All of our content is written by Canadian crypto experts, not robots. We ensure each article is reviewed and updated regularly. Learn More

Listen

Coinbase vs. BitMEX: What Works Better For Canadians in 2024

Oleg Galeev

Last updated December 27, 2023

In this review, we will delve into a comparison of two prominent cryptocurrency exchanges: Coinbase and BitMEX. While both platforms have a strong presence in the global crypto market, they differ significantly in their offered services, user-friendliness, security measures, compliance status in Canada, and customer support.

Description

Founded in 2012, Coinbase Canada is a cryptocurrency exchange with a simple interface making it a popular choice for Canadians looking to start their crypto journey. However, more Canadians are starting using local exchanges e.g. Bitbuy. Coinbase has 56 million users and became the first cryptocurrency exchange to have an Initial Public Offering.

BitMEX is a crypto derivatives exchange that offers futures trading, and perpetual contracts. BitMEX aims to become the world’s largest regulated derivatives exchange. You cannot deposit fiat on BitMEX, only BTC and USDT. The exchange is aimed at experienced traders.

Coins

50+ including BTC, ETH, XRP, LTC

Bitcoin, Ethereum, Terra, Solana, XRP, EOS, Stellar, Tron, Litecoin, Chainlink, Polkadot, Dogecoin, Binance Coin, Bitcoin Cash, Axie Infinity, Avalanche, Cardano

Fees

Extremely High
3.99% buy fee
0.50% fee per trade

  • Free USDT or BTC deposits
  • Free BTC withdrawals
  • Variable USDT withdrawal fees
  • 0.01%/0.05% maker/taker fees

Pros

  • Simple and easy interface
  • Good for beginners
  • Secure exchange with cold storage
  • The most popular coins offered
  • Users can set up automatic recurring buys
  • Learn to earn crypto program
  • Low trading fees
  • Advanced order types
  • No BTC deposit/withdrawal fees
  • Futures/perpetual trading

Cons

  • High fees
  • Fewer coins than Binance
  • Complaints of bad customer support
  • No Interac e-Transfer
  • Not suitable for buying crypto
  • USDT withdrawal fees
  • Only suitable for traders who understand contracts trading
  • No fiat deposits

Account Limits

High limit. Purchase limit depends on account age and other factors

Low

App

Methods to buy

Debit card

Security

2FA, coins held in cold storage with multi-signature wallets, KYC verification process

  • All BTC held in cold storage
  • Two employees audit all BTC withdrawals
  • BTC deposit addresses externally verified
  • Multisignature wallets

Mobile and Desktop Trading

Coinbase and BitMEX both provide mobile and desktop applications. Coinbase, with a 4.7-star rating on the Apple App Store and a 4.1-star rating on Google Play, offers a simplified interface for beginners, making buying, selling, and trading cryptocurrencies seamless. On the other hand, BitMEX provides a more complex, detail-oriented interface suitable for professional traders, a feature mirrored in both their desktop and mobile platforms. BitMEX's mobile application ratings are slightly lower than Coinbase's on both iOS and Android.

Coinbase

Coinbase app offers a clean white background with simple text. It's user-friendly and easy to navigate.

Coinbases’s app is almost identical to its desktop platform making it easy to trade crypto wherever you are. Safely store your debit card information and you can buy and sell top cryptocurrencies such as Bitcoin and Ether in just a few clicks. On the Apple App Store, Coinbase has a 4.7-star rating with 1.3 million ratings. On Google Play it has a 4.3-star rating with 453,000 ratings.

Reviewing Coinbase desktop version

Coinbase desktop interface

Coinbase main screen with features

Coinbase portfolio

Coinbase mobile app

Coinbase app interface

Made an order with Coinbase app

Coinbase app interface while trading

BitMEX

BitMEX’s exchange is confusing, but that’s because it is aimed at experienced traders who understand perpetual and futures contracts trading. BitMEX has a more outdated interface than Kucoin, making it seem clunky and old. However, the lighter colour scheme makes it easier to see the different menus and tabs.

There is a tab for each cryptocurrency market available, which makes it somewhat easy to navigate, view charts and order books.

To start trading contracts, you will need to sign up but you only need to provide an email address to do so. Once you have deposited your Bitcoin or USDT, you can use that to trade for the other cryptocurrencies available.

Leverage is one of the main features of BitMEX and the platform offers a handy leverage slider that can be adjusted to your risk when you trade.

BitMEX is only available as a desktop platform.

Bitmex desktop app

Bitmex desktop app

Security Compliance

Coinbase uses its own digital wallet for storing your cryptocurrency.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.

BitMEX is stating that it utilizes cold storage for all of the bitcoin funds. BitMEX also uses multi-signatures wallets and every bitcoin withdrawal is audited by hand by at least two BitMEX employees. All bitcoin deposit addresses sent by BitMEX are externally verified to ensure the keys match those of the founders. If they do not match, BitMEX will shut down and halt trading. 

Both Coinbase and BitMEX prioritize user security. Coinbase, a regulated public company, holds 98% of assets in cold storage, employs wallet encryption, and has a mandatory two-factor authentication. BitMEX, on the other hand, employs multi-signature deposits and withdrawal schemes with all storage kept offline. They also utilize Amazon Web Services for extra security and have managed to avoid major security breaches since their inception in 2014.

Regulatory Compliance

Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.

BitMEX withdrew operations in Ontario, but was not officially named by the OSC. BitMEX is still operational in other Canadian provinces but it is facing legal trouble with the USA due to allegedly offering securities trading illegally. 

While you can use BitMEX safely, trade at your own risk and be aware that they could cease trading in Canada due to regulations. 

Coinbase, registered as a Money Services Business with FinCEN, operates in Canada, ensuring safety for Canadian users. However, BitMEX faces limitations in Canada. BitMEX discontinued its services in Ontario and Quebec due to new regulatory frameworks. Users in other parts of Canada can access BitMEX but must adhere to local laws and regulations.

Customer support

Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.

BitMEX offers support via a contact form on their website and has a detailed FAQ section as well. 

Coinbase offers live chat, email, and 24/7 phone support. However, its customer service quality has faced criticism, with many users experiencing delays in verification and withdrawals, and lack of response to support tickets. BitMEX offers customer support via email and a ticketing system. While response times can vary, user feedback is generally satisfactory.

Conclusion

While both Coinbase and BitMEX have their merits and cater to different user preferences, for Canadian users, Coinbase emerges as the more preferable platform. This is due to its straightforward interface suitable for beginners, strong security measures, full compliance with Canadian regulations, and the availability of multiple support channels. However, Coinbase should focus on improving its customer service, a critical factor for users dealing with financial assets.

We recommend choosing Coinbase over BitMEX for your cryptocurrency trading needs. By opting for Coinbase through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.

If you find that neither Coinbase nor BitMEX meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.

Author

Oleg Galeev

Cryptocurrency Specialist

Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen. 

Related News