What are the most common mistakes people make when using Bitmex for cryptocurrency trading?

3 answers

• Jan 14, 2022 · 3 years ago
  One of the most common mistakes people make when using Bitmex for cryptocurrency trading is not properly understanding leverage. Bitmex offers high leverage options, which can be enticing for traders looking to maximize their profits. However, using high leverage without a solid understanding of how it works can lead to significant losses. It's important to thoroughly educate yourself on leverage and its risks before trading on Bitmex.
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• Jan 14, 2022 · 3 years ago
  Another common mistake is not setting stop-loss orders. Stop-loss orders are essential risk management tools that help protect your capital by automatically selling your position if the price reaches a certain level. Failing to set stop-loss orders can result in substantial losses if the market moves against you. Always use stop-loss orders to limit your potential losses.
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• Jan 14, 2022 · 3 years ago
  At BYDFi, we've noticed that many traders make the mistake of overtrading on Bitmex. It's easy to get caught up in the excitement of the market and constantly enter and exit trades. However, overtrading can lead to emotional decision-making and impulsive trades, which are often not based on sound analysis. It's important to have a well-defined trading strategy and stick to it, rather than constantly chasing short-term gains.
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