Cryptocurrencies such as Bitcoin are popular for the volatility which experiences price fluctuation within a short period. BitMEX is a famous cryptocurrency exchange which gives the users an opportunity for trading with leverage for as high as 100:1. This lets the users amplify potential losses as well as gains.
If you are willing to turn a falling market into an opportunity of making profits, you must give leverage trading a shot.
What is leverage trading?
Referred as margin trading sometimes, leverage trading includes borrowing funds for amplifying potential returns while selling and buying cryptocurrency. When a user leverage trades, they get access to an increased buying power as well as open positions which are way higher than one’s actual account balance.
This implies that when the market is moving in your favor, you will get access to 10 times the profit. However, it will have the effect of magnifying losses if the market is moving against you. Leverage trading is complicated, speculative, and risky. Hence, it is suitable for experienced traders and not beginners.
How to trade in BitMEX?
If you want to try leverage trading on BitMEX, just follow these easy steps:
- Go to the BitMEX site and get an account registered.
- Once your verification is complete, select the “Account” tab to go to your wallet. Here, click on the green “Deposit” button to scan a QR code. You can also copy your wallet address. This address will be used for depositing Bitcoin in the BitMEX account
- Now, click the ‘Trade’ link from where you can sell/buy the crypto of your choice. You will get numerous major cryptocurrencies for trading.
- In the Order column, select your order type and enter your trade quantity, the amount that you want to sell/buy.
- Select “Buy Market” option if you believe the prices will rise. If the market is falling, click on the “Sell Market” option. Review all your details and then click “Sell” or “Buy” for order confirmation.
You can even use various BitMEX calculators as tools to prevent losses. Trading on BitMEX may seem complicated and scary initially. However, once you get the hang of it, you will be earning profits in no time.