🔥 Bitmex test 2021: Exchange experiences & rating
Bitmex is a cryptocurrency-based CFD trading platform. Their trading pairs include various cryptos that users can trade through a contract for difference. Bitmex offers high leverage (up to 100x) and uses a Fair Price Marking System to fairly value both perpetual and futures contracts.
Bitmex has its own order book. You can buy and sell crypto CFDs by exchanging them. In addition to the Bitmex listing, trades are also valued and liquidated according to index pricing. Bitmex calculates the spot price of Bitcoin contracts by taking their prices into account in both Bitstamp and Coinbase Pro.
Many crypto traders turn to Bitmex for their highly leveraged trading opportunities. You can trade up to 100x on Bitcoin contracts or 50x on Ethereum. Our Bitmex guide has everything you need to know about the platform and how to get started.
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Day trading crypto on Bitmex
Bitmex is a leading leverage-based cryptocurrency exchange platform. At any point in time, around 12.000 to 20.000 members are online and actively trading with crypto CFDs. The exchange currently offers trading in the following assets (changes are possible at any time):
- Bitcoin (x100)
- Bitcoin Cash (20x)
- Cardano (20x)
- EOS token (20x)
- Ethereum (50x)
- Litecoin (33.33x)
- Tron (20x)
- Ripple (20x)
Bitmex used to be home to more than twice as many trading partners as it is today. Some coins that used to be traded on Bitmex with low leverage are Monero, Status and Tezos. To trade at Bitmex, you need to deposit Bitcoin.
Warning: Think about the difference between long and shorting here. With a long, you benefit from both the value of profit in trading and the rise in Bitcoin. With a shorting, you can take advantage of the value of the profit in trading, but lose a little from the fact that Bitcoin goes down.
How trading works
If you try to trade on the Bitmex Daytrade, some basic things about the stock exchange system and functioning trading styles will be of tremendous importance. In the following we give you an example of how you can trade on Bitmex.
1. Place your order
To enter a position, you need to place an order. You can choose between two different options, Buy / Long or Sell / Short.
You have three options: limit, market and stop market.
You choose the amount you are willing to pay for a limit order. When you are willing to pay a higher fee (0,075%) you can place a market order. The only advantage of a market order is the entry guarantee. If the market pumps fast, a limit order may not be executed and could end up costing more by the time it is reordered.
Pro-Tip: Limit orders have 0,025%
Fees (for Bitcoin trading), while market orders have a 0,075% fee. The difference is huge here, especially if you trade several times a day. Always place limit orders. Activate the "Post-only" check box to ensure that the limit order is not posted immediately. If you limit the order to a currently tradable price, you pay market order fees.
Bitmex fee overview
See the graphic below for one Overview of trading fees on Bitmex.
Taker fee: applies when you add liquidity to the market by placing a limit order that is posted to the book of the exchange.
Set element Fee: applies when you take liquidity out of the market by placing a market order or a limit order that is executed immediately.
The negative symbol next to the maker fees shows you a discount that you will receive for helping "make" the books. The actual percentage is not what you see in the table above. This number is calculated according to a few variables, such as the funding rate.
Declared funding rate
Bitmex runs a new funding round every eight hours. Either long or shorts pay the counterparty a fee for holding their position through funding. Many traders do this as it sometimes results in a good payout.
Financing does not take place for futures contracts, it is only relevant when trading with continuous rates. Note that you need to use the 'Limitorder' feature - check 'Post-only' if you want to make sure you get the discount This small bonus can add up over time, especially if the rate and your leverage are high.
Be aware that price promotions around funding time can get weird, which can make a higher leverage trade even more dangerous. It is common for investors to hold back on funding before liquidating their position.
Trading Bitcoin on Bitmex
Bitmex's Bitcoin CFDs are available either as perpetual contracts or as futures contracts. Another way of trading Bitcoin CFDs, which is better known in Germany, is the eToro platform.
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Open-ended contracts
The standard asset is the "perpetual", which trades according to spot prices. You can use it with a leverage of up to 100x depending on your risk tolerance. Sustained rates are only available on Bitmex for Bitcoin trading, while the remaining trading pairs are quarterly futures contracts.
Futures contracts
The futures contracts for Bitcoin are currently available as monthly and annual contracts. A movement-based trading pair now also exists, "UP / DOWN". You can exchange the winnings of Bitcoin for the winnings of "UP" and "DOWN".
Quick tips for new Bitmex day traders
1. Don't boost trading!
When using real-time graphs to predict the effects of supply and demand on the price of a coin, don't be fooled by what are known as “walls”. For example, just because someone offers to buy 10,000 Bitcoin at once at a certain price does not mean that this offer is real and that the trade would actually take place and the price would drop sharply.
We have many in the past fake out used by actors to create confusion and influence buying behavior. Larger traders sometimes use this method to seek the liquidity needed to enter a massive short position. We therefore advise against panic buying!
If such "walls" are replaced at a relevant point of resistance after the market has been pushed up, you should be very careful. It is a sign of a price increase when the previous resistance turns into a new support.
You need to remember that everyone who trades the Bitmex order books is using the same system. The other traders use their bitcoins to bet on the up or down movement of the price of bitcoin. Because some traders use high levels of leverage at key support and resistance levels, larger traders often suddenly increase volatility to force them to liquidate. This causes all long and short positions with high leverage to be washed out and only the respective large players and traders with low leverage to have profitable positions open as soon as the price makes a dramatic move.
2. Avoid high leverage!
Focus on the last row and column. When you weigh the risk, assume leverage greater than 200x. However, if you weigh the rewards, then you are only enjoying 100x leverage. For example, an unfavorable price movement of 0,49% is already sufficient to liquidate your position. If the market price differs enough from the Bitmex price, it is possible to be liquidated even earlier. The reason for this is that you have to put up 0,5% as a maintenance margin. So which leverage levels are safe to use?
They can justify using up to 25x leverage if the movement is correct. For example, the 25x will offer a very attractive risk / reward ratio right after a breakout (with a tight stop). However, it is important to understand that committing to a high leverage trade is costly.
3. Ignore the troll box!
A big mistake that is very popular with beginners is getting caught in the troll box. In the past, everyone would look at chats on Poloniex to get signals for daily coin trading. Sometimes the information was actually valuable, but nowadays we get it Signals in crypto sub-reddits and Discord-Groups.
The point of this picture is to show you the high level of enthusiasm that emanates from every "outbreak". But if you believe the hype and don't follow a strategy, there is greater risk that you will trade emotionally with your positions and that is a devastating mistake.
The Trollbox on Bitmex is just a group of people who talk nonsense and whose mood changes as fast as the price: one sudden spike and everyone is hysterical, one rapid decline and everyone thinks crypto is at the end. Don't be drawn into the hysteria and put off buying. Trade based on real signals, learn technical analysis and enter positions based on strategy rather than emotion.
Use of Bitmex
Bitmex is one Crypto exchangethat the industry is passionate about. Their leverage trading is powered by Bitcoin, which is what many crypto fans love. This is not the case with other CFD platforms such as eToro, where mainly USD is deposited and used to secure the CFD contract values.
At Bitmex you have a BTC / USD order book but all deposits, withdrawals, wins, losses, etc. are derived in Bitcoin. Let's say that your long position with 10x leverage increases the price 1 times. With Bitmex, the effect is that $ 10 becomes $ 100 and then $ XNUMX, whereas at eToro $ 1 only becomes $ 10.
Of course, there is a significant risk with shorting (if the price falls too low) that the ROI would be lower than with a successful long position. Trying to influence trading on Bitmex is stressful. In all fairness, we encourage you to develop leverage based trading strategies and then start trading there.
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Bitmex gives you a calculator tool that is pretty helpful:
For leveraged trades, we primarily want to use the "liquidation price" calculator. Select this tab and you will see:
As you can see in the example above, with 100x leverage, it only takes a price drop of $ 33,50 (from $ 6.756 to $ 6.723,5) for you to be liquidated. You have to wonder if you can actually predict the price movement of Bitcoin that accurately. In reality, it is a craps shot and you need more luck than any skill. On the other hand, we recommend long positions with 25x leverage if you are trading Bitcoin with leverage on Bitmex. Other cryptos should only be traded with a maximum of 5-10x leverage.
Here is an excellent graph that shows the real cost and profitability impact of entering into a heavily leveraged position:
Still running the calculator tool, but use the table above to get an idea of how much leverage you can safely use on a given trade. Adjust your leverage exposure to market conditions.
Please note: You don't always need an options position and you can also skip using leverage if the market doesn't suit it!
Advantages of trading on Bitmex
There are several reasons that make the decision to trade on Bitmex instead of an alternative CFD crypto exchange like OKCoin or eToro justify.
You get a fairer distribution
For example, let's say BTC is worth $ 7.250 and you can take a $ 7.500 long position or a $ 7.000 short position on a particular CFD-based crypto exchange. But what if the price goes up by $ 1.000? At Bitmex you won't get ripped off by the “spread”.
Your funds are safe
Your contract prices are set with your own order book Bitmex also has an insurance company with more than 9.000 bitcoins, for example if cascading calls cause a "loss" in the system, the insurance will cover them.
Bitmex's war chest only contained half of the bitcoins in April last year. That number continues to rise as more people trade on Bitmex and by filling liquidations before their bankruptcy price. Even if there will always be deviations, the security of the Bitmex system is second to none.
It should be noted in particular that the Bitmex system operates 24/7Audit mode located.
You can customize your dashboard
Take advantage of the adjustments you can make to your dashboard. The default layout and automatically selected data points likely won't tell you everything you'd like to see. Traders trade better when they can browse different levels of information to make an informed decision.
You can change the following things on your Bitmex dashboard, among others:
What is the "Depth Chart"?
The standard view of the depth chart shows the money and letter requests within a small price range. As you can see, the visualization includes all orders from $ 7.718,50 to $ 7.737,50. You can scroll your mouse or laptop trackpad to expand the price range that is visible. The price range of around $ 100 at current Bitcoin prices is sufficient for a detailed chart analysis for day trading on the Bitmex exchange.
You can also research the order book depth further by expanding the order book. Bitmex's standard display shows orders in increments of $ 0,50. You can change this, which makes it possible to go in large increments such as $ 1, $ 5, $ 10, or $ 100. Adjusting will give you a better picture of the support and resilience at nearby price points.
Press “Settings” to set the steps in which the jobs are displayed:
Note: The corner arrow style icon is your "Expand (Full Screen)" button, while the "X" disappears the order book box. You can get it back by going back to the dashboard layout customization drop-down list.
Another option in the Settings drop-down list is “Positions & Open Orders”. If you activate this check box, you can easily see your triggered, pending and completed orders. This is a great way to keep track of your breakpoints too. This section is at the bottom of your dashboard, but you can move the boxes around and change the layout as you wish.
How to Open a Bitmex Account
Important information
- special feature: Up to 100x leverage for some cryptocurrency positions
- Available cryptos: Bitcoin, BitcoinCash, Cardano, EOS, Ethereum, Litecoin, Tron and XRP
- Favorite crypto trading platform: Over $ 4,5 billion is traded on Bitmex every 24 hours.
- Industry leading security
- Quick start & Bitmex does not require any personal data
- Deposit method:Bitcoin only
Registration
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Bitmex has one of the simplest login processes. As soon as you click the registration link, the registration form opens. You simply enter your email address, password and name. Accept the general terms and conditions and the press register.
You will then receive an automated email to verify the registration. Once you click the "Confirm my email" button, you will be signed in to Bitmex.
How can I deposit?
Depositing on Bitmex is also very easy. Click the Account button at the top of your screen, then click Deposit and you will be shown your BTC deposit address.
What you should know before trading on Bitmex
- Withdrawals are made once a day. The funds are safe and all requests are manually approved by the staff. Bitmex is good for keeping deposits and withdrawals updated. For deposited funds, a single confirmation is sufficient for funds to be credited to your account.
- There may be delays with the trading engine when there is both high volume and high frequency of trades. This problem arose after the exponential growth in users over the past two years. However, this problem is not particularly serious because in the worst case scenario your trade will simply not be triggered.
- Be careful when entering a position if the Bitmex order book shows a price difference to the index price. Your position could be liquidated sooner. If you go long, however, it works in your favor. But you can't just trade based on a spread between the two as Bitmex often has a lower trend when market sentiment is weak.
- It's easy to get liquidated with higher levels of debt - be very careful, because sooner or later you will lose everything. Even if you use a fraction of your balance on high leverage, it is easy to get caught up in trading and increase your margin to bring it above the initial liquidation price.
- You can have multiple accounts. If you want to take a 50x leverage trade because the market is about to make a quick move, transfer 100% of your "stake" to one account and keep your normal day trading funds in another account. You can also fractionate your money supply.
Last word
Bitmex is certainly not a platform for a casual investor, it is only intended for advanced traders. That means anyone just starting out will likely find the platform confusing. There are many easier and more beginner-friendly CFD trading platforms out there such as eToro. However, Bitmex has the largest range of functions of any CFD broker, offering a wide range of coins and leverage options. Whether or not you end up using Bitmex is entirely up to you. However, we recommend advanced traders to look at and use Bitmex.
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Frequently asked Questions:
Bitmex is a leading leverage-based cryptocurrency exchange platform. At any given point in time, around 12.000 to 20.000 members are online and actively trading with crypto CFDs. The exchange currently offers trading in the following assets (changes are possible at any time):
When trying to trade on Bitmex Daytrade, some basic things about the system of the exchange and working trading styles will be of tremendous importance. In the following we give you an example of how you can trade on Bitmex.
Bitmex's Bitcoin CFDs are available either as perpetual contracts or as futures contracts. Another way of trading Bitcoin CFDs, better known in Germany, is the eToro platform.
When using real-time graphs to predict the effects of supply and demand on the price of a coin, don't be fooled by what are known as “walls”. For example, just because someone offers to buy 10,000 Bitcoin at once at a certain price does not mean that this offer is real and that the trade would actually take place and the price would drop sharply.