Been considering trading on bitmex, heard its profitable if you are a good market analyst, how true is it?
Of course it is theoretically possible to earn a lot of Bitcoin by trading
on Bitmex. However, there are two caveats in my opinion.
1. High leverage
If you have never traded with high leverage before, you can easily lose
your funds. Many people start out by opening positions with 100:1 leverage
only to go bust quickly. Start out with a much lower leverage level until
you are comfortable with the platform.
2. The recent news about their own "Market Making Desk"
Some people recently discovered that Bitmex were/are trading on their
own platform, which is obviously a big conflict of interest.
Arthur Hayes (the CEO of Bitmex) tried to address the situation here:
https://blog.bitmex.com/bitmex-market-making-desk/However, I have stopped trading on Bitmex after these allegations, because
I simply don´t feel comfortable anymore. Who knows how strictly the alleged
separation of the "Market Making Desk" from the main operation really is?
Especially, because the leader of this operation is an old buddy of the Bitmex
CEO.