How Bitmex Signals Bring a Revolution in Crypto Trading?
Trading in cryptocurrencies, like with other more traditional financial assets, can be financially rewarding – If you know what you’re doing.
Unfortunately, it can be overwhelming for new crypto traders with so many things to learn like trading psychology, price fluctuations, etc.
Many people are making millions with crypto signals giving them the lead on what to trade.
The Bitmex trading platform is making a difference for those in the know.
However, knowledge doesn’t necessarily mean success –overall, crypto trade is risky, but it has huge returns.
Fortunately, there are numerous tools and guides anyone can use to help with trading decisions.
One of the most popular ones is the use of cryptocurrency trading signals, which some novice traders swear by and follow to the letter.
But what are they?
And are they helpful?
What is a BitMEX?
BitMEX is a Hong Kong-based cryptocurrency derivatives trading platform that works as a real-time application for potential investors. Since 2014, Bitmex is in the game and was the first to launch a leveraged swap contract on cryptocurrencies.
It operates in Japan, South Korea, Europe, and Russia. US Citizens are blocked by an IP ban from using the live platform.
Why are Crypto Signals Necessary?
At its surface, cryptocurrency trading signals might seem mystical or mysterious (especially if they produce results) but, they are nothing more than advice or forecasts from allegedly reputable sources.
Some crypto signals can be “humanly derived” and others are “machine-simulated”. Man-made signals are produced by experienced traders through their own experience and analysis, which they then publish to the crypto community, or sell to their clients or followers.
Machine made signals are usually produced by an automatic trading system by utilizing prediction algorithms to make forecasts based on historical price fluctuations and other variables.
Crypto signals are a necessary component of the trading ecosystem by simplifying and aiding trading decisions. The market is flooded with tons of information and new cryptocoins entering the market every single day.
The slush of details can get overwhelming for even the most seasoned traders. By using a crypto trading signal whose source you trust, it can make life easier for you.
Informed insight helps alleviate the risk of the crypto trade, especially for novice traders. Novice traders can treat crypto trading signals as a learning platform about the best pricing, when to time and when to close once a certain position is reached.
This is what leveraged trading is all about. There is no doubt there is a place for crypto leverage trading.
What are the Leading Markets?
Crypto trade is now a $200 billion-plus business, and the next crucial step is to do due diligence in picking a reputable and trusted cryptocurrency exchange.
There are a lot of choices, and most of what you pick will depend on the features that you want or the cryptocurrency you wish to trade.
Here are some that you can try out:
Coinbase is currently one of the largest cryptocurrency exchanges in the world, although technically, Coinbase functions more like a broker and digital wallet. Its exchange platform is called GDAX, or Global Digital Asset Exchange.
It basically acts as an intermediary between the buyer and the seller of a cryptocurrency, much like how a stock exchange functions.
The coins that it supports and currently trade heavily on the platform include Bitcoin, Ethereum, Bitcoin Cash and Litecoin. To date, more than $50 billion worth of cryptocurrencies have been traded through the platform since its inception in 2012.
Coinbase is the perfect choice for beginners wanting to get into the cryptocurrency game. It is also fitting for old-school traders who don’t want to go into the technical nitty-gritty of blockchains and cryptos.
It’s very easy to use and intuitive in approach, and anyone who’s had experience using an online banking platform will get it right away without too much trouble.
The trade-off, however, is anonymity – Coinbase requires that you link a legit bank account or credit card into your account.
Still, if you don’t mind the exposure and just want to get into trading digital currencies, Coinbase is a good place to start.
Binance is one of the fastest growing and popular crypto-to-crypto exchange platforms available today.
Founded on 2017 in Tokyo, Japan, Binance gets its name from the merging of two words – Binary and Finance, a nod to the digital future of the financial world.
By operating solely with cryptocurrencies (no fiat currencies supported), it owes its popularity and rapid growth to its very fast transaction speed. The processing capacity here is about 1.4 million orders per second.
It boasts of superior security standards, low transaction fees, and a streamlined interface. It supports over 200 digital coins, including popular ones like Bitcoin, Ethereum and Litecoin
It also launched a native cryptocurrency, called Binance Coin (BNB), which grants discounts if used to pay in the Binance platform. Binance is also supportive of the growth of blockchain projects through its initiatives like Binance Labs (a blockchain technology incubator).
And Launch Pad (a platform for launching blockchain projects with API support) is also its flagship. For those well versed in the crypto world, Binance is a solid choice.
Currently the second largest cryptocurrency exchange in terms of volume, Okex is a blockchain-based cryptocurrency exchange and financial services platform founded in China.
The system is made for more experienced cryptocurrency traders, with a stringent screening process that only grants full access to trading features for qualified individuals.
OKEX is the benchmark standard in the industry, with 20 million clients in over 100 territories worldwide. Its Bitcoin future trades alone handle over $1.5 billion worth of transactions daily.
It supports a myriad of trading pairs that gives investors flexibility in formulating their trading strategy. It supports both fiat to token and token to token trading, as well as futures trading.
Thus, allowing investors to leverage their trades for a potentially more profitable investment. It supports over 100 cryptocurrency tokens, and the most heavily traded ones include EOS, Bitcoin, Ethereum, XRP, and Litecoin.
Bithumb is a South Korean cryptocurrency exchange platform that allows trading of top cryptocurrencies with the Korean Won and is currently at the top 10 exchanges in the world in terms of trading volume.
It accounts for nearly 75% of South Korea’s bitcoin market and 10% worldwide, and about half of the Ethereum traded in the country. It currently trades in the trillions of Won on a daily basis.
Bithumb trades solely on Korean Won to cryptocurrency trading pairs. Ethereum, XRP, and Bitcoin are the most popularly traded coins. However, it also supports other cryptocurrencies like ETC, LTC, and Dash.
Despite being the top exchange in South Korea, little is known about the company that runs it, other than its name: BTC Korea.com Co. Ltd.
Why Are Bitmex Signals Attracting Huge Interest?
One of the platforms attracting huge interest right now is Bitmex. Bitmex is a HongKong based platform for crypto trade against world currencies including the US dollar, Japanese yen, and Chinese yuan.
It offers up to 100x leverage on trades, making Bitmex an extremely high profit, but also high risk, a trading platform where fortunes can be won or lost in the blink of an eye.
The reason it’s garnering such interest right now, apart from its high stakes’ nature, is that the altcoin and Bitcoin market is currently in a bear slump right now.
Bitmex is seen as the way for investors who don’t want to “hold and wait” and want to realize profits, right now. This, coupled with the ridiculously high leverage, is seen by many crypto coin investors as a literal goldmine of financial opportunity.
The high leverage, in particular, is where the opportunity and danger lie with Bitmex and should be used with extreme care. There is nothing worse than going overboard with your leverage based on just emotions. Having a solid investment plan and a backup plan is key; yet, Bitmex can lead you right into the millions if you know what to do.
Bitmex Positions – Where to find reliable Bitmex Signals?
In Bitmex, your position refers to the amount of cryptocurrency or digital assets you buy or sell in the trading platform, in terms of Bitmex contracts. As discussed, Bitmex leverage signals allows its users to leverage their positions.
Leveraging is the ability to place orders that are bigger than that user’s wallet balance. It is borrowing funds from your broker to do so. This can lead to higher margins, and as such this type of trading is called “Margin Trading”.
Margin trading comes in two flavors: Isolated and Cross-margin. Isolated allows you the ability to choose the amount of money that will be used to hold a certain position.
Cross-margin, the riskier one, basically allows ALL the money in the account to support the position, if needed.
In Bitmex, you are either in a Short or Long position. Short positions refer to when assets are sold first then bought later; they rely on a price drop to gain a profit.
Long positions involve buying an asset and then selling it later, with the expectation that the price will rise in value subsequently.
Profit or value is determined by the difference between the buying price and selling price in both cases.
There are a lot of things to note to make sense of positions in Bitmex. You basically start by infusing a set amount of funds to trade, called your capital.
When placing a new order, you set an Entry, or the price when your buy/sell order will be executed, and a Stop Loss, which is the point where you stop a losing order to prevent any further losses.
Bitmex signals can make the difference between a loss and a massive gain.
The Position Size is based on the Risk Amount and the percentage difference of your Entry and Stop Loss points.
For example, if I have a $1,000 capital and a risk of 3%, that amounts to $30 (3% of $,1000). If I execute a new order with an entry price point of 6,568 and a Stop loss price of 6,797, my position size would be
Position Size = $30 / (6,797 – 6,568) %
That gives me an answer of 860 contracts, my position size, which is the number of contracts I can buy in Bitmex while maintaining my level of risk.
Deribit signals also comes up for mention here as the platform operates similarly like Bitmex to provide leveraged support to crypto traders.
Crypto trading signals are useful guides for both beginners and seasoned traders alike. They help traders navigate the information overload that often plagues the world of cryptocurrency trading and simplify life greatly.
While one should still practice discretion and not trust any advice blindly it is still a useful tool for traders to focus on making a profit.
This cutting-edge platform known as Bitmex allows crypto traders to really flex their financial muscles and realize amazing profits.
With powerful advice from crypto signals and a rewarding platform like Bitmex, you too can profit in this potentially lucrative gold mine.
Hope you’ve enjoyed this overview of Bitmex signal providers and wish you much luck and good results in trading.
Stay & trade safely!
Feature Image: Shutterstock.com
In Post Image: medium.com & forexbrokerz.com
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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