best place to do Bitcoin contract (short)?

[franklin2058]

Hi,

Could you please recommend the best place to do Bitcoin contract?

There is news report that for some exchange, if you do a contract, somebody else also do a contract and lose a lot of money, you have pay for their lose. I really don't understand this and believe this is a scam. Also, if I do contract, I want to avoid the situation for sudden price change (for example, price drop 10% in 5 seconds and recover, in this case, people who long bitcoin may lose all money), a believe a simple algorithm such as moving average can avoid this.

Thanks a lot!

[1714893404]

1714893404

[1714893404]

1714893404

[exstasie]

Could you please recommend the best place to do Bitcoin contract?

The most popular platform for futures and perpetual swap contracts is Bitmex. Other options include Deribit, Basefex, and Kumex. If you are in located in the US, you'll need VPN to connect to the larger exchanges like Bitmex and Deribit.

There is news report that for some exchange, if you do a contract, somebody else also do a contract and lose a lot of money, you have pay for their lose. I really don't understand this and believe this is a scam.

Socialized losses happen when high volatility causes forced liquidations that can't be absorbed by the market. Read here: https://cointelegraph.com/news/-huobi-talks-about-lessons-learned-from-socialized-losses

Bitmex employs an auto-deleveraging system to prevent socializing losses in these cases. They basically close winning traders' positions to account for losing traders' liquidations when there is insufficient liquidity.

One way or another, the platforms claw back losses when their insurance funds can't cover them.

Also, if I do contract, I want to avoid the situation for sudden price change (for example, price drop 10% in 5 seconds and recover, in this case, people who long bitcoin may lose all money), a believe a simple algorithm such as moving average can avoid this.

The only way to avoid stop runs is to use lower leverage and set wide stops.

[PuertoLibre]

Hi,

Could you please recommend the best place to do Bitcoin contract?

There is news report that for some exchange, if you do a contract, somebody else also do a contract and lose a lot of money, you have pay for their lose. I really don't understand this and believe this is a scam. Also, if I do contract, I want to avoid the situation for sudden price change (for example, price drop 10% in 5 seconds and recover, in this case, people who long bitcoin may lose all money), a believe a simple algorithm such as moving average can avoid this.

Thanks a lot!

I highly recommend the Bybit platform for contract-based leverage trading instead of Bitmex. Just be sure you have enough margin on your account balance and the rest will be done by the automatized trading bots. For preventing the huge loss caused by sudden market movement, having proper risk management is necessary. Stop-loss and take profit orders will let you cut the loss and secure profit on determined price levels.

So many people are busy with shilling the Bybit but I decided to try their platform. The order delays happen less and the advantages of the Bybit are more than Bitmex in terms of the liquidity and trade execution. The infected trading is more on the Bitmex platform compare to the alternative platforms and I highly recommend to use the Bybit perpetual crypto trading platform which I also use nowadays.

[leowonderful]

I'd also recommend Bitmex, though note that there's often overloads or long queues for trades now with their new system that prevents you from editing your leverage or placing new orders/closing them during periods of rapid price movement. High slippage is also common there if you're placing stops (you should never use limit stops on Bitmex for this reason). Deribit's a good alternative as well, though the UI on Deribit's significantly different from that of Bitmex and there's less volume there compared to Bitmex. Bybit's another alternative that I've seen people using recently, though I'm personally mainly trading on Bitmex. Bybit's a clear clone of Bitmex, but the UI of the site's much less customizeable than Bitmex's and some people state there's less slippage there than on Bitmex.

[1Referee]

I highly recommend the Bybit platform for contract-based leverage trading instead of Bitmex.

I find Bybit to be too new to generate the volumes they are pushing right now. I can be wrong of course and that they are actually as crowded as Bybit makes it appear to be, but the fact that there are plenty of social media influencers shilling it as if it is their last task on earth to fulfill, makes me a bit uncomfortable.

https://www.coingecko.com/en/exchanges/bybit
https://www.coingecko.com/en/exchanges/deribit

Deribit, an exchange that has been around much longer generates less volume than Bybit, an exchange that popped up out of nothing. Perhaps I'm too overly cautious, but with exchanges nowadays wash trading like there is no tomorrow I rather stick to exchanges that have proven to be as liquid as they indicate. I hope others will do so too.

[th3nolo]

I don't know what to recommend to you, I use Bybit and for the moment everything is fine although some people have had problems with the platform, so everything depends on you.

What I can recommend is https://test.contractmarketcap.com/ there you can find a list of websites that offer Bitcoin contracts.

DYOR.