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Monfex is a cryptocurrency trading platform which allows its users to trade with margin. Monfex first launched in December 2018, with a mission to become one of the most accessible trading platforms in crypto. With new users able to sign up to the exchange in just 15 seconds, and some of the lowest commissions of any crypto trading platform, Monfex certainly has all the ingredients to succeed. As a newly launched exchange, detailed Monfex reviews have been scarce up until now. Here we will provide one of the most comprehensive Monfex reviews, examining what sets the Monfex trading platform apart from its competitors.
Trading with margin is the practice of ‘borrowing’ funds from a broker, in this case, Monfex, to use for a trade. This is known as ‘leverage’. Leverage magnifies gains, as users are essentially trading with more money than they actually own, but it can also result in larger losses to traders capital. Using leverage means that in times of high market volatility, traders can be subject to a margin call when the ‘account value’, their original funds plus any unrealized profit or loss, falls below a certain unsustainable threshold. The margin call then liquidates their position, which often results in losses of a greater magnitude than normal trading without leverage – so users should be careful to observe their limitations. Higher leveraged positions will affect traders liquidation price. Monfex offers up to 50x leverage, which is lower and somewhat safer than the 100x leverage offered by BitMEX, which can wipe-out inexperienced users. However, Monfex users can never lose more than they deposit onto the platform.
Monfex offers traders exposure to 12 different cryptographic assets. It’s essential to note that users are not buying the underlying asset. Instead, users are speculating on the price of the underlying asset. The trading interface at Monfex is sleek and easy to interpret. Unlike Bitmex, which is fast-paced, and for inexperienced traders perhaps a little overwhelming, the Monfex UI is far more simplistic. Despite this, it has some great features. Charts aren’t just pulled from Trading view. Instead, they give users the option to trade at a huge range of time intervals, from 1 month down to ‘1 tick’, appealing to both high-frequency intraday traders or those taking longer-term positions. Traders can choose from five chart types, including candles, bars, lines, area or Heikin Ashi charts. Likewise, Monfex offers a good range of indicators, including popular tools such as RSI, Bollinger Bands and several types of MA.
As a new exchange aiming to be the best crypto exchanges for margin trading, Monfex isn’t fully ‘battle-tested’ yet, but its approach to security is strong. User deposits go into cold storage, so they’re only available on the platform when actively trading. In the settings, users can sign up for 2-factor authentication (2FA) to add an extra layer of security to their account. Support is available 24/7, year-round. Users can currently leave a message for the support team and attach relevant files to their ticket or contact the team by phone. There’s also an extensive F.A.Q on the Monfex website.