Is Phemex Legit Or A Scam: Find Out More

Phemex

Phemex is a Singapore based cryptocurrency exchange that deals with cryptocurrency. It was launched in November 2019. Phemex offers its services in English, Russian, Spanish, Japanese, French, Chinese, German, and Korean. In this post, we will find out if Phemex is legit for use. We will also take a look at how crypto traders can get scammed and how to avoid it. Let’s get started.

Is Phemex Legit: All You Need To Know

What are some key features of Phemex?

Mobile Compatibility

This platform is available for both desktop computers and Android and Apple mobile phones. Currently, most of the operators in the world of cryptocurrencies carry out their operations through a desktop computer (about 70%, approximately). However, there are also people who want to do it from their smartphone. If you are one of those people, then this platform can serve you, as it has a native mobile application (as opposed to, for example, BitMEX).

Leveraged trading

For its crypto derivatives products, Phemex allows you to trade on leverage. This means that you can receive greater exposure to the increase or decrease in the price of a certain cryptocurrency, without actually having the necessary amount of assets. This is done by “leveraging” your trade. In simple terms, this means that you borrow from the stock market to bet more. You can get up to 100 times the leverage on this platform.

However, trading with leverage is risky. For example, let’s say you have 100 USD in your trading account and you bet this amount that the BTC is going to go long (that is, it is going to go up in value). If BTC increases in price by 10%, you will have earned $ 10. However, the more leverage you use, the shorter the distance to your settlement price. This means that if the price of BTC moves in the opposite direction (down in this example), it only has to go down a very small percentage for you to lose the $ 100 you started with. Again, the more leverage you use, The lower the opposite price movement will have to be for the investment to be lost. So, as you can imagine, the balance between risk and reward in leveraged trading is very well adjusted (there are no benefits without risk).

Spot trading

On May 15, 2020, Phemex launched its Spot Trading services. One of the best things about Phemex is the fact that they have a zero fee model. On most exchanges, when you buy or sell a cryptocurrency, you have to pay a fee that typically ranges from 0.10 to 0.25%. At Phemex, you can purchase a Premium membership that can cost as little as $ 5.80 per month. The Premium Membership offers, according to Phemex, significant savings to high volume merchants.

What are the most common forms of crime related to cryptocurrencies? 

Many financial lawyers have asked people to be wary of financial scams in the crypto world, especially ICOs and ponzi schemes. An ICO responds to the acronym of ‘initial coin offering’, or if you prefer, ‘initial coin offering’, which operates as a public offering for sale in the stock market, that is, an ICO is one more way to finance projects through of the purchase of cryptocurrencies. Behind an ICO, there is a third party with a business project in mind that intends to obtain financing to carry out said project, and the method to finance itself is to put a package of cryptocurrencies up for sale so that others can buy them, and in case of that said project obtain good results, see the value of the cryptocurrency that the project’s ideologue put up for sale increased. With this process, the ideologue of the project obtains financing for their project and investors obtain in exchange a cryptocurrency with a certain value that may vary according to the progress of the aforementioned project. Reality tells us that many of the ICOs have turned out to be a complete scam, because behind them there was no project, the initial value of the offered cryptocurrency was very low, the non-existent project evidently did not see the light and the investor ended up losing all the money invested, having only made a profit who published that ICO based on a fake project.

What can we do to avoid becoming a victim of these scams? 

It is not advisable to trust at first the supposed ICO projects or the great economic expectations with little risk, much less the so many percent of commission. In short, it is convenient to make sure that we are facing real projects or real investments, we look for references of those projects or those investments in Google, we do not invest the first time, we investigate to whom we give our money and we hesitate, because, if we do not do it, we will be becoming most likely inmates of a cryptocurrency scam. And if we suspect that it may be a scam, let’s first consult with an expert cryptocurrency scam specialist who can analyze the situation. The volume of operations of an exchange house is very important for its users. A large volume of transactions is often (but not always) correlated with deep liquidity. When liquidity on a platform is deep, it means that it will be less difficult to find a buyer for your sell order or a seller for your buy order. Let’s not trust, let’s verify.

Is Phemex legit?

To be honest, the jury’s out on that one. Phemex does have some great features which make it seem very lucrative for anyone interested in crypto trading. However, there isn’t information out there for us to definitively say that your money is safe with Phemex. Calling Phemex an outright scam is unfair but it’s a little tough to call it outright legit either.

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