- Is Bybit a safe exchange for Spot and derivative trading?
- Are Bybit fees cheaper than its alternative?
- Does Bybit require KYC?
- Should you be using Bybit?
We will learn all about these in our in-depth review of Bybit.
The number of traders, and volume on derivative exchanges has increased significantly in the past few quarters.
Earlier, Bitmex used to be the best margin trading exchange, but due to a recent shift in traders’ sentiments, and controversies around Bitmex hack, a lot of traders started moving to new margin exchanges like Bybit and Binance.
Bybit turns out to be a clear winner as they listened closely to the trader’s community, and since last year, they are constantly on a rise. It may amuse many that how a young exchange like Bybit was able to capture the heart of traders in such a short span.
When we looked deeply into the Bybit operation, and how they are shipping new features, it was clear why Bybit will keep growing in the time to come.
In this Bybit review, I have outlined all the details you need to know to learn what is Bybit, its features, risks, security, Bybit trading fees, and few more questions, that will help you understand everything about this exchange.
Note: Bybit is not available for UK users in compliance with the FCA ban. If you are from the UK, you should check out these UK-based platforms.
What is Bybit?
ByBit is one of the fastest-growing crypto derivatives margin trading platforms, which its headquarter in Singapore and offices in Taiwan and Hong Kong. Bybit matching engine is capable of handling 100,000 TPS, so you don’t have to worry about overload issues, and offers low latency (1ms).
Update: In 2021, Bybit also launched the spot trading market.
With over 100,000+ users and multi-lingual support (English, Chinese, Traditional Chinese, Korean, and Japanese), Bybit currently is one of the top 3 cryptos derivatives exchanges.
Currently, Bybit offers two kinds of contracts:
- USDT perpetual contract: The margin used is USDT and it’s a linear contract. If you are trading in BTCUSDT, I recommend using this one for beginners.
- Inverse Perpetual contract: An inverse contract means if a trader would like to trade BTC/ETH/XRP/EOS contract, the underlying cryptocurrency has to be used as the margin to trade the respective contract.
Currently following coins are available on Bybit for margin trading:
We will dive deep into Bybit trading strategies in upcoming tutorials, for now, let us focus on the features and offerings of Bybit. This will help you understand what extras you could expect from this rising star.
Features of ByBit – What’s makes it special?
Unlike other margin trading exchanges, Bybit offers a minimalistic layout, but under the hood, it is packed with all those features which could help a trader like you or others to have a smoother trading experience.
In the next section, I have outlined some of the features of Bybit that you should know. As you start using Bybit, you will also be able to learn more features that I have skipped intentionally, for you to discover.
Concentrated exchange for high volume trading:
ByBit supports 24 high-volume cryptocurrencies for trading, which include BTC, ETH, BNB, SUSHI, DOGE, USDT, and many more. They recently introduced USDT perpetual trading, in which P&L is counted in USDT, and saves a lot of headaches.
Even though Bybit was mostly a margin trading derivative platform, it silently launched the spot trading platform. At the time of writing this review, the number of available pairs on spot trading is limited, but they have decent volume.
You can buy Cryptos directly on Bybit using their Fiat gateway. This feature is enabled using Moonpay which is a 3rd party that provides payments infrastructure for crypto. However, to use this feature you need to do KYC with Moonpay.
ByBit offers leverage up to 100X, this is the number of funds you could borrow from the exchange.
For example, if you opened a position of 100 USD, and you use 50X leverage, you would be able to trade a contract value of 5,000 USD. By the way, 100 USD in this scenario is called “Initial margin”.
Easy to use trading terminal:
Bybit offers one of the intuitive trading terminals, and if you are someone who is moving from an existing exchange like Bitmex or Binance, it would surprise you. Bybit trading terminal is powerful, as well as robust in features.
ByBit mobile app:
I have to admit, I tried the Bybit mobile app quite later after their web app, and was surprised by the simplicity and quality. It is by far a no-nonsense mobile app, with all the necessary features. While all similar mobile apps from other exchanges look busy, Bybit mobile app looks simple and easy to use. I will share a tutorial for the same in the coming days.
The mobile app is available for both iOS and Android.
No KYC required:
Bybit is one of the few high-quality No KYC exchanges, and you can signup from any part of the world unless you live in a sanctioned country or in the USA. USA users can use a VPN like NordVPN to access Bybit.
The signup process is fast, and you are also entitled to get a joining bonus, which I have explained in the further section of our detailed ByBit review.
Here are the best VPN for Bybit that you can choose from:
With No KYC account, you can withdraw up to 2BTC/Day, and if you want to withdraw more, you need to complete KYC on ByBit.
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. I have explained both types of available margins in the further section.
Exchange coins at market rate:
Bybit also lets you exchange one coin for another. For example, if you are holding ETH, and want to convert it into BTC or USDT, you could do that as well. The pricing is the same as any other popular exchange.
However, this feature is not very prominent and is hard to find.
Sub-accounts: Test Various Strategies
There are various ways by which you can trade on ByBit. For example, you can do manual trading, grid bot trading, using a service like Stackedinvest to name a few. However, one account is not good enough to test different strategies, and hence you would be needing the sub-accounts feature. The P&L will be calculated independently — so you may deploy various strategies and better track the performance of your trades.
This feature is available for all the accounts (on desktop only), and it lets you:
- Up to 20 Subaccounts are supported for each Main Account
- Fund transfers between the Main Account and Subaccounts incur zero charge
Moving on to trading fees on Bybit.
What are Bybit fees: Explained
The fees on Bybit is one of the reasons for its popularity. CEO Ben Zhou and his team have done a splendid job by keeping the fees as one of the lowest in the crypto derivatives industry.
Bybit charges 0.075% fee as a taker fee, and offers 0.025% as a rebate for makers.
Let’s understand this with an example:
- Trader A buys 10,000 BTCUSD contracts using Market order.
- Trader B sells 10,000 BTCUSD contracts using Limit order.
Assuming that the execution price is 8,000 USD:
- Taker fee for Trader A = 10,000/8,000 x 0.075% = 0.0009375 BTC
- Maker rebate for Trader B = 10,000/8,000 x -0.025% = -0.0003125 BTC
Hence, upon execution, Trader A will be paying 0.0009375 BTC of the Taker fee and Trader B will be receiving 0.0003125 BTC of Maker rebate.
At the time of writing, the trading fees are the same for the Inverse Contract and USDT contract.
Bybit Trading competition:
Another highlight of Bybit is, it is traders-centric. It often runs various trading competitions in which you can participate, and win cash prizes. You should keep an eye on our telegram channel or subscribe to CoinSutra email to get notified of such trading competition across various exchanges.
Head over to the Bybit homepage to see if there is any ongoing trading competition.
Isolated margin and cross margin
Bybit offers two margin modes, and you could pick any based on your preference. The isolated margin mode is less risky. If you are starting out with derivative trading, my recommendation is to use the Isolated margin mode.
Let us understand both the mode in detail:
What is Isolated margin mode on Bybit:
This feature of Bybit ensures that the margin placed into a position is isolated from the trader’s account balance. This helps a trader manage their risk accordingly as the maximum amount a trader would lose from liquidation is limited to the position margin placed for that open position.
What is Cross margin mode:
Unlike isolated margin mode, in cross margin mode, your entire available balance within the corresponding trading pair is used as margin.
Note: You have an option to interchange between cross and isolated margin when having an open position. The only time this won’t be possible is when the change itself could trigger immediate liquidation. We will dwell deep into this, in our upcoming tutorials on the Bybit exchange.
How to claim Bybit welcome bonus of $90 (Video)
To reward and welcome the new traders, Bybit offers a joining bonus of up to $90, which you can earn by completing the following tasks as shown below:
Do remember: Bonus can be used as a trading margin but cannot be withdrawn. Profits from the bonus can be withdrawn. Bonus must be activated by trading activity within 21 days after receiving the bonus, after which it will be forfeited. Once activated, it will not expire anymore. If your bonus is not activated, you will receive a notification email 7 days before its expiry.
Here is a video which explains how Bybit bonus and coupon works:
Bybit referral code:
You can use this link directly which adds the Bybit referral code that you need. In case you need to add a direct referral code, here it is:
Bybit referral code: OPkPE
Is Bybit safe?
In my learning and research, I have found Bybit to be safer. The only caveat is it is not regulated, so there is always the risk which is a standard among all crypto derivatives exchanges. Do enable 2-factor authentication, and use a secure password to enhance your Bybit account safety. And trade only with the much amount of money, you are ok to lose.
Last but not the least, do not use exchanges as a wallet to store BTC or other supported coins, rather get a hardware wallet like Ledger Nano X to store your coins for the long term. Use only those funds that you need for trading. You can also consider using a mobile wallet like Samourai or Trust Wallet to keep moving funds from your Bybit account to your own wallet.
Bybit withdrawal fees:
A lot of exchanges have hidden fees in form of withdrawal fees. However, Bybit withdrawal fees is minimal, and you would pay only the miner fees, which are offered by only top quality derivative exchanges. Here is the breakdown of Bybit withdrawal fees:
However, one thing you should know here is; Bybit withdrawal is not instant. They withdraw funds in batches, and currently 3 times a day.
Here is the minimum withdrawal limit for supported coins:
|Minimum withdrawal||0.002BTC||0.02ETH||0.2EOS||20XRP||50 USDT|
Note: There is no minimum deposit limit.
Conclusion: Bybit review
Bybit is one of the safest and fastest derivative exchanges that you can find. The company usually participates in all major public crypto events, which adds significant trust. The multi-lingual customer support and dedicated account manager ensure traders like you have better onboarding.
The trading engine is one of the best I have seen in recent times, and no wonder it has become crypto traders’ derivative exchange.
As mentioned above, Bybit offers a welcome bonus which is also appealing for new users.
Overall, in my review, I have found Bybit to be a solid exchange for everyday use.
Here are some of the most frequently asked questions related to Bybit:
Who owns Bybit?
Ben Zhou is the CEO of Bybit. The company headquarter is in Singapore, and have offices in Taiwan and Hongkong.
Does Bybit require KYC?
Bybit does not require KYC, and you can start using Bybit instantly after signup. There is no approval process.
How can I use Bybit from the USA?
Bybit does not allow users from the USA to use their platform. However, you can use a VPN service like NordVPN to access the Bybit platform from the USA.
Can I use Bybit with VPN?
Yes, you can use Bybit with a VPN like NordVPN and hide your IP. I have also shared a list of the best Bybit VPN above in this Bybit review.
- How’s your experience of using ByBit?
- What do you like about this popular derivative exchange?
- What more features would you like to see?
Disclaimer: Trading using margin is more rewarding, and at the same time riskier. You should trade only when you have honed your trading skills, and use only the amount of money, you are ok to lose.
Any article on our website is not trading or investment advice.
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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