How Margin Trading is Beneficial on BitMEX Exchangeby Trailing Crypto cryptocurrency experts
It doesn’t matter if you are
a beginner or an expert trader; the thing which matters during crypto trading
is the kind of platform you choose. The right trading platform will provide you
with some excellent features, minimal fees, the best trading bots, advanced
tools along with ensuring the maximum security of your data and investments. And, one name that strikes the mind of crypto
traders whenever we are talking about all the above features is BitMEX.
exchange platform allows its traders to trade both in
futures and crypto trading markets. And, according to the latest reports, soon
it is going to add the spot trading feature. This exchange comes with many
excellent features as it offers all kinds of basic and advanced crypto trading
tools and order types to make trading more interesting. Previously, the only
restriction with this platform was that it was accepting deposits in Bitcoin,
but now it’s changing as users will now be able to use Tether for margin
trading and other settlements on BitMEX.
In the last week of March
2022, the platform has welcomed ApeCoin (APE) into its ecosystem and in the
first or second week of April 2022, it will be launching additional support for
APE. All this means that users will now be able to covert Tether into APE and
vice versa with no hidden charges.
This is one of the most
advanced peer-to-peer crypto trading platforms that provide the best-in-class
API. Additionally, leveraged trade contracts on this exchange help in
delivering trades much faster. Leading cryptocurrencies like XRP, ETH, BCH,
etc. can be traded easily on BitMEX.
To get started with BitMEX,
one has to register on it. Registered account holders on the exchange can sign
in and make Bitcoin deposits instantly. The exchange supports trading with
leverage to its users. Also known as margin trading, this kind of trading
allows investors to boost their trading value by borrowing the capital based on
the crypto assets they have. BitMEX
margin trading is specifically useful for experienced traders. The
platform offers the maximum leverage of 100x on Bitcoin. Let’s understand about
leverage trading with an example:
If you have 5 Bitcoin (BTC)
to trade and you use 2:1 leverage, then you will be able to trade with 2 BTC
instead of one. And, if you have 1 BTC and you use 100:1 leverage, you have the
possibility to handle 500 Bitcoin instead of 5 BTC.
supporting tools and a comprehensive BitMEX API, the trading bots make it easy
for traders to trade on this exchange.
of trading Bitcoin with leverage
There is a wide range of advantages to consider margin trading for Bitcoin. It’s all about opening up new opportunities that would not be available normally and are highly profitable than typical strategies:
- Remain profitable through sideways and
consolidation trading: There are some traders who hold out for
high volatility. This could make sense, but there are times when the price
moves in a tight range and trades sideways for prolonged periods. This may cut
down the source of revenue from those traders.
This is because the small price movements within a range generate much
lesser profits than large spikes in price. But by using margin trading or
trading Bitcoin with leverage, trades which are tightly bound and other
sideways price actions could be profitable as more volatile periods.
- Earn profits from bearish or bullish
market trends: Shorting is the key to opening up
profitable trading in all conditions and trends. Those traders who use shorting
gain access to the profitable trades for even 50% of the time when the price is
not going up. And, this means that there will be no drop in revenue during the
bear markets. But one specific kind of trade which could be profitable using
shorting is to wait until the sharp upward movements.
- Earn more with momentum trading: This kind of trading is widely popular among traders whothink that when the price is moving in one direction, it is likely to continue in that particular direction only. Although there are always going to be trend reversals at some point, it’s better to find a way to predict reliably which trends will continue in the same direction, and for how long. This is called momentum trading and this kind of strategy can get benefit from leveraging as if you can predict confidently that a trend will continue, then leveraging that particular trade will mean that even if the trend continues for just a shorter time, a significant amount of profit could be generated.
Use BitMEX trading bots via a third party platform
you are new to the BitMEX platform, choosing BitMEX trading bots is the better
option. Through third-party crypto trading platforms, one can effortlessly
create and set up a trading bot for BitMEX. The services offered by these
platforms serve as an intermediary which makes buying, selling, and investing
multiple cryptocurrencies on different exchanges.
The best part about the
BitMEX exchange platform is its advanced functions and tools. And, because it
has so many advanced options, it could be difficult for the crypto traders to
develop a winning strategy to place trades.
And, luckily, you may
consider using BitMEX trading bots offered by different exchange
platforms. BitMEX allows trading bots to
be used on its markets, which means that you can buy or sell crypto assets here
Created on Apr 8th 2022 12:53. Viewed 197 times.