BitMart Exchange – History
BitMart is a global cryptocurrency exchange founded in 2017 in the Cayman Islands and set up four branches in New York, Seoul, Hong Kong, and China. In 2018, the exchange created BMX, its native token, with a total supply of 1,000,000,000 tokens using the ERC-20 standard. BitMart has raised a sum of $10 million since 2018 from 5 investors, two of which joined in the Series B event on Nov 29th, 2021.
The exchange has managed to find its place among other crypto exchanges, with over nine million users in 180 countries and a volume of over $1.7 billion. BitMart is now (4/24/2022) ranked 36th with an average liquidity score of 527 (out of 1000), according to CoinMarketCap.
Sheldon Xia, a former crypto/digital asset enthusiast, came to be the founder of one of the top crypto exchanges in the world. Sheldon got his MS degree in Computer Science at Stevens Institute of Technology, a private research university in New Jersey, in 2017. He has also participated in several courses such as computer programming, database management, system administration, artificial intelligence, human-computer interaction, etc. Moreover, with regard to experience, he has played different roles such as coder, database designer, administrator, and manager in several projects associated with Hangzhou Dianzi University from 2012 to 2015.
BitMart’s Trading Mechanisms
BitMart users can trade crypto assets in several ways based on their background experience in the market and their expertise in using the platform. The first trading feature is Spot trading, where users can either use the standard interface with a user-friendly environment and sufficient tools or the advanced interface, which gives the user access to all trading features.
The standard interface is suitable for average users, and the advanced interface is designed to satisfy the needs of expert users who want to delve deep into the trading chart. The second trading option is the Futures interface, where users can place long/short coin-margined or USD-margined orders with leverages up to 50X in cross or isolated mode. It should be noted that futures trading is not available for American citizens.
The third trading service provided by BitMart is the Buy & Sell panel, where users can exchange fiat currencies (USD, EUR, AED, ARS, AUD, AZN) with a long list of popular cryptocurrencies through third-party channels, including MoonPay and Simplex. The last trading feature is the Earn option which allows users to stake their assets in fixed or flexible plans and receive three to seven Annual Percentage Yield (APY) with no transfer or redemption fees. The Earn panel is also unavailable for the residents of the United States. BitMart also offers 30% to 100% promotions for cryptocurrencies such as SOL, NEAR, MATIC, etc.
Bitmart is famous for the variety of the listed tradable cryptocurrencies and altcoins amounting to more than 1000 crypto assets. The wide range of the supported coins makes BitMart an ideal exchange for traders interested in trading less popular and newly born coins or tokens.
The second significant advantage of BitMart is the simplified registration process and the convenient and user-friendly interface of the platform. Furthermore, less familiar terminology is briefly explained in the respective section. Beginner users can buy and sell cryptocurrencies with Visa, Mastercard, and ApplePay. Also, in addition to the web-based platform, users can access and control their accounts via BitMart’s mobile app, which is available for Android and IOS.
The third advantage of BitMart is its competitive fee calculation system. Bitmart has a Taker/Maker fee system where a Taker is someone whose order gets filled immediately while a Maker is someone whose order goes in the order book until it is executed. Takers and Makers are charged differently, and Takers pay slightly higher fees. Moreover, ordinary and professional users (decided by their trading volume over 30 days and the BMX deposited amount) can get a discount if they pay the fees with BMX. The discount is 25% for ordinary users and 35% for professional users.
In terms of security, BitMart maintains a hot (online) and cold (offline) protection mechanism and keeps 99% of the asset in cold storage vaults with multilayered encryptions to secure its users’ assets. The exchange has also embedded several features to protect its users from hackers or phishers. Aside from email verification at the registration stage, users can enable two-factor authentication using Google Authenticator through a simple QR code scan for added security.
Phone verification is another level of protection provided by BitMart, which is applied to signing in, changing passwords, withdrawals, and other activities that affect account security. Also, there is a ‘Device logs’ section where you can see the list of devices logged into your account with details like time and location to keep track of the active devices.
BitMart Lending (crypto-backed loans), Earning (through staking), and a multilingual platform are other advantages of the exchange.
Despite the aforementioned strict security measures, hackers hit BitMart’s hot wallets through two compromised private keys and withdrew $196 million worth of cryptocurrencies in December 2021. The exchange’s CEO has promised that the affected accounts will be reimbursed. Another limitation of the exchange, which is also the cause of many complaints, is BitMart’s KYC policies. There are two levels of account verification.
Level one is for depositing and simple Buy & Sell operations. Level two is for unlocking all platform features like withdrawals larger than .06 BTC, spot and futures trading, staking, etc. The problem is that users conveniently deposit into their accounts but cannot easily withdraw their funds due to BitMart’s KYC rules. The third disadvantage of BitMart is that only 30% of its native token is available for public offering. The rest is reserved for the founding team, private investors, and community expenses.
Traders should first and foremost understand their trading needs before choosing an exchange. BitMart can be a smart choice if the trader is interested in less popular altcoins or newly developed tokens. Also, users who do not want to be challenged with complex platforms can turn to BitMart for a more convenient experience. However, considering that the exchange has been recently attacked by hackers, it is strongly recommended that traders keep their assets in their personal wallets on devices that are often offline if you choose to work with BitMart.
Source: The Pipsafe Team