Phemex Review: A Comprehensive Analysis of the Trading Platform

Pros

• No daily or deposit limits
• No minimum deposit
• Convenient, hassle-free crypto purchase
• Multiple trading partners

Cons

• Not available to US residents
• Does not offer lending services
• Lower liquidity compared to alternative platforms
• Demands withdrawal fees for most cryptos

The cryptocurrency market is booming, and the world of blockchain technology continues to expand rapidly. Experts believe the cryptocurrency space is just beginning to see widespread adoption. There are plenty of opportunities for savvy investors to get in on the ground floor of new projects.

The last year has seen an explosion of new cryptocurrencies hitting the market, and smart investors are taking notice. New projects are seeing record-breaking amounts of funding and support from users. 

In this Phemex review, we’ll be going over everything you need to know about this new exchange. Keep reading to learn more!

What is Phemex?

Phemex is an innovative digital asset exchange founded by Jack Tao and other ex-Morgan Stanley executives in 2019. Its headquarters is in Singapore, supported in many countries, such as Austria, Finland, Hungary, and India.

The platform offers users fast, secure, and user-friendly trading services. It allows everyone to trade profitably without running any massive risk. They move forward to become the top cryptocurrency platform on the market and provide wise investing guidance.

Users can begin using Phemex without having their KYC completed. It enables fee-free spot exchange. Phemex has a customer service team available around-the-clock to assist users in transactions quickly.

It is an excellent platform for those still learning about digital currencies. It offers free Phemex Academy access, practice accounts, and readily-available blogs and articles that teach trading and cryptocurrency. However, as of the moment, the platform has yet to release its native token. But, it caters to popular cryptocurrencies, like BTC, ETH, and UDST.

Trading Options

Phemex allows users to buy and sell various virtual coins quickly and efficiently. What’s even unique about this platform is that it keeps expanding and improving over the years. So, if you’re looking to trade Phemex, take a closer look at the trading options they have for you.

Spot Trading

Similar to other cryptocurrency exchanges, the site uses the incredibly popular and potent TradingView charting interface and adheres to the usual modular design approach for the trading screen.

Crypto Spot Trading is a primary type of investment, which includes buying digital currencies–such as Bitcoin and Ethereum–and holding them until their value rises. It also covers the trading tactic of purchasing alternative currencies that investors anticipate will appreciate.

The BTC/USDT spot trading pair is one of the spot markets in Phemex. A Spot Market is where financial items like commodities, currencies, and securities are traded for rapid delivery. Simply put, it is the market where digital currencies are exchanged.

Below are the trade orders available:

• Market Orders
• Limit Orders
• Conditional Orders

Contract Trading

Contract Trading is another trading option offered by Phemex. Also known as Margin Trading, this option requires a trader and an exchange to enter into a legal contract to purchase and sell contracts for an asset like Bitcoin (BTC).

As mentioned, parties involved need to enter a legal contract, following these terms:

• Traders: Accept the risk of putting up collateral and losing cryptocurrency assets if the trade goes the other way. They also have the responsibility to select margins for trading contract options.
• Exchanges: In the event that the trader’s investment turns out to be profitable, the parties agree to pay a higher amount of money in proportion to that amount.

Margin Trading

Buying securities, such as stocks and bonds, through Margin Trading essentially involves borrowing funds to do so. If you’re interested in this option, the vital thing to remember is that you just need to have a portion of the money required to complete the purchase in your account. A “margin” can cover the remainder.

Some various terms and concepts are related to Margin Training.

• Margin Account: The condition indicates that you cannot simply use a conventional brokerage (cash) account to engage in margin trading; you must have a separate margin account. Just think about why your credit and debit cards are separated to answer why this is done.
• Initial Margin: The term indicates the sum of money you must have on hand to make a purchase. The margin has a 50% minimum of the total value of purchase, as indicated by the Financial Industry Regulatory Authority (FINRA).
• Maintenance Margin: This refers to the minimum amount needed of your funds that must be accessible in your margin account following a transaction. The Maintenance Margin is also called “maintenance requirement” or “minimum maintenance.”
• Margin Calls: This refers to the call that serves as a reminder to add money to the account to raise the balance to the maintenance margin. This happens when the funds in your margin account are less than the maintenance margin.

Copy Trading

Phemex permits all users to utilize and participate in Copy Trading. For many customers, copy trading fills the gap in their trading experience. It enables users to automatically duplicate the trading positions of the platform’s top expert traders and lets users observe the trading tactics such traders use.

Order Type

Phemex is one of the most reputable and hassle-free crypto trading and investment platforms where users may turn their cryptocurrency fortune into income. The idea for Phemex was born from the founders’ observations of the absence of professionalism, credibility, and customer service in the cryptocurrency trade.

Below are the Order Types accommodated by the Phemex platform:

Market Orders

Market Orders are performed immediately at current market prices. This order type is recommended for purchasing or selling a stock at the market’s most competitive price. This option is preferable for users who have urgent orders.

Limit Orders

Phemex offers limit orders indicating the highest or lowest price you are willing to buy or sell. This order style lowers trading expenses. Limit orders do not, however, ensure execution. If your order is placed outside of the market, there is a chance it won’t be filled.

Conditional Order

When a particular criterion is satisfied, Conditional Orders are automatically submitted. You must indicate a trigger price (TP) based on the Last Traded Price, the Index Price, or the Mark Price in order to activate orders. This option is recommended for traders who already have extensive experience and advanced strategies.

Stop Loss Orders

A Stop Loss Order refers to orders that permit you to indicate a specific minimum price for when your orders will execute and close. Its purpose is to help you decrease the potential maximum amount of loss you may experience. Phemex recommends this order type as a game plan because

• It can be used as a risk-management technique to prevent further losses on existing positions
• It can be used as an automatic tool to access the marketplace at the specified entry point without the need to manually wait for the market to place your order

Take Profit Orders

Take Profit Order and Stop Loss Order is similar in a way that both have predetermined or preset prices. However, when the price advances favorably, the order for the former executes rather than when the price goes against the position. Take Profit is recommended to increase the likelihood of closing a position.

Phemex also offers order features that can be used if and only if used in conjunction with the order types mentioned above. These advanced order functions are

Post Only Orders

A Post Only Order is a Limit Order but is only accepted if an order is not executed right away. Post-Only Orders never use liquidity; therefore, this order type exists. 

Post-only orders are frequently used to submit only passive orders that qualify for Maker rebates. By selecting the “Post-Only” checkbox, this order type can be accessible from the Limit Order, Stop Loss Order, or Take Profit Order section.

Close-On Trigger Orders

Close-on trigger orders are ones that can be used along with most of the Take Profit and Stop Loss orders. This additional order type can be activated by selecting the “Close On Trigger” checkbox.

These order types are regarded as “high-priority.” If a sufficient margin is not available to complete, there’s a huge tendency that any open orders for the same trading pair will be canceled automatically.

Currencies & Payment Methods

Phemex operates across various industries and has recently started to focus on blockchain and crypto-based solutions as an alternative to traditional payment methods. Because of this, Phemex now offers its customers flexible options for paying with cryptocurrencies and tokens and standard cash or card payments. That being said, various currencies and payment methods are being offered on the platform.

Currencies

In 2020, Phemex announced its partnership with Simplex Traders to purchase digital currencies. They offer support for currencies such as

• USD
• EUR
• JPY
• CAD
• AUD

The cryptocurrencies the platform supports are:

• BTC
• BCH
• ETH
• XRP
• LTC
• TRON
• USDT

Payment Methods

Phemex accepts payments via VISA, MasterCard, POLi, and UnionPay to buy bitcoin. However, today, countries such as the USA, Cambodia, Korea, and Ghana are not supported by Phemex.

Fees

Below are the details you need to know about Phemex fees:

Deposit Fees

Phemex does not charge fees for users who want to make deposits.

Withdrawal Fees

Presently, the highest Phemex withdrawal fee for makers/takers on the platform is 0.1%. This could be subject to change. That’s why we recommend you keep an eye on their fee rate, especially since the Phemex fees are released every 8 hours.

The fees for cryptocurrency withdrawals vary significantly on the selected asset and network. You can buy your crypto by making an OTC Account.

You may also purchase with the help of third-party payment providers through your debit or credit card. Some of the popular third-party partners of Phemex are Advcash, Simplex, and Coinify.

Phemex offers bank transfers $30 fee. If you want to avoid paying fees, it is usually advised to use bank transfers. Look for an exchange like Binance that provides fee-free bank transfers.

Transaction Fees

Phemex charges fees for trades. Makers have to pay a 0.01% fee, while takers are charged a 0.06% fee.

Limit

The minimum deposit and withdrawal fee on Phemex varies depending on the chosen digital currency. A withdrawal fee and a Google two-factor authentication are required before you may be allowed to withdraw.

If you’re planning to withdraw your BTC, the minimum withdrawal limit is set at 0.001 BTC, while the withdrawal fee you’ll need to pay is 0.00057 BTC. For other currencies, the platform made a Fees and Condition page for users to scan before proceeding with their transactions.

Security

It’s normal for people new to the crypto world to ask questions such as “Is Phemex Legit?” or “Is Phemex safe?”

The platform’s security has ensured to provide the maximum safety it can offer. They have Wallet Security, System Security, User Account Security, and Trading Engine Safety. Let’s briefly discuss them.

Wallet Security

Phemex developed a Hierarchical Deterministic Cold Wallet System that gives each user their own unique cold wallet deposit address. The company uses the offline signature to compile all the deposits into its multi-signature cold wallet periodically.

For maximum safety, they process withdrawal requests three times daily, and both operators and founders thoroughly review each request. Phemex’s Wall Street risk management expertise enabled them to identify any harmful activity and take swift action to safeguard the platform’s and our users’ assets. They use their offline signatures to process qualified withdrawal requests, ensuring that all assets are kept entirely offline and in a cold wallet system.

System Security

Phemex uses the Amazon Web Service (AWS) Cloud to deploy and safeguard its systems and machines. They also use firewalls to separate machines that are used for different purposes. System restrictions are also applied to ensure that the platform is safe from potential hacking.

User Account Security

All user accounts are secured by Phemex using a two-factor authentication method and a double-entry bookkeeping system similar to those used by banks. The system automatically initiates two-factor authentication whenever a user completes any important actions, such as logging in, funding, or changing their password. Meanwhile, double-entry bookkeeping refers to the balance of assets and equity used as the basis for accounting.

Trading Engine Safety

The CrossEngine and the TradingEngine are the two fundamental structural elements of the Phemex trading platform. The CrossEngine carefully matches customer orders according to time and price priorities. Meanwhile, TradingEngine is in charge of monitoring a comprehensive set of risk checks, including expenses, charges, computing, and more.

Customer Service

Phemex offers a help center that allows users to share their support, give product feedback, report issues and bugs, and detail complaints. They can be contacted via live chat, help center support, and mail.

Alternative Exchanges

There are other exchanges that can be considered other than Phemex. To help you decide which platform would provide you with the best trading experience, take a look at the comparison between Phemex, BitMEX, and BitFinex.

How to Open an Account

Opening an account on Phemex is quite easy. So, if you’re interested, follow these three steps:

Step 1: Visit the Phemex website and tap Register, located in the page’s top right corner.

Step 2: Enter the required information, such as your email address, password, and invitation code before clicking continue.

The platform requires passwords to be more than 8 characters, an upper-case, lower-case, and a number.

Step 3: You will receive a verification email and code that you can enter in the next window. Once you’re done, you have the account and may start trading.

FAQs

Is Phemex legit and safe?

Phemex is a reliable and secure cryptocurrency exchange. They are authorized to conduct business since they are registered with FinCEN as a Money Services Business.

Is Phemex legal in the US?

Phemex services are subject to laws and regulations that vary for every country. One of the countries that their OTC Service support is the United States, along with over a hundred more. Phemex US customers can enjoy the benefits of the platform, too.

Can you use Phemex in the US?

Yes, US residents can use the platform. However, we advise Phemex US customers to check their state’s regulations before using it.

Does Phemex require KYC?

Phemex KYC is not mandated to their users, but it is highly recommended so you can fully enjoy the services they offer.