Summary
Bybit Overview:
Bybit is a Dubai-based cryptocurrency futures exchange that was established in 2018. With more than 10 million customers trading on the site worldwide in 2023, Bybit has developed into one of the biggest and most reputable cryptocurrency exchanges.
A fair trading environment is provided by Bybit exchange, a cryptocurrency derivatives exchange, for trading futures with good leverage in BTC/USD, ETH/USD, XRP/USD, EOS/USD, and BTC/USDT perpetual contracts. Our Bybit review reveals that this cryptocurrency exchange runs and offers a secure, safe, equitable, open, and effective futures trading platform.
The Bybit eco-system has expanded significantly since 2018. The Bybit management has prioritized user experience and platform security throughout this expansion.
One of the most cutting-edge, safe, and user-friendly systems in the cryptocurrency sector is provided by Bybit. Bybit is considerably superior in comparison to its rivals as it can accommodate the needs of retail and institutional traders. Moreover, it can handle 135,000 transactions per second.
Bybit has not yet encountered any system overload, which makes it an enticing option for seasoned investors. Bybit is poised to capture a significantly larger market share in 2023 as its innovation and growth continue to attract new customers to the platform.
Industry leaders from the banking and FX sectors, including Morgan Stanley, Tencent, and other well-known organizations, comprise the Bybit leadership team. The three product categories offered by Bybit are Spot, Derivatives, and Options. On Bybit, you can trade various crypto items with leverage up to 100:1.
Bybit Pros and cons
- Up-to-the-date tools supported by advanced technology.
- Perpetual swap futures available for XRP.
- Trading fees is lower including a rebate.
- Various order types for advanced and novice investors.
- Cryptocurrency derivatives are comparatively risky.
- US citizens cannot access Bybit.
- The exchange does not support fiat to crypto purchases.
- Unavailability of tokenized stocks.
Trading on Bybit; Contracts offered by the exchange:
Inverse contracts use BTC, ETH, EOS, or XRP to calculate margin, profit, loss, and the US dollar to confirm the transaction quantity. To prevent having to manually enter Sats (short for Satoshis, the smallest unit of BTC), this Bybit quantity setting option was created.
Perpetual contracts in USDT are quoted and settled in that currency. Because it is a stablecoin tied to the USD, this asset has a benefit. It shows that the firm supporting it, which is Tether Limited, supports its in-transit of tokens with equivalent value in US dollars reserves.
Unlike other cryptocurrency assets, it’s worth has a strong foundation and is less vulnerable to any speculation. By February 2021, it was utilized in 57% of all BTC trades.
Trading futures and perpetual contracts:
When you open a trade without frequently swapping the supported asset, it is referred to as perpetual trading. As long as your margin stays large enough, you can keep the position for however long you like.
Futures trading is the agreement to purchase or sell the underlying asset of a contract at a predetermined price at a later period. The settlement period and expiration date of the agreement are the two significant factors.
Perpetual trading allows you more freedom to estimate the settlement price and close the contract because it has no expiration date. Contrarily, futures trading commits you to a price for the future and settles at expiration using the spot price.
Features of Bybit crypto exchange:
Leverage:
On the Bybit platform, leverage is another option. Essentially, it allows you to trade more than the actual value of the assets you hold in your cryptocurrency wallet using borrowed money.
If the cryptocurrency price goes as per your expectations, leverage trading may increase the profit. On the other hand, if the price moves the other direction, it can increase your losses. It can make each and every Bybit trade investors perform potentially profitable with an amalgamation of luck and technique. For instance, buying 100 futures to long BTC with a 3 times leverage reflects that the profit should increase the price 3x.
Your leverage decision may also determine your first margin to assist you stay honest. The risk limit table on the Bybit exchange reflects that as the worth of the contracts owned by you increases, so does the leverage. Each relevant increase or decrease in the value of the contract leads to a predetermined adjustment in increment in the initial margin requirement.
Margin Trading:
Leveraged trading is another intriguing feature of Bybit. With its Bitcoin perpetual swap futures, Bybit provides high leverage transactions with up to 100x leverage.
With that much leverage, a trader is exposed to $100 in Bitcoin volatility with just $1 loss. It’s a simple way to make quick money and an even simpler way to lose quick money. When a trader uses 100x leverage, even the slightest change in price might result in the loss of their whole position.
There are other ways besides using Bybit features like take-profit, stop-loss, and hedging (available only in USDT perpetual contracts) to limit your gains and losses and minimize risk exposure. Cross margin and isolated margin are further options.
When you are in isolated margin mode, the collateral you utilize for a position is not connected to the remaining balance in your account. As a result, the only margin that might be liquidated is the one you set for an open trade. To lessen the likelihood of liquidation, 100% of the equity of the associated trading pair coin is at risk in cross margin mode. However, you will lose everything if the balance is below your maintenance margin.
You can configure the leverage with the isolated margin system up to 100x. The cross margin mechanism does not allow manual adjustment; Bybit determines the effective leverage by examining the value of your position and the maximum amount you can lose.
You don’t have to depend on a single Bybit price to safeguard yourself against market manipulation. Mark Price, created by fusing the worldwide spot price index and declining funding basis rate, and Last Traded Price, which is the current market price on Bybit, make up the company’s dual-price mechanism.
Bybit offers 100x leverage on crypto:
On Bybit cryptocurrency exchange, you can trade and invest in crypto with a 100x leverage. With a $100 deposit, you may trade a position for $10,000. Leveraged trading increases the possible trading rewards, therefore skilled traders can benefit greatly from it. However, it also increases the risk.
Bybit order types:
There are three order types to select from on the Bybit platform:
- Market Order: A market order is put in at the going rate. The order will be placed and executed at the “bid” if it is a sell order or the “ask” if it is a buy order.
- Limit Order: This type of order is often the best course of action for trading. The trader places the order at a level different from the current market price. Technically speaking, this order is available and ready to be “filled” by a buyer or seller who is prepared to match that price.
- Conditional Order: When a specific price level is reached, a conditional order will execute as a market or limit order. You provide the trigger price, direction, quantity, and leverage when you place the trade. When technically significant levels are achieved, such commands are frequently employed.
Advanced order types are:
- Good-Till-Canceled (GTC): orders won’t close unless you take specific action to do so.
- Instantaneous-or-Cancel (IOC): This order will be filled as soon as possible and at the lowest possible cost. The order balance will be canceled if any portion is still unfulfilled. This order type supports partial order execution.
- Fill-or-kill (FOK): Last but not least, a fill-or-kill (FOK) order is intended to either be filled at the best price or not at all. Except for not allowing the execution of partial orders, this is quite identical to the IOC order.
Bybit trading and funding fees:
Trading fees:
Bybit operates on a maker-taker paradigm. The company instead offers maker rebates in place of Bybit trading fees.
If you are a market maker, your order will increase market depth and create liquidity. You will receive a reimbursement from Bybit. If you take the market, you will remove some liquidity from the books. For that, you’ll be responsible for a Bybit trading fee.
For BTC USD, ETH USD, EOS USD, XRP USD inverted perpetual contracts and BTC USDT USDT perpetual contracts, the actual trading fees and maker rebates are the same. The taker charge is 0.075%, whereas the manufacturer rebate is -0.25%.
All rebates and taker fees will impact your account balance, not your starting margin.
Funding fees:
Bybit keeps the perpetual contract trading price near the spot market as it can by using its funding mechanism. The interaction of the two prices determines who pays the funding charge. Long position holders must pay the funding fee to short position holders if the trading price exceeds the spot price. As a result, more traders might open short positions, which would lower the trading price.
The owners of short positions instead pay the charge if it falls below the spot price. On the platform, the funding fee is paid every eight hours. 0:00 (UTC), 08:00 (UTC), and 16:00 (UTC) are the settlement timings. The spread between intervals determines the financing rate for a prospective settlement time.
Bybit; Deposits and withdrawals:
Five cryptocurrencies are supported by Bybit: BTC, ETH, EOS, XRP, and USDT. Each asset will have a wallet by default, but Bybit determines your equity in BTC. You can start trading if you have any of the above mentioned coins stored in your Bybit wallets. You can use the Fiat Gateway to purchase cryptocurrency using Bybit.
The US dollar, the Australian dollar, the Euro, and the British pound are just a few of the 45 fiat currencies supported by the Fiat Gateway, along with BTC, ETH, and USDT. Those mentioned above are the only deposit alternatives because Bybit does not yet offer a USD wallet.
The site can provide you a variety of payment alternatives supported by various third-party service providers based on your selected fiat currency. You can then choose the vendor to top off your wallets with the most cryptocurrency for the lowest costs in the quickest amount of time.
Additionally, you can use the Assets Exchange (formerly Coin Swap), a mechanism for changing one crypto coin supported by Bybit into another. There is a purchasing limit per order to consider even if there is no minimum Bybit deposit requirement. It costs between $20,000 and $15,000.
You must enable two-factor authentication to make withdrawals. In addition, a Bybit withdrawal fee applies.
| Asset | Minimum Withdrawal limit |
| BTC | 0.001 BTC |
| ETH | 0.02 ETH |
| XRP | 20 XRP |
| USDT | 10 USDT |
| EOS | 0.2 EOS |
Bybit Security:
Bybit employs an internal system and a zero-trust architecture to implement software lifecycle management. Penetration testing will be performed by renowned cybersecurity consultants that the organization has recruited. It also adheres to the principle of segregation of duties and collaborates with a renowned outside security auditor.
Bybit collaborates with white hat hackers to quickly spot cybersecurity flaws in order to prevent data leaks. Through its bounty programmes, the business compensates those who find security holes.
The use of two-factor authentication is supported by Bybit for improved account security.
To register on the platform, sign into your account, or use Bybit to purchase crypto assets for trade, you only need to pass one level of verification. However, the system will demand that you set a mixture of Google Authentication and email or SMS authentication.
Bybit Customer Support:
The business provides email and live chat help round-the-clock. Given that we periodically ran into issues when doing the test for this Bybit review, we found both channels to be useful. This didn’t surprise us because we weren’t familiar with the platform before.
On the trading page for Bybit, there is a chat room. Here, other users are prepared to respond to your inquiries. However, if you’d like a one-on-one interaction, you can do so by using the Bybit iOS app or its Android equivalent to connect with a customer service representative.
Final Verdict:
Bybit is a desirable exchange for crypto derivatives. It may have generated a lot of buzz because of its rich affiliate program, which attracts numerous content producers. But relax; it’s not all bluster.
Its restricted ability to convert money into crypto is a prime example of Bybit’s shortcomings. However, it also has numerous positive attributes, like multi-signature cold wallet storage. With its user-friendly interface, you may manage your positions and trade using leverage.
