Many people got interested in bitcoin when the valuation of the cryptocurrency hit an all-time high of $20,000 in early 2018. Within a few weeks, the currency tumbled to $5000 levels proving the volatility of the crypto markets.
Bitmex is a trading platform where you can buy contracts on USD/XBT pairing on long or short to make money by predicting the market. They are a favourite Exchange for experienced traders because Bitmex provides a 100x margin. This means, if you predict a price movement accurately, you can make a load of money in a short time. In contrast, if you predict wrong, you might lose all the bitcoin you pledged in the contract. In a way, it is like high stakes poker.
Bitmex and bitcoin trading is not for beginners. It is not an investment tool but a speculation platform.
In this article, we will give you a short beginner guide to the platform and hope you use it only once you are familiar with currency speculation.
- Register a new account by clicking on the Register button at the top right of the login screen.
- The platform asks you for minimal details, like your email id, your choice of password and your full name. The Country of Residence is prefilled based on your IP. Agree to the terms of service and click Register.
- You will get a confirmation email for verification, click on the link to confirm your email address.
- Sign back in and you are ready. The first step is to fund your account. Go to Account and click on Deposits. Bitmex will give you a new Multi-sign address to send bitcoin to your personal Bitcoin account. Copy paste or scan the QR code and send bitcoin from your private wallet.
- Bitmex will wait for 1 block confirmation and after that, your funds will be ready in your account.
- Once the funds are available, you can start to trade on the platform.
- You can choose to use the market order or limit order and have an option to use margin up to 100x of what you put out as margin value. If bitcoin’s price moves favourably by say, 5% you will make 5*Y where Y is your leverage.
- But in case the price moves in a negative direction to your prediction, you will lose money. At the most, you will lose all the initial margin money you pledged.