How Margin Trading is Beneficial on BitMEX Exchange

by 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.

BitMEX Exchange

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.

With user-friendly supporting tools and a comprehensive BitMEX API, the trading bots make it easy for traders to trade on this exchange.

Advantages 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:

  1. 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.
  2. 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.
  3. 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

If 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 automatically.

BitMEX is a great exchange when you don’t need to risk too much of money. However, you can try trading with leverage to earn higher profits. There are many crypto trading platforms like TrailingCrypto, 3Commas, etc. which offer BitMEX trading bots to trade with leverage automatically. However, it is essential to take a disciplined approach to the whole crypto trading process in the highly volatile market. Choosing BitMEX trading combined with trading bots can be perfect and safer in all ways.

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About Trailing Crypto Advanced   cryptocurrency experts

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Joined APSense since, July 8th, 2019, From Gurgaon, India.

Created on Apr 8th 2022 12:53. Viewed 197 times.


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