Originally posted at: https://coinrule.com/blog/admin/team/coinrule-announces-a-new-partnership-with-bitmex/ on Fri, 05 Nov 2021 08:33:30 +0000
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Coinrule is thrilled to announce a new strategic partnership with BitMEX ! By adding the pioneer of crypto derivatives to the list of available exchanges, our platform now provides a sound option for advanced traders to boost their trading strategies.
A top-notch crypto exchange
Traders now transact over 2 billion USD every day on BitMEX. You heard that right – $2 billion every day. BitMEX has been at the forefront of crypto exchanges since 2016 when they launched their XBTUSD perpetual swap. Fast forward to now, and this perpetual swap remains the most traded cryptocurrency product of all time.
BitMEX has changed the industry, and it’s now on a path of ongoing breakthrough innovation. On the one hand, the Company is committed to complying with regulations across the globe to become one of the world’s largest regulated crypto derivatives exchanges. While in parallel, they keep their primary goal to be a catalyst for change in the financial services industry. The recently renewed fee structure and the new USDT perpetual contract launch are only the latest exciting releases.
Coinrule’s partnership with BitMEX will benefit traders at least on three distinct levels.
Leveraged opportunities
The primary benefit of using leverage is that a trader can increase the return on capital. That allows capitalising on smaller and frequent daily price moves. Of course, as the upside increases, so does the downside. Therefore, running a leveraged automated trading strategy using a trading bot allows the trader to enforce a strict risk-management approach , an essential element for a profitable long-term strategy.
Trade in all market conditions
The biggest drawback of trading crypto in spot markets or holding a portfolio of coins is the inherent long bias in such strategies. Traders can only sell coins they already own in the spot markets, which means the choice is between going long and doing nothing.
However, with derivative products like perpetual contracts on BitMEX, you can go short as well, taking advantage of the downside market cycles. That is, you don’t need to own the coin before you sell its corresponding future. This adds much more flexibility to your game, and it helps reduce the risk of your portfolio.
Another advantage of going short is the possibility of creating market-neutral strategies. For example, if you expect Solana to overperform Ethereum over the long run, you can now go long SOL and short ETH. That hedges off his market risk to the crypto market in general, and the strategy’s profit tracks the performance of SOL vs ETH precisely.
Yield hunting with Carry trade?
One of the best risk-adjusted trades of the traditional finance world is the carry trade. It involves borrowing a currency at a low-interest rate and lending another at a higher interest rate, resulting in a gain between the interest earned and paid.
On BitMEX, different futures have different funding rates, thus allowing traders to catch these opportunities.
So what are you waiting for? Connect your BitMEX account and start trading today.
Trade safely!
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