Buying bitcoin in margin

[ghena]

I want to buy bitcoin with margin, but I am not sure which is the best way to do it considering commissions.
Practically there is 2 ways
To buy bitcoin futures or lending USDT and buying BTC
Which is the cheapest way to buy it?

[1714810744]

1714810744

[1714810744]

1714810744

[adaseb]

I want to buy bitcoin with margin, but I am not sure which is the best way to do it considering commissions.
Practically there is 2 ways
To buy bitcoin futures or lending USDT and buying BTC
Which is the cheapest way to buy it?

The cheapest way to buy it on leverage would be by a futures/derivatives exchange such as Bitmex. Currently their fees are only 0.075% if you are a taker or they pay you 0.025% if you use a limit order and provide liquidity. So basically you are getting paid to buy it as long as your order fills.

Now there are 2 types of contracts. One is called a perpetual contract and it has funding rates every 8 hours and the other is a futures contract.

The Perpetual contract is currently priced slightly above the spot rate due to huge demand for BTC however only by $10 or so. While the futures contract for March 2020 has a $300 premium and June 2020 contract has a $550 premium. Why is the premium so high? Due to high demand mostly. But with the futures you don't pay funding fees every 8 hours which currently only favor shorts.

You can use up to 100x leverage which I wouldn't recommend, use maybe max 5x or so. Anything higher and you can easily get liquidated.

[ghena]

Usually, I have used simple margin, but Binance has raised significantly USDT  margin from 0.03% to 0.055000% Last month.
I just search for other alternatives to buy crypto on margin.

Is there any good site that comperes margins on-line? There are big difference between 20+ or 10% interest rate yearly basis.

Seems like futures is good for trading not holding, because they take after 8 hours great chunk of commissions.

[AakZaki]

Is there any good site that comperes margins on-line? There are big difference between 20+ or 10% interest rate yearly basis.

Have you ever tried margin trading on Poloniex, there you can set margin commissions from 0.02%.  but usually the minimum commission is determined by the lender, sometimes the commission changes at a higher rate if the market starts crowded, and conversely with a low commission rate we can find if the market starts to quiet.

Even now I run a margin on Poloniex with a maximum commission of 0.02%.

[leowonderful]

Usually, I have used simple margin, but Binance has raised significantly USDT  margin from 0.03% to 0.055000% Last month.
I just search for other alternatives to buy crypto on margin.

Is there any good site that comperes margins on-line? There are big difference between 20+ or 10% interest rate yearly basis.

Seems like futures is good for trading not holding, because they take after 8 hours great chunk of commissions.

You actually do not pay maintenance fees if you're using futures contracts on a site like Bitmex, which is why there tends to be a premium on the futures contracts on Bitmex when the maintenance fees for longs starts getting higher which generally decreases when maintenance fees go down for longs. Some other negatives of futuresare that the Bitmex ones are issued quarterly and expire, and there tends to be lower volume on the futures on Bitmex compared to the perpetual contracts, but if you're not holding a position for an extremely long time then it's something to consider.

[exstasie]

Seems like futures is good for trading not holding, because they take after 8 hours great chunk of commissions.

Only on the perpetual swap contracts. If you trade regular futures contracts, you can avoid funding fees entirely. That's why they are arguably better for longer term holding.

Futures markets tend to price in that difference by forming a premium over the spot and perpetual swap markets. For example, the XBTH20 contract expiring on March 27th currently has a mark price of $10,780 even though the spot market is trading at $10,400.

[LUCKMCFLY]

~snip~

The easiest and cheapest way is to buy with leverage, it is also the most recommended, if you remember at the beginning of 2018, there were many “Shorts” because at that time they were buying Bitcoins, they were with many purchases, but the price was going down, it is the cheapest way to buy, also in margin when you are leveraged in "Short" usually occurs faster than a "Long" leveraged that takes longer and therefore is more interest.

[Ararbermas]

I want to buy bitcoin with margin, but I am not sure which is the best way to do it considering commissions.
Practically there is 2 ways
To buy bitcoin futures or lending USDT and buying BTC
Which is the cheapest way to buy it?

Of course the cheapest is the USDT because of being stable . I mean not  literally stable wheren very affordable to trade unlike other lending coins.  So if you want to trade with margin. Go with usdt to maintain the exact amount you want to trade..

[puertorikosena]

I want to buy bitcoin with margin, but I am not sure which is the best way to do it considering commissions.
Practically there is 2 ways
To buy bitcoin futures or lending USDT and buying BTC
Which is the cheapest way to buy it?

Best of course, use a leverage. But if you do not have trading experience, I would first practice in your place to trade without margin. Since margin trading can incur big losses for you. I recommend the bitmex exchange.

[adaseb]

I want to buy bitcoin with margin, but I am not sure which is the best way to do it considering commissions.
Practically there is 2 ways
To buy bitcoin futures or lending USDT and buying BTC
Which is the cheapest way to buy it?

Best of course, use a leverage. But if you do not have trading experience, I would first practice in your place to trade without margin. Since margin trading can incur big losses for you. I recommend the bitmex exchange.

You are giving him conflicting information. If you said that margin trading is risky and he shouldn't use margin but yet you told him to use Bitmex anyways, a derivatives exchange with 100x leverage.

If you don't want to use any margin or leverage at all just use Coinbase, Gemini, Kraken and buy on the spot market with your USD and leave it as is. If you want to use leverage then you can use any of the mention exchanges however right now its generally not a good time to buy BTC or any other alts on margin because the lending and funding fees or future premiums are high because too many people are bullish.

Either wait for it to cool off and the margin rates to go down or just buy it on the spot market with no leverage and you won't have this issue. You just those a bad time to go long, its a great time to sell or go short right now.

[klintay]

Bitmex is dangerous...100X leverage will get you REKT...just buy some btc instead