Ranked fourth by the trading volumes in the derivatives segment and with over 1.2 million userbases, Bybit has come a long way in its short time of operation. And has even surpassed some of the market leaders, surprising everyone in the market.
However, with the market growing so rapidly, Bybit can provide a safe trading experience to its growing list of users in this highly unpredictable market.
Let’s have a detailed Bybit exchange review.
Bybit Exchange Review 2023
Bybit is a cryptocurrency derivatives exchange platform established in March 2018 and is based in Singapore, and registered in the British Virgin Islands.
The exchange’s core team consists of early blockchain adopters, and pioneering professionals from the foreign exchange and investment banking industries.
Compared to other established crypto futures exchanges, Bybit offers trading in only perpetual contracts with up to 100X leverage on certain contract types.
Its advanced trading platform, fast order matching engine, and superior risk management processes have helped it become the favorite exchange platform among the experienced class of traders, despite the limited number of contracts that can be traded on the platform.
Bybit Product Offerings
Bybit is structured to offer most of the products you can get from any top-tier crypto exchange, from regular crypto buying and selling on the spot market to leveraged trading and a robust crypto derivatives exchange.
- Leveraged Trading
Bybit also has leveraged trading to allow traders to amplify their potential gains from trading without making a massive initial investment.
The exchange offers cryptocurrencies leverage trading of up to 100X. This means that you can open a position worth $10,000, with an actual investment of just $100.
Given how risky leveraged trading can be, it is always good investment advice for beginner traders is starting with low leverage and only use large ones when they master the technique.
- Derivatives Market
1. Futures contracts
Bybit has futures contracts, which obligate a trade to buy or sell a predetermined number of assets at a predetermined price in the future.
The Bybit futures contracts will typically have a 6-month term, and the exchange provides a listing and settlement dates for all the futures contracts that traders can invest in every year.
2. Inverse perpetual contracts
Bybit offers trading in Inverse Perpetual and USDT Perpetual. Inverse Perpetual contracts include BTC/USD, ETH/USD, XRP/USD, and EOS/USD. And USDT Perpetual contract lists include BTC/USDT, ETH/USDT, LTC/USDT, XTZ/USDT, and LINK/USDT.
The contract size of inverse perpetual is $1 (the lowest contract value among all the exchanges), the maintenance margin base rate for the BTC contract is 0.5%, and the initial margin requirement is 1% for smaller trades.
You should also note, Bybit reduces the leverage for large positions to protect the exchange from the risks involved in large positions.
- Spot Market
Bybit also has a spot market that allows crypto traders to buy and sell different supported assets. The spot market allows traders to buy and hold crypto for speculation purposes, and they can also go short by waiting to purchase when the price drops.
The exchange charges a 0.1% flat-rate fee for both market makers and takers in their spot market. Traders can use three main order types in the spot market: market order, limit order, and conditional orders.
- P2P Trading
Bybit supports peer-to-peer trading with zero fees, allowing traders to buy and sell crypto to others with zero cost.
Currently, the exchange allows for 9 fiat trading pairs for their P2P market: INR/USDT, RUB/USDT, VND/USDT, HKD/USDT, PHP/USDT, AUD/USDT, TWD/USDT, UAH/USDT, and MYR/USDT.
Bybit does not have a huge catalog of supported digital assets like many other top cryptocurrency exchanges.
However, the exchange is always adding more, and it will probably increase the number of assets in the near future to keep up with the competition and give traders more options.
Currently, the exchange supports around 20 different digital assets, including most primary ones like BTC and ETH and others such as NEM (XEM) and Tezos (XTZ).
Additionally, Bybit also supports at least 50 fiat currencies, including USD, AUD, EUR, GBP, JPY, CHF, CAD, AED, and QAR. Therefore, most traders that use the Bybit platform can deposit using their native currency.
ByBit Order Types
Bybit offers three order types to its users, which includes:
- Limit Order: The order is placed at a specific price. In a limit order, the buy order can only be executed at the limit price or lower and vice versa with the sell order.
- Market Order: The order that is executed at the prevailing rate of the contract or instrument
- Conditional Order: Conditional order means the trade order will be executed only when certain conditions are fulfilled. You need to set the trigger price, order quantity, leverage, and direction of the trade.
Along with limit order and conditional order, you’ll also have to provide order life. There are three types of order life:
- Good-till-cancelled: The order is valid until you’ve canceled the order yourself.
- Immediate or Cancel: The order is designed to be filled immediately at the best price. This may also result in partial execution of an order.
- Fill or Kill: This order type should execute the order fully or not at all. No partial order execution is allowed.
- Bybit Trading fees
Like Binance, Bybit also doesn’t have a flat fee structure. The market makers are offered Maker’s Rebate, and takers are charged a Taker Fee.
The Maker’s Rebate is 0.025% on all types of perpetual contracts, and Taker’s Fee is 0.075%. The trading fee is adjusted with the account balance accordingly, which doesn’t affect the initial margin.
If you are spot trading, Bybit will charge you a flat rate of 0.1% in both maker and taker fees. You can compare Bybit vs Binance Futures to determine which one is better for you.
- Funding fees
Funding fees are paid by either long or short positions depending on the prevailing market conditions. The Bybit system uses the funding mechanism to try and keep the price of the perpetual contracts as close to the spot market price as possible.
Who pays the finding fees will depend on prices on the two markets. If the contract trading price is higher than the spot trading price, the long position holders have to pay short position holders the funding fee.
If the spot trading price is higher, the short position holders pay long position holders. The funding fee is paid every 8 hours, and the platform helps keep track of the fee and who is supposed to make the payment.
Deposits and Withdrawals
When it comes to depositing and withdrawing from your Bybit account, several factors that will determine how much you can transact, such as the account standing and channel you are using.
Overall, there is no minimum deposit amount, but the maximum you can transact per transaction and per day will depend on your deposit method. For example, if you are depositing via Banxa, the maximum transaction limit is $15,000. If you buy BTC using MoonPay, you can purchase a minimum of $30 worth of BTC and a maximum of $12,000 per transaction.
Bybit has a minimum withdrawal limit that will depend on the specific asset you are withdrawing. For example, the limit is 0.001BTC for bitcoin, 0.02ETH for ethereum, and 10 USDT if you withdraw stablecoin.
There is also a maximum limit for how much you can withdraw instantly and from your account every day, depending on factors like the wallet you are using and KYC verification.
Traders who use their Wallet 2.0 that supports instant withdrawal can instantly take out under less than 5 BTC, while Wallet 1.0, which processes transactions three times a day, can withdraw more than 5 BTC per day.
However, if you have not done KYC verification, you can withdraw a maximum of 2 BTC every day regardless of the wallet type you are using. Therefore, it is good to do verification even though the exchange does not make it mandatory.
Bybit Trading Platform
Bybit is a web-based smart trading platform that can process 100,000 transactions per second, which helps it easily manage the volume surge effectively during heightened volatility in the market. Also, with high market liquidity depth, orders are executed instantly and with minimal price impact.
The trading platform is well built, and it is easy to spot the platform functions. It includes a charting system from tradingview.com, which offers access to all major TA tools, indicators, and price action within multiple time-frames.
The order book is designed to provide a view of the latest five buy and sell orders. You can also find the recent trades, trade positions, P&L summary, and contract detail windows within the platform.
Other features of the platform are:
- The dual price mechanism allows to prevents unfair liquidation of positions.
- The platform’s powerful APIs refreshes market data every 20ms
- The platform’s advanced order system allows to directly set profit/stop loss at entry, adjust orders placed and receive strategy alerts with one click.
Bybit Mobile App
Bybit has a mobile app that supports trading on the go. You can download the app for both Android and iOS apps. The Bybit app is already quite popular as the Android version has already been downloaded over 100,000 times despite not having been around that long.
Many Bybit traders seem to approve of the mobile app because it provides most of the functionalities and features you get when using the web-based trading platform. They include wallets, order books, contracts, price graphs, and notifications.
Bybit mobile app users can also customize it to get notifications for multiple trading strategies, such as when the last traded price increases or decreases.
The mobile app can also give you reminders of the funding rate half an hour before settlement for all trading pairs that you want to keep track of when not trading.
How to Start Trading on Bybit Exchange
Bybit allows you to set up your trading account in just three steps, which can be completed within a couple of minutes.
- Step One: Sign-up
Bybit is a NO-KYC platform, and you don’t have to go through the lengthy process of verifying and activating your account. By using your email-id and password, you can open a trading account. You can use our Bybit Referral code to get a deposit bonus.
- Step Two: Deposit Funds
Once you’ve successfully opened the account, you need to add funds to start trading. Go to the “Deposit” section. Bybit accepts crypto deposits where you can directly deposit funds by transferring BTC from your wallet and fiat deposits where you buy BTC using supported fiat currencies.
Bybit also supports other deposits methods such as electronic funds transfer, visa, debit/credit cards, and fiat deposit services like MoonPay, Banxa, Simplex, E-check, XanPool, Capital, and Legend Trading.
However, traders need to note that the actual deposit methods available for them will depend on what their country supports.
- Step Three: Trade
You can now move to the website’s trading section following the successful transfer of funds and start your trading journey. `
Bybit KYC Requirement
Bybit is a non-KYC cryptocurrency exchange, meaning you do not need to do any verification to deposit, trade, and withdraw from the platform. However, the exchange provides extra perks for traders that do KYC verification to encourage users to prove their identity.
As a standard trader who wants to trade anonymously without verifying your identity, you can only withdraw up to 2 BTC per day for the account’s lifetime. The only way to raise your limit is to go through verification by verifying your ID and address.
Bybit has two verification levels: level 1 and level 2. Traders with level 1 KYC verification can withdraw up to 50 BTC per day. Those that do the more advanced level 2 verification that also entails verifying your address will get a daily withdrawal limit of up to 100 BTC.
How To Do KYC verification on Bybit??
- Step 1: Go to “Account and Security” on the top right corner of the homepage
- Step 2: Locate “Account Information” and click “Verify Now” under “Identity Verification”
- Step 3: Click “Verify Now” under the Level 1 Basic Verification section
- Step 4: Fill out the form with your full name and all the other information required
- Step 5: Upload your verification documents which in this case are your ID document or passport
- Step 6: Complete the facial screening process to finish the process
Note: For Level 2 verification, you will also need proof of residential address such as utility bill and bank statement. Also, it is essential to make sure you have all the documents you need before you get started the process to speed up things and make sure they clearly show the required information.
A new crypto exchange always comes with some issues and difficulties for beginners and experienced traders. However, Bybit ensures that any challenges you might face will be quickly resolved by providing multiple methods of getting customer support.
Here is an overview of the main ways to get support on Bybit:
1. Live chat
Bybit is built on customer-centric values and has an excellent customer support team. They have a 24/7 multilingual customer support team. Since the support team is available round the clock, you can have your issues resolved almost instantly.
Sometimes you might have to wait for a little before talking to a customer care representative as there might be other queries ahead of you on the queue. However, it is essential to make sure you do not disconnect as this will take you back of the line, meaning you have to wait even longer.
Besides the multilingual live chat, Bybit also provides a chatroom on their trading page. You can use the chatroom to talk to experienced traders that can also offer solutions to any queries you might have or give you some helpful trading strategies.
2. Email ticket
If your issues are not urgent, you can also get support via email by opening a ticket. The support team responds to email queries almost as fast as it does to live chat, and you will often have some feedback in just a few hours.
You can reach them by writing directly at email@example.com, and for technical issues, you can write at firstname.lastname@example.org.
3. Social media
Bybit also runs a Telegram channel, where they post all the announcements to keep the users updated with the changes and addition. Their telegram communities are also quite active and would be very useful for traders looking for assistance.
You can also get Bybit on other social media platforms like Facebook, Reddit, Medium, LinkedIn, Instagram, or even tweet their CEO on Twitter and get a response.
4. Knowledge base
Sometimes you do not even need to talk to any customer support representative to get help when having issues with an account or any other challenge. Bybit provides a handy knowledge base that should help resolve most of your problems.
The exchange has a help center with several detailed articles that are easy to skim through when looking for answers to your issues. Also, they have an FAQ section with clear answers for all the common queries that many customers often have.
Additionally, there is also a Bybit Learn center that will be very useful for traders just starting. The learning center also has material that explains the basics of crypto trading and everything you need to know about using the Bybit platform.
Given the high number of security issues facing crypto platforms in recent years, Bybit has put in place several cyber security features to ensure they never become victims of one of these attacks.
Here is an overview of some of these security features:
- Offline cold storage
Bybit uses an HD cold wallet system to secure the users’ funds. Only a tiny portion of funds are kept in a hot wallet to meet the trading requirement.
Almost 100% of the assets are stored in these multi-signature cold wallets meaning they will be out of reach even if the platform was hacked.
The cold wallets are kept in an air-gapped environment (not connected to any live systems). To eliminate the chances of a hack, Bybit uses a multi-signature cold wallet system.
- Google 2FA
When it comes to users’ asset withdrawal, the user needs to authenticate the transaction through Google Authenticator 2FA security code. This multifactor authentication makes access hard for anyone that is not the genuine account owner.
Besides withdrawing money, you will also need 2FA for other things, such as resetting your password and changing your security settings. Additionally, Bybit makes 2FA mandatory for API management verification.
- Zero-trust architecture
Bybit does not take chances with their platform’s security, so they employ a zero-trust architecture system.
The company does a thorough background check for its employees and takes them through meticulous security training and assessment. All this is meant to ensure that they never have security issues emanating from inside jobs.
Additionally, the company will also hire some of the world’s most reputable cybersecurity experts to conduct penetration tests and work with an external security auditor to access its security systems continuously. These continuous checks and audits ensure any security vulnerabilities are detected early enough and fixed.
- Extra mobile app authentication
If you prefer to use the Bybit app for trading, the exchange also has your security covered by providing extra layers of authentication.
Bybit mobile app users can set up pattern lock and fingerprint recognition to provide another layer of security for their account.
Moreover, using the mobile app for withdrawals or changing security settings will still require you to follow all security protocols you would when doing it on the web-based platform, including 2FA.
- White hat hacker partnerships
Most crypto trading platforms are embracing the fact that to beat hackers at the game, they need to understand how they work. Bybit has also adopted this and now works with white hat hackers as part of their security strategies.
The white hat hackers help identify cybersecurity vulnerabilities that the usual cybersecurity consultants and experts might miss.
Bybit has a bounty program that rewards the white hat hacker who discovers loopholes in their security systems.
Bybit Insurance Fund
Bybit provides an extra layer of security with an insurance fund for traders that ensures they never suffer massive losses or lose more than what they use to open a position on the platform.
The insurance fund is simply a reserve pool that the Bybit system dips into to protect the crypto traders from negative equity. These funds are utilized to prevent the possibility of auto-deleveraging.
When a position is liquidated at a worse price than the bankruptcy price, the insurance funds will come in to bridge the gap between the two prices. Therefore, traders can be confident that they will always get everything they deserve from a winning position and never lose more than they invest in a losing position.
The Bybit insurance fund keeps increasing and decreasing depending on how the positions are closed. For example, if a position is closed at a price better than the bankruptcy price, the remaining margin goes to the insurance fund. However, if the price is worse than the bankruptcy price, the insurance fund covers the difference.
Bybit provides real-time data on the current amount in their insurance funds and has clear records of the inflows and outflows to ensure any trader can easily keep track of the funds.
Is Bybit legit and safe?
Bybit is one of the largest crypto exchanges globally, with a daily trading volume averaging over $17 billion and at least 2 million registered traders.
The trading volume and number of users is a good indication that it is a trustworthy crypto investment platform that you can be sure will keep your digital assets safe.
Although it is not regulated, this is typical of most crypto exchanges, including some of the largest ones in the market, like Binance and OKEx. However, it does not mean the exchange is not legit.
Moreover, the Bybit platform is operated by Bybit Fintech Limited, a legal entity registered in the British Virgin Islands. Also, like any other financial institution, Bybit will be subject to the financial regulations and other laws in any jurisdiction that it operates.
The fact that the exchange has never been hacked in its 5 years of existence is a good indication that it is a safe platform to use.
Is Bybit better than Coinbase?
Both Bybit and Coinbase are top-tier crypto exchanges available around the world, and the only way to decide which one works best for you between these two is by giving both a try.
That said, Bybt charges relatively lower fees than Coinbase and will hence be the better choice for regular and high-volume traders looking to save money on transaction costs. Bybit charges a 0.075% taker fee and gives a 0.025% maker rebate. Coinbase charges a 0.5% spread fee for all crypto sales and purchases.
When comparing the trading platforms, both companies provide highly intuitive user interfaces that are easy to figure out and navigate, even for newbies. Therefore, when it comes to the trading platform, the choice between these two will highly depend on your preferences.
Another area where Bybit seems to have the edge over Coinbase is customer support. Bybit provides 24/7 live support in multiple languages to ensure you get a quick resolution of your issues regardless of the time. With Coinbase, the live chat support is only available during US working hours.
Overall, Bybit has many advantages over Coinbase, from lower fees to better customer support. Therefore, it will be a better choice for a majority of traders. However, if it is possible to try out both platforms, this will be an even better idea as it ensures you make a more informed decision.
What countries can use Bybit?
Bybit is available globally, so traders can sign up and use the platform from almost anywhere in the world. Better yet, the exchange does not enforce mandatory KYC, meaning the trader can access the crypto market anonymously from any part of the world.
However, there are at least 12 countries where you can not create a Bybit account and start trading. These countries include those with strict crypto trading regulations that make it hard for non-local companies to operate, such as the US and UK.
Traders in countries under US and UN financial sanctions such as North Korea, Iran, Sudan, and Cuba are also not allowed to sign up and use the platform. Also, some countries like China have banned buying and selling these digital assets, meaning you can also not use Bybit in mainland China.
Conclusion: Is Bybit a Good Crypto Exchange
Bybit has every reason to justify itself as a top crypto derivatives exchange in the market. It provides a technologically strong, transparent, and trustworthy platform for smooth crypto derivatives trading experience.
One of the key points of any good crypto derivates trading platform is its risk management processes. By reducing the leverage for large positions to create insurance funds for managing the risks posed by losses in the futures contract settlement, Bybit has created a strong and reliable platform for crypto derivatives trading.
- Advanced trading platform with 100K TPS order matching engine
- Can integrate bot trading services like 3Commas using API keys
- Attractive trading fee
- User-friendly and intuitive platform interface
- Smaller size contracts compared to other exchanges.
- One of the few exchanges to offer futures contract on EOS and XRP
- The easy account set-up process
- Good customer support team
With a customer-centric approach, continuous improvements within the platform, and robust risk management, Bybit simplified crypto derivatives trading. And, in the future, we may also see the introduction of new contracts and derivatives instruments.
So, from our side, it’s a big thumbs up for Bybit.