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As a crypto investor or a trader, it’s always important to look for a new, reliable exchange with cutting-edge technology that offers unique benefits to crypto enthusiasts. One of these exchanges is surely Phemex.
Here, we unveil the intricacies of this trading platform and meticulously dissect its features, performance, and overall user experience. Whether you’re a seasoned trader or a budding investor, our comprehensive exploration aims to provide unique insights into Phemex, offering a nuanced perspective that goes beyond the ordinary.
So, without further ado, let’s get started.
A Glimpse into Phemex
Like any decent exchange nowadays, Phemex is not simply a place for trading. The website and its engine are created to be super productive, and it comes with competitions, earning opportunities, and more. It aims to become a hub for novices and experts.
As we’ll observe here, it offers a plethora of additional perks beyond the basics of crypto spot and futures trading.
The Roots
This platform is a relative newbie to the market. It has accomplished a lot in such a short time since its founding at the end of 2019, and it looks remarkable. Naturally, there are still certain areas that need improvement and development, and we will address them as well.
Phemex Pte. Ltd. owns and operates the company out of Singapore. The team’s principles are thoughtful, and they’re working toward a worthy goal. The platform was developed by a group of people with a unique combination of TradFi and Blockchain expertise; some members of the team had worked for years for the financial behemoth Morgan Stanley, while others were seasoned Bitcoin traders.
Surprisingly, the United States is among the many nations where it’s unavailable. Unlike other competitors, it contains a long list of banned nations, not simply sanctioned ones.
Understanding Phemex’s Functions
Phemex wants to give users something quick, complete, and not too hard to use. This platform should work for both novice and expert customers.
The business has been working to improve the user experience, speed up transactions, and streamline the registration procedure. Here are some of the primary features:
User-friendly Trading
Trading cryptocurrencies is easier with Phemex. You can quickly swap cryptocurrencies (more than fifty varieties) on the P2P network and utilize your credit card for transactions. Online over-the-counter (OTC) trading is also made easier using Phemex.
Subaccounts
The company also permits users to set up and handle several subaccounts, which is a feature not seen on many crypto exchanges. Traders may benefit greatly from the tools available on such accounts, which allow them to better oversee their finances, try different tactics, separate their trading capital, and increase their market performance overall. Additionally, you are free to modify the trading conditions of certain accounts using such accounts.
Spot Trading
Anyone with experience using a trading platform will feel right at home on this one. Like other cryptocurrency exchanges, this one uses the tried-and-true flexible design strategy for its trading panel and utilizes the renowned and strong TradingView charting tool. Because of this, Phemex is a fantastic tool for users of all experience levels, even those who rely heavily on technical analysis.
Prediction Market
With this one-of-a-kind function, Phemex stands out from other platforms. The main idea behind this program is that you could leverage it to place bets on actual, real-world incidents, and Phemex will pay you for success. Anyone may join a prediction pool and buy shares in the pool based on their expected event result. If you’re correct, you’ll make a profit.
Demo Trading
The website’s demo trading function is a genius solution for traders of all experience levels to practice without fretting over losing money. This is a definite upside since it shortens the learning curve for many people.
Referral & Affiliate Bonuses
You can work as affiliates for Phemex. Just tell your friends about it, they can join with your referral code, giving you 30% of their fees for life.
For the commissions, several exchanges provide a 1-year (or shorter) window where you can benefit from a referral’s participation in the platform. But Phemex keeps paying the affiliate royalty to the recommending party with no set time limits.
Copy Trading
The objective of this tactic is to let novice traders learn from the methods used by seasoned pros. Phemex offers copy trading for every member and even comprises a beginner’s guide to provide a jump start. But keep in mind that some of the money you make from these sales will be taken as fees.
Sign-up Bonuses
Multiple welcome bonuses are available at Phemex, with a maximum value of $100. For instance, you can get an additional $10 if you verify your identity and increase your BTC deposit to a certain level. This baseline amount can change over time.
An additional ten dollars might be yours just by following and sharing the Phemex X postings. Making your first substantial deposit is when you’ll get the highest welcome bonus. If you reach a certain amount for an asset, you can get $60.
Earning Opportunities
There is another opportunity to make money at Phemex besides the incentive programs. You may earn a steady return using Savings Accounts and other products. Staking popular cryptocurrencies increases your potential return. You may conveniently receive rewards every hour and un-stake whenever you choose.
Competition Mode
This is one of the most exciting features that makes trading more like a game. It gives trading the much-needed rush by making investment seem like a contest. Teams may have as many members as they choose, but a minimum of ten is required. When the tournament is about to begin, any team with fewer than ten people will be disqualified, and its players randomly join other teams that have ten or more members.
At the end of the competition, the team’s captain gets a considerable share of the reward, and the rest is distributed among the team members.
The Upsides to Using Phemex
Now that we’re done with the introduction, it’s time to answer a big question: why should you choose Phemex over other options? There are several reasons.
Fair Fees
Phemex cuts through the noise with an upfront and fair price structure, which allows you to optimize profits without being burdened by hidden fees. Users may trade confidently, knowing what they’re getting into, thanks to its quick transaction processing and transparent pricing structure.
Dedication & Transparency
Transparency, especially when it comes to recognizing and fixing problems, says a lot about Phemex’s dedication to safety. The organization’s active engagement with the user community, answering problems and resolving conflicts, increases user confidence and credibility.
Furthermore, it is clear from reviewing their extensive Security Policy that they take the entire process of protecting user data seriously.
Collaborative Learning
The educational section of Phemex does more than just store material; it promotes learning by offering incentives, which helps cultivate a community that is knowledgeable, involved, and loyal.
Flexibility
The platform gives users more control over their trading money and risk by letting them load their wallets with a variety of coins rather than just one currency. This is particularly vital for advanced traders because as they gain experience, they can cast a wider net and work on several assets simultaneously.
Compliance
When you talk about safety, you also have to talk about how Phemex meets legal requirements. Its Singaporean registration is an indication of a structure that requires rigid compliance standards, as Singapore is a country with notoriously tight financial rules. It is essential to keep in mind that crypto legislation is a constantly changing worldwide scene. Therefore, it is necessary to remain updated on these developments and how Phemex adjusts to them.
The Downsides to Using Phemex
There’s also a flip side to this. Keep in mind that these “drawbacks” really depend on your geographical location, trading strategy, capital, and expertise level. Here are some potential downsides to using this platform:
Not a Lot of Altcoins
There are lots of merits to the platform overall, but it doesn’t have nearly as many altcoins as its rivals. This can put off traders who are seeking a diverse selection of digital coins. Of course, as Phemex expands its operation, this can be resolved in time.
Too Many Restricted Nations
Unfortunately, Phemex’s worldwide reach and usefulness to traders all over the world are limited since some areas, including the US, can’t get access. This is a major downside as these countries make up a huge portion of the crypto traders around the world.
Laborious Withdrawal
Traders who need their money quickly may find the three-day manual withdrawal procedure annoying, particularly in a market that’s open around the clock. However, this is a security improvement.
Insufficient Fiat Support
One further thing that users don’t like is how few fiat currency pairs there are to trade. Even though they serve customers all around the world, it doesn’t provide many fiat-to-crypto pairings, which is a major problem. Because of this restriction, the trader may have to go through more conversion processes, which might be time-consuming and expensive.
High Rewards Come with High Risks
One of Phemex’s strongest points is the contract trading service. They promote the profitable potential of leveraged transactions up to 100x, but they don’t do a good job of informing new traders about the risks involved. While this strategy may increase gains, it also has the potential to increase losses, perhaps causing a trader’s whole balance to be wiped out.
Knowledge Center Needs Improvements
If Phemex wants its customers to fully grasp its products and services and make the most of its platform, it has to improve its training materials. Although it may cater more to experienced traders, the lack of tutorials, webinars, or simple guidelines is a noticeable downside, particularly given the platform’s sophistication.
The User Experience
The UI/UX is user-friendly, with straightforward drop-down menus that make navigating the site a breeze. Except for the transaction interface, the remainder of the functions are designed to be user-friendly and simple on the eyes, making it ideal for beginners. Unlike many modern exchanges, you won’t probably get confused and roam around the site’s numerous pages and sections.
This platform is great for both amateur and expert traders because of its intuitive trading interface and its compatibility with TradingView. With this platform, traders just need one window to do every bit of analysis and place orders.
There are now five languages available, with plans to expand to additional global languages as the service’s user base expands. You get access to every common trading tool, with all needed indicators on each chart.
The platform is very customizable, and users may even try out every one of Phemex’s features with a demo trading account. On the other hand, you can’t alter the settings for everything, for example, the TradingView timetables.
Phemex Fees
As you begin your search for the ideal cryptocurrency exchange, fees will inevitably be one of the first things to come up. Fees may have a significant impact on your possible trading earnings, particularly if you’re a professional day trader. This is a crucial point to consider. There are two general fee formats: Trading and Withdrawal.
Trading Fees
When people buy or sell on the site, they are charged a 0.10% fee. A “flat fee model” is the common term for this kind of pricing system. On the other hand, if you sign up for a membership, the costs will vanish completely. Spot trading on the website is free for traders who are premium members.
There is a fee for contract trading, though, even if you are a member. People who buy or sell contracts on Phemex have to pay 0.06% and 0.01% in fees, respectively. These are both lower than typical fees in the sector.
Discounts on trading costs are also available to those who reach particular trading volume goals throughout the 30-day period prior to the current one. The website shows the necessary trading volume, along with the corresponding discounts.
Withdrawal Fees
We have not seen any fees associated with Phemex while withdrawing cryptocurrency from the account. Therefore, while making a withdrawal, the only costs to consider are those associated with the network. Network fees do not go to the exchange but rather to the miners.
While compared to the worldwide marketplace norm, the costs for cryptocurrency withdrawals while paying simply the network fees are often lower.
Available Currencies
Phemex lets you sell any of its more than 200 different crypto products. At first look, it might not seem like a big deal when you think about how many tokens are already in use. Still, remember that only a few trade sites can handle even a small part of that amount! With such a large asset base, it means that the network accepts not just the most popular but also many lesser-known currencies and tokens.
The Phemex Token
There are two main tokens available on this platform.
The “PT” token is designed to be a platform utility token. There aren’t many specifics about how PT can be used yet, but the token is likely to offer the same advantages as other big exchange tokens, such as lowering fees and offering rewards.
The website states that the PT token will have several uses and advantages, such as governance rights, incentives, and staking returns. In this case, Phemex puts a modern spin on traditional governance by allowing users to stake their PT tokens to acquire “vePT” governance tokens that might be used to cast votes.
This idea is intriguing since it creates a buzz around the PT token via staking while also providing a way of governance. Looking forward to seeing how this system works out! But, besides that, there is another asset called the Soul Pass.
Soul Pass
You can think of the Soul Pass as an electronic passport that will let people do certain things in the Phemex environment. You may use it to track the PT balance before mining, which can be turned into post-mining Phemex Tokens. You can securely store the passcode in an ETH wallet or the platform’s special wallet.
How to Withdraw or Deposit Money
Bitcoin and credit card transactions are both supported by Phemex wallets. Unfortunately, when we checked the Phemex website for a way to deposit USD directly, we couldn’t find one.
You need to purchase Bitcoin prior to using Phemex. After registering with Phemex, users have the option to either buy Bitcoin directly from the platform or store it in a Bitcoin wallet and then use it to buy Bitcoin on the market. Once users have the money in their pocket, they need to fund their Bitcoin trading accounts so they can trade BTC contracts. Users may also instantly convert their Bitcoin holdings to US dollars in order to trade USD contracts.
Fiat Deposits
People who want to use fiat can start an over-the-counter (OTC) account. They work with Legendary Trading, a US exchange organization, so users can use wire transfers to deposit or receive money.
Since an OTC account supports wire transactions with amounts as small as $50, it is a good fit for sharks or individuals with lower deposits. However, for traders dealing in cheaper items, this is not the most cost-effective alternative due to the $30 charge associated with wire transactions.
Withdrawal
A user may simply withdraw a certain quantity of bitcoin by entering their wallet address and then completing the procedure using conventional two-factor authentication.
Mobile App
With the app, Phemex allows its customers to initiate new trades, cancel existing ones, or even keep tabs on and adjust an active position from anywhere.
A plethora of built-in tools, capabilities, and services make mobile trading a breeze, no matter where you are. Some prominent features are:
- An intuitive design that traders of all skill levels will appreciate.
- Just like TradingView, but tailored for mobile devices, these charts let you analyze prices and make choices.
- There are a lot of built-in markers and sketching devices for technical analysis.
- With its support for several cycles, this app is great for traders who focus on both short-term gains and longer-term trends.
Traders can use the app to do many things at once, such as setting fresh orders, closing open deals, keeping an eye on and making changes to current trades, and more.
Phemex Customer Support
Phemex, like the majority of exchanges, has a customer service hotline and a FAQ section inside its support center. As an added bonus, the site allows users to message the CEO personally on Telegram, and this is a thoughtful gesture.
With an abundance of useful articles, instructions, and current blog pieces, their Help Center is remarkably effective. Here, you can discover the majority of the platform-related answers. You may reach the support staff by message board, live chat, or the Telegram channel.
When clients contact the email staff, they often get a response within half an hour. Plus, the expertise level of the customer service is great; all of the reps know a lot about the business and the items they are selling. The Phemex support staff deserves a lot of praise.
In addition, Phemex should be commended for their exceptional work with the Phemex Academy and the many articles that educate general people on cryptocurrency.
Phemex’s Security
When it comes to storing and exchanging Bitcoin, security is paramount. Your assets are worthless in the absence of adequate security measures; eventually, some malevolent outsider will attempt to steal your cryptocurrency. Reviews from Phemex users are generally positive about the exchange’s security measures. It’s because they make sure the platform is secure in several ways:
Close Tracking + Cold Storage
The integrated crypto wallet is the first point of contact; the business processes withdrawal inquiries three times daily. Any questionable transactions will be promptly identified and thoroughly examined by an expert staff.
In addition, you may see in reviews that this organization utilizes cold storage for all of its customers’ cryptocurrency assets. While this is obviously typical, it deserves special mention since cold wallets are among the most reliable ways to keep your money secure.
Two-Factor Authentication
The next step is to ensure the safety of your account by including elements such as two-factor authentication, generally known as 2FA. Together, all of these factors contribute to the development of a safe atmosphere in which customers can take part in cryptocurrency trading without having to be constantly worried about the condition of their assets.
Rigorous KYC
Phemex doesn’t require KYC for signing up, but the process is necessary if you plan to upgrade to a Premium level or cash in on the bonuses. Users can verify their identity via the KYC procedure. Users may complete the procedure by going to the Phemex site, either by joining or signing in. Then, they can access their account by selecting the circle symbol in the upper right corner. From there, they can check all of their account details by selecting Overview on the far left of the screen.
After selecting ID & Face Verification, a menu will appear; clients must proceed with the on-screen prompts to complete the process. Customers must have a valid picture ID issued by the government.
The Future Outlook
The Phemex DAO is going to be the decentralized backbone of the entire ecosystem, and they want to put 35% of their PT into this project. The community, particularly its key members and working groups, will be responsible for governance. Through a unique contributor scheme that includes rewards, prizes, and grants, Phemex will encourage these members to take part in the governance process.
As soon as the funding phase is finished, the blockchain will store all the accepted standards and government laws. This will create a space where everything is clear. The stakeholder community will review and evaluate all ideas and recommendations before putting them into action.
Who Should Use Phemex
Now, you know pretty much all there’s to know about Phemex. So, you have to ask yourself, is it the right choice? It’s definitely a solid choice for some traders, including:
Those Who Want Centralization & Decentralization Together
Using DeFi, Phemex offers all the benefits of centralized exchanges—instant swaps, vast liquidity, and fiat on-ramps—while reducing some of the risks associated with trust. Phemex is an excellent balance between CeFi’s ease of use and DeFi’s trust assurances.
Those Who Value Security Above All Else
Phemex is a secure network. Since its inception, this massive exchange has been impenetrable to hackers. In order to verify the legitimacy of all transfers and the proper destination of funds, stringent risk management mechanisms are set up to examine each withdrawal request. Phemex is a top exchange as it protects assets and has rapid trade engines that are up all the time and can recover quickly from faults or sudden shocks.
Those Who Want a Community
From the Learn & Earn program to the prediction market and the active Discord club with over 22,000 users, it seems more like a community than a simple exchange. Despite the inherent complexities, the community can certainly help novice traders get through the process.
Who Shouldn’t
On the flip side, some traders can’t (or shouldn’t) use the platform, including these groups:
Those in the Restricted Countries List
One major letdown with Phemex is that it isn’t accessible to people in the US and a bunch of other nations, including China, Iran, South Korea, and the UK. So, trading on this exchange is not an option for residents of these countries.
Those Who Don’t Want Centralization
Centralization is a key part of the Phemex ecosystem. This can be against your decentralized mentality, make trading potentially more expensive than on DeFi, and eliminate many possible token pairings.
The Final Verdict
So, there you have it. This is our full-on Phemex review that shows it comes with numerous pros and chances for crypto users and not many cons. Traders of all skill levels consider it intuitive and simple to use.
Phemex is best known for two things: letting you make subaccounts inside of a current account and focusing on the user, though this may not always be the case as the company grows. It is possible that these capabilities will give it an edge over competing exchanges.
