If you like risk you can buy 1 Bitcoin (currently $14,199) with 0.1 BTC ($1,419) by buying a 10x margin position at Bitmex. Get Started
You might assign a small fraction of your portfolio to this high-risk high-reward trade. Use this link to receive a 10% discount on all fees for 12 months. Here is a video tutorial on trading Bitcoin with leverage. Note that you can lose what you stake if there is a large drop in the price.
You can also short the Bitcoin price (profit from a fall in its price) by selling the contract instead.
How to set-up to buy 1 Bitcoin ($14,199) with 0.1 BTC ($1,419)
Cost: The cost is 0.1015 BTC i.e. $1,419. This is the maximum you can lose should the price fall by 10% to $12,779. If the price was to crash to $5,000 your loss is still limited to $1,419. This is the beauty of the Bitmex contract. Trading Futures Contracts on the CME, for example, there is no such limited risk facility — you can lose a lot more than your initial margin.
Order Value: The value of your position is 1 BTC i.e. $14,199.
- Price rises by 10% to $15,618. Your profit is $1,419, i.e. 100%
- Price rises by 20% to $17,038. Your profit is $2,838, i.e. 200%
- Price falls by 10% to $12,779. Your loss is $1,419, i.e. 100%
- Price falls by 20% to $11,359. Your loss is $1,419, i.e. 100%
I suggest trading with tiny amounts to start with to become familiar with the Bitmex site. Then you can increase your leverage to x100 as you gain competence. (i.e Buy 1 Bitcoin worth $14,199 with 0.01 BTC worth $141.99). A position at x100 leverage is quite likely to make a lot of money quickly or to get wiped out in a matter of minutes.
My general rule in buying Bitcoin on leverage is to buy the dip: you want to see red candles after a period of green candles on the charts. I like to buy at 10x leverage to start with. If the position trades into a nice profit I slide the leverage slider up to 50x or 100x. This has the effect of moving your Liquidation Price up and therefore securing profit.
Margin-trading is available on most of the Top 10: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin, Ethereum Classic, Monero, ZCash. Note that the BTC trade is priced against the USD, but these altcoin contracts are priced against Bitcoin.
Another strategy I use is to keep a 10x leveraged long position on Bitcoin permanently open on Bitmex. When the market rises then take profit off the table. My position gets closed out periodically when the market moves against me, in which event I simply re-open it.
Also, the day might come when the crypto market goes into a prolonged period of funk or decline. Using the same apprach I just described above, If you are skilled at trading on margin you can use that as an opportunity for gain even when the market is going down.
Ready to learn more or jump right in and give it a try? Head on over to Bitmex and happy hunting!