it is a very specific question I would like to ask, so I hope those who take part to the chat will talk from direct experience.
I've been using bitmex for over three years now, and I never felt the need for a different trading account: partly due to its low fees, partly to its graphic layout, to its semplicity and of course, liquidity.
As we approach the risk of a phase of price correction though, I need to consider effective strategies for hedging the value of my bitcoin amount.
You can short of course; but that's not as easy as it looks, so I am starting to realize that may be it's better to switch from btc to fiat during significant price corrections rather than opening a short position.
Now, bitmex lets you do a lot of things, but something you cannot do is selling your crypto assets for euros: you need a different exchange for that, like Binance ..
So in this small topic I would like to discuss the outcome of those two (or more) different approches when you feel the need to protect your crypto capital in a descending phase.
Bear with me (
)
let's suppose you have 0,1 xbt in your trading account: you wanna be able to keep your equivalent value intact even when the market is descending.
If the price goes from $63000 to $30000 you'll need to have 0,21 btc just to maintain your equivalent value stable: this will cost you a short position of $13230 exposure starting from $63000, which is (was) rather hard to open just to maintain your value, and you won't be getting any additional significant advantage compared to switching to fiat money.
what's your take on that?
do you agree on my calcs?