In light of the high rate of leverage that cryptocurrency traders can access on the Bitmex platform, it has become a popular choice for folks who want to be able to expand their wallets in an era where a more traditional currency trading profit model has supplanted old-school mining as the way to go.
The ability to use Bitmex in USA, however, has been limited by the platform itself in recent years. If you're wondering "Can I use Bitmex in USA?" this guide will help you get on your way.
Using Bitmex in USA presents several challenges. It is not evident that any court has ruled Bitmex USA illegal.
There is not any cases leveled against US-based users, instead with the focus of the effort to prevent its use arising from work by banks and the government to pressure the exchange into keeping Americans from accessing Bitmex in USA.
If you're wondering how to trade on Bitmex from USA, the answer is that you're going to need to put in quite a bit of work. You'll need to mask your IP address from Bitmex in order to not be flagged as an American user. Should you wish to convert Bitcoin proceeds into U.S. dollars to cash out for profit, you'll also need to ensure your wallet doesn't throw up any flags with a broker like Coinbase.
It's unclear precisely what motivated the ban, but sometime in 2017, Bitmex started locking out American users as traders on the platform. Although it's merely rumor and speculation, this appears to be the product of pressure from American banking and government concerns. Rather than get itself tangled up in a lengthy legal battle over the legality of Bitmex, the exchange elected to simply lock American IP addresses and accounts out from their system. While they leave numerous ways to get around these prohibitions, it allows the company to say that Bitmex not allowed in USA.
Notably, this is a harsher position that the US has taken on other matters, such as online gambling prior to its legalization in America.
Oddly though, cryptocurrency trading isn't illegal in the US, and it does beg the question why is Bitmex banned in USA. Fortunately, the workarounds are simple.
Getting up and running with the Bitmex platform is simple -- as long as you're able to actually log in, set up an account and access the main forms for going short or long on positions. You'll need to fund your account with Bitcoin, as that is currently the only currency that's accepted.
Once your transfer has been accepted, you can move forward trading on the platform. Bitcoin, notably, is denominated in the older XBT symbol rather than the more BTC symbol. It is, however, the same old Bitcoin you've always used. The platform also allows trading in Ethereum, Litecoin and other popular cryptos.
The first order of business is to ask around about whether you'll be using a Bitcoin broker that's comfortable with Bitmex. You don't want to end up in a situation where converting your profits to cash becomes a challenge. Once you've done that, you'll also need to set up a VPN in order to mask your IP address from Bitmex.
VPNs have come heavily into vogue in the last few years, and it's recommended that use a professional one that's paid for. Most high-quality VPNs cost between $6 and $10 per month, and you can find companies like NordVPN and TunnelBear that will easily allow you to select the country you'll use as your host country for your transactions.
The simplest approach is to just select Hong Kong, the place where Bitmex is headquartered, as your home. For a little more flexibility and to steer clear of the Great Firewall of China, you might prefer to use a nearby country that's Bitcoin-friendly, such as Singapore.
Most users will configure their VPN address in their browser to make it as simple as possible to turn it off. If you expect to be regularly using your VPN, you can also set it up to run on your network adapter card or through your router to minimize the amount of time you spend setting it.
There is only one USA equivalent to Bitmex. That is Poloniex, a company that claims to be the largest cryptocurrency exchange in the world. While it doesn't appear to have the high profile of Bitmex, it does operate as a US-based company, making it appealing to those who'd rather not skirt the "local laws" that Bitmex cites as its reasoning for not taking American customers.
Figuring out how to use Bitmex from USA is a somewhat involved task that requires an intermediate level of technical skill, but even for beginners, the process is simple as long as you follow your VPN instructions to the letter. Your reward for going to all that effort, though, will be the chance to trade on a platform that allows you to use high levels of leverage.
This is extremely advantageous for traders who have an interest in finding ways to short cryptocurrencies, and it's also beneficial for anyone who'd rather use crypto in a traditional currency trading platform rather than wasting money in the increasingly low-yield, tech-heavy world of mining.
In the absence of a large number of competitors in this space, there isn't much choice for traders but to skirt the laws. Given the historically libertarian attitude of the American Bitcoin community, however, most traders won't exactly feel bad about skirting around the gray areas of laws they find poorly designed.
Thankfully, the task calls for not much more than setting up a VPN and making sure your broker is Bitmex-friendly. From there you can start making predictions about where the market is headed and try to profit.
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