Is it really possible ? I heard a youtuber making video on it by using bitmex.... is it really a good option to trade on bitmex using 100x leverage? Seeing the risk/reward ratio it looks tempting but the risk looks far more haunting
Bitmex is a Trading that uses leverage trading system which means a Trader who has capital and get loan funds from a broker, Ratio between own capital with loan capital from broker 1: 100 (funds you have to be smaller).
How it works is quite easy, you just need to buy a large contract (1: 100) then you trading. keep in mind, in this Bitmex you can get profit from selling and buying (name better known in Bitmex, Short for sale and Long To Buy).
When you are sure the price will go down, then you can short contract and when it drops from your entry price short, then you will get profit. Conversely, when we believe prices will go up, then you can be a long contract, when rising from your entry price short, then you will get a profit. When you get out of the contract in a state of profit then your BTC value will be more and more.
From here we can see the advantages are very easy, but in addition to get the benefits easily Bitmex has a risk called Liquidated Price means that when you are wrong in predicting the price of your capital then charred everything.
For me this risk is very frightening and I have never heard a trader playing in bitmex, although there that I think traders high class. if you have not enough experience I suggest play safe course, do not have to take risks as high as that.