Phemex is a new exchange for trading cryptocurrencies and derivatives. It is built with a user-focused approach and claims to reduce the barriers to entry in the cryptocurrency derivatives trading market.
|Fees||-0.025% – 0.075%|
|Coins||Bitcoin, Ethereum, XRP, Chainlink|
The platform has powerful features, which ensure that all traders and crypto enthusiasts, whether novice or experienced, have the opportunity to engage in cryptocurrency marginal trading in a secure environment.
The platform was created by taking into account the high volatility of the cryptocurrency market. Currently, there are several cryptocurrency exchanges available in the market. However, most of them suffer from the problem of inadequately low TPS. They are unable to trade high volumes efficiently and book desirable profits for the traders.
As a result, the team behind Phemex has ensured that the platform is able to fulfil these inefficiencies. The platform has been equipped with state-of-the-art features and claims to be ten times faster than its competitor exchange platforms. It offers a TPS that is unmatched by other platforms and has introduced a variety of unique features to make the trading process more convenient for its users.
Phemex was launched in 2019 and is registered in Singapore. The founder of the company is Jack Tao, who previously used to work in Morgan Stanley. The platform is owned by the company Phemex Financial Pte. Ltd.
The name Phemex refers to the Greek goddess of fame and good fortune “Pheme.” Its core team consists of former Wall Street executives with vast experience in the Fintech industry and in providing other financial services. The company has partnered with more than 35 technical teams based in South Korea, the USA, China, Singapore, and Japan.
The company’s mission is to use blockchain technology to bring accessibility of cryptocurrency to individuals who do not have access to it. The team is focused on providing the best security system to ensure the privacy and safety of their customers’ personal information and funds. They cover a wide range of digital assets and traditional financial products like interest rates, stock indexes, foreign exchange, metal and energy, and agricultural commodities, amongst many others.
Phemex wants to expand the reach of cryptocurrency by making cryptocurrency derivatives trading easier.
Since its launch on the 25th of November 2019, Phemex has claimed over 35,000 users, and its trading volume has reached over $400 million. The company reached its peak transaction amount of $2.6 billion on the 12th of March 2020. In such a short span of time, the exchange is aggressively competing with all other popular cryptocurrency derivatives exchanges like BitMEX and Bybit due to its high-speed services and reliability.
Although Phemex has a strong background and capable team that is operating it, the platform offers some unique and exciting features that have made it a popular choice amongst the cryptocurrency trading community. Therefore, it is important to look at what features the platform offers and how they are different from other crypto exchanges available today.
Some of the key features of Phemex are listed below:
- It supports both bitcoin and US dollar contract settlements. It makes the process of derivatives trading easier and mitigates risk.
- It offers users up to 100x leverage trading.
- It is able to conduct 300,000 transactions per second, which is one of the highest in the industry.
- It offers multiple order types, including market orders, limit orders, conditional orders, stop-loss orders, take profit orders, and other advanced order functions.
- It has a unique hierarchical deterministic cold wallet system for security purposes.
- It includes a sub-account setup, which allows users to hold long and short positions simultaneously. Users can also allow fund managers to access their accounts in order to help them.
- It uses an advanced FIX API, which is a very stable API for algorithmic trading and makes trading easier for investors.
- It provides more flexibility in withdrawals. Users are allowed to make three withdrawals in a day.
- Its website is present in multiple languages and has native mobile applications as well, for trading on the go.
- It is soon going to provide L3 market data on its platform.
- It allows users to trade conventional contracts, for example, gold with cryptocurrency.
Phemex also offers its customers a generous Referral Program. Users get the opportunity to earn a 50% commission on the trading fees of the members in the network. All-stars also earn extra benefits if they can bring a key opinion leader into the all-star program. An extra 10% commission is given in this case.
Moreover, the key opinion leaders are very well compensated. There is also a $100 bonus on inviting a new user to the platform, which is given when the new user’s account is activated. No other exchange has such a generous referral program.
It also has welcome bonuses, which are very easy to claim. New customers can enjoy these bonuses, which are worth $72. You can earn $2 for completing your registration, $10 for retweeting their tweets or sharing on social media, and $60 after depositing 0.2 BTC. These bonuses are credited to your balance and can be instantly withdrawn.
One of the reasons why Phemex is such a popular choice amongst crypto traders is its fee and pricing structure. The platform does not charge any fees on depositing funds, which means you can easily deposit money into the exchange for free.
In the case of withdrawals, Phemex levies a charge of 0.005 BTC on every withdrawal made from the platform. There is an additional network fee. It is based on the load of the blockchain that is processing the transaction.
Phemex also has a simple trading fee position. It charges 0.025% maker fees and 0.075% taker fees. It is the default rate charged in most of the cryptocurrency exchanges available today.
A funding rate also applies, which is dependent on the leveraged position. This rate can vary due to changing market conditions. It is important to note that the exchange does not collect funding rate fees. Instead, it is exchanged between the two traders. It is only applied to perpetual contracts, and its primary function is to tether the perpetual contract price to the mark price, which is reflected in the rate.
Verification: Is KYC required?
Phemex does not require KYC verification checks. Their main purpose is to make crypto trading as easy as possible for their customers. The exchange is entirely anonymous, where users can register easily. They only have to sign up using their email addresses and provide no personal information whatsoever.
The process is instantaneous and does not require lengthy verification hassles or any official documents to prove your identity. It is perfect for traders who are strict about their privacy. However, it is not yet clear whether the platform will continue its no KYC check policy due to increasing regulations in the crypto world.
The platform is restricted from catering to US citizens. Other countries where Phemex is prohibited are Quebec, Cuba, Sevastopol, Singapore, North Korea, Iran, Sudan, Syria, and other countries where cryptocurrency trading is illegal.
The currencies supported by the platform are Bitcoin, Ripple, Ethereum, and LINK trading against the USD. Their website is soon to offer multi-lingual support.
Deposit & Withdrawal
Phemex has a relatively simple deposit and withdrawal process for its user’s convenience. The platform allows all deposits and withdrawals to be made in bitcoin. To make a deposit, you must follow these simple steps:
- Log onto the website and sign in to your Phemex account.
- Go to the “Assets” button, which is present on the top of the webpage.
- Choose the “Deposit” option. This will display the deposit address that Phemex has assigned you with a QR code.
- Copy the deposit address to your personal wallet or scan the QR code provided.
- Enter the amount you want to deposit into your Phemex account and press send.
The deposit will be made. Users must remember that the platform only accepts deposits in bitcoin. If any other asset is added, it can be potentially lost. Moreover, ensuring that the wallet address added is correct is very critical. The process is rapid and occurs after a single transaction takes place in the blockchain.
The balance is then credit to your Phemex wallet balance. Phemex does not have any minimum deposit requirements.
The withdrawal process is also similar and requires users to follow these steps:
- Select the withdraw option from the “Assets” page.
- Phemex will send you a confirmation email. Check that email and click on the confirmation link. It will confirm your withdrawal request.
- After confirmation, you have to wait for the withdrawal to be processed.
All withdrawal requests are processed manually by the Phemex team to ensure their security. After your withdrawal has been confirmed, the balance is added to your personal wallet address which you have provided.
Phemex has a minimum withdrawal limit of 0.002 BTC. Moreover, the network fee that is charged for withdrawals is 0.0005 BTC.
The withdrawal process takes place three times a day by Phemex at 8 am, 4 pm, and 12 am UTC. The cut-off time for withdrawals is 30 minutes before the next processing period. If users do not submit their withdrawal requests at this time, their withdrawal will be processed in the subsequent withdrawal period.
After approval, the balance is credited to your personal wallets in approximately 1 or 2 hours. This is due to the manual processing that takes place. Moreover, the blockchain also requires some time to clear off pending transactions.
Phemex wallets only accept bitcoins in both deposits and withdrawals. But it also provides users with a bitcoin trading account and a USD trading account. In the case of bitcoin settled contracts, users must deposit funds into the account using their wallets. In USD settled contracts, users have the option of exchanging their bitcoin to their USD trading account by using their real-time fare rate.
Account: Register & Login
Registering for a new account is very easy and quick. All you need to do is follow the steps below.
- Go to the Phemex website and click on “Register.”
- Enter the email address and password along with the invitation code.
- An email confirmation will be sent to the email address provided. Check that email and click on the link provided.
- You can now log into your account.
To login users must:
- Log on to the Phemex website and click on “Log In.”
- Enter your email address.
- Copy the one-time password that is sent to you via email.
- Enter the copied password into the prompted box.
- You will now be logon into your Phemex account.
Unlike other exchanges, Phemex allows its users to create sub-accounts as well. To create a sub-account, the following steps must be followed:
- Go to the “Account” page.
- Select the “Sub-accounts” option.
Placing an order on the platform is also very simple. Three types of orders are offered, which are Market, Limit, and Conditional orders. To make a trade, you need to pick the one that you want. You can then set different order values and options depending on the selected order type.
These options are Order Price, Quantity, and Leverage. You will now have to select the method to execute the selected orders. These are Immediate or Cancel, Fill or Kill or Good Till Cancelled. After selecting the method, you can click on Buy or Sell. This will prompt a pop-up window displaying the details of your order. Make sure that you have entered the correct details. Finally, you can click on “Confirm,” and the order will be placed.
Phemex also offers its users different methods to close a position, which are market order, limit order, take profit, and stop loss order. For limit orders, you can click on “Limit” and input the price and quantity you desire. For market orders, click on “Market” and type the quantity you want. For the take profit and stop loss order, you can click the TP/SL tab and select the desired options. Then, you can enter your preferred price or choose a percentage. These orders will only be triggered on the basis of the last price. They will be executed as market orders.
Safety & Security
Phemex has incorporated a lot of advanced security procedures for the safety of all its users.
In terms of wallet security, the platform has designed and implemented a hierarchical deterministic cold wallet system. This system assigns a distinct cold wallet address to each of its users. No same wallet address is assigned to more than one user. Moreover, all deposits are sent to the company’s multi-signature cold wallet offline. This is done periodically.
All withdrawal requests are processed at three specific times each day, and these requests are manually processed and thoroughly vetted by the Phemex team. The team is experienced in taking strict risk control measures. Any suspicious activity is immediately detected, and prompt action is taken to thwart it. When the team clears these requests, they are then processed through offline signatures to store all digital assets in the cold wallet system. All of these operations are done offline for protection.
Phemex has also ensured the security of its system by deploying Amazon Web Services. All their data is kept securely on the Amazon Cloud. The systems and machines used for different trading purposes are kept separately using several firewalls. Multiple levels of security systems are deployed for each operational zone. An internal network access management system is used to control the accessibility of these different zones.
Several restrictions have also been placed on the system level. Some zones are restricted, and only whitelisted boxes can access these. The system itself is also required to be whitelisted.
Phemex also ensures user account safety. All the digital assets of traders are insured in the case of an unlikely event.
The platform consists of two core components, which are the Cross Engine and the Trading Engine. The Cross engine is responsible for matching client orders based on their prices and time priority. The trading engine manages a set of risk checks on the client’s behalf in real time. These systems are in place for risk mitigation.
Several security measures are also in place to ensure that all collected personal information by the platform remains confidential and to protect this data from theft or misuse. Phemex ensures that’s all its databases and directories are password protected. This data is stored securely in data centers around the world. Their website is secured with Secure Sockets Layered SSL technology so that all data is encrypted before it is sent anywhere. Phemex also uses PCI scanning to protect users from hackers and other malicious attackers. Furthermore, any access to the personal data of users is only given to authorized personnel.
One of the most popular features of the platform is its efficient customer support services. It is a factor that significantly influences the success of the exchange in the crypto world. The platform offers a live-chat service on their website. If users want to get in touch with their team, they can log on to their website and click on the “Chat” button.
Alternatively, the company has its own Telegram channel @Phemex EN. This line is open for users to establish direct contact with the company’s CEO. However, the exchange does not yet offer a direct telephone line for customer support. Users can also report their issues and queries to their email address, which is email@example.com. Their customer support team is very efficient and has quick response times. You can also click on the “Customer Service” button at the bottom right of the home page. It will open a new window for live chat.
Although Phemex is a relatively new cryptocurrency trading platform, it offers a lot of great features, which can make it one of the best platforms for crypto traders. To summarize, let’s look at some of its pros and cons.
- It offers up to 100x leverage in marginal trading
- Users have the option to create sub-accounts
- It supports a variety of digital assets
- There is no KYC verification process
- The user interface is very intuitive and easy to navigate through
- It has its mobile app compatible with both Android and iOS
- It offers very low withdrawal fees
- Its affiliate program is very lucrative
- It keeps funds secured in a cold wallet system
- It has a simple and accessible user interface
- It does not support US residents
- The exchange is new and has not been tested as much
- There is no telephone support for customers
Therefore, we can see that Phemex has two main specialties that give it an edge over its competitors. It allows its users to create sub-accounts within one existing account, which is rare. Their approach is also more user-oriented than other exchanges. It offers high leverage and low risks for traders and makes profit-making from crypto exchange easier. It is also ten times faster than most of its competitors, which is no small feat. The company has a Cross Engine that is ensuring smooth and efficient performance of 300,000 TPS.
Moreover, the latency between the entry of any order and its response time is only one millisecond. Their services are available throughout the year, with a high availability level of 99.9%. For a company that has just recently been launched, these are remarkable numbers.
Although the platform is already very versatile, improvements are needed in certain areas to help establish a name in the cryptocurrency derivatives market. A major drawback of the platform is that it does not support fiat currency. Introducing conventional payment methods like credit cards and PayPal will prove to be lucrative for investors to use Phemex. Moreover, Phemex should also work on improving its liquidity and introducing more trading pairs to the mix to boost its user base.
Overall, Phemex has a promising future ahead. Their company has announced the launch of new features this year, which is exciting news for crypto enthusiasts worldwide.