In this article, we will discuss what the BitMEX testnet is and what the differences are with a real BitMEX account.
The BitMEX testnet serves as a sandbox environment for traders to test a crypto trading strategy.
The advantage of this is, of course, that you can test and optimize your strategies without risking any real funds.
This is why BitMEX provides its customers with the BitMEX testnet where you can simulate traidng.
About BitMEX Testnet
BitMEX Testnet is a service built on the Bitcoin testnet providing a realistic environment for traders to test their trading skills, devise new strategies or just see how the real BitMEX trading platform works.
It offers a demo account, initially topped up with 0.01 Testnet XBT (BitMEX’s ticker for Bitcoin) which is perfectly easy to set up. Once inside, there are more than a few demo markets available:
- XBT UPs/DOWNs
- Bitcoin / Yen
- Bitcoin Cash
- EOS Token
- Bitcoin / Won
In each of those, a trader can take a long or short position with a leverage of up to 100x with a limit, market, stop market, stop limit, trailing stop, take profit limit, or take profit market orders. Moreover, a trader can choose between perpetual and dated demo contracts, making the already realistic demonstration even better.
If you’re looking for information regarding BitMEX, read our full BitMEX review.
BitMEX real account VS. BitMEX testnet account
Lets compare the BitMEX testnet account against the real BitMEX trading account.
It is important for any simulation to come as close to the real thing as possible, and that’s where BitMEX Testnet does a really good job.
The customizable user interface looks exactly like the real thing so every newbie can see how it is to navigate through BitMEX’s futures and trading options. Demo trader can see the whole order book as well ass all past trades and depth chart. Charts are also in real-time just the same as if you
are using the real trading engine, making it possible for a user to witness the
consequences of his decisions immediately as market events happen.
There is also a popular trollbox included for traders to exchange ideas as they trade, which is a great way to understand how the market feels.
Therefore, the real thing doesn’t differ from the Testnet account apart from the logo. Also, the initial amount of demo XBT can be replenished via faucet so you can prolong your trading simulation further.
When should I use BitMEX testnet platform?
BitMEX Testnet is a perfect place to test out new trading strategies and see how well would a certain trading tactic work in a natural trading environment without taking any real crypto trading risk.
Such a demo platform is also useful like a simulator is useful for a future pilot to test his mastered skills because it is one thing to backtest a strategy and completely different to be able to see it working in the real-time market.
BitMEX Testnet Pros and Cons
- Realistic market environment
- Provides the opportunity to test
trading strategies and tactics
- Simple account creation
- XBT faucets can prolong the
- Supports all BitMEX trading
- Simulated trading (trading without the risk) is never the same as when there is a high degree of risk involved
Your capital is always at risk when trading.