Bitcoin Forum

Recently, Bitmex becomes one of the biggest exchange for margin trading, and it is attracting many traders. In the downtrend of bitcoin, it is also a good channel to make money.

Otherwise, margin trading is very risky, it is ONLY for experienced traders. To trade on the margin exchange, the most important thing is that traders have to be always putting stop-loss on their orders.

I saw people are joining Bitmex, what do you think?

I never ever joining in the trade margin because
- I'm not good market analyst. In the market like cryptocurrency market, many good analyst still loss a lot of money so when you don't believe in your skill such as: analyst, found more information, have many relationship,... I really advise you shouldn't join in the margin trading.

- Addition, in my individual opinion, I really don't believe the margin trading. It like is the gamble. When you lose, you really lose quickly your money. I don't like that. It's terrible.

So,when many friends invite me to join, I refuse that as right away. 

It is not really about joining Bitmex, but it is knowing how to trade that counts. It is imperative for anyone to understand how things work when it comes to margin trading than just hopping into the trading space and fumbling badly. It is a good thing that Bitmex actually do have a testnet or more like a demo site where new traders can play with unreal funds and that is one way to go.

However, it is a great opportunity for traders to go short or long based on their trading skill and leverage based on how confident they are on the market but that is as long as you know what you are doing. Every form of trading is risky, it is just the knowledge that counts, but with margin trading, there is no rule of patience as you can lose everything, most especially if the trader does not cultivate the habit of using tight stop loss in most cases.

It is natural for a beginner to experience losses. I mean, sometimes huge losses. But then, we all came as a beginner for margin trading in bitmex. Just spend time researching for the appropriate indicators as well as observe how the market moves. Also, when you are already about bitmex, it already helps you to be familiarize on how to integrate your knowledge on trading.

I'm a newbie in margin, like you. I know it will be very risky with margin, but in downtrend right now, margin make me so impressive. I don't fear lost money, because it's fastest way to learn earn money.

Yes, Bitmex is a very good currency exchange with the function of margin trading. All investors are now interested in this method of trading, as the crypto currency market is falling, but if prices start to recover, I think most will go to ordinary exchanges.

I've recently started using bitmex and I'd like to share a lesson I've learned:

Always use limit orders and not market orders when setting up your stop loss, especially if you're using leverage. The exchange calculates fees differently for limit and market orders, so that you can pay 15% for a market order if you're using 20x leverage (I did)

Good exchange to increase or loose alll your balance) try to make your own strategy, use take profits and stop losses. Also try to not use laverage more then x5 for beginning)

I trade on Kraken using margin.

I think margin trading is a very useful tool if you understand it positives and negatives.   It is essential to use during right trading opportunities to increase your potential gain, but you must have stoploss in place according to your risk/reward stategy.

If you can read charts and got nerves of steel..and won't trade with your house for example..then you can always try.. Just don't get over greedy or easily frustrated

One of the biggest rules of investing in traditional investments is to NOT to use money that isn't yours, on BitMex this would be known as Margin trading. I wouldn't even want to do this with a less volatile and less risky investment, which would be stocks and bond funds / regular stocks. I would NEVER want to do this in Crypto where it's insanely volatile, risky, and that the margin trading fees are pretty high. Investing here is risky enough.

Margin trading can bring you profit faster, but you can be losing faster if the market turn against you. If you are not an experienced day trader, I will advise you to stay away from margin trading.

Trading on Bitmex platform is good way to make money when bearish trend. For the beginer is better use low leverage first by maximun 5 times. Compared other platform Bitmex has liquidity with high trading volume and small fee transaction. I think every trader should be try to trade on this platform.

Actually i just heard about Bitmex margin trading, and for margin trading i been try it before in other platform like MT4. Margin trading is risky than spot trading, but we should try it to test our knowledge in trading, but put money in to it only 10% to 20%, and also remember to use stop loss and trailling stop whenever make open potition.

Yeah cryptos are risky enough.  Crypto + margin seems like a recipe for disaster.  I am already managing to loose all my money in alts without margin.  Couldn't imagine how fast I would lose with it. 

Well, technically you don't lose anything if you don't sell any of your coins below your buying price. As long as you don't buy into shitcoins you should be able to recover with patience because the long term trend is always up.

BitMEX is pure gambling since you can lose all your coins, which happens quite frequently. People don't realize how dangerous 50x or even 100x leverage is. With 100x leverage you can lose everything in a matter of seconds.

On the other hand, people need to lose money in order to realize they did something stupid. If you do stupid things and get rewarded for it anyway, you'll never learn that there are severe risks involved.

Trade crypto on the exchange without margin is lower risk because when we loss we can wait for other uptrend to recover that loss, but in margin trading when we wrong direction we will get liquidated and loss the money, this is too big risk for me. For beginner trader is better to chooce spot trading and if the crypto market on down trend, we can trade on spot trading in others asset like stocks. Margin trader only for professional trader and for newbies is better to chooce spot trading and margin trading is not recommended.

like any other trading strategy, margin trading also requires experience and also it is mostly a matter of preference. for example I have little experience in it and I don't like doing it so I have never done it more than trying it out and seeing how it looks like.
it obviously has its risks and rewards and more importantly requires a certain market condition which is basically a downtrend. and in this case ever since OP opened up this topic there has not been that many good opportunities for margin trading and big profits and that shows one of the biggest limitations of this type of strategy and the risks associated with them.

Huh? I think you're mixing up a few things.

Margin trading doesn't depend on any sort of market condition, you just need the market to be active, the degree of activity doesn't really matter since you can increase or decrease your leverage multiplier as you wish.

On platforms as BitMex you can leverage your trades up to 100x, but most people don't go over 10x since anything over x10 holds too much risk. If the market seems to be stuck within a very tight (small) range, you can choose to go with a higher leverage multiplier to boost your potential profits. In the same way, with larger swings you can choose to be a little bit more conservative and go with a lower leverage multiplier to hedge the risk of having your position busted.

In my opinion margin trading nearly the same with gambling, and we have small chance to make profit. So as beginner trader i avoid it and more focus to trade on the spot trading, there are alot of different asset to trade in spot trading, like crypto, stocks, gold, ETF etc.

Margin trading is more risky than spot trading but promising profit when the price downtrend , so its better doing margin trading only if we have prediction the price will down, and when up trend will be better doing trading on spot market. So we have to make deposit in different exchange to do that. I think we have to do margin trading to make profit  consistently from trading but use low leverage to avoid big risk.

When price of Bitcoin downtrend only by short the price we can earn profit so as trader we have to jump in to it. And to minimize the risk, use only low leverage and make reasonable target profit. Many trader loss in margin trading because has been use high number of leverage and because they greedy.