Phemex Exchange Review: Unique Features, Functions, and Trading Procedures

Introduction

Phemex exchange is a crypto exchange that debuted in 2019. Within the short time that the exchange has been present in the market, it has achieved impressive statistics. Its founders recognized the limitations of traditional finance. In particular, they found out that the banking landscape was such that it was biased towards the privileged—with unreasonable fees, exclusive dealings, and inefficient systems. Hence, this issue was begging for a solution. 

They reframed a paradigm where the playing field was leveled for everyone. In order to grant equal chances for everyone to succeed, they turned to the blockchain.  

Phemex Exchange Details

What is Phemex?

Phemex is a cryptocurrency trading platform that offers spot, derivatives, and futures trading. The platform allows traders to copy trade and bot trade in over 200 countries. It is an exchange that is testing out certain structures and models. 

Phemex distinguishes itself with offerings that transcend traditional crypto trading. Pioneering a transformation in centralized exchanges. Phemex introduced its decentralized Web 3.0 ecosystem, marking the emergence of the first semi-centralized cryptocurrency exchange. This innovative approach pledges to decentralize management while upholding centralized efficiency. 

Core Values of Phemex

Phemex is built on a foundational 3T philosophy:

Trustworthy: Since its establishment, user funds have never been hacked or placed at risk, and the exchange maintains an incident-free record.

Transparency: Phemex is the first exchange to offer Proof-of-Solvency, which they update on the 25th of each month. Users can also confirm the secure storage of assets and liquidity with Phemex’s Proof-of-Reserves.

Together: Phemex is an ever-growing community, with over 30K members holding its PSP within the first few months of its inception.

Platform Interface

The platform has a simple and user-friendly interface with white letters on a black background. The user interface is versatile for an expert trader trying to get to business in the nick of time and it also doesn’t overwhelm a newbie trying to learn the ropes of trading. 

Key Features and Functions

Spot Trading

The spot trading interface has all the pertinent information needed to help users do an in-depth analysis of the market before setting the “Take Profit,” “Stop Loss,” and “Entry Points.” Thanks to TradingView, which makes its standard tools, such as indicators, accessible. 

The Order Book helps the user gauge which way the market is moving by considering the buyers’ and sellers’ activities. The indicators and different time frames allow the traders to perform technical analysis on the market. The platform supports 223 cryptocurrencies for spot trading, and this selection is constantly growing. 

The Phemex trading platform is powered by the CrossEngine and TradingEngine. TradingEngine works by matching client orders based on price and time priority. The CrossEngine is designed to handle 300,000 transactions per section with an execution time of under 1 millisecond.

Perpetual Futures

The Phemex perpetual market consists of three types of settlement currencies – the USDT-margined, coin-margined, and USD-margined trading pairs. Traders can leverage their investment 100X. Moreover, under the USDT perpetual options, there are categories like DeFi, DAO, AI, and Liquid staking tokens to select from. As the perpetual future is a high-risk and high-reward market, and opening a position is a big gamble, the platform allows the user to have mock trading. 

Apart from that, the perpetual option has all the intricate details that are there in spot trading, it also has the option to cross or isolate the wallet from the position. 

Traders can use the following order types – Limit, Market, and Condition – in combination with the following advanced settings:

Reduce-only – Reduce-only order will only reduce the trader’s position, reducing the risk of over-exposing the position.

Post-only – Post-only orders will not execute immediately and are used to ensure a Marker Rebate.

Bracket Order – Bracket orders are designed to help limit a trader’s loss and lock in profit by “bracketing” an order with two opposite side orders.

Good til Canceled (GTC) – These orders remain open until they are filled or the user manually cancels them. Traders can select IOC, which is where a portion of the order will be immediately filled at the target price, and the portion that cannot be filled is canceled, or FOK, which tells the full order to be filled immediately at the target price, or it will be canceled.

Bot Trading

Bot trading comes in handy for those new traders and others who find it hard to keep the market movements under constant surveillance. Once the Trading Bot mode is selected, the user will be prompted to select either the “Recommended” or “Manual” option as highlighted by the white rectangles. When the recommended option is selected, it will display certain recommendations as highlighted by the green rectangles. 

Once the user selects the desired “recommendation,” the system will allow the traders to copy the selected parameters and use them to create a new order. 

The Manual option lets the user edit the preset values chosen from the “recommendation.” Or, if the user wants to change all the parameters from scratch, that could also be done.

Bot Trading is useful as it needs no one in attendance – the order triggers at the set values. Moreover, the market keeps moving throughout the day and it is not feasible to always pay attention to the market. However, when a Trading Bot is used, the orders will trigger when the markets move in favor of the position.  

Programs 

• VIP Program: Phemex provides a VIP program that offers exclusive benefits to users with substantial trading volumes, with perks increasing according to VIP levels.

• Phemex Institutional: Tailored for high-net-worth individuals, trading firms, and brokers, this program offers a top-tier API rate, unlimited sub-accounts, and competitive fees.

• Collaborator Program: This is aimed at traders with a significant online presence. This program enables them to introduce Phemex to their audience and earn commission payouts based on their PT holdings.

• Market Maker Program: Designed to enhance liquidity, this program provides a seamless trading experience for liquidity providers, along with substantial discounts related to their trading volume.

• Broker Program: This offers brokers an integrated platform with up to 50% in commissions, easy onboarding, and cross-promotional opportunities for reaching new users within the exchange network.

Phemex Earn

Phemex Earn Interface

The Phemex Earn option is a way of earning interest by holding crypto on the exchange. The Flexible Savings option isn’t time-bound as it allows the user to earn interest irrespective of the time it has been staked for. The savings rates range from 0.3% to 2%, and assets like BTC, ETH, SOL, and stablecoins are supported. 

The Fixed Savings Accounts allow users to earn higher amounts of interest based on the prerequisite that the funds be locked in for the specified terms. The Annual Percentage Yield (APYs) on the fixed accounts rank quite high when compared to other platforms. The APYs on Phemex range from 0.5% to 8.80%, with lock-in periods of either 7 or 14 days, making this one of the most flexible platforms to earn passive income on the HODL stash.

Phemex launchpool Interface

The Phemex launch pool enables the user to earn interest by selecting tokens that have a higher APY. It is believed that some APY could be as high as approximately 500%.

The Phemexia Web3 Ecosystem

Phemexia represents the Web 3.0 ecosystem developed by Phemex, incorporating decentralized components into its centralized framework to offer a hybrid exchange model and empower its users with increased autonomy. This ecosystem is characterized by a unique identity-bound NFT, a utility token, and a governance token

The Phemex Soul Pass

Phemex Soul Pass is a non-transferable, non-tradable ERC-20 token that has been designed to authenticate the identity of its holder where users can establish their identity on Phemexia. The company states it as the passport to access benefits within the Phemexia ecosystem. 

The Phemex Token (PT)

Phemex launched its native token, Phemex Token (PT)  in November 2023. It is a utility token that functions as an on-chain ERC20 token. PT provides a diverse array of benefits and use cases within the Phemexia ecosystem: 

• Trading fee discounts: PT holders pay lower trading fees.
• Staking yield: Stake PT to earn industry-leading APR (Annual Percentage Rate).
• VIP privileges: Staking PT grants VIP-level trading fee discounts. Users who achieve VIP status through vePT holdings can also receive monthly airdrops for simply making deposits into their accounts.
• Deposit Cashback Airdrops: Stake PT to get cashback airdrops.
• DAO Governance: Staking PT will soon unlock governance rights on PhemexDAO for vePT holders. 
• Launchpad & Launchpool Access: PT holders can access the Phemex Launchpad and Launchpool.

PT Staking

Coinciding with the debut of Phemex Token, the platform has rolled out PT Staking, creating attractive earning possibilities for those holding PT. Through PT Staking, investors not only share in the revenue but also profit as the exchange expands. This innovative staking model projects an Annual Percentage Rate (APR) as high as 1,000%, coupled with the perk of decreased trading fees.

The allure of PT Staking lies in several key benefits:

Stable Earnings: By staking PT, investors can enjoy a steady APR of up to 1,000%, significantly appreciating their investment value.

Flexibility: Phemex offers various staking options to suit the preferences of a broad user base.

Security and Trust: Leveraging smart contracts within the Optimism network, PT staking is characterized by elevated transparency and robust security, reducing the potential for asset mismanagement. Phemex ensures a trustworthy staking environment for PT holders.

PhemexPulse

Phemex recognizes the pivotal role exchanges play in nurturing crypto communities as trusted partners and has a special plan dedicated to ensuring users are united and empowered. With this goal of bringing the community together, Phemex is launching its new social trading feature named PhemexPulse (January 2024) and it’s intrinsically linked to the benefits of its Web 3.0 ecosystem. 

• By forming their group and attracting followers with their top-notch content and trading tips, group owners can dive into a 50 million PT prize pool. (At least 20% will go to the group owner)
• PhemexPulse empowers KOLs to shine by doing what they do best – leading and engaging with their audience, removing the boundaries with their community, while Phemex opens the door to transform their influence into PT wealth
• Followers can join groups created by owners, fostering connection and engagement. They can obtain rewards by interacting, contributing to the group, and trading. This collaborative effort allows for an equitable share of the 50 million PT prize pool, with 80% allocated to group members. 

Trading Fees

The standard trading fee is 0.1% for the maker and taker on spot trading, while the derivatives trading fee is 0.01% for the maker and 0.06% for the taker. However, highly active traders will automatically receive VIP status to enjoy lower trading fees. 

Users can upgrade to VIP level 1 by achieving any of the following; 8,000,000.00 in contract volume, 10,000.00 in spot volume, holding 50,000.00 vePT, or holding 50,000.00 in assets.  

Deposits and Withdrawals at Phemex

Phemex exchange has a few options for those looking to buy/withdraw or deposit crypto, or withdraw or deposit fiat.  

They have the lowest EURO Credit Card Purchase Fee Among All Exchanges and no transaction fees for USD deposits!

For crypto purchases, Phemex has partnered with a slew of third-party payment providers such as credit/debit cards, UnionPay, Bank Transfer, SEPA, Apple Pay, POLi, Bpay, PayId, IDEAL, and Sofort.

Security

Phemex has focussed on safeguarding user funds by reinforcing wallet security, system security, user account security, and trading engine security. 

Wallet Security

Phemex has a proprietary Hierarchical Deterministic Cold Wallet System which assigns separate cold wallet deposit addresses to each user. All the deposits are periodically gathered in the company’s multi-signature cold wallet via offline signature. 

Phemex keeps 100% of user funds in reserve at all times, so all user assets are backed 1:1 on their platform. Additionally, Phemex has released Merkle-tree Proof-of-Reserves to enable every user to check and verify where their funds are kept safe within the system.

The website states:

“Everyday, Phemex expediently processes hundreds to thousands of real-time withdrawals. Each withdrawal request is automatically reviewed by a rigorous risk control system and those that are deemed to be risky are reviewed again manually by internal operators.”

System Security

Phemex deploys its system and secures its machines on the Amazon Web Service (AWS) Cloud.

Phemex uses several firewalls to segregate various zones and machines for different trading purposes. There are multiple levels of security and internal network access management protocols to control the accessibility of one instance to another. Beyond network firewall management, Phemex also applies restrictions on a system level. 

User Account Security

Phemex uses a two-factor authentication (2FA) mechanism to protect all user accounts. The system automatically activates 2FA when a user performs any critical operations. Users also have the option to enable an anti-phishing code to appear on all legitimate emails they receive from Phemex and to ensure the legitimacy of messages received. Phemex performs a double entry, the same procedure banks use in two or more accounts, to prevent the tampering of records. 

Trading Engine Safety

The Phemex trading platform consists of two main core components; The CrossEngine and the TradingEngine. The CrossEngine strictly matches client orders based on price and time priority. Meanwhile, according to the site, “the TradingEngine is responsible for managing a full set of risk checks on behalf of the client’s trading account. These include costs, fees, PNL, computing, and more, in real-time.”

Know Your Customer (KYC)

Phemex is a platform that enables traders to withdraw and deposit funds without KYC verification. However, users might need to go through KYC verification if they want to buy crypto or sign in with an OTC account. 

To create an account

1. Click on “Register Now” at the top right corner of the screen
2. Provide an email address along with a password. 

*Use a real email address as you will need to verify it.

3. Click the link sent to your email to verify your account.
4. Set up your account, enable the recommended security features, and enjoy trading.

Verifying KYC

1. Open the Phemex App and log in to your account.
2. Tap the Account Icon on the top left of the screen.
3. Tap the KYC verification option and tap on the “Verify” option.
4. Tap “Start” when ready to continue with the steps indicated on the screen.
5. From the drop-down menu, select the issuing country of your ID and then tap on the correct ID type.
6. The app will access your mobile phone’s camera. Center and angle your document correctly ensuring that all details are legible.
7. Once a valid photo of the document is captured, tap the “Confirm” button.
8. The next action involves face verification. Once you’re ready, tap “Start”.
9. Align your face within the provided space. The app will automatically scan and upload your image.
10. While the application is processing, you will see a “Verifying” tag next to your ID and the face Verification option.
11. If the verification is successful, the tag will change to “Verified”.

Customer Support

Customer support is crucial when you open trade and hit a snag or face an issue. It could be the difference between losing a little to your portfolio totally liquidating. 

So where does Phemex stand with customer support? 

A user who put Phemex customer support to the test, intending to gauge various parameters, testified that the service was pretty decent. Phemex provides support via their Help Center, which is well facilitated with articles and guides, proving to be quite helpful. 

Controversies and Issues

Achievements

• Phemex partnered with CoinMarketCap 
• Phemex partnered with CoinGecko
• Phemex partnered with CoinCodex

Pros and Cons

Pros

• The exchange has copy and mock trading, so it is a good place for beginner traders.
• Its security which has been reinforced on the wallet, system, and trading engine ensures a secure trading platform. 

Final Score

• Services offered: 4/5
• Cryptocurrency support: 5/5
• Fees: 4/5
• Security: 4/5
• Review Score: 4/5

Summary

Overall Phemex is quite a good exchange. The trading engine utilized by Phemex is among the best available as it can handle large orders with a large volume efficiently. When it comes to security, Phemex has bolted every nut, from wallet security and account security to trading engine security, making it a safe place for traders. 

Moreover, as the platform supports copy trading, it is also safe for beginners to get their footing, providing a safe environment with security. It also has mock trading, which allows users to pseudo-trade without the need to risk assets. Through its Phemexia Web3 platform and Phemex Token staking opportunities, the platform has demonstrated the initiative to innovate and develop unique benefits that competitors do not offer.