Zero Spot Trading Fees and Incentivized Market Makers
Phemex is a centralized exchange offering Bitcoin derivative services. It supports crypto spot, options, and perpetual futures trading. The exchange is based in Singapore, and it’s the brainchild of former Morgan Stanley banking experts.
The platform boasts of partial international access by offering eight languages. Trades on Phemex can be settled using Bitcoin (BTC) and or US dollar. Recently, the exchange incorporated the LINK cryptocurrency with the US dollar. The addition came after the introduction of the Gold/USD trading pair.
Apart from its swift derivative exchange, zero fees spot trading, and contracts with up to 100x leverage, Phemex strives for enhanced security on the platform. Further, its strategy has room to strengthen its order matching system. Consequently, it protects traders from slippage.
Enrolling with Phemex is fairly straightforward. All you need is an email to which you have access. It’s an essential element since it receives the verification code sent during the registration process. Moreover, the email is perpetually used to relay OTPs (one-time passwords), 2-factor authentication codes, and other notifications.
The first step is going to the exchange's sign-u page and entering your email address, followed by a strong password incorporating upper case, lower case, and numerical characters.
Next, proceed to your email inbox and pick the verification code, which expires in 10 minutes. The entry of the verification code in the next window is the last hurdle. Once you key in the code, the home menu of the exchange pops up!
It’s important to note that the process does not involve know-your-customer (KYC) restrictions. Thus the registration is mostly anonymous and convenient.
New Phemex users have great opportunities in the form of welcome bonuses that can pile up to 80USD. For a start, the platform rewards new users with an impressive 60 USD bonus for deposits valued at 0.2BTC and above.
Making Deposits on the Phemex 💳
Before you can trade on the platform, you have to make a deposit.
The first step of the deposit process is clicking on the “Assets” icon at the top right side of the static top bar and then the "Deposit" icon. Click “Continue” and carefully copy the displayed Bitcoin wallet address.
Now go to the withdrawal menu of the crypto exchange or wallet from which you are transferring funds. Enter the copied address when prompted. After keying in the amount to transfer to Phemex and confirming the transaction check your email inbox for notification.
Your funds will be confirmed after a single confirmation on the network. Note that Phemex hasn’t set up a minimum deposit threshold.
Withdrawals on Phemex follow an almost similar process. However, after the “assets” icon, you tap on the “withdrawals” icon. To protect customer funds, Phemex validates the requests manually.
It’s important to check the balance of the personal wallet address you entered in the process once you get a notification that the transaction is confirmed. However, the crediting of the recipient account takes 1-2 hours after approval of the transaction.
The minimum withdrawal amount is 0.002BTC. The platform only allows three withdrawals in 24 hours. The network fee for a single withdrawal is 0.0005BTC.
Analyzing the Trading Platform 📈
The Phemex platform has a visually impressive trading menu displaying the order book, price charts, and order history.
Notably, it has a swift trade execution. Additionally, it has a push notification to alert a user when an exchange is completed.
Users can access the exchange through their website (using a PC) or mobile applications available for Android and iOS users. A more significant percentage, though, opts for the desktop option.
Though the platform has a high-performance score, it is yet to face the test of handling huge traffic of trader requests.
Spot traders incur zero trading fees. However, they must pay monthly membership fees of 9.99USD for a month,19.99 USD for three months, and 69.99USD annually. Premium members get the privilege of making conditional orders and hourly withdrawals without thresholds.
Note that zero spot trading fees only applies to those on the Premium package including those using the package’s trial feature. If you don’t fall on this bracket, then you’ll pay a 0.1% fee on each trade.
the other hand, perpetual contracts traders on the platform constitute “takers” and “makers.” The makers pump liquidity into the exchange, whereas the takers siphon away the liquidity. However, each type of trader is treated differently on the trading fee schedule.
For example, the platform levies the takers a transaction fee of 0.075% per single order. However, the makers incur a rate of -0.025% to incentivize them to trade. In short, makers are paid to provide liquidity.
How Secure Is Phemex? 🔒
Phemex keeps the exchange beyond hackers reach by operating an offline cold wallet for storing customers funds. The assets only leave the offline store during customer withdrawals.
Moreover, the transactions are manually reviewed. As such, the reviewers can intercept transactions from a compromised user account. Phemex also ensures the security of customer funds by only allowing withdrawals when the user enables the Google Authenticator for 2-factor authentication (strongly recommended)
Bitcoin, USD, and Tether (USDT) are the major settling currencies on the platform. The exchange offers 14 and 12 trading pairs in contract and spot trading, respectively. The BTC and USD are used for settling trade payments in contact trading.
Coins supported on the spot trading platforms include, Ripple (XRP), Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), NEO, EOS, LINK, and Ontology (ONT). Note that all spot trading pairs include USDT while perpetual trading pairs include USD.
Customer Support 📣
Phemex offers user guides on its platform to complement the website’s live-chat function.
Though the exchange has no phone line, customers can use the customer support email. Additionally, there is the Telegram channel, @Phemex EN, where you can even reach the CEO.
Phemex has shown impressive performance, especially for the BTC/USD trades. The exchange enjoys an edge over its competitors in offering zero spot trading fees and allowing sub-accounts under the main account.
However, to boost their customer base, they will have to increase their liquidity and currency trading pairs.
According to its CEO, Jack Tao, Phemex selling points lie in making customers “king,” daily improvement, mutually helpful collaborations, and giving back to its community of enthusiasts. We have to wait and see if these pillars will propel the exchange to the next level.
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