how bitmex buys bitcoin

BitMEX's partnership with Genesis enables them to buy Bitcoin through OTC transactions, providing access to deep liquidity, reduced slippage, and enhanced trade execution.

Nov 05, 2024 at 11:05 pm

How BitMEX Buys Bitcoin

1. BitMEX Partners with Genesis

To facilitate its operations, BitMEX has partnered with Genesis, a leading cryptocurrency brokerage firm. Genesis provides liquidity for BitMEX's order book and executes large trades on behalf of the platform.

2. Order Flow and Execution

When users place orders on BitMEX, those orders are routed through the platform's order book. Genesis monitors the book and identifies large sell orders that meet their criteria.

3. Over-the-Counter (OTC) Transactions

Genesis then executes OTC transactions with BitMEX to sell the desired amount of Bitcoin. OTC transactions are conducted directly between BitMEX and Genesis outside of the order book, ensuring anonymity and price stability.

4. Settlement and Delivery

After the OTC transaction is complete, Genesis delivers the purchased Bitcoin to BitMEX. BitMEX credits the Bitcoin to the user's trading account.

5. Risk Management

To manage risk, BitMEX uses sophisticated hedging strategies and maintains a robust risk management framework. This ensures the platform's operations are financially secure and minimizes exposure to market volatility.

Benefits of BitMEX's Partnership with Genesis

• Access to large liquidity pools
• Ability to execute large trades with minimal price impact
• Reduced slippage and enhanced trade execution
• Improved order book stability
• Strong risk management practices