Successful Trading Takes More Than a Bull Market

Choosing the right exchange is crucial throughout the business cycle.

This has been a very, very good month to trade in crypto. People who regularly read CoinDesk are making money just by checking their phone alerts. And yet, this environment isn’t as kind to the exchanges.

Sure, they’re doing great because volumes are up and exchanges get paid by the trade, but therein lies the paradox. More trades mean more people are flocking to crypto, multiplying the network factor, deepening the liquidity pool and generally making life more prosperous for the average investor. But it also means that more exchanges will be popping up – centralized, decentralized and hybrid – each with its own business case. This pushes existing exchanges to reinforce and expand their own value propositions.

Phemex, a leading futures exchange in the hybrid space, has thought long and hard about what today’s exchange needs to stay relevant tomorrow. As a result, it has implemented multiple unique features designed to help traders thrive in this bull market and in whatever conditions the future brings.

Noting the needs

The markets may be booming, but traders still face real-life challenges due to platform inefficiencies and limited trading customization. Finding the right trading platform is crucial for maximizing potential and minimizing risks.

Phemex addresses the key challenges traders face. Managing multiple portfolios for strategies like breakout or swing trading requires better organization and tracking tools. Legacy exchanges usually offer only one watchlist, which is inadequate for monitoring various asset groups. The volatile crypto market demands quick responses, but handling trades across platforms can be difficult, leading to missed opportunities. Additionally, many exchanges limit order types, restricting nuanced trade execution, especially during high activity.

These factors collectively increase the likelihood of such errors as incorrect order placement or missing opportunities, which could cost a fortune during favorable market conditions. Traders can benefit from platforms that offer intuitive, customizable tools to enhance their trading experience and optimize performance.

Addressing the market

Phemex provides customized solutions tailored to address each of these challenges. It offers a wide range of innovative tools that enhance user control and mitigate the risks commonly found in traditional crypto trading. These exclusive features are unique to Phemex, providing benefits that traders won't find on other platforms.

Scaled order in USDT: Many exchanges only allow scaled orders in coin amounts like BTC or ETH, which doesn't align with the common practice of trading in USDT, creating a disconnect for traders. Additionally, most exchanges limit scaled orders to entry or exit using only limit orders, which lack the flexibility of stop-limit orders. Meanwhile, Phemex provides USDT-based scaled orders for both entering and exiting positions, using either standard limit or stop-limit orders. This flexibility is especially advantageous for high net-worth individuals and institutional traders aiming to execute large transactions at optimal prices.

Iceberg orders with a single tick: Phemex empowers large-scale traders to utilize iceberg orders for entry, take profit and stop loss – all with one keystroke. This simplified process affords greater flexibility in order execution to achieve the best prices with optimal discretion.

Multiple watchlists: Recognizing the need for portfolio diversity and organization, Phemex offers a unique feature that allows users to create multiple watchlists for different trading strategies. Users can rename portfolios for easy identification and streamlined management. Traders can also reorder watchlists and trading pairs to focus on key assets. This capability broadens a trader’s scope, reduces errors and enhances trading performance.

Basket orders: Phemex's basket order feature enables traders to build customizable portfolios, in which they combine trading pairs from their watchlist or create entirely new portfolios with a single click. Traders can set allocations by determining the proportion of each pair using methods such as flat percentage, market capitalization, supply percentage or custom allocations. They even have the option to apply different leverage levels for each trading pair, and to choose between executing orders via market or book price, or by using a retracement percentage. This helps to automate a trader’s entire portfolio allocation without requiring time-consuming manual order placements, leading to stronger outcomes and reducing the risk of missed opportunities.

Adjustable slippage tolerance for market orders: The process used by legacy exchanges can be complex and user-unfriendly, leaving traders at risk from unexpected price movements. Phemex simplifies market entry by allowing users to set their own slippage tolerance for each trading pair – a lower slippage tolerance for high liquidity pairs like BTC/USDT and a higher one for volatile meme coins.

Back to basics

While Phemex leads with cutting-edge tools tailored for various trading strategies, it's vital to recognize that thriving in the market involves more than just innovative features. Ultimately, selecting a reliable exchange is key throughout all market phases. This is where Phemex excels by maintaining tight price spreads and offering robust margin options, ensuring traders have the stability and flexibility needed to succeed.

The exchange maintains tight price spreads, typically below 0.5% for BTC and ETH pairs and below 3% for most others, even during volatile market conditions. Phemex maintains partnerships with deep liquidity pools, ensuring sufficient counterparties and minimizing the risk of significant price slippage. Further, Phemex will not temporarily shut down trading in an asset just because its price has become volatile, so users have the chance to either cut their losses or buy on the dip.

Phemex offers up to 100x leverage and a $20 million maximum position value on BTC pairs to all users. There are, of course, guardrails in place to ensure traders can meet margin calls. These are fairly routine: limiting margin requirements for particularly volatile pairs and retaining the right to liquidate positions if a margin call is missed. A multitude of platform-level risk management tools and strategies, as well as an insurance fund, are in place to prevent the situation from coming to that.

It is this combination of old school stability and digital age innovation that Phemex is counting on to make it the exchange of choice when we’re well past this bull market, the next bear market and the bull market to come.

Unique features aren't the only reason traders join Phemex. This Thanksgiving, Phemex is expressing gratitude to its users with a massive campaign, giving away $100,000 in USDT.

The campaign runs until December 4, so there's still time to win some holiday prizes.