What exactly is Bybit?
Bybit Exchange is a cryptocurrency derivatives exchange that provides a fair trading environment for highly leveraged futures transactions such as BTC/USD, ETH/USD, XRP/USD, EOS/USD, and BTC/USDT perpetual contracts. According to our Bybit review, the cryptocurrency exchange operates and provides a safe, fair, transparent and efficient futures trading platform.
While there are many similarities between exchanges, Bybit incorporates some differentiators that may make them interesting.
Bybit exchange offers three contract options for trading derivatives, including Bitcoin and other cryptocurrencies:
‣ Inverse Permanent
‣ USDT Unlimited
‣ Futures within futures
It provides comprehensive access to various trading tools, including cross margin trading and isolated margin trading. Bybit offers 100x leveraged trading, which cannot be customized with the cross margin option.
Bybit supports limit orders, conditional orders or conditional limit orders, stop orders and advanced orders such as good till cancel, immediate or cancel (IOC orders), fill or cancel. The advanced order form is easy to use and easy to access.
It offers a variety of data analysis tools for accessing data, including moving average prices, moving average indicators, and monthly price ranges. Fund data, individual index prices, rolling volatility charts, daily realized BTC volatility, market analysis and breaking news are all included.
It provides the cryptocurrency community with a superior trading experience through an easy-to-use interface.
Perpetual Futures and The Dual Price Mechanism
Unlike spot and futures contracts, a perpetual futures contract is a derivative that does not expire. It helps maximize yield prospects. When Bybit connects to the MetaTrader 4 forex platform, it intends to offer quarterly futures contracts and sub-accounts. The dual price mechanism protects traders from trading or price manipulation, thereby avoiding huge losses due to liquidation of positions due to lack of margin or requirements of current market prices.
Mark to Market Price of Bybit
The substantial difference between the current and derivative cryptocurrency exchange rates is referred to be “funding.” By designating the most recent asset traded price on the cryptocurrency platform as the “mark price to market price,” it facilitates the matching of spot and derivative exchange prices once every eight hours.
Trading with 100X Leverage
Bybit offers 100x leverage on contracts for perpetual futures. Therefore, most traders are able to increase their leverage in order to reach the necessary maintenance margin. It enables knowledgeable traders to access substantial assets.
Contract Loss Protection
If the price falls below the bankruptcy price in a highly volatile market, a leveraged long or short position could be liquidated. When traders are liquidated, the Bybit Insurance Fund helps them pay for deficits brought on their losses.
System of Socialized Loss vs. System of Auto-Deleveraging (ADL)
ADL may deleverage the order’s most lucrative and leveraged positions, so shielding traders from unusual losses. Leverage and unrealized profit ratio are used to calculate each investment’s ADL grade.
Pros and Cons of Bybit
Pros
- A new user does not require KYC. It is simple to begin trading.
- It offers both computer-based trading and a mobile app alternative for logging in and trading.
- Bybit leverage is extremely high, with low trading costs and a market maker rebate.
- Has a guarantee from the Insurance Fund to reduce and pay losses.
- Limit orders, partial orders, conditional orders, and market orders are all conceivable order types.
- Derivative contracts are paid in USDT and Coin.
- Bonuses are generous.
- It is one of the top three established exchanges in terms of crypto derivatives trading volumes.
- When compared to other exchanges, Bybit fees are among the lowest.
Cons
- The number of available trading pairs is restricted.
- Regulation is lacking.
- Citizens of the United States are not permitted to trade.
- Trading volume figures cannot be independently checked to confirm their veracity.
Bybit Account Opening Process
As per the Bybit, a new user needs to have a trading account before using the platform.
Registration Using Website
- On the official website, go to the registration page.
- Fill in the required details.
- Read all the terms and conditions and click on ‘Sign Up.
Registration Using Mobile App
- Download Bybit App. Select ‘Assets’ on the bottom right corner.
- Click on the ‘Login’ tab.
- Click on the ‘Register’ tab on the top right corner.
- Register either through the Email or Mobile option.
- Click on the ‘Sign Up’ tab.
- Verify a code sent to the Email/account’s registered Mobile number.
The Bybit app does not allow users from nations that are forbidden by FATCA (Foreign Account Tax Compliance Act) to register.
Bybit Payment Methods
For credit payments or deposits into their account, Visa, Mastercard, Electronic Fund Transfer or Wire Transfer, and Bill Payment options are available. Banxa, Xanpool, Mercury, MoonPay, and Bybit work together to make fiat money payments easier. By selecting the ‘Assets’ option in the bottom right-hand corner, mobile app users may deposit money.
Bybit Fees
Users can be either “Makers” or “Takers,” with market makers providing liquidity and market depth while squeezing order book liquidity. Takers’ orders are filled like a market order, while Makers’ orders are not immediately fulfilled. Market makers are paid for increasing the market’s liquidity and depth.
Instead of charging fees to Makers, Bybit charges a maker fee (rebate) of 0.025 percent, while Takers are subject to a cost of 0.075 percent. The net cost of the Bybit platform is 0.05 percent. By entering your wallet address and clicking the withdrawal button, you may make three cash withdrawals each day. For Bybit, the maximum withdrawal is 10BTC.
Services Provided by Bybit Exchange
With up to 100x leverage on the perpetual swap future contract for bitcoin, Bybit now offers trading strategies or options in the Inverse Perpetual Contract, USDT Perpetual, and Inverse Contract in Bitcoin, EOS, Ethereum, and Ripple XRP. All of the currencies they trade, including BTC, ETH, EOS, and XRP, are accepted as deposits.
Bybit Promotions
Rewards Hub
For new signups, there is a $50 coupon for the first-time deposit within 48 hours and a $10 coupon after that, a $5 bonus on a BTC deposit, and a $5 discount for following Bybit on social media channels or networks. It is a user-friendly exchange that also holds trading competitions with huge cash prizes for the victors.
Affiliate Program
The Bybit affiliate program allows users to make a passive income of up to 30% commission on Bybit trading costs. It offers complete assistance, commissions are handled in real time, and data is updated immediately. A multi-dimensional report with entire transaction data and commission information is created. Bybit offers affiliates custom marketing materials and market activities.
Flash Deals
$10 coupon for seven consecutive days of active usage, $20 coupon for a total deposit of one or more bitcoins, $5 coupon for at least one use of the Taking Profit/Stop Loss tool, and $5 coupon for trading at least one USDT perpetual excluding BTC, USDT.Referral Program
Referral Program
The referral program aims to reward active traders who introduced or referred friends and family to Bybit with a financial incentive. Traders can receive an instant bonus of $10 in BTC. The referral bonus earned based on the trade volume of a newly introduced user is shown in the table below.
Bybit bonus can either be used as an initial margin or initial maintenance margin to cover losses or offset the trading fee. Bonus as such cannot be withdrawn. However, the profits derived from trading with bonuses can be withdrawn. As soon as the referee becomes qualified, the bonus is deposited immediately in the trader’s Derivatives Account, which refers to the new user.
Bybit Calculator
Bybit Calculator equips a trader to monitor his position value and position size closely and calculate important trading parameters that indicate the performance in terms of profit/ loss and risk management. Traders can calculate the following using the Bybit Calculator: Trader’s initial Margin or first deposit, Profit/ Loss, Profit/ Loss %, and ROI, Initial deposit Margin required to open a position, a target price, a trigger price, or the best price to achieve a predetermined ROI, Liquidation Price when the position is on isolated margin option or cross margin mode, account balance, funding rate/funding fees, price difference, underlying margin.
Bybit Trading Bot
Trading bots are automated software that trades as per the pre-set conditions by experienced traders. Some trading bots that enable a trader to auto trade in Bybit are TradingView, 3Commas, Alertaton, Autoview, Cornix, FMZ, GoodCrypto, Haasonline Hydor, Mudrex, Profit Trading, ProfitTrailer, Profitview, Sirius Trader, Stacked, TokenBot, Tycoon, Wunderbit, and WBCCLUB.
Bybit Testnet
Bybit testnet enables a potential trader to better understand the key features, options, advantages, and pros and cons without making a deposit. It’s a virtual account provided solely to practice crypto trading with fake money. A new user could explore for informational purposes and have a hands-on experience without actually exposing oneself to the risk of losing money.
Bybit Mobile App
The mobile app is fully compatible with the most advanced Android and iOS systems and can be downloaded from the Google play store. Like desktop, one can buy cryptocurrencies like Bitcoin, Ethereum, and other coins through the app, either using a credit card, debit card, or a bank transfer. Though it’s a bit challenging to study TradingView charts and monitor numerous markets on the app, it’s a good tool for monitoring open positions. The crypto account is fully secured through a multi-signature cold storage wallet solution. One can choose to trade various trading pairs like BTC/USD, ETH/USD, XRP/USD, EOS/USD, BTC/USDT, and other perpetual trade contracts. It processes 100,000 transactions per second which ensure the fulfillment of every trade order.
Bybit Security Parameters
Bybit spends 20% of its annual budget on ensuring the platform’s security against the industry average of 15%. Unlike most other exchanges that use ‘hot wallets,’ it has adopted ‘cold wallets,’ which have inbuilt robust security management, features, and measures. All deposit addresses are cold wallet addresses. Offline signatures carry on underlying Asset transfers and withdrawals. Withdrawal requests are subject to three levels of verifications and manual reviews per day to manage risk, and traders can withdraw once every eight hours.
Bybit has a stringent policy regarding crypto-asset consolidation, including system security, physical environment security, operation authentication, encryption techniques, monitoring, and audit. It protects user data and personal information, which is in line with its privacy policy. Each employee of the platform is thoroughly trained, scrutinized, and assessed for internal security control.
The exchange always insists the user have two-factor authentication. The user has to scan the QR code, and a six-digit 2FA code is generated randomly inside the Google Authenticator App. Users should write down the Recovery Key Phrase and store your RKP securely inside a cloud server with full SSL encryption.
