How To Trade Bitcoin Leveraged On Bitmex

What is Bitmex?

BitMEX was founded by HDR Global Trading Limited in 2014. It was founded by former bankers Ben Delo, Samuel Reed, and Arthur Hayes. BitMEX is a cryptocurrency trading platform that’s registered in Seychelles and Hong Kong.

The name Bitmex stands for Bitcoin Mercantile Exchange. It’s one of the largest trading platforms as of now and has a 24hr trading volume of 35,000 BTC. The exchange has traded a value of $34 billion of Bitcoin since its early development.

Unlike other trading exchanges, BitMEX only conducts transactions through Bitcoin. However, BitMEX specializes in advanced financial operations such as margin trading, which means you’re using leverage to trade.

Like most crypto exchanges that are available, BitMEX is not ruled by any jurisdiction.

How To Sign Up?

So you’ve decided to embark on your crypto journey, the first thing you’re going to have to do is find an exchange that’s easy to use and is reliable. Why not try out BitMEX for starters?

Before creating an account with BitMEX, you’re going to have to register on their website. You only need an email to register, so you can use an anonymous email to create an account.

Sign up for an account here to get a 10% discount on fees: https://www.bitmex.com/register/rsCzsh

However, your email address has to be a genuine one so that you can verify the account. Once you’re registered, you have no trading limits. BitMEX has an 18 years and up age restriction.

BitMEX is used only for users that are outside of the US. This means that they IP check based on your location. While some US members have bypassed this restriction using a VPN, it’s better that you find one that works within your country’s legal jurisdiction.

BitMEX offers margin trading for all cryptocurrencies listed on its exchange. You can also trade with derivatives and futures – swaps.

How Do I Use BitMEX?

BitMEX allows users to trade cryptocurrency pairs against fiat currencies (USD, EURO, etc.). BitMEX also lets you trade cryptocurrencies such as ZCash, Bitcoin, Ethereum, Litecoin, Ripple, Monero, and Ethereum Classic.

Also, BitMEX’s trading platform is simple if one is experienced in similar markets. However, it’s not easy for beginners. The interface can appear dated to other exchanges such as KuCoin and Binance.

bitmex signup

Once your account has been verified, click TRADE and it will show all of the trading instruments beneath it. After that, it will show the recent trades, the order book, and the order slip on. The order book displays three columns – the order quantity, bid value for the asset, and the USD price for every order both long and short.

The trading platforms have widgets that can change according to the user’s preferences. This gives you complete control over what’s displayed. Also, it has a feature that displays the TradingView Charting.

This provides a range of charting tools and is an improvement on the features its competitors have. Using BitMEX is easy and will give you the tools needed so that you can trade more efficiently!

Once you’ve created a trade, the order can be viewed in that platform’s interface. This is where users can find all of their active orders, check their trade history, and see the Orders Filled. On the Stops and Active Orders tabs, you can cancel any order that with the CANCEL button.

Leveraging

how to trade on bitmex

And, BitMEX has a feature called de-leveraging which allows it to close positions even if the market is extremely volatile. Auto deleveraging means that if you someone bankrupts due to a lack of liquidity, the positive position is deleveraged.

It does this in order of the highest leveraged position available. Traders are shown their placement in the auto-deleveraging queue.

Types of Orders

For the advanced traders who savvy with BitMEX, you should consider trying to do certain orders. Here’s a list that you can use to make better trades

  • Market Order: The order is started at the current market price.
  • Limit Order: If the given price is achieved, then the order is executed.
  • Stop Limit Order: This is similar to a stop order, but users can set a price of the order once the price is reached
  • Stop Market Order: This stop order doesn’t reach the order book and stays unseen until the market hits the trigger.
  • Trailing Stop Order: Like a stop order, but the users create a trailing value order to place the market order.
  • Take Profit Limit Order: This can be used to set a price on a current position. This is so that a user can receive gains and not cut off losses.
  • Take Profit Market Order: Same as a limit order, but triggers a market order and not a profit order.

Swaps and Futures

A futures contract is an agreement to buy or sell an asset at a predetermined price in the future. With BitMEX, users can leverage about 100x on some contracts.

Swaps are similar to futures, but they don’t have settlement nor an expiration date behind them. Also, they trade close to the Index Price, unlike futures who trade away from the Index Price.

BitMEX also provides binary series contracts, which are contracts that only settle at 0 or 100. The only form of binary series contracts BitMEX offers is a 1MB block on Bitcoin’s blockchain. Binary contracts are traded on a 0% marker fee, no leverage, 0.25% settlement fee, and 0.25% taker fee.

Conclusion

Now that you know how to use BitMEX, you also have to do so wisely. Crypto trading is a volatile market, and you don’t want to spend money on pairs that you’re unable to afford. But, once you understand how to use it, you’ll have a very powerful trading tool at your hands.

Because of this, we suggest that you take some time learning some trading strategies before testing them out on the market! The best traders don’t trade without proper research, knowledge, and a determined time to hold their position!

Do you have any additional questions on how to use BitMEX?

Tell us in the comments below!

Disclaimer: The information produced in this post is used for educational purposes only. Speak to an advisor before spending money on an ICO.

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Adam Cole has been a crypto enthusiast for years. First getting involved in Bitcoin mining in late 2010, he has now diversified his portfolio and dug deeper into the alternative coins of the space. As new and exciting ideas arise in cryptocurrency, Jeremy is always looking for the next big thing and a coin which not only appreciates in value but also has a steady increase in use and demand. Jeremy has seen the rise of coins such as Ethereum and by studying the technical and fundamental side of ETH, he has learnt how to find similar coins that are likely to have a bright future.

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