Bitmex is a big P2P trading exchange that deals with cryptocurrencies like bitcoin. Apart from bitcoin, it also allows trade on Ethereum, Bitcoin Cash, Ripple and few other prominent currencies. Their platform looks almost similar to a Bloomberg terminal and is a favourite among high-frequency traders.
As great as it is, Bitmex is not for newbies or crypto beginners. Even seasoned players will take some time to get used to the new experience. So we thought of helping out the experienced traders on a few tips & tricks for Bitmex.
- Market orders guarantee execution. But your control over price is limited. Due to the volatility of bitcoin, the price could pinch. They also incur higher fees. Due to unexpected breakouts, you may enter the contract at an unexpected price point. If you are a newbie, this could also be a rookie mistake that cost you a lot of money. Snap judgements are best left to very experienced traders. Your best bet is to avoid market price and set up a limit orders.
- When dealing with Bitmex, always look at the charts from at least one more reliable exchange. At times, Bitmex has been known to show false breakouts in support, resistance numbers, etc. So make a habit of looking at charts from at least one more exchange. If you see something too good to be true, verify it with an external chart before using that information.
- Even though Bitmex offers 100x leverage, don’t use it to such a great extent. While it is good when the price moves in your direction, it is disastrous if it moves in the opposite path. You may lose all the coins you committed to the trade. Bitmex may also liquidate your position if it close to the stop loss value and this may hit you very hard if you are using a 100x leverage. Since it has happened too many times in the past, it may happen again in the future.
- This is more of a golden rule of trading than specific advice on Bitmex. Do not chase a loss. If you enter a bad bet just to make up for a recent loss, you are just throwing your money away on an emotional bet. A good trader bets on rational moves and does not place an order based on emotional feelings. So if you are feeling low due to a loss, walk away. Do not engage.