What Bybit Is
Bybit is a cryptocurrency derivatives exchange platform that focuses on bitcoin and ethereum perpetual contracts. It allows traders to go both long and short on cryptocurrency prices with leverage up to 100x.
Bybit was founded in 2018 and is registered in the British Virgin Islands. It is operated by Bybit Fintech Limited. Despite being a relatively new exchange, Bybit has grown rapidly and now ranks among the top crypto exchanges in terms of trading volume and derivatives activity.
Some key things to know about Bybit:
- Advanced trading platform for experienced crypto traders
- Perpetual contracts on BTC, ETH, EOS, XRP and other coins
- Up to 100x leverage available
- Competitive fees with rebates for market makers
- High liquidity for major trading pairs
- Fast order execution speeds under 10ms
- Both linear and inverse perpetual contracts offered
- No KYC required currently
Features and Functionalities
Bybit packs in an array of features to create a powerful trading experience for crypto derivatives traders. Here are some of the standout functionalities:
Advanced Trading Interface – Bybit’s trading platform has an intuitive interface with all the necessary trading and charting tools. It offers different order types like limit, market, take profit/stop loss, good till cancelled and allows simultaneous long and short positions. Traders can analyze charts using indicators like Bollinger Bands, Moving Averages, RSI, etc.
High Leverage – Bybit enables traders to trade with up to 100x leverage on certain contracts. This allows opening much larger positions with less capital. However, leverage is a double-edged sword and can lead to amplified losses if used recklessly.
Strong Liquidity – The exchange provides excellent liquidity for BTC and ETH perpetual swaps and futures. This helps achieve fast execution and minimal slippage for large orders. Liquidity is comparatively lower for other altcoin contracts.
API Support – Bybit has a powerful REST and WebSocket API that lets traders automate their trading strategies. It supports both fetching market data as well as placing active orders.
Copy Trading – Bybit has a copy trading feature that allows new traders to automatically copy positions opened by experienced traders on the platform. Followers can evaluate traders based on profiles, performance metrics, risk scores etc.
Testnet Trading – Bybit provides a testnet simulation environment with fake BTC where new users can try out trading strategies risk-free before trading with real money.
Security – Bybit implements security best practices like cold wallet storage, 2-factor authentication, DDoS protection, withdrawals whitelist and uses Amazon Web Services cloud servers.
How to Use Bybit
Here is a simple step-by-step guide to start using Bybit:
- Sign Up – Go to Bybit.com and click on the “Register” button. Provide your email and set a password. No KYC is needed currently.
- Deposit Crypto – Fund your Bybit account by depositing BTC, ETH, EOS or USDT. Bybit supports crypto deposits and withdrawals only.
- Trade – Navigate to the “Exchange” section. Select a contract like BTCUSD perpetual swap. Use limit orders, leverage, position sizing and risk management tools to execute your trades.
- Withdraw – Once ready, withdraw your cryptocurrency funds back to an external wallet. Unverified accounts have a 2 BTC daily withdrawal limit.
Additionally, traders can enable security features like two-factor authentication (2FA) for account protection and whitelist withdrawal addresses for enhanced security.
One of the main advantages of trading on Bybit is its competitive fee structure:
- No deposit fees – Bybit does not charge for cryptocurrency deposits.
- Low trading fees – Bybit uses a maker-taker fee model. Fees range from 0.025% to 0.075% based on 30-day trading volume.
- No withdrawal fees – Withdrawals are free. There are no exit fees.
- No inactivity fees – Bybit does not charge any account inactivity fees for periods of no trading.
- Funding rates – Bybit charges an 8 hour funding rate to balance long/short interest on perpetual swaps. The typical daily rate is around 0.03% but can fluctuate based on market forces.
Bybit operates a loyalty program where higher volume traders can enjoy reduced trading fees, zero maker fees, dedicated account managers and other VIP benefits.
Overall, Bybit has very competitive pricing compared to other major crypto derivatives exchanges. The low fees help day traders maximize profits.
Comparison With Other Exchanges
- Binance offers a wider range of cryptocurrencies and trading options beyond just derivatives. Bybit focuses solely on perpetual swaps and futures.
- Binance has significantly lower maximum leverage of 20x compared to Bybit’s 100x leverage.
- Bybit has a simpler user interface tailored for futures traders while Binance can be overwhelming for new users.
- Both have excellent liquidity but Binance generally has higher volumes and liquidity across the board.
- Binance requires full KYC while Bybit is still non-KYC for now.
- Deribit specializes in crypto options and futures so has a narrower product range than Bybit overall.
- Deribit offers portfolio margining which can increase leverage and lower margin requirements for traders. Bybit lacks portfolio margins.
- Bybit has a simpler interface while Deribit has more advanced graphs and tools for options traders.
- Deribit charges higher fees of 0.05% maker and 0.075% taker fee.
- Both platforms have strong security. Deribit publishes transparency/audit reports as a licensed exchange.
Pros of Using Bybit
- High leverage – Bybit provides up to 100x leverage allowing experienced traders to maximize positions and profits.
- Low fees – Extremely competitive trading fees with rebates for makers and only 0.075% for takers. No deposit/withdrawal fees.
- Great liquidity – Good liquidity across BTC and ETH contracts ensures fast order execution with minimal slippage.
- Fast execution – Cutting edge trade matching engine executes orders in under 10ms. Essential for leverage scalping strategies.
- No KYC – Traders can start trading with just an email address. No ID verification needed initially.
- Strong security – Bybit utilizes industry best security practices like cold storage and 2FA to protect user funds.
- Good customer support – 24/7 multilingual CS available via chat, email and social media channels. Fast and helpful responses.
Cons of Using Bybit
- Only crypto derivatives – Bybit currently only offers perpetual swaps and futures contracts. No spot or margin trading.
- High risk – 100x leverage can lead to extreme losses if risk management is poor. Beginners should use lower leverage.
- Unregulated – Bybit operates offshore with limited oversight compared to regulated platforms.
- No fiat support – Bybit does not allow fiat currency deposits or withdrawals. Crypto-only.
- Complex contracts – Futures and perpetual swaps have an inherent complexity that takes learning and experience.
- Limited coins – Bybit has fewer altcoin trading pairs compared to competitors. Mainly BTC and ETH.
- Withdrawal limits – Unverified accounts have a 2 BTC daily withdrawal limit which can be restrictive.
Average User Review Ratings
Analyzing user reviews on Trustpilot, CryptoCompare, and Reddit, the consensus is that Bybit is generally well regarded among active derivatives traders who value its features and functionality.
On Trustpilot, Bybit scores 4/5 based on over 5400 reviews. 73% rate it Excellent or Great. The most common positive feedback praises low fees, easy sign up, and great customer service. Complaints cite unclear rules, liquidations and withdrawal issues.
On CryptoCompare, Bybit has a user rating of 4.6/5 from 1600 reviews. Users highlight smooth trading, leverage options and responsive support. Some users warn about liquidation risks with high leverage.
On Reddit discussions, experienced futures traders recommend Bybit for its speed, performance and fees. Common criticisms include lack of fiat on/off ramps and low liquidity on exotic alt pairs.
The main takeaway is that Bybit excels at delivering a smooth and powerful trading experience tailored specifically for crypto derivatives traders who can use the available leverage responsibly.
Is Bybit regulated?
No, Bybit is not a regulated exchange. It is incorporated in the British Virgin Islands. Bybit operates outside of regulatory oversight which has benefits and drawbacks for users.
Does Bybit require KYC verification?
Bybit does not require any KYC verification currently. Users only need an email to register. However, withdrawal limits are higher for accounts that complete KYC verification.
What leverage does Bybit offer?
Bybit allows up to 100x leverage on certain perpetual contracts. Different leverage limits apply based on coin, contract type and user VIP level. Traders should use leverage carefully.
Does Bybit have a mobile app?
Yes, Bybit has iOS and Android mobile apps that allow easy access to the platform on the go. The mobile experience mirrors the desktop site with full trading capabilities.
What countries does Bybit not serve?
Major restricted countries are the USA, Canada, China, Singapore. Bybit cannot serve users from these jurisdictions due to regulations. Using a VPN to bypass is prohibited.
Is Bybit better than Binance?
Bybit focuses specifically on crypto derivatives while Binance is more of an all-in-one exchange. Bybit has lower fees which makes it attractive for active futures and perpetual swap traders.
How do I withdraw from Bybit?
Log in to Bybit and navigate to Assets > Withdrawals. Enter the coin, amount, address and withdrawal network. Unverified accounts can withdraw up to 2 BTC per day. Enable address whitelist for added security.
Does Bybit have liquidity issues?
Bybit maintains excellent liquidity for BTC and ETH contracts ensuring minimal slippage on trades. However, altcoin contracts can face lower liquidity and wider spreads. Check order book depth before trading.
Is Bybit safe to trade on?
Bybit implements strong security practices to protect user funds and data. However, the unregulated nature does carry additional risks over regulated platforms. Enable all account security features as a precaution.