Bybit Guide & Review: A Crypto Derivatives Platform with Insurance Tools
Bybit is a peer-to-peer crypto derivatives exchange set up nearly three years ago. Due to its trading convenience, the platform had surpassed a million sign-ups by the end of 2020.
The exchange is popular for leverage trading for sets involving Bitcoin or Ether versus the US dollar. The leverage index goes to as high as 100:1. The high multiplier makes their non-expiry futures product thoroughly competitive. Impressively, their contracts do not trail the crypto assets they are derived from but follow the spot price.
Though it operates from Singapore, it is owned by Bybit Fintech Ltd., based in the Caribbean British Virgin Islands.
The marketplace is accessible to crypto traders in Europe, Russia, and some parts of Asia and America. Due to government restrictions, Bybit is unavailable in the United States and Quebec (North America).
Essential products on the exchange include Inverse Perpetual, USDT Perpetual, and Mutual Insurance. Inverse perpetual contracts are contracts quoted in US dollar (USD) and settle using a cryptocurrency.
USDT perpetual contracts, on the other hand, are attached to the underlying crypto/asset and have no expiry date. The Mutual Insurance tool allows perpetual contracts’ holders to hedge against potential losses.
To register on Bybit is reasonably simple. The first step is visiting their sign-up page. However, you can still use a mobile app. A verification code is sent to the email or phone number provided. You then enter the code on the provided slot and click "Complete registration."
The enrollment process can take less than five minutes since it doesn’t have know-your-customer (KYC) restrictions.
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How to Make Deposits
The user should first click on the “Assets” icon on the static bar on top, which further opens a menu that displays the account holder’s wallet balances.
Further, tap on the “Deposit” button. The wallet number for the selected currency pops up. Now you need to carefully copy it and use it on the personal wallet’s withdrawal menu from which you are sending money from.
Users depositing using the mobile app need to first click on the “Asset” icon at the lower part of the home menu. The user should then click “Deposit,” select the desired currency and copy the displayed deposit address.
How to Make Withdrawals
To withdraw, you need to tap on the “Withdrawal” button on the same “Assets” menu but be keen to use the icon adjacent to the currency you need to send.
Subsequently, you need to insert the wallet address to which you are transferring the funds.
The “Withdrawal” icon is just next to the “Deposit” icon on the mobile app.
Withdrawals are subject to two-factor verification for security purposes. Additionally, there are amount thresholds per transaction. For instance, Bitcoin has a minimum limit of 0.002BTC and a maximum of 10 BTC.
Analyzing the Trading Platform
The platform, running on cutting-edge charting invention, TradingView, is user-friendly and convenient. These charts cover vast time-frames and are excellent for generating trend curves for perfect trade projections.
The system has the advantage of swift order implementation that cushions the traders from the ever-shifting crypto prices.
Moreover, the platform has a high-performance order matching mechanism that completes one million entries per second. Due to this phenomenal speed, the system doesn’t suffer overloads nor server downtimes.
Bybit Trading Bot
The platform has automated software that can trade cryptocurrency in the absence of real-time human intervention. Traders who need this web robot’s services have to link their accounts to the 3Commas buying and selling platform via the API keys.
For users who are yet to get convinced of the platform’s functions and efficiency, Bybit testnet offers them the opportunity for testing it first.
A prospective trader can set up dummy accounts and study how Bybit orders work even before enrolling onto the platform. The Bybit platform provides a great guide on how such users can borrow demo coins.
Bybit Trading Fees
The levies follow a maker-taker system. The makers get rewarded at a rate of 0.025% for their role of pumping liquidity onto the platform. The system is set to charge takers at a rate of 0.075% for removing liquidity off the platform’s order book.
The difference between the two sets of fees (0.05%) is the exchange’s profit from the transactions. 0.2% is the lowest rate for spot trading on Bybit. These fees are 3-15 times higher than those of non-expiry contracts.
The table below shows the maker and taker fees applicable for Bybit futures contracts.
Deposit transactions do not attract fees. However, withdrawals attract network fees though they are comparatively small.
How Secure is Bybit?
Bybit boosts the security of its customers’ virtual wealth by operating a safe offline wallet. It only moves a fraction of its coins from the cold wallet to the hot wallet, depending on the withdrawal requests. Therefore, the cold storage solution keeps its crypto reserves out of the reach of hackers.
Additionally, the transfer follows a multi-signature process to avoid the risky scenario of managing all the money on the exchange with a single key. Bybit also subjects customer withdrawals to two-factor verification.
Apart from a 24/7 live chat option, the Bybit platform has a Telegram channel for simple inquiries.
If the issue at hand requires a detailed explanation, you can reach them via email; [email protected] or [email protected]
The first one is ideal for general customer service, whereas the second is used for technical issues. Unfortunately, Bybit cannot be reached by phone.
- Affordable transaction fees
- Supports futures contracts for rare crypto like Ripple and EOS.
- A user-friendly trading platform
- The platform has high liquidity.
- A swift order machine with a processing speed of 100,000 entries per second
- Not available in some countries like the United States.
- Bybit offers a limited coin variety.
Bybit is an excellent marketplace for traders going for leverage trading. However, the exchange offers a limited variety of cryptocurrencies.
Larger crypto exchanges such as Binance are gradually incorporating leveraged trading and may provide harsh competition if no competitive advantage is found quickly. Bybit has remained popular for its futures contracts.
Ultimately, Bybit should think of increasing the threshold of its testnet funds so that prospective traders get the experience of serious trading on the platform. In so doing, the exchange has a chance of remaining relevant.