BitMEX Experience

  • by Tycho

    • It is no longer a secret that BTC is a great investment asset, as you can read at www.tynmagazine.com for example. On Bitmex crypto currencies are not traded directly but contracts. All contracts are traded against Bitcoin, so you have to send Bitcoins to Bitmex first. The platform is particularly popular with experienced traders, as crypto currencies can be traded with a maximum leverage of 1:100. The prices can also be shortened. So you can also bet on falling rates.

    Sometimes more than 40% of Bitcoin trading takes place on Bitmex. At the end of my experience report you’ll also find a video in which I briefly explain the platform and give instructions on how to trade on Bitmex. If you use the link to Bitmex you save 10% of the trading fees in the first 6 months.

    Crypto currencies for trading

    It is important to understand that crypto currencies are not traded directly on Bitmex. So if you buy on Bitmex Cardano or TRON, you cannot withdraw your credit. Rather you buy contracts from the crypto currencies. These run either for a certain time or expire sometime. On Bitmex, contracts are traded for the following crypto currencies: Bitcoin, Bitcoin Cash, EOS, Ethereum, Litecoin, TRON Ripple.

    Login and Registration

    Registering with Bitmex is very easy. No KYC (Know-Your-Customer) procedure is required. All you need to do is enter your name, email address and country of origin and then you can trade millions of crypto currencies.

    Register with Bitmex

    With my link you also save 10% of the trading fees in the first 6 months.

    • Types of contracts (Contracts)
    • When you log in to Bitmex you will see the following dashboard.
    • Bitmex Dashboard

    Under the tabs with the different crypto currencies you can see the different contracts that are traded on Bitmex. These contracts are divided up as follows:

    Perpetuals: This contract is most comparable to the normal trading of crypto currencies. It is basically a futures contract that has no expiry date. So you can hold this contract indefinitely. However, you pay a fee every 8 hours. This depends on whether you are long or short and what the other traders do. Theoretically you could also get money to hold the contract if the market disagrees. As you can see, with a perpetual you can also bet on a falling price (“shorten”).

    Future Contracts: These are contracts with a fixed term. The contract can expire either at the end of the month, at the end of the next month or at the end of the year. The decisive factor is the fixed price. You can either buy the contract (long go) or you shorted it, then you are of the opinion that the price will be below the fixed expiration price.

    Bitcoin UP or Down Contracts: These are contracts made specifically for a market rally. Investors pay a premium to purchase the contracts. These have a limited duration. Differently than with the Perpetuals there is however no danger to be liquidated, if you act with a too high lever. The investor can therefore participate in a market rally until the contract expires.

    Margin Trading

    The special thing about Bitmex is that investors can trade with one lever. Bitcoin, for example, can trade with a maximum leverage of 1:100 and Ethereum with a maximum leverage of 1:50. However, this does not mean that you should fully exploit the levers. Because at a leverage of 1:100 you would already be liquidated and lose your entire stake if the price falls by only 1% (assuming you are long).

    Personally I trade mostly with a leverage of 1:3 but always depending on the market situation. Margin trading also has the advantage that you don’t have to send your entire balance to the Exchange to trade. Assuming you want to trade 1 bit coin, you only have to send 0.33 BTC to Bitmex and can trade with a leverage of 1:3. So you are holding a position that is worth 1 BTC, but have only a third of it on the Exchange. You borrow the rest from the Exchange. This is especially safe if the Exchange should be hacked once. At Bitmex this hasn’t happened yet.

    Trading on Bitmex

    • You can set your order at Bitmex in the dashboard on the left side (marked red here).
    • First you have to choose what kind of order you want to set. The following orders will be offered to you:
    • Limit Order: With the Limit Order you can set how many contracts you want to buy and at what price. The order will only be executed when the price can be reached on the market.

    To compare Bitmex with Deribit follow this link: http://www.bestbitcoinexchange.net/vs/deribit.com+bitmex.com