BitMEX is a trading platform and exchange for cryptocurrencies. The exchange was founded by HDR Global Trading Limited and is by far one of the most advanced trading platforms throughout the cryptocurrency market. BitMEX is an abbreviation whose full form is Bitcoin Mercantile Exchange.
With that in mind, it is important to note that on the trading platform, BitMEX’s trading list is quite short. It has the top 10 cryptocurrencies in the market, plus Ethereum Classic. By keeping the choices minimum, BitMEX sort of creates its own entry-level and minimizes loss and volatility to a manageable extent.
The trading platform is known for a variety of orders that it facilitates its users to perform. The exchange itself facilitates up to 7 types of orders. Each of the seven has their own share of merits and demerits, however, the ability to take these orders through is completely dependant on whether or not the trader has enough liquidity to reverse or sustain a bad trade.
The seven types of orders that BitMEX facilitates are;
- Limit Order
- Market Order
- Stop Limit Order
- Stop Market Order
- Trailing Stop Order
- Take Profit Limit Order
- Take Profit Market Order
While BitMEX is a great option as a trading platform and exchange, it is important to note that BitMEX is not a suitable option for beginners given that the methodology is extremely advanced. It goes without saying that the people behind the exchange and the cryptocurrency trading platform know what they’re talking about. The environment is high intensity and it is very easy to get carried away because of the same.
For seasoned traders and for people looking to get in and master the advanced methodology of trading on the cryptocurrency trading platform, here are four pointers to keep in mind on BitMEX.
1) Entering the Market
The cryptocurrency market is a volatile environment. This is something that is common knowledge. But on BitMEX because the cryptocurrency trading platform specialises in derivative trading, which is an extension of securities trading. Also, the community speculation is an addition to the volatility of the cryptocurrency market and can lead to many false breakouts and wicks. The BitMEX trading platform is also known for being highly peculiar in its price movements and surges.
So with these factors in mind, it is important to remember that before making a trade or an entrance, as a trader it is imperative that you time your entrance. Don’t be in a hurry, because you will end up paying extra transaction fee and will end up spending more than you intended to in the first place.
Picking a time to make your entrance is very important because a wrong entrance can be catastrophic to your assets and your own financial liquidity. Don’t be in a hurry, don’t make rash decisions. That is the first tip to not making bad moves in the cryptocurrency market.
2) Corroborate Information
Speculation is a huge part of the cryptocurrency market. Conversations and trends in the cryptocurrency market can lead to many changes in actual pricing of cryptocurrencies across the board. This influence can inadvertently mislead traders to make bad moves. With that in mind, BitMEX’s price chart can be misleading.
So to base your trades solely on the BitMEX price chart can mislead you. So when you find information on a particular price, corroborate it with a couple of other exchanges before deciding what to do with your holdings.
3) Not For Beginners
It is needless to say that the BitMEX trading platform is not for everybody. And most certainly not for beginners. When compared to other exchanges and trading platforms the user interface has been a major corner cut for BitMEX. Make sure you are seasoned trader on normal cryptocurrency exchanges and trading platforms before venturing into the BitMEX environment.
This particular cryptocurrency trading platform has many high quality and complex methodologies at play behind the pricing and trading. So do not enter until you are confident enough about your skills as a trader and also make sure that your portfolio matches the same.
4) Beware Of The Orders
BitMEX is known for its orders and the vast number of then that are available. While most of them can be very tempting, know your limits.
Be especially careful with the leveraging option. BitMEX allows you to leverage 100x of your cryptocurrency holdings. From a sole profit side of things it is a steal, but from a risk management side of things it isn’t. Make sure that you have the cryptocurrency assets to cover losses because losses will come your way with risky trades and orders.
The same goes for the other orders as well. And there are seven types of orders that BitMEX provides and facilitates.
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