There are so many choices when it comes to choosing a good cryptocurrency exchange. All of the platforms have their own benefits and Phemex is not an exception. Phemex launched in 2019 and is still relatively new, but it particularly stands out thanks to its fee model. If you search the web, you will find many people wondering whether Phemex operates in the USA and whether it is a good option for crypto trading needs. You’re not alone! Purpose of this Phemex review is to answer all your key questions and give you some idea if it is the right exchange for you or not.
What is Phemex?
Phemex is a centralized exchange founded by Jack Tao, a former senior executive at Morgan Stanley. This was to bring more professionalism and trust in the crypto space. The exchange is headquartered in Singapore and extends its services to more than 200 countries. However, it isn’t available everywhere. Phemex makes it easy for traders to navigate, offers fairly liquid markets, and includes a good amount of features.
Phemex Security
User funds are highly protected as Phemex follows strong security practices. Most of our funds are secured in cold storage with multiple signatures needed to access them. They have a Deterministic Cold Wallet System so they provide each of their users with their own cold wallet address for extra safety.
Risk checks run after each withdrawal, and risked off suspicious actions are blocked. All these withdrawals are signed offline for funds security. The added protection includes SSL technology, as well as PCI scanning, on the platform.
To ensure that winning traders get profits regardless of losing traders’ ability to pay for losses, Phemex provides an insurance fund and Auto Deleveraging. This decreases the risk during the sharp price changes and prevents large liquidations.
Users can secure their accounts using passwords, 2FA, device codes or even anti-phishing measures.
Neverthless, Phemex does not provide details on the insurance for stolen funds or third party security audit results. But also do not have features such as whitelisted addresses and IP addresses. This could further improve their security by adding these features.
Pros and Cons of Phemex
Pros
- There are 350 spot cryptocurrency assets and 578 markets to trade.
- It charges low contract trading fees as low as 0.018% maker and 0.055% taker.
- The trading platform gives many trading tools: TradingView charts, live order books and others.
Cons
- The interface is outdated and the P2P marketplace supports only USDT, BTC and ETH only.
- Phemex Earn provides a limited choice and shorter duration, with not long fixed term plans.
Fees and Charges
- Deposit & Withdrawal Fees: There is no extra fee when depositing cryptocurrency on Phemex. Standard blockchain fees apply to withdrawals, and it depends on crypto and network.
- Instant Purchase Fees: A credit or debit card can be used to buy crypto with a 0.8% fee.
- Spot Market Fees: Trading fees are 0.1% for maker and taker or less when trading volume reaches $800,000. Fees are competitive to Binance and Bybit.
- Contract Trading Fees: Phemex’s popularity is also due to contract trading fees that are at or near all-time lows, 0.018% for makes and 0.055% for takers.
Phemex Key Features
Phemex competes with the major exchanges like Binance and Coinbase but has made a name for itself.
- Wide Token Support: Fiat deposits with bank transfers or credit cards allow you to buy, sell, trade all kinds of popular crypto tokens.
- “Phemexia” Web3 Ecosystem: Phemex, the first semi-centralized exchange, blends DeFi and CeFi with DAO governance, identity NFTs, and crypto wallets.
- Advanced Platform Tools: Top traders copy, trading bots copy, swap assets, high APY staking pools are joined, and new projects are supported on Launchpad. You can also get rewarded by learning something about crypto.
- Contests & Rewards: Before the release of their 2023 Phemex Token, users can earn ETH while referring friends and gaining xPT tokens.
Phemex KYC and Account Verification
Now, Phemex asks all users who want to deposit, withdraw or trade crypto to verify their KYC. Back when this step was optional, it has become a mandatory one for both regulatory purposes as well as platform security.
The sign-up process remains simple:
- Go to the official site.
- Provide your email and password. Use a real email for the verification.
- You will receive an email, click the verification link.
- Quick setup, create your account, turn on security features and start trading.
Follow the below steps to verify the account:
- First, log in to The Bancorp and select the “Account” section and then choose “Identity Verification.”
- Now, click on “Verify Now” to begin.
- Select your country and ID type (which can be passport or driver’s license, etc.).
- Upload your clear images of your ID.
- Following the instructions it completes facial recognition.
- Submit your information for review.
- Once approved, you will be able to use Phemex’s services in full.
Customer Service
Along with many other small features, Phemex provides live customer support 24/7 in multiple languages. Their website has a chat widget where you can contact their support team or you can email them at support@phemex.zendesk.com. You have both options, however, it’s better if you use a chat widget, because it responds immediately. Throughout our research, we used the chat quite a few times, and every time we were answered quickly and clearly.
Is Phemex Safe to Use?
We cannot guarantee how safe Phemex is now or in the future, it is purely subjective. Also, we have analyzed a number of factors for assessing its safety but still advise that you are cautious and examine the platform yourself. Phemex announces it is the first exchange to publish both proof-of-reserves and proof-of-solvency using a unique self-proving method.
Conclusion
After all, there are a variety of cryptocurrency exchanges today. It can quickly feel overwhelming! That’s the reason why we need to pay attention to every detail. As you check the Phemex review, you can see that there are plenty of things that users can take advantage of. In conclusion, Phemex is a reliable and simple exchange which has a bright future ahead in the booming web3 space. It offers features like buy & sell, spot, contracts, prediction markets and also a hybrid “semi centralized” model.
We hope you enjoyed our Phemex review and wish you all the best in your future crypto journey!
Also read: Coinbase Crypto Exchange Review
