Phemex - Definitive Guide

Phemex is a top-5 futures trading exchange providing traders of all levels with a reliable and professional platform to buy and sell cryptocurrencies. With an intuitive interface, frequent opportunities to profit from crypto markets, weekly new listings, and launchpool benefits, Phemex promises to be the best platform to trade crypto. 

The platform serves a global community of 6 million users from over 200 countries. Phemex provides a powerful trading experience with a daily volume of $10 billion USD. It is known for its extensive range of 310 contract and 365 spot trading pairs. Skilled traders can take advantage of up to 100x leverage on contract pairs, while beginners enjoy low credit card fees and a grid trading bot that automates trades at preset prices. Phemex is proud of its remarkable transaction speed, handling 300,000 transactions per second. As the first exchange to publish both proof-of-reserves and proof-of-solvency through a unique, self-proving approach, Phemex stands out as one of the best and most trustworthy crypto exchanges.

Security is at the core of crypto, and Phemex delivers. Using an innovative cold wallet system, Phemex ensures users' funds' safety at all times. Additionally, any user can use the Proof of Reserves tool on Phemex to verify the secure storage of their assets. As the first exchange to publish both proof-of-reserves and proof-of-solvency through a unique, self-proving approach, Phemex stands out as one of the best and most trustworthy crypto exchanges.

Phemex recognizes the vital role exchanges play in meeting traders' specific needs. To address this, Phemex launched as a hybrid exchange in 2022, combining the best features of both centralized and decentralized platforms. Users benefit from the liquidity and reliability of a centralized exchange, along with the flexibility and autonomy of a decentralized one.

Trading on Phemex

• Contract Trading
• Spot Trading
• Copy Trading (Trading Bots)

Contract Trading

Phemex offers a wide selection of "contract" markets, including perpetual futures that allow traders to trade cryptocurrency prices without owning the underlying assets.

These include the USDT-M Perpetual and COIN-M Perpetual markets, which allow the use of USD, USDT or cryptocurrencies as collateral. With 225 contract pairs available and continuously updated, Phemex offers numerous trading opportunities. In the COIN-M market, only Bitcoin (BTC) or Ethereum (ETH) can be used as collateral.

Fees:

• Maker Commission: 0.01%
• Taker Commission: 0.06%

Phemex allows up to 100x leverage on many assets, including BTC and ETH, with currently over 225 perpetual contract markets:
BTC, ETH, LINK, XTZ, DOT, UNI, LUNA, LTC, TRX, ATOM, SNX, ADA, SUSHI, SOL, FIL, ALGO, ENJ, XRP, DOGE, XMR, KSM, BCH, NEO, COMP, MANA, CHZ, YFI, GOLD, etc.

Spot Trading

The spot trading at Phemex offers access to a wide range of 365 token pairs, supporting diversified trading strategies. Traders can take advantage of up to 5x leverage on these pairs, maximising potential returns while keeping risk under control.

Fees:

• Maker Commission: 0.1%
• Taker Commission: 0.1%

For a full breakdown of all applicable commissions, Phemex provides a detailed fee structure on its "Fee Rate" page. Currently, Phemex offers over 300 spot coins:
BTC (Bitcoin), USDT, SOL (Solana), DOT (Polkadot), ETH (Ethereum), LINK (Chainlink), LTC (Litecoin), AAVE, ATOM (Cosmos), SUSHI, LUNA, UNI (Uniswap), ADA (Cardano), XTZ, FIL, SNX, CHZ, XRP (Ripple), TRX (TRON), MATIC, COMP, DOGE (Dogecoin), GRT, EOS, KSM, ALGO, XLM, MANA (Decentraland), YFI, BCH, ENJ (Enjin), MKR, AXS (Axie Infinity), BAT, ZEC, QTUM, NEO, ONT, VPAD, SAND, ALICE, ENS, ANKR, NU, GTC, OCEAN, MASK, USDC, YGG, AGLD, SLP, CAKE, HOT, FET, EOS, BNB, POLY, APE, CHR, OMG, TRIBE, XRP, DENT, 1INCH, MXC, C98, UMA, COMP, COTI, FEI, DAO, REN, BCH, etc.

Copy Trading and Trading Bots

Traders on Phemex can automate their strategies by using bots to "copy" trades from the platform's top traders, selected on the basis of performance. A 'top trader' is identified by a GNP return of over $20,000 and an ROI of 200% over the past 30 days.

Using Phemex's trading bots is simple. Traders can choose a top trader from the "Copy Trading" page, with a limit of 100 users per trader to minimise market impact. The interface displays detailed statistics, including total balance, overall GNP and monthly GNP.

Users can also activate grid trading bots for futures, automating strategies and reducing the need for manual intervention.

Phemex offers a variety of bots for traders of all levels. Over 350,000 traders have earned more than $31,000,000 via trading bots on the platform.

• Futures Grid Trading Bot: automates trading strategies with preset grids.
• Futures Martingale Bot: designed for strategic average cost optimisation.
• Spot Grid Bot: ideal for volatile markets, buys low and sells high 24/7.
• Signal Trading Feature: enables automation using signals from TradingView webhooks, easily integrating preferred triggers into your Phemex account for precise trade execution.

Buy Cryptocurrencies on Phemex

Buying cryptocurrencies on the Phemex exchange is quick and easy. The platform offers a one-click buying and selling process, supporting payments in over 80 different fiat currencies. Users can buy USDT conveniently using credit cards.

On Phemex, you can buy various cryptocurrencies directly through your fiat balance on the platform, including USDT, BTC, USDC and ETH. This seamless integration allows for efficient and flexible trading.

In addition, Phemex stands out by offering the lowest EUR credit card purchase fees of all exchanges. For USD deposits, users benefit from zero transaction fees, making Phemex a cost-effective choice for those looking to maximise their investments.

Phemex's Unique Features for a Personalised Trading Experience

Phemex recognizes that today's crypto traders operate in a fast-paced environment where precision and speed are essential. However, many encounter significant challenges due to the limited customization options and inefficiencies of traditional trading platforms. To address these challenges, Phemex provides unique features designed to make crypto trading more personalized, profitable, and efficient than ever before.

Basket Order

Phemex offers an innovative Basket Order feature on its Contract platform, transforming trading by allowing users to effortlessly build and manage a portfolio with multiple trading pairs. This tool saves time and effort by enabling the management of multiple pairs simultaneously, customizing fund allocation ratios to fit unique trading strategies, and executing orders seamlessly with just a few clicks. The Basket Order feature provides unparalleled flexibility and efficiency, making the trading journey smoother on Phemex.

Multiple Watchlists

Phemex has also introduced the game-changing Multiple Watchlists feature, an industry-first tool that gives traders full control over market monitoring. Users can easily organize and track different sets of trading pairs according to their strategies. With real-time updates and extensive customization options, watchlists can be tailored to match unique trading styles. Traders can rename, reorder, and optimize for peak efficiency, experiencing the ease of trading with Multiple Watchlists, exclusively on Phemex.

Iceberg Order

Another unique feature offered by Phemex to cryptocurrency traders is Iceberg Order, allowing traders to make large trades without causing market ripples. This cutting-edge tool breaks down massive orders into smaller, hidden segments, ensuring minimal market slippage and keeping trading moves discreet. It's the secret weapon to elevate trading strategies to the next level on Phemex.

Scaled Order in USDT

Many exchanges only allow scaled orders in coin amounts like BTC or ETH, which doesn't align with the common practice of trading in USDT, creating a disconnect for traders. Additionally, these exchanges often limit scaled orders to entry or exit using only limit orders, lacking the flexibility of stop-limit orders. Phemex addresses these issues by offering USDT-based scaled orders, providing consistency with traders' preferred habits. This feature allows for both entry and exit using stop-limit orders, offering greater flexibility and efficiency. It is especially beneficial for high-net-worth individuals and institutions, enabling precise and controlled trading strategies for large orders at optimal prices.

Adjustable Slippage Tolerance for Market Orders

While other exchanges use the Best Bid Offer (BBO) for quick market entry, the process can be complex and user-unfriendly, risking unfavorable trades due to unexpected price movements. Phemex simplifies this by allowing users to set their own slippage tolerance for each trading pair, specifying the maximum acceptable deviation from the best price. For instance, traders can choose lower slippage for high liquidity pairs like BTC/USDT and higher slippage for volatile coins like meme coins. This unique Phemex feature enables efficient market entry without BBO complexities, giving traders greater control and flexibility to manage risk and enhance their trading strategies.

Phemex Programs for Personalised Profit Opportunities

VIP Program

Traders can apply for the Phemex VIP programme to access exclusive rewards and trading commission discounts. VIP levels are shared between Spot and Contract trading, as well as for vePT and Asset balances. Users can benefit from the highest level they qualify for in any category. Benefits of the VIP programme include:

• Reduced Trading Fees
• Account Priorities
• Unlimited Sub-accounts
• Customised Account Management
• Exclusive Rewards and Bonuses
• Priority for Product Tips
• Customised Merchandising and Gifts from Phemex

Collaborator Program

The Phemex Contributor Programme strengthens key partnerships with influencer affiliates by aligning goals and sharing ownership of the platform. This structure incentivises key contributors to focus on the growth and success of Phemex. Benefits of the programme include:

• Real-time earnings through a reliable commission system
• Up to 60% commission on referrals
• Opportunity to increase commissions by owning vePT
• Extra 10% cash back bonus from sub-affiliates

Broker Program

The Phemex Broker Programme offers brokers a comprehensive platform with lucrative incentives. By joining the programme, brokers gain the following benefits:

• Industry-Leading Commissions: up to 50% based on users' trading volume on Phemex.
• Onboarding Without Hindrances: ability to earn commissions immediately upon receiving a Broker ID.
• Cross-Promotion Opportunity: access to new users through the exchange's network.
• Dedicated 1:1 Support: prioritise customer service and immediate assistance.

Taking a Hybrid Approach: First-ever Semi Centralized Exchange

Centralized exchanges are popular for their high liquidity, user-friendly interfaces, and features like margin trading. They appeal to both beginners and institutional investors by offering customer support and adhering to regulations like KYC and AML for added security.

In contrast, decentralized exchanges provide enhanced privacy, direct asset control, and often lower transaction fees, though gas fees may apply. 

Phemex took a bold approach and established itself as a hybrid exchange, launching its Web3 ecosystem Phemexia in 2022.

Through its Web3 ecosystem, Phemex allows users to stake Phemex Token for trading fee discounts and participate in revenue-sharing. This blend of decentralized governance with centralized efficiency offers the security, liquidity, and accessibility of centralized exchanges, along with the autonomy of decentralized ones.

Security Review

Phemex adopts stringent security procedures, placing great importance on protecting the wallet, system, user accounts and trading engine.

• Wallet Security: Phemex designed and implemented a Hierarchical Deterministic Cold Wallet System, which assigns separate cold wallet deposit addresses to each user. All deposits are periodically gathered in the company’s multi-sig cold wallet via offline signature. The exchange also keeps 100% of user funds in reserve at all times and has released Merkle-tree Proof-of-Reserves.
• Risk Control: Phemex maintains a robust real-time risk monitoring system for all user transactions. A team of experienced crypto risk control specialists actively detects and prevents abnormal trading activities, ensuring market fairness.
• System Security: The exchange deploys its system and secures its machines on the Amazon Web Service (AWS) Cloud. Phemex uses several firewalls to separate various zones and machines for different trading purposes. Beyond firewall protection, Phemex also applies restrictions on a system level.
• User Account Security: The exchange uses two-factor authentication to protect all user accounts. When a user performs any function on the platform, the system automatically triggers two-factor authentication. Phemex also uses a bank-level double-entry bookkeeping system to ensure account security. Every time a user performs a funding operation, Phemex performs a matching accounting action in two or more accounts to prevent account tampering.
• Trading Engine Safety: The Phemex trading platform has two core components: the CrossEngine, matching client orders based on price and time, and the TradingEngine, conducting real-time risk checks, including costs, fees, and PNL. Written in C++, these engines provide at least 10x faster performance than competitors, ensuring traders can swiftly navigate big market movements.

Why Choose Phemex?

• Highest level of wallet security: Phemex’s cold wallet storage transfers require level 2 human review offline signatures so that assets are protected in all aspects.
• Crypto Launchpools: Phemex Launchpool offers flexible staking in return for massive APY and trendy token rewards
• 365 x 24 System: The transactions engine and cross engine are built on the raft protocol, providing high performance and 365 x 24 availability. Phemex’s system design is protected by a patent.
• 300,000 Transactions per Second: The platform runs on custom-built trading engines that process 300,000 transactions per second with response times of less than 1 millisecond. Phemex seamlessly handles over $10 billion in daily trading volume.
• Professional Team with 20+ years of trading experience: Phemex consists of a seasoned team of blockchain and Web 3.0 experts. 
• Sub-Accounts Make Trading Easy: Phemex is compatible with institutional traders’ FIX API and quantitative traders’ sub-accounts.
• 24 x7 Live Multilingual Support: Phemex provides users with 24/7 multilingual customer support. Phemex’s CEO and COO are also active on X (formerly Twitter) and Telegram.
• New Listings of Trendy Coins: Phemex announces new listings every week for traders to keep up with profitable projects and coins. Users love that they can find the trendy cryptos on Phemex. 

Last Remarks 

In conclusion, Phemex stands out as one of the best trading platforms for cryptocurrency enthusiasts, offering a seamless and secure trading experience. With its user-friendly interface, competitive fees, and innovative features, Phemex is the preferred choice for traders seeking to maximize their opportunities in the crypto market. Whether you're a beginner or an experienced trader, Phemex provides the tools and support needed to succeed in the fast-paced world of digital assets.