Will More Exchanges Support SegWit Withdrawals?
The world of exchanges can be highly competitive. As such many need to constantly innovate and introduce new features. This can be seen with Binance's constant announcements and Bitfinex's recent Lightning integration. BitMex, which is primarily known for leveraged trading has apparently taken note of this.
Bitmex Now Supports SegWit Withdrawals
Earlier today it was revealed that BitMex will now support withdrawals to SegWit Addresses. This means that clients which use SegWit addresses can easily withdraw their funds directly to their SegWit wallet.
BitMEX Enables Bech32 Sending Support— BitMEX Research (@BitMEXResearch) December 12, 2019
BitMEX is delighted to announce that customers can now withdraw bitcoin to the Bech32 (native SegWit) address format. This upgrade is effective immediately.https://t.co/cKnUUJvKdK@bitcoinoptech pic.twitter.com/q0DVeq0tjS
It is highly important to note however that when depositing funds into Bitmex, clients must send funds to their Pay to Script Hash (P2SH) format addresses. The key incentive to use a SegWit address is a reduction of transaction fees.
"This upgrade is part of BitMEX's continued commitment to optimize our Bitcoin wallet infrastructure and technology, in order to reduce our usage of blockweight and to lower transaction fees for our customers." BitMex wrote in their blog post.
It appears that BitMex plan on further adopting SegWit technology and could one day allow SegWit deposits as well. While this is speculative, BitMex might take note of Bitfinex & allow Lightning Network deposits and withdrawals in the future.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado