Blender
Exchanges & BrokersNewsReviews

Phemex Review – Is Phemex Scam or Legit?

Phemex Exchange Rating
Account Types9.3
Trading Speed8.8
Customer Service9.2
Safety8.9
9.1
Conclusion
Read our Phemex review and learn why we recommend this exchange for online trading and why it is not a scam, learn all you need to know in this Phemex review before you sign up with the exchange.

Phemex Review

Phemex logo

The financial market as we used to know it has continually evolved. This has in part been because of the introduction of crypto trading. Investors tend to invest in such digital assets as Bitcoin, Ethereum and Dogecoin with hopes of making a profit when the prices of these assets go up. Investors have invested in the crypto market and have reaped very handsome rewards using various trading platforms. However, the choice of platform to use has never been an easy one due to the fear of losing such investments to online scammers. Due to this, the necessity for a Phemex exchange review arose.

Trading platforms are very important in crypto trading. They proffer easier ways for investors to invest their money and expect profits. However, it is very important to note that the legitimacy of these platforms matter to investors as they need assurances that they would get real value for their money and not just throw it away.

Nobody wants to make a bad investment and lose lots of hard earned cash to some swindlers online. It has not been a healthy experience for those who have lost their investment to swindlers parading themselves as legit trading platforms. There are a lot of platforms online who seem legit but in truth, are carefully planned scams.

These swindlers take advantage of the fact that the crypto market is large. As most people look for new ways to make some money, these scam platforms offer services to unsuspecting individuals and take all their money, offering hard to resist, mouth-watering offers, which are very difficult to refuse.

To find legit platforms for trading requires research. As so many platforms fail to keep their promises of out-of-this-world bonuses and profits, investors have taken it upon themselves to find out which platform best suits their need.

Finding these platforms when investors are supposed to put their efforts into trading and making more money, rather than losing valuable time, could be tedious and time consuming. We made it our duty to review a trading platform and give these valuable investors an insight into a platform they might want to trade with.

Exchange platformPhemex
websitePhemex.com
cryptoBTC,ETH,USDT,LTC.DOGE,LINK,ADA  and other cryptos
Trading platformMobile, web, desktop
Account typesDollar account, Bitcoin account
Trading feesNone
Withdrawal feesNone
security2 Factor Authentication
Payment methodsCredit cards, debit cards, bank transfer, Applepay
PartnersMoonpay, Coinify, Simplex

What We Know About Phemex

Phemex is a trading platform based in Singapore, Asia, founded by professionals who used to work for Wall Street.

Phemex website

Sometimes in 2017, Jack Tao, an experienced Wall Street trader together with a group of other experienced traders noted a lack of professionalism, an evident lack of trust and minimal customer support in the crypto market.

Two years later, there was a drastic increase in the number of crypto users. However, there was no improvement on existing protocols; so, they took it upon themselves to do something about it.

Realising that it was getting out of hand; the group of experienced traders left Wall Street and, in 2019, found Phemex.

Subsequently, they charged themselves with building a simple and efficient crypto trading platform with much emphasis on trustworthiness.

In November of the same year, Phemex officially went live. So far, the platform has lived up to its promises of being trustworthy, efficient and simple to use.

Although barely two years old, the platform already has a high trading volume which most times correlates with deep liquidity. This means that it is very easy for the buyer to find a seller and a seller to find a buyer on the platform. As at 21st April 2020, when the world was deep in the COVID-19 financial crisis, the trading volume of Phemex was over $400 million dollars in 24 hours. Amazing right? This led to its place in the Top 50 exchanges in the world on Coinmarket based on 24 hour volume.

Now it gets better! Fast forward to February of this year, the 24 hour trading volume of Phemex is almost a billion, standing at a whopping $912 million dollars. This placed Phemex 11th in the Coinmarketcap ranking by 24 hour trading volume.

Phemex obviously came with lots of promise and it seems to be delivering on that. So far, it has a garnered a following and more investors will be willing to trade on such platform as its numbers are mind blowing. For a relatively new company, it has done admirably well and it has kept its promise of transparency.

It is safe to say that Phemex aims to be the best trading platform there is and there seems to be nothing stopping it from achieving such lofty heights.

Wait till we get to the many amazing features of the platform before you make your final decision. These features are some of the things that make trading on this platform a very exciting experience.

Account types

There are basically 3 types of account on Phemex; a Bitcoin wallet, a Bitcoin trading account and US Dollar trading account.

The BTC trading account is for contracts that settle in Bitcoin. The US Dollar trading account is for contacts that settle in US Dollar.

It is important to note that although payment is done using the US dollar, Phemex is not available to people living in the United States.

How Secure is Phemex Exchange Platform

A functional security is an essential ingredient to having safe transactions on any platform. All major platforms have security measures put in place for their users to have a free and hitch free transaction.

It is no longer news that the crypto market is very volatile and could see investors end up with little or nothing when there is a price crash. The prices of cryptos fall unannounced catching investors off guard leaving them with nothing but losses.

Hacking is not new. There are so many cybercrimes committed against investors on a regular basis, by cyber criminals, which have led so many platforms to bolster their security to prevent any attack on their servers or their customer accounts.

In this regard, Phemex has some state of the art security measures put in place for its clients to have very safe transactions. Obviously, they cannot have trust as one of their core values and not have a functional site security for their clients; it will not work. These security measures put in place by Phemex include:

  • A Multi-signature Cold Wallet

With the help of their Hierarchical Deterministic Cold Wallet System, Phemex assigns a unique cold wallet deposit address to each of their clients. No two clients have the same wallet address. From time to time, all the deposits on the platform are assembled in Phemex multi-signature cold wallet through the use of an offline signature.

Only 3 heavily scrutinised withdrawals by both founders and operators are allowed daily. These founders have some experience working on Wall Street and thus use complex risk control to trace hostile actions and act accordingly, to protect the interest of their clients and the platform.

All assets remain in a cold wallet and all transactions are done offline.

  • Top Notch System Security

This is also interesting; Phemex safeguards its devices using Amazon Web Service Cloud.

The exchange platform uses many firewalls to demarcate zones and machines for peculiar uses. Many security levels and internal network access management exist to manage reachability. There is also a system level restriction after the network firewall. Restriction zones and systems are both whitelisted.

  • 2 Factor Authentication For User Accounts

You might be familiar with two factor authentication for your social media accounts to avoid hackers taking over your account. Also at Phemex, a two factor authentication mechanism is used to protect the accounts of all its clients. When a user signs in or performs any other action on the platform which may include funding or alterations to password, a two factor authentication is activated by the system. This makes the user carry out a subordinate authentication for account security.

It does not end there. A two entry bookkeeping system is used on the Phemex exchange platform, just like banks, to make sure accounts are secure. Each time a transaction is done, the platform performs another action that matches it in more than one account to prevent records from being interfered. Through this mechanism, Phemex’s reaction is swift in detecting any user account that has been meddled with and freezing all actions that have not been carried out yet.

  • Security for Trading Engine

The Phemex trading platform has two key components. These are the Cross Engine and the Trading Engine. The former matches order by clients with emphasis on priority and time. The latter manages a full set of risk examinations in place of the user’s trade account. These may be fees or costs computing, done in real time. The Phemex trading systems are written in C++. C++ is trusted with an expected efficient performance which makes it the ideal language for up to date trading systems.

It is no news that cryptocurrencies are very volatile, which make these engines react very quickly in suiting the needs of clients. There is no room for overburdening on the system. The speed of action is very essential to users and Phemex comprehension is top of the shelf as they know users almost certainly want to trade when there are big movements in the market.

These engines are believed to be 10 times faster than competitor engines making sure all actions are swift and efficient.

Apart from speed of action, Phemex engines have a smooth hazard recovery in place. This has been developed to offer users a 99.9 high availability, running with several hot and warm back-ups simultaneously. Most times, clients do not even notice upgrades or maintenance. This smooth and safe working system is very essential to give users a comfortable environment to trade.

Phemex has taken its time to invest in modern state of the art security mechanisms to make sure it comes out on top, leaving potential clients with the quite easy option of making it the trading platform of choice.

There Is a Crypto Spot Market on the Phemex Exchange

What is a spot market? This is another service on Phemex that allows users to trade cryptocurrencies with other users. These transactions are settled immediately or as Phemex likes to call them, “on the spot” once the forms are completed. These spot markets are made up of buyers, sellers and the order book. Buyers go into this market with a specific amount they wish to spend which is always the maximum amount.

Sellers on the other hand, enter this market with a specific bid they are willing to accept for their assets which is the lowest price they can take from the buyers.

The order book is the complete collection of all the prices by the sellers and the buyers. This feature eases the stress of looking for a buyer elsewhere for the Phemex users and saves them time.

Different Languages to Choose from

The Phemex platform offers users the choice of at least 8 languages they could choose from to carry out their transactions or simply navigate the site and read adverts. These languages are English, Japanese, Russian, Chinese, German, Korean and French. These are obviously some of the most understood languages in the world and therefore, this makes the Phemex platform easy to navigate for people who may not understand English language.

Trading Pair of USD/Gold

Phemex offers users the USD/gold trading pair which may be of help due to the volatility of crypto prices. This trade may be done with so much leverage.

Bonuses for Users

Most trading platforms offer new users bonuses as they sign on to the platform. Phemex is not left behind in this regard as it offers as high as 100% bonus to new users. Phemex offers as high as $60 dollars to new users as a welcome package for any deposit of about 0.2 Bitcoin or more. This bonus is redeemable when other cryptocurrencies are deposited on the platform. Some bonuses are as high as $80.

Leveraged Trading

How many platforms lend assets to you to trade? There aren’t many but Phemex is one of such platforms.

This is known as leveraged trading. This means that a user could bet a higher amount of money than the one in the user’s account.

This is a very nice feature as it guarantees users a massive pay out if their market predictions are right.

For instance, a user has about $100 in their trading account and this amount is bet on Bitcoin going up. If Bitcoin goes up 10%, it means you have earned $10. If you have used leverage of up to 100 times, it simply means that instead of just $10, you will get $1000, as your bet has become $10,000 instead of the $100.

However, this is also risky. It is risky in the sense that only a small margin of decrease in price of any asset that the user bets on to go up, will make the user lose all their investment. This is not compulsory as the power to carry out leveraged trades rests entirely with the user.

Runs on Desktop and Mobile

Phemex does not only run on desktop as it supports both android and IOS. Statistics have shown that about 70% of traders use their PC. Notwithstanding, there are still people who prefer to trade on their phones. Phemex has got such people covered as it has a mobile app in place.

No Trading Fees Required

Unlike most trading platforms that charge fees for trading, Phemex has chosen to adopt a free trading model. Instead, users are required to pay monthly premium membership which is as low as $9.99 for a month and $69.99 for 12 months.

Premium membership has its benefits as there are no limits on withdrawals done by the hour and a premium member is allowed to set conditional spot orders.  The only time Phemex charges a fee is during funding of the US dollar wallet at 0.1%.

Zero Withdrawal Fees

As far as Phemex is concerned, withdrawal is free. It is free in the sense that the user does not pay a withdrawal fee to the platform. The only fee required for a transaction is the normal network fee on crypto transactions which may vary daily depending on the pressure on the network and which are paid to miners of the crypto in question. Having to only pay network fees is very fair.

Efficient Customer Support

For clients, it is important that they are able to communicate with whatever platform they choose to trade with whenever a need arises. This helps to build trust between the platform and its users.

Surprisingly, there are shady apps who do not offer such service, leaving its users stranded when they encounter a problem. Phemex is not one of those apps as it offers its users 24 hour support. All these users have to do is to click the support icon on the bottom right corner of Phemex page and type in the nature of their problems. The support even has suggested questions already outlined, which the user could pick and they would answer since these problems are most times similar in nature or even the same.

Also, there are FAQs on the site to allow users have a better user experience. These FAQs save the user the stress of having to use the support icon or contacting a customer care representative.

Conclusion

When a group of former Wall Street professionals come together to develop a platform for trading, chances that it will fail are very slim or most times non-existent. This is what is on offer at Phemex as these experts have studied the market, studied other payment platforms, examined the loopholes and come up with a masterpiece.

They developed this platform paying close attention to security, transparency, easier navigation, notes for users and a host of other very important things a client requires for a seamless experience.

Phemex is the right platform for investors to trade. Open an account on Phemex and start trading!

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close