You just entered the crypto market. You have familiarized yourself with the many concepts, technical analysis reading, and the current situation and are ready to start trading. There is just one problem; where do you go to do your trading? There are many, many places and exchanges that offer trading opportunities, so which one do you choose? Well, that is what this article is going to try and help, and it will do so by taking a lot at one of the space’s most popular trading platforms, Bybit. The platform is so popular that many crypto YouTube influencers and traders recommend the platform to their viewers.
This Bybit review article will do a full review of the dynamics and structure of Bybit. We will see what the platform offers that makes it so popular and why you should consider it to trade Bitcoin.
What is Bybit?
Bybit was established in 2018 and is registered in the British Virgin Islands, although its headquarters are in Singapore. It is a cryptocurrency future trading platform where it boasts of having more than 2 million users. This boast may not be an exaggeration, as some very well-known crypto YouTubers have recommended the platform. Some channels include Bitboy Crypto, Crypto Jebb, The Moon, Crypto Zombie, among others.
It was set up to address the issue of some platforms shutting down due to high trading volumes. It has a matching engine that is capable of handling 100,000 TPS with a low latency of 1 ms.
The platform was built with a customer-focused approach where anyone in the world can sign up to trade. It is committed to creating a fair, transparent, and efficient exchange environment. One of the best ways it does this is by providing 24/7 multi-lingual customer service support. Bybit also has a Help Center for users who are having various issues.
The platform has been developed specifically for experienced traders. Users new to trading are advised to seek other platforms.
Bybit offers three products; coin-margined inverse perpetual contracts, USDT-margined linear perpetual contracts, and coin-margined inverse futures contracts.
The coin-margined inverse perpetual contracts offer four pairs for trading; BTC/USD, ETH/USD, XRP/USD, and EOS/USD. The USDT-margined linear perpetual contract offers thirteen pairs for tradings BTC/USDT, ETH/USDT, BCH/LINK, LINK/USDT, LTC/USDT, XTZ/USDT, ADA/USDT, DOT/USDT, UNI/USDT, AAVE/USDT, SUSHI/USDT, XEM/USDT, XRP/USDT and DOGE/USDT. Finally, the coin-margined inverse futures contracts are the newest product, but it only offers the following pairs; BTC/USD quarterly and ETH/USD quarterly.
Apart from the second option, the first and third options offer limited crypto pairings for futures contracts, and this is one of the main drawbacks for the platform.
When it comes to buying crypto, you have the option of buying Bitcoin, Ethereum, or USDT with various fiat currencies such as AUD, BGN, CAD, ZAR, SEK, and many others in either fiat amount or crypto amount. This feature is provided through Moonpay, a third party. To use it, users will need to provide KYC to Moonpay.
Signing up is easy. All you need to provide is either your email or mobile phone, create a password. For extra security, you can enable 2-factor authentication.
No KYC Required
Unlike most other exchanges and trading platforms, Bybit is one of the few that doesn’t require its users to submit a KYC (Know Your Customer). Anyone other than those living in a sanctioned country and sign up. Unfortunately, the US and Canada are some of those countries that prohibit their citizens from signing up. However, there is a way around it. Users can use a VPN like NordVPN to access Bybit.
Here are the best VPN for Bybit that you can choose from:
High Leverages and Hedging
ByBit offers leverage up to 100X. Leverage is the number of funds you can borrow from the exchange.
In addition, Bybit allows you to hold both long and short positions simultaneously. They also offer an isolated mode, which lets you use different leverages for concurrent positions.
The platform also offers users the comfortability of trading through their mobile phones. Not at home? No need to worry; just download the app and start trading!
Using Sub-accounts for different trading strategies
One interesting feature that Bybit has is allowing users to have different sub-accounts under their main account. This allows traders to conduct and keep track of different trading strategies in different accounts rather than in one. This feature lets you have up to 20 sub-accounts and allow the transfer of funds between sub-accounts to happen with zero fees.
Fees are another reason why Bybit is so popular. When it comes to trading, the platform charges 0.075% as a take fee and offers 0.025% for makers.
Market Takers are those who seek liquidity and take liquidity off the book immediately, will be charged a trading fee. By contrast, market Makers, who provide liquidity and increase the market depth of the order book, will receive a rebate (negative trading fee) from Bybit. The trading fee(rebate) is deducted(added to) from the account balance, and it does not affect the initial margin of the order.
The platform does also charges withdrawal fees. But the first to note is that the Bybit process withdraws only 3 times a day, at 8:00 am, 4:00 pm and at 12:00 am UTC. The cut-ff time for withdrawal requests will be 30 minutes before the scheduled withdrawal processing time. For example, all requests made before 7:30 am will be processed at 8:00 am UTC. Requests after 7:30 am will be processed at 4:00 pm UTC.
As for the fees themselves.
Below is the minimum amount for withdrawals.
No minimum deposits are required.
Bybit also runs various trading competitions for users to participate and win prizes.
Who Is This Product For?
This platform is only for experienced traders. It is not recommended for beginners.
Tutorial/How to Use Videos
Although considered one of the most popular, Bybit is not the only futures trading platform in the crypto market. There are others that also provide good services and products to users. One of these is FTX.
Residing on the Solana blockchain FTX is another popular platform that offers great services to users. It offers 15 perpetual contracts, tradable indexes, and leverage tokens for more than 45 crypto assets. It also offers up to 101x leverage. The exchange does offer KYC, but only for withdrawal of more than $1,000. FTX also offers good trading fees, 0.02% for market makers and 0.05% for market takers.
Another trading platform is BitMEX. With a 30-day trading volume of $72 billion, BitMEX offers specializes in crypto margin trading and offers perpetual futures contracts in BTC, ETH, and XRP, while also offering traditional futures contracts. It offers up to 100x leverage for Bitcoin perpetual contracts, while for Ethereum and XRP, it only goes up to 50x and 25x, respectively. The platform charges 0.025% for the market fee and 0.075% for a market taker.
A third great contender is Binance’s Futures exchange platform. At present, it offers 24 futures contracts for all trading against USDT. It also offers up to 125x leverage on BTC futures contracts. For Ethereum and other Altcoins, it offers up to 75x leverage. This platform can also manage up to 100,000 TPS with a minimum latency of 5 milliseconds. However, trading on the platform of the future does require users to provide a KYC verification process, meaning there is no anonymous trading. The fee structure is quite straightforward and depends on the 30-day average trading volume of users. For the default level (VIP 0), the maker fee is 0.020%, and the taker fee is 0.040%.
Bybit Review – Conclusion
In conclusion, Bybit offers very good products and services. It is one of the most popular, and hence one of the most liquid trading platforms you can find. It has good referral programs with standard futures contract trading opportunities, not to mention that it also provides anonymity.
However, compared to other platforms, users do not have many options on which crypto assets to trade. Moreover, it is not recommended for anyone new to trading to use Bybit. It is strictly an experienced trader's playground, which can hinder its trading volumes, not to mention discourage new traders from using the platform. Nevertheless, the platform does offer some unique services, such as sub-accounts. Plus, inexperienced traders can sharpen their trading skills on other platforms before they decide to hop over to this rather exclusive platform and trade with the big boys.
Ease of Use
- No KYC makes registration a breeze, it's very easy to start trading on Bybit
- Unlike some other cryptocurrency exchanges, Bybit has a mobile app, making it easy to trade when away from the computer
- Bybit is one of only a handful of exchanges that offers perpetual swap futures for coins like XRP and EOS
- On Bybit it's possible to trade with extremely high leverage, especially on Bitcoin products.
- Low trading fees, including a rebate for the market maker
- The Bybit insurance fund guarantees that losses will not have to be socialized throughout the Bybit ecosystem
- Multiple order types make Bybit suitable for advanced traders and investors
- It's only possible to trade four coins on Bybit and the exchange has not announced their intention to support any more
- Bybit is blocked to US citizens
- It's difficult to verify that Bybit's volume statistics are actually accurate to it's hard to know for sure how much trading is actually happening on the platform.
- Bybit does not support fiat purchases of cryptocurrency