A few days ago I opened my Firefox browser and did a Google search for "Bitcoin leverage exchanges". I decided to go ahead and open several links in new tabs. I found several unique products and services to choose from. There were one or two decent looking exchanges, however most looked rather sketchy.
I was closing the tabs and wholah the last one, or first tab I opened, was Bitmex. There I was greeted with this...
So I tweeted this image to my followers, and we joked on Twitter:
Holy shit! Get wiped out with a once cent move. $BTC 😂 pic.twitter.com/6rRF1webPG
Thomas Fink (@FinkAvenue) June 11, 2017
I decided to deposit $100 into Bitmex, and 30 minutes later the deposit was confirmed. I had the options to short and long the other cryptocurrencies priced in Bitcoin, or to short and long Bitcoin priced in Dollars. I decided to only trade Bitcoin in Dollar, $BTCUSD.
On the left panel was this insane lever, and of course you guess it,--I put it on 100x. However the platform popped up with a message which wouldn't allow me to buy contracts with 100x because I would most certainly be immediately liquefied.
Since Bitcoin was in an intraday downtrend I decided to short the periodic red-waterfalls. I bought my first short contract, and then learned: the more contracts I buy, the more leverage I took on. I bought a few thousand contracts until the lever was at 80X. For an hour or so I sat there and waited for $BTCUSD to drop. Finally it cracked! I made nearly 200% in ten minutes bringing the value of my account from $100 to about $300...
The next day I did it again. Levered up to 80x and waited for the market to rollover at one of those technical pinching points, and it gave away with little volume forcing some large long position to liquidate on another Bitcoin exchange. This time I made 360%! My account value went up 10x in less than 24 hours to a little more than $1000.00!
An hour passed and I levered up to 92x. My liquidation level was $50 above the current market price. The market started to move in my favor, and boom some person bought like several millions worth. I was wiped out with $26.00 left in the account with a net loss of 74%.
This week I have decided to try it again with $150, but with strict rules.
- Never lever above 50x
- Place a 10% stop-loss encase the market moves too quickly
- Cover at 100% gains
- Enter the position after the break-/ out or down, never before.
Before I try this challenge again, please feel free to leave your thoughts, praise, and critic below!
Thats why I stop trading with leverage. I'm happy with a normal trading from Poloniex
Disclaimer: I am just a bot trying to be helpful.
Lol :D
It's crazy they allow you to lever up that much. I might try it out.
Yeah! It functions as an OTC futures exchange. Be careful trying it!