The platform is relatively new and has a long way to go before it reaches its full potential. EMX claims to launch a full range of new products by the end of 2020. The company also has plans to legitimize their operations by obtaining a CFTC license. They are set to introduce their mobile application, new trade options, and altcoin collateral very soon.
EMX is a Fintech company, which has its headquarters in the San Francisco Bay Area. The company is founded by Jim Bai, who was the Vice President of Citi for six years and Craig Austin, who previously was an IT engineer at Microsoft. Their advisory team consisted of prominent and well-experienced members like Jerald David and Simon Kim, the CEO of Hashed. The entire team has more than two decades worth of experience in hedging funds and IT infrastructures.
EMX was first founded in 2017 by a South Korean firm called Hashed, which is a prominent name in the crypto industry and was responsible for Ethereum and EOS. The company is backed by leading names in the Blockchain industry like Bain Capital Ventures and BN capital of Shanghai. They provide major investments to the company as well as share their networking abilities.
EMX is a registered company in Bulgaria and is regulated by the Bulgarian authorities. It is currently in the process of obtaining licensing to be able to operate in the United States as well.
EMX provides a range of innovative features, making it a popular choice for crypto traders in the industry. One of the most differentiating factors for EMX is that it supports conventional derivatives like stocks, gold, silver, etc. as well as cryptocurrencies like Bitcoin and Ethereum. Overall, 15 derivatives contracts are offered by the platform, in which 9 of these are cryptocurrencies.
Moreover, EMX also provides a variety of order types for their trader’s benefit. There are several types of orders available, which include market orders, stop-loss, take-profit orders, and limit orders. There are additional options available for these order types as well. Users are given the ability to trade in Bitcoin, Gold, Tezos, S&P500 Index, Euro, and Dollar perpetual swaps as well as Bitcoin futures contracts.
The platform also has a proprietary marching engine, which supports the quick processing of order requests and transactions in the blockchain. Moreover, EMX has created its own proprietary solution for TradingView, which is used by several other exchanges to provide market and price data to their users.
EMX is one of the few exchanges that provide its users with a trading Testnet. This Testnet allows traders to test EMX’s trading features before they use their money to place actual orders. It is an excellent way for customers to get acquainted with the features of the platform before they start trading with their assets. Users are not even required to register to use this incredible feature.
Another great feature of EMX is that it allows trades with a leverage of up to 100x. However, this depends on the type of contract. The leverage specification for each contract may be different. For example, in the case of cryptocurrency derivatives, the maximum leverage is 50x, while for fiat currencies, it is 100x.
The platform has also launched its own utility token called EMX Token. These tokens are available for purchase on the open market in the exchange itself and offer a range of benefits to the token holders. They can be used as collateral on the exchange. EMX Tokens can also provide substantial discounts on trading fees. Users can lend these tokens to the EMX insurance fund, and 10% of the fund’s increase is paid to the token holders every two weeks.
Moreover, token holders are given the opportunity to earn more in trading competitions. They are provided with access to premium features available on the platform. These tokens only cost $0.15 and currently have a circulating supply of 120 million.
EMX also has this insurance fund to protect its users against unforeseen circumstances like bankruptcy or theft. This insurance fund helps traders receive the profits they have earned without any delays or uncertainty.
Moreover, the exchange has a lucrative affiliate program for its loyal users as well. On inviting new friends to the platform, users can earn a proportion of the fees paid by their referrals. The more their referrals make trades; the more money users can make. They can even make a 10% commission if their referrals further invite other people to the platform.
The platform has reasonably low trading fees than most of the other cryptocurrency exchanges available. It allows traditional contracts, which include commodities, currencies, and equities can be traded with no maker or taker fees.
The trading fee is only charged on cryptocurrency futures and perpetual swaps. This fee schedule is adjusted by a 30-day trading volume. At the extreme end of the scale, users who have a trading volume of less than $250,000 in 30 days are charged with a 0.05% taker fee on Crypto Futures Contracts and Perpetual swaps. On the contrary, users who have a trading volume of more than $20 million per month are charged with only 0.035% taker fee.
EMX offers a 0.025% rebate for all maker orders regardless of their trading volume.
For their inbuilt spot exchange, similar volume-based fees are charged. Users who trade less than $250,000 in 30 days are charged 0.1% taker fees on the spot exchange. However, users trading more than $20 million per month are only charged a 0.07% taker fee. Moreover, the market makers receive rebates of 0.025% on all trades.
EMX does not charge any fees on deposits or withdrawals made on the platform. However, a liquidation fee of 0.25% is charged. The platform also charges a funding rate, which is paid out every 8 hours. This rate can be either positive or negative and is displayed on each contract’s specification.
Moreover, users who hold EMX tokens are liable to receive up to 50% taker fee discounts. They can receive a reduction in derivatives trading fees, which becomes 0.03%. Similarly, spot market fees can be reduced to 0.025%.
Verification: Is KYC required?
EMX has a Know Your Customer (KYC) verification process in place to ensure the safety of its customers and their exchange. The process is very simple and can be completed quickly if the steps below are followed precisely. Users can only make deposits on their account and start trading only after they have passed the KYC verification.
- Go to your account settings. The security section will show a “Verify” button.
- Click on the “I am not a robot” option and continue.
- Select your country of residence. (Users from the USA and all other restricted countries will not be able to continue the verification process.)
- Choose an ID type. It can be a national ID card, driver’s license, or a passport. Please ensure that your ID document has a picture of you on it.
- Select how you want to upload your ID to the platform. Users have the option of directly uploading a picture of the ID document or they can use their device’s camera to capture one.
- Select “choose file” and upload the picture. The picture of the document should be of good quality with adequate lighting.
- Please ensure that all written information is visible clearly. If you are uploading your passport, then only the front side will be required, which contains your personal information. However, if you are providing your ID card, then you will have to provide photos of both the front and the back side of the card.
- You will then have to take a picture of yourself using the device’s camera. Make sure that the picture is clear.
- When all the documents and pictures are uploaded, click on “Confirm.”
- The process is now complete. Your KYC outcome will be displayed after submission.
- You will either receive a successful, pending, or a failed status after the process.
If users receive the failed status, it means that their documents are not according to the guidelines provided by the platform and need revision. Or it may mean that you do not meet some essential criteria to become a trader on the platform.
EMX ensures that any personal data collected by the platform is processed through an identity verification engine. The entire verification process has gone through strict compliance checks.
EMX supports users from all major countries worldwide. However, residents from some countries are prohibited from using the services of the platform. These barred countries are Iran, Sudan, Lebanon, Cuba, North Korea, Syria, Libya, Somalia, and the United States of America.
Deposits & Withdrawals
The platform provides a simple deposit and withdrawal process for its customers. However, EMX deposits can only be made in specific cryptocurrencies, which are: Bitcoin, Tether, Ethereum, TrueUSD, and EMX Token. The platform does not allow any fiat currency deposits up till now. Users should ensure that they make deposits in the allowed cryptocurrencies; otherwise, they might lose their funds.
EMX allows traders to deposit Bitcoin and/or Ethereum from external wallets or any third-party exchanges. The deposit process can be completed in the following steps:
- Select the Transfers option under account settings.
- Select the token that you want to deposit to your EMX wallet. A personalized Bitcoin or Ethereum deposit address will be provided with a QR code.
- Copy the deposit address and paste it in your external wallet to send the required funds to EMX.
The funds will be deposited after one confirmation for Bitcoins and twelve confirmations for Ethereum. The deposit times can fluctuate depending on the congestion of the network. EMX does not charge any deposit fee.
The withdrawal process is also similar. Users need to follow these steps:
- Select the Transfers option under account settings.
- Click on the “Withdraw” option. The security system of the website directs you back to log into your account again. You will have to make the withdrawal in 15 minutes.
- Enter a bitcoin or Ethereum address in the send to field and verify the withdrawal address.
- Type the amount you want to withdraw.
- Click on the “Withdraw Funds” button.
EMX processes withdrawal requests only once a day at 8 pm UTC after manual review.
The minimum withdrawal limit is 0.002 BTC or 0.01 ETH. No withdrawal fee is charged. Moreover, large withdrawal requests take additional time to be processed after going through security checks.
Account: Register & Login
The sign-up process on EMX is very simple. All you need to do is follow these steps to register on the platform:
- Go to the EMX website and click on the Sign-Up button.
- Type your email address. It is important to note that marketing emails sent by the platform to @qq.com email ids are rejected by the QQ server automatically, as it limits the incoming emails sent from specific IP addresses. Therefore, if users want to receive EMX’s marketing emails, they should use a different email address.
- Enter a password for your account.
- Press the Sign-Up button.
- You will receive a verification email at the registered email address. Users will have to access that email and copy the verification code provided. This one-time code has to be entered on the website. After the code is verified, your registration process will be completed.
The login process is also very simple.
- Enter your registered email address.
- Enter your password.
- Click on the login button. You will now be logged into your account and can access your profile to start trading.
Safety & Security
EMX has a robust security system in place. The company has employed Jumio NetVerify, which is an identity verification engine for verifying all documents submitted by their users. Moreover, their compliance checks are performed by ComplyAdvantage. These companies provide highly reputable services and ensure that all personal information of EMX’s customers is safeguarded.
After applying the KYC verification process, EMX offers its users a second security option, which is Google’s two-factor authentication program. Users are required to download this app that generates an authorization key needed to log into their account. This ensures that no one can access the account apart from the users.
EMX also employs a manual withdrawal system. All withdrawal requests are processed only once per day at a specific allocated time. This is done to minimize any exposure to the platform’s hot wallets. This one-time withdrawal process does not give hackers much time to begin an attack on the company’s funds. It simply prevents theft.
However, EMX does not employ any IP whitelisting, withdrawal address locks, or email confirmations. This makes the platform more vulnerable from the client’s side than some of its competitor exchanges.
EMX has not encountered any malicious attacks or hacking attempts till now. Moreover, the code for the exchange is built up from zero without any third-party software. It is a testament to the secure infrastructure of the platform.
EMX has a comprehensive help center, which serves as the first line of support for its customers. This help center consists of answers to the most frequently asked questions. Customer concerns are regularly reviewed, and updated answers are provided in the help center.
Traders who are looking for additional assistance from the EMX team can submit a request within the help center through an email form. It is the key point of contact amongst the users and the EMX customer support team. Users also have the option to contact the team at their email address firstname.lastname@example.org. Their team is prompt and has a response time of less than 24 hours.
EMX has also established contact with its customers through its Telegram community. All simple matters are quickly dealt with. The admins of the community respond to customer questions in just a few minutes. However, more complicated problems are sent to email support.
EMX has its profiles on social media platforms like Facebook, LinkedIn, and Twitter, which are mostly used to inform customers about product updates and company news. Customers can ask for help using these platforms as well. In some instances, the CEO of EMX can also be directly contacted through his LinkedIn profile.
There is no doubt that EMX is a unique and ambitious project. Only a few exchanges have tried to incorporate traditional and cryptocurrency markets together. The platform is relatively new and has a long way to go before it can reach its full potential. Like all other exchanges, there are some pros and cons of this exchange. Let’s take a look at them.
- The exchange offers a variety of traditional as well as cryptocurrency assets like stock, Bitcoin, precious metals, and Forex. They all can be collateralized in Bitcoin.
- The platform provides live and updated costs for market orders.
- Their affiliate program allows users to earn up to 35% commission on their referral’s trades.
- The platform has an excellent user interface, which is easy to navigate through. All tools and indicators are available on their site.
- It provides a 0.3% maker rebate, which is one of the highest in the industry.
- Their liquidity is on the lower end. It is below $100 million per day, which is lower than some other exchanges.
- The EMX token is not yet registered on the EDGAR database.
- They are not yet regulated to operate in the USA.
EMX has paved the way for innovation in the infant cryptocurrency industry, which is more than welcomed by all traders and crypto enthusiasts. Allowing traders to use cryptocurrency collateral for their trades is a breakthrough for the industry. However, EMX needs to make many improvements if they want to be one of the leading exchanges in the crypto world. Their products need to be upgraded. For example, the EMX token should be registered on the S.E.C database as well.
Moreover, the team has not been able to secure a CFTF license. This is essential if the exchange wants to operate in the US and establish a global presence.
There is also room for improvement in their proprietary charts for market indicators. Traders prefer the interface of TradingView, and EMX should consider improving their own trading charts and removing any bugs that it has.
Despite these minor issues, EMX has a strong team that is working on improving the current features and adding new features to the platform. The company should improve its liquidity status and fee pricing structure in order to give fierce competition to all other exchanges in the market.