In this review, we’re taking a look at Phemex, a rapidly growing crypto trading and investing platform known for its user-friendly policies and ease of access.
To be specific, we’re looking at what Phemex is, how it works, what its uses are, and who can benefit from it. In addition, we’ll give you a few tips on how to get on board with the platform and share some of its pros and cons.
What is Phemex?
The company was founded in 2019 in Singapore by a group of ex-Morgan Stanley executives looking to create a more semi-centralized, user-centric crypto trading platform that would appeal to as wide an audience as possible.
The idea caught the attention of a large number of investors rather quickly. As a result, just a few years after its inception, the platform was able to boast over five million users, buying, selling, and trading cryptocurrencies daily. To put things into perspective, the company boasted a 24-hour trading volume of over 5 billion in April this year.
As Stella, Phemex CMO, mentioned, “semi-centralized is the mission that Phemex will accomplish by distributing more campaigns, and also we are talking with some investors recently.”
According to its white paper, the company is steadily working on implementing a semi-centralized Phemex Decentralizing Organizational Governance (DAO) model that will empower users by granting them more voting and platform governance rights.
The ultimate goal of this project is to blend the best of both traditional Centralized Finance (CeFi) and Decentralized Finance (DeFi) worlds. However, Phemex intends to move the project beyond mere financialization and construct a far-reaching platform ready to experiment with the decentralization of digital identities, permissionless collaboration, etc.
Recommended video: 1-minute Phemex introduction
How Does Phemex Work?
Phemex seeks to offer users a relatively easy to use but yet swift and comprehensive platform that caters to both beginners and experienced traders. With that vision as its driving force, the company has worked on highlighting the qualities of its user interface and experience, reducing transaction times, and making the registration process as quick as possible.
At its core, the Phemex platform’s spot and peer-to-peer (P2P) trading enables users to buy and sell a wide number of cryptocurrencies without any fees if they’re at a certain VIP level.
The platform gives users the option of holding a number of sub-accounts that they can switch between seamlessly. Users can allocate a separate balance and varying levels of permission to each account, which allows for flexible trading strategies.
Phemex also offers perpetual contracts. These contracts are similar to futures contracts in that they allow users to buy or sell their assets at predetermined prices and at a future date. However, perpetual contracts do not require the user to predetermine the date of selling, meaning their assets can maintain their value indefinitely.
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Those who can benefit from the platform include:
- Investors of all experience levels;
- Traders;
- Crypto enthusiasts.
Products and Services Offered by Phemex
Phemex offers a comprehensive range of tools and features tailored to traders and investors of all experience levels. Three main features of the Phemex exchange are:
- Online trading and investing tools and services;
- Phemex Soul Pass and the Phemex Token;
- The mobile app.
1. Online Trading and Investing Tools and Services
Phemex provides users with a wide array of investing and trading services, including:
Instant crypto purchases:
Thanks to its policies that emphasize collaboration, Phemex allows users to purchase cryptocurrencies almost seamlessly using a number of third-party payment methods, including direct bank transfers, debit and credit cards, etc. There are over two hundred cryptocurrencies on the platform, including the most popular ones, such as BTC, ETH, USDT, DOGE, ATOM, XRP, ALGO, ADA, LINK, etc.
Staking
Staking boils down to holding on to cryptocurrencies in your wallet for a predetermined period of time with the goal of reaping passive-income benefits
Phemex offers users two staking options that enable them to stake multiple assets, such as BTC, ETH, XRP, and USDT: flexible and fixed. By choosing the flexible option, you can determine the staking period yourself; with thefixed option, the period is determined by the platform itself.
Spot trading
As the name suggests, spot trading involves the immediate purchasing or selling of financial instruments with on-the-spot delivery. This is one of the most popular trading methods, and Phemex has implemented some strategies to facilitate it and make it more attractive. For example, the platform features leverages of up to 100X your initial investment, which lets you handle larger sums. You can check Phemex’s spot trading dashboard here.
Recommended video: Spot trading explained
Charts and analytics tools
Trading and investing in crypto requires a lot of research and insight into the market, which is not possible without comprehensive and precise charts and analytics tools. Fortunately, Phemex offers a number of customizable charts that can be tailored to each trader’s individual needs. Users have the freedom to compare different assets, draw lines, utilize various indicators, etc.
Copy Trading
Copy trading is a strategy that allows investors to observe and replicate strategies favored by more experienced traders. At Phemex, copy trading is available to all users, and the platform has even provided a guide on how to get started with it. Note, though, that a portion of the profits generated from such trades will be charged as fees.
2. Phemex Soul Pass and the Phemex Token
The Phemex Token (PT) and the Phemex Soul Pass (PSP) are set to become the two main components of the decentralized-ownership trading platform envisioned by the company. The planned features have not been implemented yet, but the Token Generation event is scheduled for Q3 2023.
The Phemex Token
The Phemex Token will represent the user’s ownership stake in the company and their potential governance, voting, and treasure rights. Any data resulting from the changes in the user’s PT balance will be automatically updated on their Soul Pass, ensuring seamless participation in the system and ease of identification.
PT will operate as an ERC-20 token on the Phemex blockchain, and by investing in it, users can gain ownership rights in Phemex and reap some enhanced trading benefits. In addition, staking PT will allow users to receive vote-escrow Phemex Tokens (vePT), which will allow them to have a say in platform governance.
During its initial release, the total volume of the PT will be 1 billion, and Phemex Souls Pass owners will be able to pre-mine before it releases in Q3 2023. The pre-mined tokens will be automatically converted to PT, with 25% of the total volume being distributed immediately and the remaining 75% being distributed over a period of three weeks.
In short, the PT token will be beneficial because it allows users to:
- Use it to pay trading, deposit, and withdrawal fees;
- Enjoy fee discounts and earn boosts;
- Stake it;
- Have a say in the Phemex DAO governance;
- Use it for treasury management;
- Have crypto launchpad and crypto launchpool access.
The Phemex Soul Pass
The Phemex Soul Pass is envisioned as a sort of digital passport that will give users certain privileges in the Phemex ecosystem. It will contain all necessary information in regard to your xPT (i.e., pre-minded PT) balance, which can later be converted into Phemex Tokens. The Pass can be held in any Ethereum-compatible wallet, for example, Metamask, or in the proprietary Phemex wallet.
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3. The Mobile App
Crypto trading has been steadily moving to handheld, i.e., mobile platforms, and Phemex has launched a solid app, which allows users to access virtually all of the features of the website platform.
The app is available on both iOS and Android. In addition, iOS users can also download a pro version of the app, which comes with 140+ USDT-margined contract trading pairs, up to 100x leverages, and hedge mode not available in the regular app.
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Phemex Fees
Regarding the costs of using the platform, Phemex offers competitive rates.. The platform charges a 0.01% maker fee and a 0.06% taker fee for contracts. When spot trading, the fees are 0.1% for both makers and takers..
Further, Phemex does not charge any deposit and withdrawal fees, although there is a minimum 0.00057 BTC Bitcoin network fee dynamically set based on blockchain loads.
Most importantly, most fees can be reduced by participating in the platform and “reaching certain trading volume thresholds” in the Phemex VIP program:
Spot Trading Fees
Contract Trading Fees
How to Get Started — Making a Phemex Account
Phemex has no Know Your Customer (KYC) mechanisms, so registration and verification are rather straightforward. You can create an account on both desktop and mobile platforms, but for the purposes of this review, we’ll stick to the desktop version.
To start using Phemex, follow these four easy steps:
Step 1 — Getting Started
To get on board with the platform, you’ll first need to head over to the official Phemex website and click on the Register Now button in the upper right corner, as shown below:
Step 2 — Creating an Account
When you click on the Register Now button, you’ll be taken to a new page where you’ll be required to type in your email address and desired password. Optionally, you can type in an invitation code if you’ve been referred to the platform by someone else:
Step 3 — Enter the Validation Code
Once you’ve provided your email address, Phemex will send you a validation code that you have to type in to proceed, as shown below:
Step 4 — Explore and Make Use of Phemex Features
As we’ve mentioned, Phemex has no KYC system built into its platform. When you type in the validation code sent to you via email, you’ll be free to explore all Phemex features:
You can start by enabling two-factor authentication (2FA) and funding your account. These features are available on your profile page:
Once you’ve got some funds on the account, you can explore the assets page where you can deposit, withdraw, and transfer your assets, as well as manage your spot trading, investment, contract, and margin sub-accounts (as shown below):
Why Phemex
Phemex is all about communal effort. The company has constructed its own Web 3 world of Phemexia set to arise together with the above-mentioned Phemex DAO system in order to establish a platform where users, stakeholders, and partners can work together to make decisions on platform activity.
In this digital ecosystem, users are allowed to mint their own non-transferrable soulbound token (SBT) called Phemex Soul Pass (PSP), meant to give users some privileges on the Web 3 platform. In addition, users will be able to obtain the native Phemex utility token (PT) set to be released in Q3 2023. The token can already be pre-mined or obtained by those in the Phemex Collaborator Program.
Recommended video: Introducing the world of Phemexia
The Roadmap for the Future
The company plans for the Phemex DAO to be the basis for its decentralized platform and aims to invest 40% of the PT into it, along with any unallocated pre-mined tokens.
The governance of the cryptocurrency exchange is to fall into the hands of the community, especially core contributors and working groups, who’ll be incentivized to participate by means of a special contributor program comprising grants, compensations, and bounties.
Once the funding stage is over, all the agreed-upon rules and governance regulations will be recorded on the blockchain, resulting in a completely transparent trading environment. Any proposals and suggestions will be examined and assessed by the stakeholding community before being implemented.
Is Phemex Safe?
Phemex appears to be a relatively safe platform, but it is not clear whether and how it is regulated, so caution is advised.
However, the platform features a Hierarchical Deterministic Cold Wallet System, which assigns a unique deposit wallet address to each user. All deposits are further held in the company’s cold wallets, and user funds are kept in reserve at all times, which they can even check through the company’s proof or reserve page.
Further, the company states that each withdrawal is automatically processed but filtered through a robust control system that weeds out seemingly risky requests, leaving them for future manual review.
The whole system and all the machines in the Phemex ecosystem are secured by the Amazon Web Service Cloud (AWS). In addition, several firewalls have been implemented to separate and thus further secure machines according to their roles in the trading process. In other words, only a select group of whitelisted instances can access the system.
As mentioned in the registration section, Phemex users can enable 2FA authentication to protect their data. However, Phemex also makes use of a double-entry bookkeeping system to ensure further integrity of user data. In short, whenever a client performs any sort of funding or trading operation, the system executes a 1:1 matching accounting action in at least two other accounts to prevent tampering with any of the records. If any malicious activity is detected, the whole system freezes.
Phemex Pros and Cons
Pros
- Low fees;
- There’s a solid mobile app;
- Supports a wide range of crypto deposits;
- Spot and contact trading;
- Great customer support;
- Lets you earn through staking;
- Leverage trading (100X);
- Copy trading;
- Users can create sub-accounts to micromanage their trades and investments.
Cons
- The platform is restricted in a number of countries or parts of countries with potentially large user bases. In certain parts of the world, for example, the United States, users are not allowed to access the services. Also, other restrictions might apply to fiat deposits or credit/debit card crypto purchases;
- Not enough clearly laid out information on regulation and licensing;
- No lending services;
- There are minimum withdrawal amounts.
Phemex Customer Support and Community Platforms
All necessary information regarding Phemex and its services is readily available on the company’s website and a number of social media platforms where users can find semi-regular updates and instructional snippets that will help them navigate the platform and the trading market more effectively.
Phemex platforms include:
Website: https://phemex.com
Blog: https://phemex.com/blogs
Support email: [email protected]
Social media channels
YouTube: https://www.youtube.com/channel/UCtPeiP4cn2K19fH3y7o2tOg
LinkedIn: https://www.linkedin.com/company/phemex/
Twitter: https://twitter.com/phemex_official
Telegram: https://t.me/Phemex_EN
Instagram: https://www.instagram.com/phemexofficial/?hl=en
Facebook: https://www.facebook.com/Phemex.official
Final Thoughts
Phemex is a user-friendly crypto exchange platform with a lot to offer, especially to inexperienced investors and traders who are sure to welcome its low fees, no KYC, and wide assortment of trading and analytics tools.
Naturally, there is still a lot of room for improvement, especially in the global reach and crypto asset departments. If not addressed, the lack of global presence could slow down Phemex’s development the most.
Still, things are looking good for Phemex, and the roadmap for the future seems to be leading toward success. The company’s interest in cybersecurity and decentralized ownership models, for example, is something we haven’t seen yet, especially the concept of a Web 3.0 world of Phemexia, which we are looking forward to exploring.
In short, if the company continues down its current trajectory and works on expanding to the United States market, it has the potential to create one of the best online crypto exchanges.
Risk Disclosure and Disclaimer: The information provided in this review should not be regarded as investment advice. Cryptocurrency assets experience high market volatility; therefore, buying, selling, and trading them exposes you to significant financial risks.
Frequently Asked Questions About Phemex
What is Phemex?
Phemex is a cryptocurrency trading and investing platform offering users a chance to trade and invest in over two hundred different assets.
Is Phemex safe?
Yes, Phemex is a relatively safe platform. It features a two-factor authentication (2FA) mechanism, several firewalls, and a proprietary Phemex cold wallet system.
What makes Phemex a good choice?
Phemex is a good choice thanks to its low fees, no-KYC (Know Your Customer) authentication system, and comprehensive set of trading tools that will accommodate the needs of traders of all experience levels.
What are fees like at Phemex?
Phemex fees are rather low compared to some other brokers, and premium members can even enjoy free transactions when spot trading.
