There are many top cryptocurrency exchange platforms in the world today. Some are very popular while some are relatively unknown. But if you are looking for a platform of disruptors that will take the crypto world by storm in the year 2020s then you should be looking at ByBit Exchange. In this post I will give you a comprehensive review of all the things you need to know about ByBit exchange. You will equally learn the step by step approach to trading with ByBit immediately.
But before we proceed, let’s answer the important question – what is ByBit?
Frequently Asked Questions
ByBit is based in Singapore
No, ByBit is not in the US at least not yet
Listing your coin on ByBit is totally free of charge.
A perpetual contract is a derivative financial contract that has no expiration date or settlement, allowing it to be held or traded for an indefinite amount of time.
A perpetual contract resembles a traditional futures contract in many ways. Its main difference, however, is that it doesn’t have an expiry date. Hence, traders are allowed to hold their positions for as long as they need to.
Ben Zhou is the founder of ByBit. He is also the CEO of the company since inception to date.
What is ByBit Exchange?
Bybit is a cryptocurrency exchange established to offer a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service and multilingual community support. ByBit was established in March 2018 and is based in Singapore.
As a cryptocurrency derivatives exchange ByBit has a wide range of advanced trading tools. It has top-notch security and a no-down-time commitment. The exchange offers only 5 crypto assets for users to margin trade and is as crypto only exchange meaning you can only fund you account with digital currency and not fiat currency.
About ByBit Exchange
ByBit Exchange is fully focused on futures trading. ByBit Exchange gives users the ability to trade crypto perpetual contracts with up to 100:1 leverage. Though launched just in March 2018, yet it is now regarded as one of the fastest growing cryptocurrency exchange with over 6 million registered users. If you are a crypto enthusiast, then you should know that ByBit is the platform of choice to buy, sell, trade popular coins and NFTs across different contract types.
A look at ByBit’s website says her vision is to be a crypto ark of the world.
It further stated that the mission is to empower crypto believers to achieve their dreams. With a slogan – let our passion fuel your dreams.
ByBit Core Values
The website encapsulates the platform’s values as follows:
ByBit says it constantly Listen, Care, and Improve. They aim to revolutionize the industry by fusing the best of cryptocurrency and traditional finance.
Our innovative, highly advanced, user-friendly platform has been designed from the ground-up using best-in-class infrastructure to provide our users with the industry’s safest, fastest, fairest and most transparent trading experience.
Built on Customer-Centric Values
ByBit endeavors to provide a professional, smart, intuitive and innovative online trading, mining and staking experience for retail and institutional clients around the world.
ByBit commitment is to creating a fair, transparent and efficient exchange environment.
ByBit brings in the best talents from the foreign exchange and investment banking industries. The team consists of industry leading technology developers, financial and consumer technology experts with significant experience in innovating within the vertical.
How to list my project token/coin on Bybit?
The process is as easy as ABCD. Simply send your inquiry to email@example.com with Project Name – Country – Token Listing as the subject. The platform has a spot team that will reach out to you almost immediately. They will provide you with more information about the application process.
What to expect during the review process?
In case you are wondering what to expect during the review process, just calm down. Don’t be nervous, right? It will just be basic information about your project. In fact they are so basic that supplying them does not guarantee that your project token/coin will be listed on Bybit. However, if your project passes that initial review, a dedicated Business Development Manager (BDM) will contact you via email.
What to expect after my project token/coin gets listed successfully?
And if your token/coin is successfully listed as I expect it will, then you need to update the dedicated BDM on your project progress regularly. Ideally you should provide update every week or at least every fortnight.
How to Set Up Your ByBit Account
Before you start trading on Bybit, you’ll need to sign up for an account. Fortunately it is a very simple process. And I don’t expect that it should be a challenge for anyone. In fact it takes just 4 simple steps as listed below:
Step 1: Go to the ByBit Homepage – www.bybit.com
Step 2: Choose email or mobile registration
Step 3: Enter email or phone number. It is your choice. Any of them will work.
Step 4: Enter verification code sent to whichever registration method you chose, the code is only valid for 5 minutes. So you must use it immediately.
You are good to go. At this point you can start trading.
What to Do After You Have Created Your ByBit Account – Security first
At this early stage, it’s very important to make sure that you properly secure your account. Therefore, once you get registered, you should go into your account settings and click the “Account & Security” tab. There, you can set up email authentication, SMS authentication, as well as Google authentication (2FA).
Bybit has done a good job of simplifying the user experience, as the top navigation bar contains everything you’ll need to utilize your account, including trading as well as monitoring your assets and current market prices.
Moreover, upon successful registration, users can take advantage of a free $90 worth of BTC to begin their trading adventures on the platform. This is limited to completing tasks on Bybit.
How to Deposit and Withdraw on ByBit Exchange
Naturally, in order to trade on Bybit, you’ll first have to deposit funds. Remember that Bybit is a crypto-based platform. Hence you can only deposit cryptocurrencies.
So in order to make deposit, you have to select the “Assets” tab on the top navigation bar and then click “funding”. Once you do that you will see all of the available perpetual contracts listed neatly.Here you can also track all the important metrics for measuring the performance of your positions, including Unrealized P&L, Available Margin, and Position Margin. On the right side, you’ll also see options to deposit and withdraw funds.
By clicking the Deposit button, you’ll be presented with a box containing your Bitcoin (BTC) deposit address as well as its corresponding QR code
The withdrawal process is also fairly simple too. For your own safety, withdrawals require your account to be verified and have 2FA turned on.
How ByBit Works -How to Trade on ByBit Exchange
Bybit does not have any KYC requirements, so you only need a phone number or email address to open an account. You can deposit cryptocurrencies or use a third party app to buy Bitcoin with fiat (traditional) money. ByBit offers margin and futures trading at up to 100x leverage. What does this mean? This means you could trade a position of $5,000 from a $50 investment. Experienced traders can make high profits from such leveraged trading as it magnifies the potential trading rewards. But let me warn – it also magnifies the risk.
This 100x leverage for Bybit users applies specifically to Bitcoin. On every other cryptocurrency they get 50x leverage. Customers can also take out short-term insurance against losses. For advanced traders, both the website and mobile cryptocurrency app are packed with useful features. You may need to explore it further.
On ByBit platform you can just exchange one cryptocurrency for another. But if that’s all you want to do, Bybit is probably not the best choice — it isn’t set up just for spot trading.
Buying on Margin
If you’ve never used leverage before, you’re essentially borrowing money to amplify your potential returns. It’s also called buying on margin. Regulators don’t allow retail investors to buy on margin because you may also amplify your losses and can easily be left with nothing.
Users have the liberty to either place long or short order. Long order means you are betting that the currency will gain value. And you place short order when you think the currency will crash and lose substantial value. Here are the three main types of order you can make:
With a limit order, you can set the price at which your order will be executed. I will explain this with an example. Assuming Bitcoin is currently trading at $12,000 and you want to place a long order, but you feel the price is too high. You can can still do it at a lesser price you are comfortable with. You can simply set a limit order to buy Bitcoin at say $10,000 even though the price is currently $12,000. Once you do this, you can go to sleep. When the market drops to that price you set, your order will be filled.
This is the simplest order type. You select an amount of Bitcoin (for example) that you wish to buy or sell and then hit the Long or Short button, respectively. The order will be executed at the best available price of Bitcoin on the order book.
I won’t advise any one that is a beginner to go for conditional orders. It is best suited to more experienced traders. When you set a conditional order, you have to enter a trigger price along with the limit price. The trigger is the price at which your order will enter the order book. So, when the trigger price is reached, only then will the order be delivered to the market. And it doesn’t matter if the order is limit or market order.
ByBit Margin Trading – How to Set Leverage
Before you enter the position quantity, you’ll have to select a margin level. Once you do this, your position will be re-calculated and you’ll be ready to go. Bybit allows a margin level of up to 100x. This means that you can trade each $1 for $100. However, as the margin increases, your position’s stop-loss tightens.
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Opening and Closing a Position
As you can see, opening a position on Bybit is fairly straightforward. After you’ve chosen an order type, all you have to do is enter your desired metrics. Once you’ve done so, you’ll open your position by clicking on the “Buy/Long” or “Sell/Short” button, depending on whether you want to long or short the cryptocurrency at hand.
After you’ve done so, you will see your position appear in a designated space where you can monitor its performance.
Here you can check important performance metrics and activate Auto Margin Replenishment (AMR), which you can read more about below. There are a few ways to close your position. First, you can always close the position at the spot price. However, you can also set an order that’s opposite to your current one.
Margin trading is gaining popularity in the cryptocurrency space, and more and more exchanges seem to be offering it. Before we dive into Bybit’s offerings, it’s important to understand that margin trading contains significant risks. While it can accelerate your profits, it can also seriously damage your capital.
You have two options when it comes to margin trading on Bybit: Isolated Margin and Auto Margin Replenishment.
Auto Margin Replacement (AMR)
This mode automatically adds margin to existing open positions in order to avoid liquidation. Once you enable AMR, if the margin level on your position is about to reach the maintenance margin level, Bybit will replenish the margin from your available balance. It’s perhaps best to use this option with care in light of the volatility of the cryptocurrency market.
Bybit charges two types of fees depending on whether one qualifies as a market maker or a market taker.
Market Makers: The fee here is 0.025% of your trade. To qualify as a market maker, your order must be placed on the order book waiting to be filled. This is the case when you decide to place a limit order.
Market Takers: The fee here is 0.075%. When you are a market taker, your order is filled immediately without being placed on the order book. That applies when you decide to place a market order.
As you can see ByBIt fees are extremely reasonable for both trading and withdrawals.
For withdrawals ByBit only charges the mining fees associated with the withdrawal and nothing additional. This is extremely rare for exchanges and very attractive. For example, no matter how much Bitcoin you withdraw the charge can only be 0.0005 BTC fee. This is 40% lower than the global average.
Is ByBit Exchange Safe?
Yes, ByBit is a very safe cryptocurrency exchange.
In just 3+ years, Bybit has proven to be a secure platform to trade on. Bybit maintains an insurance-like fund to deal with shortfalls in contract settlements. Besides, Bybit has mutual insurance, which is a risk management tool for the BTC/USD pair.
As for personal account security, Bybit offers 2FA authentication provided by the Google Authenticator app.
Also they store almost all of their funds, along with users’ funds, in cold storage. The implication of this is that even if someone hacks the exchange today there is a limit to the amount of funds accessible to the hacker. They only store enough funds on the exchange to facilitate user withdrawals, and whenever they move assets from cold storage to an exchange, they use a multi-signature address scheme.
So you can trade confidently on ByBit without any worries.
ByBit Exchange Support
How many exchanges do you know that provides support to users? Probably not much. But if you do know any, ByBit is one of them.
ByBit provides chat support 24 hours a day. This alone is already a differentiating factor many of its competitors. When tested, the queue lasted roughly one minute, and the support representative was kind in answering all of our questions They were at the same time gladly providing all necessary information. I think this is quite commendable.
ByBit Regulation and KYC
Just like most other crypto margin exchanges, ByBit doesn’t require KYC in order to trade. According to the team, “Due to the evolving nature of the blockchain and cryptocurrency industry, most countries have yet to establish regulations and jurisdictions to govern cryptocurrencies. Despite this, ByBit understands the importance of operating with license. And as it stands, it is currently actively seeking avenues to obtain any relevant regulatory license.” So ByBit is not under any form of regulation in any country for now.
Cryptocurrency Selection for ByBit
Due to the fact that ByBit Exchange operates as a crypto derivatives exchange and not as a traditional exchange they offer a limited number of crypto assets for purchase and trade. So you need to take note of those crypto currently on offer. They are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Eos (EOS)
- Ripple (XRP)
- Tether (USDT)
- And perpetual contracts.
Advantages of trading on Bybit
Below are key advantages of ByBit exchange in comparison with other exchanges:
- Easy registration process for website and mobile app
- Attractive fee structure
- Fully anonymous exchange
- Trading bonuses and rewards
- High liquidity
- Great UI/UX, extremely intuitive platform
- Up to 100x leverage on crypto
- Advanced tools supported by great technology
- Risk-free test environment to learn and experiment
- Educational resources
- Highly responsive support team
- Reliable and highly-secured platform
- It provides multilingual online support to members
- 100,000 TPS state-of-the-art matching engine which makes it pretty difficult to have overload problems.
Disadvantages of trading on Bybit
You need to take note of the following features which may be limiting:
- Limited crypto asset selection
- Cannot fund account with fiat currency
- Not available in the US
- Limited variety of trading pairs
- The platform is unregulated (as of now)
- Not suited to spot trading
- May share your data with third parties for marketing
Is ByBit Right for You?
That is now for you to answer with all the information provided. So let me ask you. Do you think ByBit is the right platform for you? Share with me.