Kraken vs BitMEX: Tried & Tested !?

Kraken and BitMEX are well-established names in cryptocurrency trading, but they serve different types of traders.

Kraken, one of the oldest and most trusted exchanges, offers a wide range of cryptocurrencies and focuses on security and regulatory compliance, making it ideal for spot trading and staking.

BitMEX, on the other hand, is a powerhouse for futures and margin trading, offering high leverage for advanced traders looking to maximize potential gains.

In this post, we’ll compare Kraken and BitMEX regarding trading options, fees, security, and user experience to help you decide which exchange fits your needs.

Kraken vs. BitMEX: Comparative Table

• Kraken was founded in 2011 by Jesse Powell and is based in the United States.
• BitMEX: Founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, based in Seychelles.

Feature	Kraken	BitMEX
Founded	2011	2014
Headquarters	United States	Seychelles
Trading Volume	Medium to High	Very High
Supported Coins	220+	30+
Leverage	Up to 5x	Up to 100x
Trading Pairs	300+	50+ crypto futures pairs
Fiat Support	USD, EUR, CAD, etc.	Not available
Deposit Methods	Bank transfers, cryptocurrencies	Cryptocurrencies only
Fees	Competitive trading fees, variable	Maker: -0.025%, Taker: 0.075%
Security	High (compliant with U.S. regulations)	High (multi-signature access)

Kraken vs. BitMEX: Products and Services

Kraken and BitMEX offer distinct products and services tailored to different aspects of crypto trading.

Spot Trading:

• Kraken: Known for its extensive spot trading options, Kraken allows you to trade numerous cryptocurrencies against various fiat currencies. Its high euro volume and liquidity are notable strengths.
• BitMEX: Focuses more on derivatives, offering limited spot trading options compared to Kraken.

Futures Trading:

• Kraken: Provides futures trading with various contracts, appealing to those interested in leveraging their positions.
• BitMEX: Specializes in futures and derivatives, including perpetual contracts and traditional futures. BitMEX is renowned for its market liquidity in this domain.

Options Trading:

• Kraken: Does not currently offer options trading.
• BitMEX: Primarily offers futures and derivatives, not options.

Leveraged Tokens:

• Kraken: Offers margin trading, enabling you to leverage positions on various assets.
• BitMEX: Provides high-leverage options, a key feature for experienced traders looking to maximize potential returns.

NFT Marketplace:

• Kraken is developing an NFT marketplace that is expanding beyond traditional trading services.
• BitMEX does not have an NFT marketplace, so it is sticking closely to derivatives and margin trading.

Staking:

• Kraken: Offers staking services, allowing you to earn rewards on various cryptocurrency holdings.
• BitMEX: Does not offer staking services.

User Experience:

• Kraken: Known for its user-friendly interface, it is accessible to beginners and experienced traders.
• BitMEX: Geared towards experienced traders with a sophisticated platform that may be complex for newcomers.

Innovation:

• Kraken: Continuously expanding product offerings, including staking and the upcoming NFT marketplace.
• BitMEX: Focuses heavily on refining and enhancing its core derivatives trading services.

 

Kraken vs BitMEX: Contract Types

When choosing between Kraken and BitMEX, understanding their contract types is crucial.

Kraken

Kraken primarily focuses on:

• Spot Trading: Direct exchange of cryptocurrencies.
• Options: Advanced strategies for hedging and speculation.
• Futures Contracts (COIN-M and USD-M): You can engage in long-term investments with predefined expiry dates.

Pro: Kraken offers a straightforward spot trading experience.
Con: It lacks a wide variety of perpetual contracts.

BitMEX

BitMEX specializes in derivatives and offers:

• Inverse Perpetual Contracts: Quoted in USD and settled in Bitcoin.
• Linear Perpetual Contracts: Quoted and settled in the same currency.
• Inverse Futures Contracts: Traditional futures quoted in USD, settled in Bitcoin.
• COIN-M Futures: Futures with settlement in the underlying cryptocurrency.
• USD-M Futures: Futures settled in USD.

Pro: Extensive selection of derivatives catering to different trading strategies.
Con: Exclusively using Bitcoin for margin might limit some traders.

Example:

Contract Type	Kraken	BitMEX
Spot Trading	Yes	No
Inverse Perpetual Contracts	No	Yes
Linear Perpetual Contracts	No	Yes
Inverse Futures Contracts	Yes	Yes
COIN-M Futures	Yes	Yes
USD-M Futures	Yes	Yes
Options	Yes	No

Choose Kraken for straightforward spot trading and futures with expiry dates. Opt for BitMEX if you prefer a more comprehensive range of derivatives, including perpetual contracts.

 

Kraken vs. BitMEX: Supported Cryptocurrencies

When evaluating Kraken and BitMEX, the range of supported cryptocurrencies is crucial.

Kraken supports over 220 cryptocurrencies. This includes well-established tokens like Bitcoin (BTC), Ethereum (ETH), and various altcoins.

BitMEX, on the other hand, focuses more on derivatives trading. BitMEX offers around 20 cryptocurrencies for trading.

Futures and Leverage Trading

Kraken allows you to trade with up to 1:5 leverage on spot markets and up to 1:50 leverage on futures contracts.

BitMEX is known for its high-leverage options, offering up to 1:100 leverage on specific agreements.

Popular Trading Pairs

Kraken:

• BTC/USD
• ETH/USD
• XRP/USD

BitMEX:

• XBT/USD (Bitcoin)
• ETH/USD
• XRP/USD

Key Differences

• Kraken provides a more extensive range of cryptocurrencies for spot trading.
• BitMEX excels in high-leverage derivatives trading but offers fewer cryptocurrencies.

Consider the type of trading you plan to do. Kraken may be more suitable for a broader range of cryptocurrencies. If you prefer high-leverage derivatives trading, BitMEX is a compelling choice.

 

Kraken vs BitMEX: Leverage and Margin Trading

Kraken and BitMEX offer tools to amplify your trading positions regarding leverage and margin trading.

Maximum Leverage

• Kraken: Up to 50x for crypto futures pairs
• BitMEX: Up to 100x for Bitcoin pairs

Margin Requirements

Margin requirements dictate how much collateral you need to open a leveraged position.

• Kraken: Depends on the asset but typically ranges between 2% and 20%
• BitMEX: Initial margin can be as low as 1%, with maintenance margins varying per asset

Liquidation Risks

High leverage increases the risk of liquidation if the market moves against you.

• Kraken: Offers a “Margin Level” indicator that helps you monitor your risk
• BitMEX: Features an auto-deleveraging system to handle liquidations

Funding Rates

Funding rates are periodic payments made between traders to keep the contract price close to the underlying asset price.

• Kraken: Funding rates vary based on supply and demand
• BitMEX: Also varies but tends to update every 8 hours

These platforms provide features to help you manage leverage and assess potential risks, allowing you to make informed trading decisions.

 

Kraken vs BitMEX: Trading Volume

When comparing the trading volumes of Kraken and BitMEX, it’s clear that both exchanges cater to a large and active user base.

Kraken, established in 2011, often boasts significant trading volumes, particularly in spot trading. On the other hand, BitMEX, known for its derivatives and futures trading, frequently has high trading volumes in these markets.

Kraken’s Trading Volume:

Kraken typically experiences high trading volumes in spot markets, making it a preferred choice for many traders. Its volume helps in ensuring efficient trade execution and low slippage.

High liquidity in Kraken’s order books means that large buy and sell orders can be executed swiftly.

BitMEX’s Trading Volume:

BitMEX shines in the derivatives and futures markets. It often has substantial trading volumes in these markets, providing a robust trading environment.

The high trading volume on BitMEX is crucial for the efficiency of trade executions, and it minimizes slippage, which is especially important for leveraged positions.

Liquidity and Volume Metrics:

• Kraken
  • Spot Trading Volume: High
  • Liquidity: Strong
  • Execution: Efficient
• BitMEX
  • Derivatives and Futures Volume: Very High
  • Liquidity: Excellent
  • Execution: Highly Efficient

Higher trading volumes on Kraken and BitMEX mean more liquidity, leading to better trade execution and lower slippage.

Given their respective strengths in these areas, you can rely on Kraken for spot trading and BitMEX for futures. Consider their reported volumes and liquidity rankings when choosing where to execute your trades.

 

Kraken vs BitMEX: Futures Trading Fees and Rewards

When trading futures on Kraken and BitMEX, the fees and rewards systems can significantly impact your profitability. Understanding these can help you make informed decisions.

Trading Fees:

• Kraken:
  • Taker Fee: Up to 0.26%
  • Maker Fee: Up to 0.16%
  • Higher-tier users may receive discounts on trading fees.
• BitMEX:
  • Taker Fee: 0.075%
  • Maker Fee: -0.025% (yes, you receive a rebate for adding liquidity)

Deposit and Withdrawal Fees:

• Kraken:
  • Deposit Fees: Vary based on payment method. For instance, wire transfers might have a small fee.
  • Withdrawal Fees: Also vary. Bitcoin withdrawals, for example, incur a fee of 0.00015 BTC.
• BitMEX:
  • Deposit Fees: None
  • Withdrawal Fees: Only network fees are charged for withdrawals.

Example Calculation:

Imagine you execute a $1,000,000 futures trade:

• On Kraken, you may pay up to $2,600 if you are a taker. As a maker, it could cost around $1,600.
• On BitMEX, as a taker, you pay $750. As a maker, you’d receive a rebate of $250.

Rewards and Incentives:

• Kraken: Offers discounts for high-volume traders. If traded volumes reach certain thresholds, your fees can be reduced significantly.
• BitMEX: Provides rebates for makers, which can be a substantial incentive for adding liquidity to the market.

Understanding these fees and rewards helps you strategize your trades better and optimize your costs.

 

Kraken vs BitMEX: Deposits & Withdrawal Options

When comparing deposit and withdrawal options, Kraken and BitMEX offer distinct differences that can affect your experience regarding convenience, speed, and costs.

Supported Currencies:

• Kraken: Supports multiple fiat currencies, including USD, EUR, CAD, JPY, and GBP, along with a wide range of cryptocurrencies.
• BitMEX: Primarily focuses on Bitcoin. All transactions are carried out using Bitcoin, even though you can trade different cryptocurrencies.

Payment Methods:

• Kraken: Accepts bank transfers, SEPA (for EU clients), SWIFT, and cryptocurrencies.
• BitMEX: Only accepts Bitcoin for deposits and withdrawals.

Processing Times:

• Kraken: Bank transfers typically take 1-5 business days. Depending on the blockchain network, cryptocurrency deposits are usually processed within minutes to hours.
• BitMEX: Bitcoin transactions depend on the blockchain confirmation times, ranging from minutes to hours.

Minimum and Maximum Amounts:

• Kraken: Minimum deposit amounts vary by currency but start as low as $10 for some fiat currencies. Cryptocurrencies usually have network-specific minimums.
• BitMEX: There is no minimum deposit requirement, but you need a minimum amount of Bitcoin to fulfill trading fee commitments.

Fees:

• Kraken: Bank transfer fees vary, ranging from $5 to $10. Cryptocurrency withdrawal fees depend on network congestion but are generally low.
• BitMEX: No deposit fees, though standard Bitcoin network fees apply for withdrawals based on blockchain conditions.

Convenience and Cost:

Thanks to its multiple payment options, Kraken offers more convenience if you plan to use fiat currencies. BitMEX, being Bitcoin-centric, might suit you better if you primarily transact in Bitcoin.

 

Kraken vs BitMEX: Native Token Usage

Kraken

Kraken does not have a native token.

BitMEX

BitMEX has a native token called BMEX. This token offers several benefits to its holders:

1. Trading Fee Discounts: BMEX holders receive discounts on trading fees, making trading more cost-effective.
2. Staking Rewards: You can stake BMEX tokens to earn staking rewards.
3. Enhanced Features: BMEX holders can access enhanced trading features and exclusive promotions within the BitMEX platform.

Feature	Kraken	BitMEX
Native Token	None	BMEX
Trading Fee Discounts	Not applicable	Yes
Staking Rewards	Not applicable	Yes
Enhanced Trading Features	Standard features	Exclusive benefits

 Kraken does not offer a native token; BitMEX provides its users with BMEX, which has various in-exchange benefits. These include reduced trading fees, staking rewards, and other exclusive services.

 

Kraken vs BitMEX: KYC Requirements & KYC Limits

When using Kraken, you must complete various Know Your Customer (KYC) verification levels, from basic to pro.

The verification process begins with submitting basic personal information. You must provide government-issued identification, proof of residence, and detailed financial information for higher tiers.

Kraken KYC Levels:

• Starter: Basic information, no deposit or withdrawal limits.
• Intermediate: Government ID and proof of residence. Higher deposit and withdrawal limits.
• Pro: Extensive documentation. Maximum deposit and withdrawal limits.

BitMEX implements its own KYC procedures but is generally less strict than Kraken. However, it would be best if you still verified your identity to unlock the full features of the platform. This includes submitting government-issued identification and sometimes a selfie for higher limits.

BitMEX KYC Levels:

• Basic: Email verification and basic trading limits.
• Verified: Government ID and selfie. Higher deposit and withdrawal limits.

Privacy and Security:

Kraken follows stringent global KYC regulations and bolsters security but may affect your privacy due to the extensive documentation required. The rigorous checks ensure that the platform is secure and trusted by users.

BitMEX, with its less stringent KYC process, offers easier accessibility. However, this may come at the expense of slightly reduced security compared to Kraken.

Accessibility:

Kraken’s detailed verification process can be a barrier for some, especially newcomers. Yet, it provides a higher sense of security for those willing to go through the steps.

BitMEX offers a more accessible onboarding experience, though it might not offer the same level of security that comes with Kraken’s comprehensive verification system.

Understanding the KYC requirements and limits of Kraken and BitMEX helps you decide which platform better suits your needs regarding privacy, security, and accessibility.

 

Kraken vs. BitMEX: User Experience

When exploring Kraken and BitMEX, you first notice their distinct user interfaces. Kraken features a clean, intuitive design for beginners and experienced traders. The platform’s dashboard is streamlined, making navigation simple. To know more, check this guide on how to leverage trade on Kraken.

BitMEX, on the other hand, presents a more complex interface that might overwhelm new users. Experienced traders might appreciate the advanced features and detailed charts, but there’s a steeper learning curve. To know more, check this guide on BitMEX leverage trading.

Mobile Apps

Kraken

• Design: Clean and modern.
• Ease of Use: User-friendly with straightforward navigation.
• Speed: Quick performance with minimal lag.

BitMEX

• Design: Functional but less visually appealing.
• Ease of Use: More complex, with heavy data display.
• Speed: Generally fast but can lag during high-traffic periods.

Web Interface

Kraken

• Ease of Use: Easier for beginners with easy access to trading pairs and account settings.
• Functionality: Comprehensive toolset for trading, funded by its long history and compliance with U.S. regulatory standards.
• Speed: Responsive, even during high traffic.

BitMEX

• Ease of Use: Better suited for veteran traders who need detailed market analysis.
• Functionality: Advanced trading options and high leverage make it a choice for high-risk traders.
• Speed: Capable but can slow during volatile market conditions.

 

Kraken vs BitMEX: Order Types

Kraken supports several core order types that enable you to manage your trading strategies and risks effectively. These include:

• Market Orders: Execute instantly at current market prices.
• Limit Orders: Buy or sell at a specific price or better.
• Stop Orders: Trigger a market or limit order when a specified price is hit.

BitMEX, known for its specialized derivatives trading, offers a range of order types:

• Market Orders
• Limit Orders
• Stop Orders
• Conditional Orders: Useful for executing trades based on specific criteria.
• Post-Only Orders: Ensure your order is added to the order book without taking liquidity.
• Reduce-Only Orders: Designed to reduce an existing position, helping avoid accidental increases in exposure.

Kraken and BitMEX provide versatile options, each catering to different trading needs.

For instance, Post-Only Orders on BitMEX are ideal for makers who want to ensure their trades add liquidity.

On the other hand, Reduce-Only Orders can prevent you from overextending your position inadvertently.

Kraken focuses on straightforward order types, such as Market and Limit Orders, which are more than sufficient for spot trading.

Stop Orders are particularly beneficial for managing risk by automatically triggering trades at predefined levels, helping you limit potential losses.

Conditional Orders on BitMEX offer a more nuanced approach, letting you specify additional criteria beyond price. This can be particularly useful for traders who need advanced controls to manage their trades in the volatile crypto market.

 

Kraken vs. BitMEX: Security Measures & Reliability

When evaluating the security of Kraken and BitMEX, both exchanges have implemented robust protocols to ensure the safety of your funds and data.

Kraken: Kraken uses advanced security measures such as cold storage for most user funds. This offline storage significantly reduces the risks associated with hacking.

• Two-factor authentication (2FA)
• Email confirmations for withdrawals
• Global Settings Lock
• Encrypted personal data

Kraken has had an almost incident-free history, showcasing its reliability. In 2020, Kraken was granted a banking license, adding another layer of trustworthiness.

BitMEX: BitMEX also prioritizes security through rigorous measures. These include multi-signature wallets and two-factor authentication (2FA).

• Automatic deposit and withdrawal processing
• System architecture designed for high availability
• Use of Amazon Web Services (AWS) for enhanced security

BitMEX faced a significant incident in 2020 when the U.S. CFTC charged its founders with illegally operating a derivatives exchange. This led to changes in leadership and increased compliance efforts to restore user trust.

Both platforms are committed to safeguarding user assets and maintaining high levels of operational security.

 

Kraken vs. BitMEX: Insurance Fund

Regarding insurance funds, Kraken and BitMEX have distinct approaches to protecting your assets.

Kraken offers a variety of safety measures for its users. It maintains a comprehensive insurance policy to safeguard customer funds in case of operational mishaps.

This safe framework ensures your assets remain secure under multiple contingencies.

On BitMEX, the insurance fund plays a crucial role. Its primary purpose is to mitigate the risk of liquidations during extreme market conditions.

Doing so helps prevent traders from losing their positions unnecessarily. The fund is built from fees collected during liquidation events and grows over time to provide a robust safety net.

Platform	Insurance Fund Key Features
Kraken	Comprehensive insurance policy; protection against operational mishaps
BitMEX	Insurance fund for liquidation risks; funded by liquidation fees

While Kraken focuses more on an insurance policy to cover diverse operational risks, BitMEX emphasizes mitigating liquidation risks through its dedicated fund.

Thus, you can feel more secure about asset protection regardless of your chosen platform.

 

Kraken vs. BitMEX: Customer Support

When evaluating cryptocurrency exchanges, customer support is a critical element.

Kraken offers a ticket-based issue resolution system. You can submit a ticket and expect a reply via email. They also provide extensive FAQs and support documentation on their website.

BitMEX provides multiple customer support options, including 24/7 live chat and email assistance. This is beneficial if you need immediate help.

A comparison in tabular format helps highlight these differences:

Feature	Kraken Support	BitMEX Support
Contact Methods	Ticket-based, Email	24/7 Live Chat, Email
Availability	Normal business hours	24/7
Documentation	Extensive FAQs, Support Articles	FAQs, Guides

BitMEX’s 24/7 live chat could be more convenient if you’re looking for quick responses.

On the other hand, Kraken ensures a thorough approach with resolved tickets and comprehensive online resources.

Both exchanges aim to provide quality support but differ in execution.

 

Kraken vs. BitMEX: Regulatory Compliance

When comparing Kraken and BitMEX, it’s essential to consider their regulatory compliance.

Kraken is based in the United States, subjecting it to a stringent regulatory environment. As an established entity, Kraken holds multiple licenses and operates under the jurisdiction of various financial authorities.

Since 2020, Kraken has obtained a banking license, enhancing its regulatory status.

Kraken adheres to the U.S. regulatory framework, including compliance with the Bank Secrecy Act (BSA) and strict KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. Regular audits ensure transparency and trust for users.

BitMEX, on the other hand, operates differently. Launched in 2014, BitMEX primarily focuses on crypto derivatives trading. It had faced regulatory scrutiny from U.S. authorities, resulting in legal challenges and changes in its operational structure.

BitMEX is now under the jurisdiction of the Seychelles, which has different regulatory standards compared to the U.S.

The platform has improved its compliance measures, including implementing more rigorous KYC and AML procedures.

	Kraken	BitMEX
Location	United States	Seychelles
Licenses	Multiple, including a U.S. banking license	Primarily registered in Seychelles
Regulations	BSA, KYC, AML	Enhanced KYC, AML post-regulatory challenges
Audits	Regular	Increasing focus post-scrutiny

Both platforms show distinct approaches to regulatory compliance, shaped by their respective jurisdictions and operational focuses.

 

Conclusion: Kraken or BitME: Which Is Better?

Kraken is an excellent choice for traders seeking a wide variety of cryptocurrencies. The platform’s robust security measures and compliance with U.S. regulatory standards make it trustworthy.

Features such as competitive fees and banking license enhancements since 2020 add to its appeal. Kraken suits those looking for reliability and a user-friendly experience.

BitMEX, on the other hand, is renowned for its advanced trading options. It excels in offering high-leverage trading and caters to more experienced traders. The platform could be more challenging for beginners due to its complex interface.

Feature	Kraken	BitMEX
Crypto Variety	Wide range of options	Limited selection
Security	Strong compliance	High standards, less regulated
User Interface	User-friendly	Complex
Fees	Competitive	Competitive but varies by leverage
Trading Options	Basic to moderate	Advanced, high leverage

Who Should Choose Which?

• If you are new to trading or value diversity in your investment portfolio, Kraken is likely your best option.
• For experienced traders seeking high-leverage opportunities, BitMEX provides the tools and features necessary to execute complex trades effectively.

Your choice between Kraken and BitMEX will ultimately depend on your trading preferences and experience level. Consider what is most important for your trading strategy before making a decision.

Compare Kraken and BitMEX with other major exchanges

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• Kraken vs MEXC
• Kraken vs OKX
• BitMEX vs OKX
• BitMEX vs Phemex
• BitMEX vs Bybit