The cryptocurrency derivatives exchange industry has always been a grey area in the market. The most common problem in the cryptocurrency derivatives space is that these exchanges are incapable of handling high-frequency trades.
Luckily, there is a new platform that aims to combat this exact flaw. This article will look at Bybit, a system that tries to challenge the crypto space.
Let us now have a closer look at the various pros and cons that Bybit has to offer.
Good leverage: Bybit offers 100x leverage that not many platforms offer.
Quickstart: You can begin trading on this platform right away. There is no need for any KYC verification to start trading on Bybit.
Good customer support: Contacting and getting issues resolved by the customer support on Bybit is straightforward, thanks to the live chat feature on the platform.
Not suitable for beginners: Bybit is not a beginner-friendly exchange.
New exchange platform: Unlike BitMEX, Bybit has only existed for 2 years. Thus, it needs more time to prove its place in the market.
Bybit is not supposed to be used by beginner traders, as the platform’s target audience is expert crypto users who want to earn more through strategic contract trading.
The good leverage, exceptional starting procedures, and responsive customer support equate to a powerful combination that can be utilized by knowledgeable traders to yield high-risk, high-reward results.
Bybit was launched in 2018. Headed by Ben Zhou, who operates from his Singapore headquarters, Bybit has been one of the very few derivatives exchange to challenge the market dominance that BitMEX has had over the years.
Even though this platform has been around for just a couple of years, it has proven extremely reliable. With the capability to handle high-frequency trades regularly, Bybit has won the hearts of thousands of traders around the world.
For its capability to deal with large volumes and frequencies, it is considered an excellent platform in the derivatives market.
What Is Bybit?
Bybit is a cryptocurrency derivatives exchange where you can trade cryptocurrency in perpetual futures. The added advantage of Bybit is that you can trade these futures contracts with the added leverage of up to 100X.
Bybit offers a 99.99% uptime, thanks to its platform’s capabilities to handle 10,000 transactions per second. This ensures that even during high volatility, the platform operates as usual.
Getting started on Bybit is also extremely easy. You can take complete advantage of this platform without completing your Know Your Customer (KYC). With the newly added instant buy feature, you can also purchase cryptocurrency directly from the site.
The only downside of Bybit is that it is not open to US traders. So if you are in any other part of the world and are looking for a good derivatives exchange, you should consider trying out Bybit.
Perpetual Futures Trading
The primary service offered by Bybit is perpetual futures trading. To understand what perpetual futures are, we need first to understand what a derivative is.
What Are Derivatives?
On Bybit, you will be able to see Bitcoin, Ethereum, EOS, and Ripple trading. However, when you buy any of these, you are not buying the actual cryptocurrency. Instead, you are purchasing the contracts that mimic the real-world price of these cryptocurrencies.
Derivatives are used when we are dealing with futures trading. In futures trading, traders like you agree upon buying or selling a particular cryptocurrency at a set price sometime in the future.
These futures contracts usually have an expiration date on which they are executed.
Bybit offers perpetual futures trading. This means that it is futures contract without an expiration date.
These open-ended futures contracts come with added conditions. These conditions may be an agreement to liquidate/sell your position if the cryptocurrency price reaches a particular threshold.
If the conditions of the contract are not met, your investment will be forcefully liquidated. So, it is extremely risky if transactions go south. If this is your first time in the crypto world, then the perpetual futures market is not for you.
Now that you have a fair bit of knowledge about perpetual contracts, let us look at the few things about Bybit’s contracts.
- Initial Margin/Collateral: On Bybit, you can leverage up to 100x your investment. You can think of this as your house mortgage. So, if you invest $1000 initially, you can borrow 100,000 from the platform.
Thus, you would be able to invest funds worth $101,000 without even having that much money. However, this also comes with its share of risks. With leverage trading, your risks are also multiplied by the leverage that you take.
In this case, if the price of the asset you invested in drops by just $10, you would end up losing $1,000. This would be done automatically, and your entire position in the market would be liquidated.
It is also because of this that taking 100X leverage is rarely a good idea.
- Maintenance margin: Maintenance margin can be thought of as the interest that you end up paying when you take a house mortgage. Based on the asset and the leverage that you take from Bybit, a maintenance margin should be paid.
Failing to do so would result in the liquidation of your invested assets. Currently, the minimum maintenance margin is 0.5% on Bybit.
- Insurance Fund: An insurance fund is a great feature introduced by Bybit to help traders during high volatility times. A small percentage of collateral of the liquidated traders is used as an insurance margin.
Many traders might not execute their contracts in time during high volatility times, ending up running debts. This insurance fund aids to prevent this and allows the traders to get the profits they earned.
As there is a lot of complexity involved in perpetual futures contracts, Bybit is not an exchange meant for the novice.
Instant Buy with Fiat Deposits
This is a feature that was recently released on Bybit. All the derivatives exchange systems out there support only cryptocurrencies as a mode of payment. Bybit removes this by allowing users also to buy cryptocurrency directly using fiat currency on their platform.
Using your credit card, you will be able to buy Bitcoin, Ethereum, or even Tether directly on this platform’s fiat gateway. This service offered by Bybit makes it very easy for users to get started even without existing crypto funds.
Bybit’s account limits are numbers that an average trader would not breach. Since there is just one account level, we only have a single limit for all user accounts. A single user can trade as much as 200 Bitcoins or approximately $2 Million USDT every day. Due to this large limit imposed on an account, Bybit is an excellent choice for large-volume traders.
To get started with Bybit, one needs to possess some cryptocurrency that he can deposit. However, you can also use the instant buy service to buy cryptocurrency on Bybit using your traditional fiat currency. The payment methods accepted by Bybit’s instant buy service are Visa and Mastercard credit/debit cards.
Bybit charges its customers a standard fee for every single trade that is executed on its platform. Like most other exchanges out there, it follows a maker and taker structure while setting the fees.
While most of the other exchanges charge both makers and takers for a trade executed, Bybit gives a 0.025% rebate for all makers. This is for the added liquidity that they bring to the platform.
On the other hand, the takers have to pay a 0.075% fee for every executed trades. These might seem like very small percentages. However, this can quickly grow because the fee is charged on the entire leveraged amount and not just your initial investment.
Things I liked About Bybit
I haven’t used Bybit for a very long time. I was using Bitmex for all the cryptocurrency futures trades. However, since the addition of more regulations on Bitmex, I jumped ships to Bybit. The first thing that I loved about Bybit is that there is no need to complete any KYC.
You can simply sign up on this platform using just your e-mail address and start trading without having any limits imposed on your account. Additionally, I find myself using the fiat gateway very often on this platform. This has completely removed the need for me to buy cryptocurrency on any other platform.
Another impressive thing about Bybit is the stability of the platform. Most of the other derivatives exchanges start to slow down during times of high volatility. Over the past six months of using Bybit, I have never encountered this issue. This can be attributed to the high, 10,000 transactions per second capability that they boast about.
To make things more interesting, they have constant promotions and games that allow you to earn more on the platform.
Bybit is a well-built platform. They have an informative tutorial and help section on the website. To date, I have not found any need to even contact the customer care team because of any issue. However, for the sake of this review, I did get it a try.
The website flaunts live chat support. I was expecting an automated chatbot to reply with a generic response. However, Bybit blew my expectations away by having a human reply to my queries on the other side of the chatbox.
Within a few seconds of asking a question, a member of the support team quickly reached out to me. This is truly impressive as customer support is one area that new platforms struggle with.
The live chat feature certainly helps to get your issues resolved quickly and directly on the platform itself. Alternatively, you can also contact them by sending an e-mail to the customer support e-mail that they have provided.
Frequently Asked Questions About ByBit
Yes! The Bybit referral program is designed so you and your recruited friends can enjoy each other’s success! Every 0.02 BTC deposit made by someone you invited equates to 10 US Dollars in your account, regardless of the trading volume. This creates a positive community for users and attracts future Bybit members.
If you have BTC in your account but want to use Ethereum or XRP as the method, you can convert such funds using the Assets Exchange feature. This has a flat rate of 0.1% for any transaction, and limits also apply while using it. However, limits are reset every 00:00 Coordinated Universal Time, allowing you to use the function once again if necessary.
Account registration needs either an e-mail address or a mobile number. This helps identify every user on the platform. By entering this information together with your chosen password and referral code, you can quickly obtain a Bybit account.
To make a deposit, you need to make sure that your funds are either Bitcoin, Ethereum, Ripple, Tether, or EOS. Other forms of cryptocurrency are not accepted. To proceed, simply identify the coin type and click the deposit button. An address will appear, and this is where you will send the funds to. After some confirmations, you can expect the balance to appear in your account. Bear in mind that there is a need to wait for 10-60 minutes as blockchain processes your transfer request.
Bybit is a shiny new cryptocurrency derivatives exchange that is sure to impress all experienced traders out there. The stability and responsiveness of this platform are very impressive. The platform also offers professional charts and tutorials, so you can find everything that you need in one place.
With 99.99% uptime and good security practices, Bybit is a safe derivatives exchange. The numerous promotions and games help to bring in new users to this platform as well.
While it is an excellent platform for seasoned traders, I would never recommend it to novices. The risks involved are very high if you do not understand how perpetual futures work. To make full use of Bybit, you need to be well versed in the ups and downs of the crypto market.
If you are a knowledgeable trader looking to expand your earnings and methods, Bybit is the best platform for you.
Bybit Review – January 28, 2021
One of the best platforms on the internet. It has been a year since I have started trading using Inverse Perpetual through Bitcoin/USD, and I have earned some funds from it. Also, the integration with the Telegram community is great since I get to learn of other’s experience in using Bybit.
Review from Rus
Bybit Review – October 20, 2020
For a long-term trader like me, I found the interface simple, and the application is a great help, especially for checking updates on my mobile phone. Not only that, features keep improving as time passes by, and it rides with the trends of the crypto world.
Review from Mike
Bybit Review – July 22, 2020
Trading is available all-day. Support is also available 24/7. This means that I get to enjoy all my earnings and transactions without any delay whatsoever. I only joined the community for six months, but it seems like I am staying for good. The features benefit the users, and the affiliate program by itself is impressive. More power to the crew!
Review from Damian
Bybit Review – November 22, 2020
I have been trading using Bybit for 2 years, and ever since the conception of my account, I have never experienced any problems. Even if blockchain traffic is heavy, the Bybit system remains very reliable and fast. The source engine seems to be built on a strong foundation, resulting in an efficient experience for users like me. Liquidity is also large on both Bitcoin and Tether.
Review from Cooper
Bybit Review –March 19, 2020
Right now, I am just testing the platform’s capabilities using one account with little funds. So far, 5 gaining trades were made, and transactions are smooth. When it comes to problems, I do not see any of them. The user interface is easily navigable, and no lags are experienced both in the app and pc version. Happy to explore this platform more in the future.
Review from Arnold
Bybit Review – September 21, 2019
Bybit is a very specific system for people with specific targets in earning. It can not be easily used by any beginner since the platform is more for advanced people. This makes it not a very newbie-friendly site. However, it does everything that it needs to do for more advanced users.
Review from Chris
Bybit Review – February 19, 2020
I lost some money on this platform. There was a 1x Leverage option, but I chose the 100x. Over time, bad choices led to the loss of funds, so I do not recommend this for users who are not ready to take risks without proper knowledge. I hope I can get my funds back.
Review from Grisha