Bitcoin margin trading is definitely on the rise. There was a flurry of new venues offering high leverage on Bitcoins and other cryptocurrencies in 2019.

These are primarily available via futures contracts. KuCoin is a well-known crypto exchange.

KuMEX, KuCoin’s Bitcoin futures trading platform, offers several types of contracts. Users can also benefit from leverage rates up to 100x.

What is KuMEX?

KuMEX is shorthand for KuCoin Mercantile Exchange, and it’s a sophisticated cryptocurrency trading platform. This platform allows traders to use leveraged contracts. They can be bought and sold in Bitcoin.

KuMEX is a Bitcoin-only exchange, which is quite different from other cryptocurrency exchanges. Profits and losses are all denominated only in Bitcoin.

KuMEX permits the trading of cryptocurrency contracts. Contract trading and spot trading are fundamentally different. The former allows users to trade two different cryptocurrencies at a spot price. With the latter, they can trade financial contracts with other users.

KuMEX contracts allow you to purchase or sell cryptocurrency at a specific price and at a particular time in the future.

KuMEX Offers Different Types Of Contracts

KuMEX offers two types of contracts. These are:

Bitcoin Perpetual Mini Contract (XBTUSDM)

This is a perpetual contract with no expiry date. This allows users to open and close positions as they wish. One Bitcoin contract is equal to $1. Each 8-hour funding period. Traders can leverage up to 100x.

Bitcoin Mini Contract 3-Month Settlement

This contract is cash-settled and expires every three months. It is also worth $1 and allows more people to be exposed to Bitcoin price. Leverage of up to 20x is available for traders.

How To Open An Account And Deposit At KuMEX?

It is easy to open a KuMEX account. You can either open an existing KuCoin account or create a new one. Then, navigate to KuMEX from the main menu.

After hitting the KuCoin sign-up button, you will see the following screen.

You only need an email address or a telephone number to receive a verification code. After confirming the code, the user will need to create his password.

KuMEX has the advantage of not requiring KYC verification. This adds to anonymity, something many cryptocurrency traders are eager to enjoy.

Its time to deposit funds into the newly created account. However, the user must set up his two-factor authentication and a complex trading password to do this. Both can be done quickly and will help protect your digital assets.

Users will then be able to deposit Bitcoin from their account settings. You can send BTC to your KuMEX address or transfer some from your KuCoin main account. Transferring between KuCoin or KuMEX is instant, unlike other exchanges that require asset transfers.

KuMEX Lite

KuCoin has released KuMEX Lite to make it even easier. KuMEX Lite is a simplified version of the KuMEX platform. It aims to simplify contract trading and improve user experience. It can be used in English or Chinese.

Logging into KuMEX Lite requires the user to have their regular account information.

The “long” option allows you to place long orders, while the “shorter” option allows you to shorten assets. The user must enter the amount he wishes to trade and choose a level of leverage.

As with the common platform, Liquidation prices are also available in the Lite version. This should be closely monitored to ensure one does not lose his position.

KuMEX Trading Fees

KuMEX’s trading fees are clearly described in the designated contracts section. We have outlined the most important points below in a table.

A Marketmaker – A market maker who places an order that isn’t immediately traded but stays and waits for someone else to fill it or match it at a particular point.

A MarketTaker – An order placed by someone who matches an existing order in the order book instantly becomes a market taker.

There are no withdrawal or deposit fees. However, therm offers a live chat service that is responsive. You can also find information on the various contracts and how to use them.

KuMEX allows you to open a ticket if the matter is more complex. The support team will respond to you relatively quickly.

KuMEX Security

KuMEX is known for being a reliable platform. For account security, users have the option to generate a 2-factor authentication and a unique trading password. This enhances security.

KuCoin, the central platform, has been considered somewhat secure and has not been hacked yet. Their website is protected with an encryption protocol to protect the privacy of all information.

KuMEX uses the Auto-Deleveraging System (ADL) for margin trading. The insurance fund will cover any additional costs incurred by liquidation engines when they take over a position.

Conclusion

KuMEX offers a simplified user interface and enough tools to allow traders to make their choice. It is intuitive and seamless.

It is also comforting to know that the exchange is part of an established organization that has built its reputation since its inception.

KuMEX offers 3-month and 6-month cash-settled Bitcoin futures contract options, which is a departure from many other futures trading platforms that offer only perpetual contracts.

It enjoys significant trading volume on its perpetual Bitcoin agreement, which gives traders the liquidity they require.