Bitcoin Forum

Hello,

I'm looking to open a long term long position on BTC/USDT as I'm a huge BTC bull, therefor instead of just HODLing, I'm looking to open a long with low leverage for about 3-6months and take profit if there is but I'm seeking advice on what is the best platform to do this with the lowest fees for opening/closing, interest to be paid on the margin and any other fees. (Binance, bitmex, ...)

Thanks!

You will use leverage for long term? Don't do it because your funds will be liquidated. Leverage are debt because it is borrowed money where in there is fees and interest and doing it for long term is not a good idea because for sure you will incur huge losses. The higher the leverage, the lower time you should hols your bitcoins. If you will take more than 20x, you should just hold it for hours or even minutes but if we are talking about months I think it is still better if you will just do spot trading wherein you do not have any leverage taking. I tried to hold a certain altcoins with 2x leverage for just 1 week and I immediately sold it because of the interest. But if you still insist to do it then Binance is the best choice for me.

I was contemplating using low leverage (1x-10x) but if you say that the interest fees will be too high then I might have to buy spot. I'm interested in hearing the opinion of other people who take on long-term positions.

Thanks for your contribution.

I will also advice you to go for spot trading. Leverage trading can only be good for day trading now and for experts. We do not know where bitcoin is helping to for now, maybe there would be more price correction or increase will be the price. But spot trading will be good for now.

You are not correct to use Longterm LONG position. Long and buy is different. Sell and Short is different. You have to differentiate those terms.

For margin or leverage trades: Long and Short are used. Long or Short would never be hold as orders for long term if you don't want to see your leverage orders get liquidated.

If you are saying about Long-term investment or trade: Buy and Sell are used. If your buy orders get stucked with bad market that you don't think of, you will be able to hold it for weeks, months and wait for good price to exit. It is buy or sell.

You have different options in this kind of long-term position again you already decided to buy a long or not because base on the market graph of the bitcoin there is another movement and this is for the bearish trend well this is just another take.
Im not a good trader but I know some of the price movement of the coin.
Back to the main topic
1. You can trade with the spot trading if you want to keep it more safe but the consequence of this is the profit you will get is not too high.
2. You can trade with the margin trading too but adjust your leverage it depends on your risk. Don't trade what you cant afford.
I suggest the leverage of 10-25x I think this is the most safer than the other trades of over 50x or 100x well if you want to risk more go. Good luck with your investment.

My advise on this is not to be fast to take the trade because the month ending to decide your position. You are likely to take a good decision with your plan because the little drop can later move into big bull especially by the new year by first quarter.

opening positions in the long run will only stress you out. I think it is better if you avoid it, it would be better to open short-term positions only, don't think opening long-term leverage will make you big profits, because it doesn't necessarily touch the price you set. moreover, you will be subject to large interest.

You are not trading, but it is called gambling. put miracles first, while the profits in front of your eyes ignore.

I agree with you. Future trade has a big risk, pay attention to your capital. Pay attention to fees (if on Binance) if I'm not mistaken they will charge a fee of 10% off every 8 hours the future lasts. Just count it if you place futures for 6 months. Looks like it would be huge if accumulated. Try it you can see  https://www.binance.com/en/fee/futureFee

It's ok for swing trading as well if you know what you're doing. But reasonable stop loss order is required.

Long term trading in future is good and worth but looking with system from many exchange market have to paid higher fees payment each 8 hours make us to think again, if price up more than 100% is worth but how come if price not stable some time down and up without get much profit, I know with system of exchange future market why very faster for take fee only each 8 hours, why not give chance for future trader to pay fee each one day, I think is not effective when try to long term investment on future during fee is not make lower and we must always check every day with payment fee sending to our email.

For long term positions, avoid perpetual swap contracts, which are the most popular products on Bitmex or Binance Futures. They reset funding rates periodically (usually every 8 hours) so you'll often pay extremely high rates during rallies.

I think the best strategy is to hold futures contracts. For example, Bitmex's March 2021 contract: https://www.bitmex.com/app/contract/XBTH21

There are no funding rates as with perpetual swaps, only a 0.05% settlement fee at expiry, which can be avoided by liquidating prior to expiry. Since funding rates don't drive futures prices towards the index, you tend to see large premiums or discounts vs. spot prices depending on market sentiment. During very bullish times, you'll see a premium over spot. For example, XBTH21 is currently trading at a 1.5% premium to spot. So a good strategy (especially if you are employing only low leverage) can be to buy into a long term futures contract after a significant correction, when prices are trading near or below spot.

previously Bitcoin and altcoins have experienced a correction of more than 20%,
of course this is a good time to take LONG, I don't really think about the end of the month,
what I think is the cryptocurrency price is very bullish.

This is a pretty good strategy but you need to find yourself an exchange with low fees and reputation. Binance is one of the best exchange for this strategy, they even have a reading guide for transaction fee information and a loan function. You can borrow money to do a Big Long or Short in the long term without having to worry about fees, as I remember it has rates close to the banks.
Here is the link to Binance margin : https://www.binance.com/en/trade/BTC_USDT?type=cross

This is not advisable. Leverage trading for long term like 3 to 6 months is a high risk.
You better think well. For example you do 1% leverage for long entry position and you will wait for 3 months before you close it, I can't imagine how much is the fee for that or how can your entry will react to huge dump as liquidation will always be possible even you incorporate the lowest leverage.

Why don't you just do margin/leverage trading in those exchanges you have mention? I use bitmex all the time.

And if you wanted to do that in 3 to 6 months, why don't you just long term trade. The normal trade in an exchange without the leverage? Much better than leverage trading.

It is not wise to open leverage positions (long or short) and don't close it in 3 months or 6 months. Leverage tradings (yes trading) is for short time. Depend on the candle you are using (5 minutes, 15 minutes, 30 minutes or 1 hour), you will have a maximum time to close your positions.

Trading is not for long term and I never use 1 hour candle for my leverage tradings.

Furthermore, the bitcoin network adjusts its difficulty for every 2016 blocks or 14 days and you should let your positions not longer than 14 days. It can be shorter if you open positions in the middle of difficulty adjustments but never should be 14 days or longer.

Me: I close my positions in a day. Win, loss, draw, whatever it is I close my positions.

If you want to hold it for 3-6 months the cheapest way is to use a futures exchange and buy the March or June 2021 futures. Currently the March 2021 futures are $210 premium. However you don't need to worry about funding fees or interest costs.

Right now the rates might be low like 0.02% per 8 hours or so but if there is a crazy bull market the fees will go up due to high demand and you will pay crazy amounts just to keep the long position open.

So use Kraken futures, bitmex, binance futures, ftx and buy the March or June futures and you are all set.

Just to remind you that BitMEX has some issues lately so I would cross them out on my choice for the platform that you want to do your trade. That's just me and I'm only giving advice.

It's still trading but riskier than usual.

That's not a good idea my friend, I advise you not to do it, if you are sure why don't you just buy through the spot? and save it, you can also sell it when your target has been reached, love your money, why take a big risk if we can minimize it

Whenever you want to take a long-term position it's important to calculate fees that will be deducted from your position in perpetual futures, and because of those fees it's is recommended to stay away from perpetual(which doesn't have expiry date but could charge funding fees every 7-8 hours) for these long-term trades and instead better take positions that have expiry date but no fees(apart from trading fees), I know that Bitmex has that and now you can open positions with expiry dates of December 25th and March 26th.

Important: keep in mind that you won't be able to keep your position open if the expiry date comes and you're in loss and your only option would be to close that position at the expiry date and open another position with new expiry date.


Trading on leverage is surely riskier but if you use something between 1-3x leverage you should be fine as long as you're not longing the top or shorting the bottom.

It's not bad to open a long position in any of the exchanges. It's just that you need to have extra funds for the actual maintenance fee for your position. As long as your position is out of reach with the liquidation limit and the stop-loss (if you have set it), then you shouldn't worry too much.

Personally, I would use Binance, but it's up to you.

Right isn't bad when everything is right. Playing long positions in futures trading over the long term is very risky. Not only is it about the liquidation limit and the stop-loss, but there is a charge every eight hours (in binance), and it will cut your balance. You need to pay attention that you don't lose.

I personally recommend to not to invest long term in the futures as the chances of being liquidate are very high when the market is very volatile. The profit in our mind gives us dream but the profit in reality shows the greed and that greed resulted into loss in long term due to funding rate which involves premium also when the difference between perpetual future contract's price and mark price increases.
So always book the profit and close the position at earliest when the desired position have been attained.

I have written the post on Funding rate with example.
You can take help from it

https://bitcointalk.org/index.php?topic=5294749.msg55712912#msg55712912

Op was only expecting much of this current breakthrough as price spike so high in that range, but you're certain that the market was at risk when choosing long term trades. For us to survive we must trade by real time activities so that we will be able to establish a daily income position. Projecting your potential income is good as long as there's a daily market movement, and most importantly volume still kepts ranging at higher value.

Thank you all for the replies, they gave me better inside into the move I would like to make. I've been a long-term holder since 2014 and basically, I'm looking to setup a long-term position rather than just holding. I don't care about the swings, I've been through all of them already and I'm very very confident about Bitcoin as a long-term project/investment. I just want to earn those extra couples of % over the coming years to come.

open a position until what year? 2021 or 2022 ?,
my advice if you want to hold long-term then you have to pay attention to the price in the market,
don't let your long-term position fail to take profit, you have to know when to go out.

leveraged trading is sometimes unpredictable. because the market sometimes does not rule in seeing the spot rise or fall. spot trading may be more obvious where spot trading can be done more easily than leverage

Now bitcoin is decreasing to $18.000 after yesterday trying to pass $19.940 on binance exchange but the price is can't be able to pass so as on the technical analyst was called as double top on lower time frame. But this thing will make some investor to wait for a while to see the movement price next. Yeah, I hope bitcoin price can pass $20.000 because if this thing happen we will see another all time high at least it will touch $25.000 first. And greatfully you took the right strategy to choose low levarage and long term investment, you will get a profit guess in a few months ahead.

Leverage and spot are almost the same, what is different about the system,
cryptocurrency prices are now very easy to manipulate because many exchanges now use leverage as their trading system,
and the higher risk of losing is in the trading leverage..