Phemex Review 2022
Making Crypto Simple
Phemex has wasted no time in establishing itself and rising through the ranks in the crypto market. The cryptocurrency exchange provider might be one of the new kids on the block but it certainly has gained a lot of attention by being deemed the quickest cryptocurrency derivatives exchange you’ll ever find.
Whether this is entirely true or not is still up for debate, as it will take a detailed run audited by third parties on every cylinder of multiple derivatives trading platforms in order to come up with a final verdict. In any case, Phemex has entered the stage guns ablazing and ready to take on anyone or anything who’s willing to challenge it. What’s not to love?
At this early stage, users have been very satisfied with the offerings and customer support, however, many remain unsure whether the trading platform is able to keep up with the best of them when it comes to security protocols and safety. We’re about to find out whether their suspicions hold ground or not.
About the Trading Platform
Phemex was launched at the very end of 2019, rooted in Singapore but residing on the coast of the British Virgin Islands. Led by Jack Tao and Yang Du at the helm, the platform is registered under the name Phemex Financial Pte. Ltd. From the get go, Phemex has made user experience and transaction processing speed their priorities.
The trading platform managed to draw numbers in a relatively short time and broke into CoinMarketCap’s top 10 derivative exchanges, with over 50,000 users and $700 million in daily trading volumes. Did we mention that Phemex doesn’t employ KYC tests and offers up to 100x on leverage trades? Let’s dig a little deeper.
Trading Features and User Interface
Phemex’s user interface is easy to navigate and get around thanks to the bright white background. Other than that, it is clear cut and intuitive thanks to their user-oriented API. The platform is customizable and available in five different languages. Users can choose to have their trading tools and trading charts on display or hide them under tabs for a sleeker experience.
The trading platform’s demo-trading feature offers an insight into how things are done at Phemex by keeping your crypto wallet shut. There are two main cores to the platform’s design. These are the CrossEngine and the TradingEngine. The CrossEngine is capable of processing up to 300,000 TPS, under a single millisecond. This comes particularly handy in high leverage trades where the trade processing can get pretty taxing on the platform. The TradingEngine is in charge of computing all order costs, as well as the position costs, the margin full requirements, prices of liquidation and bankruptcy, as well as all of the data on each separate trading account.
Users can enjoy support on:
- Market orders – where their order is executed at the best prices on the market;
- Limit orders – which offer them to customize their parameters and set an upper and lower ceiling on GoodTillCancelled (GTC), ImmediateOrCancel (IOC), as well as FillOrKill (FOK) orders.
- Conditional orders – which serve as a more sophisticated next-level type of limit orders.
At Phemex, users are able to create and take advantage of the Sub–Accounts feature that enables them to engage in trades on both short and long positions at the same time. These Phemex accounts have segregated funds and can be assigned separate trading strategies. Users are able to assign trading bots to transfer their funds from and to their main and sub-account balances. Phemex has stated that it will make L3 market data available to all of its traders so that they have complete insight into what they’re doing.
As we mentioned above, the exchange allows for an unprecedented 100x on leverage trades over seven trading pairs. These include BTC/USD, ETH/USD, XRP/USD, LINK/USD, XTZ/USD, LTC/USD, and GOLD/USD.
Phemex’s perpetual contracts are on par with the ones offered by competitors like BitMEX and Bybit. High leverages are a double-edged sword as they can serve as a quick means of making a profit but they can also make for substantial losses in very short timeframes.
Phemex’s list of supported assets isn’t extensive for the time being but it does offer support for the most coveted crypto assets on the market such as Ripple (XRP), Bitcoin (BTC), Ethereum (ETH), as well as Chainlink (LINK), all of which can be paired with Tether (USDT).
When it comes to trading fees, Phemex mirrors the market and offers a reasonable 0.025% on maker fees and 0.075% on taker fees.
Deposit and Withdrawal Methods
Phemex lacks support for fiat deposits. The trading platform is exclusive to both BTC deposits and withdrawals, which allows it to remain unregulated and deal in derivatives without the need for regulations that would imply tedious KYC tests. In order to get started at Phemex, users need to sit on or buy Bitcoin and exchange that Bitcoin for some USDT contracts.
When it comes to withdrawals, all that traders need to do is provide the exchange with a crypto wallet address and select the amount of Bitcoin that they wish to withdraw. The trading platform features a 2FA protection on withdrawals for additional security.
Disclaimer: Withdrawals at Phemex are not instant and are executed during set times of the day (at 8 am, 4 pm and 12 am UTC).
Phemex Deposit & Withdrawal Fees
The crypto trading platform doesn’t administer any fees on deposits, however, withdrawals do come at 0.0005 BTC per trade, with a low minimum threshold set to 0.002 BTC. When traders transfer funds between their sub-accounts, both deposits and withdrawals are completely fee-free.
Zero-Fee Cryptocurrency Spot Trading
In order to get the lowest fees that the platform has to offer, users need to log into their Phemex trading account, and head over to the Products tab. From there on, they’ll need to select Spot Trading and choose the currency that they would like to deal in. They can either buy currencies such as Bitcoin and Ethereum or simply peg them to USDT. When they have everything in place, they can proceed by tapping the Buy or Sell buttons so that the order is activated. Standard blockchain network traffic fees still apply.
Users can also take advantage of GOLD/USD trading contracts and venture out of the crypto world by doing their business in interest rates, FOREX, S&P 500 stocks, stock indexes, commodities, energy and even metals.
You might think that this is a point of concern when it comes to Phemex. After all, they’re still a very new platform with no track record to fall back on. While all of that is still true, the trading platform is equipped with a team of experts that have been in and around the crypto sphere since its very beginning. Many of them, including former Morgan Stanley executives, are well versed in high-frequency technology.
Phemex employs an HD Cold Wallet System when it comes to funding security. This means that all digital assets are being stored in one multi-signature wallet mothership. The trading platform has partnered with and relies on Amazon’s Web Service (AWS) Cloud, as it does not have one of its own. Needless to say, Amazon’s cloud-based security is at the helm of what’s available at any given time in regards to safety and security.
Phemex’s internal network is segregated from the trading zones by firewalls that are SSL encrypted. The platform also runs frequent PCI scans.
Phemex ensures that users get 99.99% availability on funds to which no other crypto exchange even comes close. However, because this is borderline arrogant, it might be a transitional offering that will be revised once the eventual scam, hack and breach attempts start gunning for it.
The Phemex customer support team can be reached in a multitude of ways. Users can send an email, make use of the live chat feature, or become part of the trading platform’s Telegram community. Even the platform’s CEOs are in the Telegram group and can be contacted through Twitter. Whether they actually get back to it, it’s a whole different story. However, it is a nice gesture at the very least.
For those who want to educate themselves and learn more about the ins and outs, Phemex provides traders with a Help Center where they can and will find a ton of educational and helpful articles and blog posts. The dedicated FAQ section is there for anybody that is tangled up or has a query that they can’t seem to navigate out of by themselves.
Frequently Asked Questions
Is the Phemex exchange regulated?
Phemex is not regulated, which allows it to process orders and funds at lightning speed but it also limits its versatility in terms of currency offerings. The trading platform has applied for regulation at SEBA and the Monetary Authority of Singapore (MAS) and is pending approval.
Is Phemex available worldwide?
Even though Phemex is a global platform and is available from most corners of the globe, the exchange is currently offline in Sevastopol, Singapore, USA, Quebec, Cuba, North Korea, Iran, Sudan, and Syria.
Are Phemex users subject to KYC checks?
Phemex does employ a KYC process, however, users do not have to go through one if they are able to do their business within the platform’s limits for unverified users. Nevertheless, the platform does recommend that all of its users go through a KYC process in order to create a safer trading environment for everyone on board. Users that verify their accounts by going through a KYC check are able to enjoy the platform’s full offering without any limitations whatsoever.
Does Phemex have a mobile app?
Yes, Phemex supports a mobile app for both Android and iOS devices through which traders are able to buy, trade and sell crypto or derivatives. The app is suitable for new users and mirrors the desktop version that can be found at phemex.com.
A Few Words Before You Go…
The fact of the matter is that Phemex poses a serious threat to the top crypto exchanges if it continues to build on what it has. Yes, there will be setbacks and falls along the way but the potential is undoubtedly there.
After all, what other new platform is stacked with sub-account options or employs an HD cold wallet that requires multiple offline signatures, or has a dedicated order book, high-performance functionality on cryptocurrency trading, futures contracts and contract trading with up to 100x leverage, no KYC tests, ample liquidity, and cryptocurrency spot trading at zero trading fees, to list only a few of its main features.
At the very least it’s worth looking into. You can even take it for a spin at no risk at all through the Phemex demo feature. Over and out.