Cryptocurrency

What is BitMex? [Updated July 2020]

Learn how BitMex works and how it can be helpful to you

BitMex is one of the largest and most popular cryptocurrency platforms in the world. This exchange allows users to trade Bitcoin (BTC) and other cryptocurrencies and make some profits if the strategies they have implemented were accurate. 

The exchange is a great platform for margin traders that want to use leverage in order to increase their profits when trading digital assets. Although this can be a risky thing to do, many traders and experts consider it can be a good way to improve their trading strategies and have larger profits over time. 

In this guide, we will be sharing with you some of the most important features of the exchange and how users can start enjoying it and trading their virtual currencies. 

What is BitMex?

BitMex is one of the largest exchanges in the cryptocurrency market that offers crypto derivatives products and services. This is something many traders appreciate because it makes the entire crypto market a much more professional place for investors. 

The platform has been built for professional traders and it can be a good solution if you want to improve your trading strategies with the tools offered by BitMex. At the moment, there are different types of Contracts on the BitMex platform. 

Some of these contracts include the following:

  • Traditional Contracts or Futures
  • Perpetual Contracts
  • BitMex Upside Profit Contracts
  • BitMex Downside Profit Contracts

Each of them would behave and operate in a different way and offer users a different experience according to what they are looking for while trading. With the traditional contracts, you will be able to buy or sell a cryptocurrency for a specific price at a specific date in the future. This is basically how futures work. 

Meanwhile, perpetual contracts do not have an expiry or settlement date. They work in a similar way as the spot market does. Finally, the Upside and Downside profit contracts are positions that traders can open in order to bet on whether the price of a specific cryptocurrency is moving upwards or downwards. 

Different Kinds of Orders

BitMex works with a wide range of orders that would allow you to properly execute your trading strategy. 

These are the following orders offered by the exchange:

  • Market Orders
  • Limit Orders
  • Stop Orders
  • Take Profit Orders
  • Take Profit Limit Order
  • Hidden Orders
  • Post-Only Order

All of them would be used by expert traders in different situations according to their needs and their strategies. 

Market orders can be executed immediately and they will provide users with current market prices. These orders take part of the liquidity of the platform and they usually pay higher fees than limit orders. 

Limit orders create liquidity and allow the exchange to operate with lower fluctuations in the price of the assets. These limit orders are placed using a maximum or minimum price in which the trade is willing to buy or sell. In some cases, these orders may not be executed and it can also happen that 

Stop orders are also very important orders that traders should handle and know how to use. Stop orders enter the order book once the market reaches a Trigger Price. This would allow them to better handle their risk and also to limit losses on existing positions. 

There are different stop orders that are offered by BitMex. Each of these orders would behave in a different way and will allow users to better handle their funds when trading on the exchange. 

Cryptocurrencies and Leveraged Supported

At the moment, there are several cryptocurrencies supported by BitMex, including Bitcoin (XBT), Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), EOS (EOS) and XRP (XRP). All of them are considered to be some of the most important digital assets in the market. 

According to the demand they see in the market, BitMex could add new virtual currencies in the future. Having large liquidity is a very important thing for exchanges and they want to offer the best services to users. 

At the moment, the leverage is different for each of the abovementioned digital assets. Bitcoin has 100x maximum leverage, BCH 20x, ADA 20x, EOS 20x, ETH 50x, LTC 33.33x and XRP 20x. 

Currently, BitMex is available in most of the countries with a few exceptions, including the United States. 

Conclusion

BitMex is one of the largest and most popular platforms in the cryptocurrency market to handle digital assets. Users can certainly improve their trading strategies by using BitMex and their wide range of solutions, orders and leverage. 

Although the platform is not recommended for beginners, it is a great way to start learning about margin trading and how it is possible to better trade and enjoy advanced trading features in the cryptocurrency market. 

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