Bybit Review | The Ultimate Guide 2023 | CoinStats Blog (2024)

Bybit is a Peer to Peer (P2P) cryptocurrency derivatives exchange with a broad suite of advanced trading tools, consistently high liquidity levels, a solid range of security features, and a no-downtime commitment.

Despite only being founded in 2018, Bybit has rapidly grown to become a one-stop crypto destination for millions of Bybit users globally and has close to $1B worth of daily trading.

Bybit platform offers such features as leveraged margin trading, derivative trading, NFT Marketplace, and stablecoin-margined Options contracts. It supports over 100 assets for spot trading, more than 100 contracts for perpetual and quarterly futures trading, and digital assets such as BTC, ETH, EOS, and XRP to be traded using up to 100x leverage.

With Bybit Earn, crypto investors can get high yields from a diverse pool of staking products.

The Bybit team comprises professionals from the Forex industry, investment banking, and early blockchain adopters. Ben Zhou is its founder and CEO and has worked with XM, one of the world’s largest Forex and CFD trading brokerage firms.

In this Bybit review, we’ve covered everything you need to know about the exchange to help you decide if it’s a suitable platform for you.

Bybit Pros and Cons

Bybit Pros

Bybit offers advanced trading tools for crypto trading. Some of the platform’s pros are:

24/7 Multilingual Support

Bybit offers 24/7 customer support in multiple languages. It has a customer support team on a global scale to answer the phone or live chat function to resolve any queries or issues.

Margin Trading

Bybit is arguably one of the best platforms for margin trading, allowing users to borrow additional funds to enter positions larger than their wallet balance for trading on the Spot Market. You can trade cryptocurrencies on Bybit at up to 100x leverage at an attractive trading fee and market maker rebate.

Insurance Fund

The exchange offers a Bybit insurance fund guarantee to mitigate and cover losses.

High Bonuses and Low Fees

Bybit fees are among the lowest in the crypto market. It also offers high bonuses to traders.

Advanced Tools and Technology

Bybit can handle 100,000 transactions per second and is committed to avoiding any server downtime. It offers charting tools with extra features.

Bybit Cons

Here are some of the Bybit’s downsides you should consider before trading or investing on its platform:

Complicated for Beginners

Bybit offers an advanced and feature-rich platform for leveraged trading. It also has a variety of markets, including spot, perpetual, and futures. While these features may be exciting for experienced traders, beginners may find it challenging to make the most of the earning opportunities.

Not Available in Many Countries

ByBit’s services and products are unavailable to users in many countries, including the United States, mainland China, Singapore, Quebec (Canada), North Korea, Cuba, Iran, Crimea, Sevastopol, Sudan, Syria, Donetsk, and Luhansk.

Unauthorized in the UK

The United Kingdom’s Financial Conduct Authority (FCA) banned crypto derivatives and exchange-traded notes in January 2021, following which Bybit stopped providing its services to customers in the UK. The official FCA website declares Bybit an “unauthorized firm” and warns consumers against using this platform.

Small Range of Assets

Unlike some popular crypto exchanges, Bybit has a limited number of trading pairs.

Bybit Exchange Overview

Headquartered in Singapore, Bybit is a registered trading exchange in the British Virgin Islands. Bybit exchange allows users to buy and sell over 100 popular cryptocurrencies and execute a variety of trading options to benefit from different market conditions. One of the best aspects of Bybit is the feature-rich and highly intuitive trading experience.

Bybit exchange provides an advanced charting platform for leveraged trading. It’s an all-in-one crypto platform offering spot trading, margin, and derivatives trading, and an NFT marketplace to trade in Non-Fungible tokens (NFTs). Bybit is a world-class exchange for margin traders.

Bybit is an excellent platform for experienced cryptocurrency traders. What traders may like the most about Bybit is the advanced and highly detailed charting interface. The exchange supports profit/stop-loss, an invaluable feature for minimizing losses in a volatile market.

Bybit is currently ranked among the world’s top 20 cryptocurrency spot exchanges on CoinMarketCap. It’s also ranked as the world’s second-largest derivative exchange, next only to Binance. The platform provides over 100 markets for derivative trading.

The derivative products currently offered by Bybit are inverse perpetual contracts (BTCUSD, ETHUSD, XRPUSD, EOSUSD), linear perpetual contracts (BTCUSDT, ETHUSDT, BCHLINK, LINKUSDT, LTCUSDT, XTZUSDT, ADAUSDT, DOTUSDT, UNIUSDT), and inverse futures contracts (BTCUSD quarterly). Traders can speculate with up to 100x leverage using the Bybit spot market, perpetual contracts, and Futures.

Cryptocurrencies Available on Bybit

A limited number of digital assets are available for trading on the Bybit website and Bybit app, including Bitcoin, Ethereum, XRP, Solana, Litecoin, Dogecoin, Polkadot, Matic, Mana, Sandbox, Cardano, Avalanche, and Tron. Bybit doesn’t support any fiat currencies at this time.

Bybit Deposit and Withdrawals

Bybit accepts crypto deposits and withdrawals on the desktop or through the Bybit app.

Desktop users need to click “My Assets” on the top right-hand corner of the home page. Users are then directed to the Assets page, where they can type the currency they want to deposit or withdraw and then click on the corresponding button. On the Bybit mobile app, users should click on the button at the bottom right-hand corner of the page and then click on the”Deposit” or “Withdraw” button and select the currency to proceed further.

For accounts registered before 15th July 2021, deposits on Bybit are credited to the derivative account by default, and for accounts registered after 15th July 2021, deposits are credited to the spot account by default. Users can change the default deposit account by visiting the settings page.

Bybit Alternatives

For derivative trading, Binance and Bitco*ke are some of the leading alternatives to Bybit. Binance is ranked first on CoinMarketCap for derivative trading, while Bitco*ke is ranked third. For spot trading, some of the top alternatives to Bybit are Binance and Coinbase.

Binance

Binance is the world’s largest derivative and spot exchange, with 90 million registered users globally. The platform supports over 600 cryptocurrencies, including popular crypto assets like BNB (formerly Binance Chain Coin), Bitcoin, and Ethereum. Binance offers an easy-to-use spot trading interface for crypto beginners and an advanced platform for experienced traders. Binance was recently granted a “Digital Asset Service Provider” (DASP) license in France.

Bitco*ke

Bitco*ke exchange was launched in 2019 with derivative as its main feature but later introduced features like spot market, earn, and cloud mining. Bitco*ke is based in Hong Kong and registered in the Cayman Islands. Bitco*ke offers low trading fees, quanta swap facility, high-end security features, and a beginner-friendly interface. However, unlike Bybit, it doesn’t provide 24/7 multilingual customer support.

Coinbase

Established in 2012, Coinbase is considered the most trusted platform for crypto trading. It’s also the only US crypto company listed on a traditional financial market exchange. The company offers Coinbase Pro, allowing experienced investors to trade in several digital assets on a secure, insurance-backed platform. The exchange has more than 98 million users in more than 100 countries.

Bybit Top Features

Now let’s review some of Bybit’s top features and characteristics that make it unique.

No Downtime

Bybit promises 99.99% system functionality with no server downtime.

Smart Trading

The exchange offers smart trading systems, allowing users to take profit and stop loss at entry, receive alerts for strategies, and adjust orders with one click. The exchange promises no unfair liquidations with the help of its state-of-the-art pricing system.

Bybit VIP Program

Bybit VIP program provides exclusive benefits to traders, including discounted trading fees and access to non-stop events. The exchange organizes events exclusively for the VIP members, allowing them to participate in many campaigns to enjoy extra perks. Bybit VIP members can access exclusive industry insights to fine-tune their trading strategy. The Bybit VIP program has four tiers – across derivatives, Spot, USDC Perpetual, and USDC Options Trading. For derivative trading, VIP 3 members only pay a maker fee of 0.002% and a taker fee of just 0.0425%.

Educational Resources

Bybit Learn presents an impressive selection of educational resources for advanced and beginner traders and hosts classes on social media twice a week.

Testnet

Bybit provides a testnet site where novices can experiment with strategies and learn how to use the site without using real money.

Bybit Trading Products

The Bybit trading platform has gained popularity among serious cryptocurrency traders thanks to its advanced features and wide selection of trading options. Let’s take a look at Bybit’s trading products:

Spot Market

Bybit is a fast-growing crypto spot trading platform. In spot trading, crypto traders buy or sell cryptocurrencies from one another at the current market price. Spot trading differs from contract-based derivative trading in that spot traders need to own the underlying asset they want to sell. Users can purchase crypto, hold it till it grows in value, or sell it to buy another coin they think may give more returns in the future.

Users can spot trade on Bybit by entering its spot trading page. The platform provides three types of orders: Limit Order, Market order, and Conditional Order. A trader can place a maximum of 500 active orders and only 10 conditional orders.

Derivative Trading

Derivative trading allows traders to speculate on an asset’s future price. If the speculation gets correct, traders enjoy profit on the price difference. The entire process includes a contract to trade an asset at a specific date and time. Despite being risky, crypto derivative trading offers growth opportunities to traders who can devise the right strategy. Bybit is arguably the best-in-class crypto derivatives exchange with over 150 contracts. It provides various derivative products such as USDT Perpetual, Inverse Perpetual, Inverse Futures, USDC Perpetual, and USDC Options.

Leveraged Tokens

Bybit leverage trading is a derivatives product with no underlying margin or liquidation risks. However, it provides users with leveraged exposure to an asset that may boost profit or losses.

Leveraged tokens can be traded on Bybit in two ways – Buy and Sell or Purchase and Redemption. Each leveraged token on Bybit is representative of a basket of perpetual contract positions.

Launchpad

Bybit launchpad gives users early access to tokens from promising crypto and blockchain-based projects. The launchpad has two subscription methods using BIT (BitDAO) and USDT. Users can commit BIT to subscribe to token allocation, or they can commit USDT to win a token allocation.

Copy Trading

Bybit currently supports 14 trading pairs for Copy Trading, a strategy that allows traders to copy successful trades executed by expert investors. Users can start Copy Trading on Bybit by opening a Copy Trading Account and transfer assets from their Derivative Account to the Copy Trading Account. The trading fee and funding fee for Copy Trading are the same as for derivative trading.

Users can join Copy Trading either as principal traders or followers. The principal traders get a 10% share in the net profit earned by their followers and an additional 1% reward from Bybit as commission. Principal traders on Bybit can earn a cut from a 1 million USDT prize pool.

P2P Trading

Bybit’s P2P trading platform lets users purchase and sell crypto directly between users on a secure peer-to-peer platform at a mutually agreed price. The platform supports multiple fiat currencies and more than 300 payment methods.

Margin Trading

Bybit margin trading allows users to get to 100x leverage and multiplied earnings when the market moves up. This feature lets traders borrow at competitive rates when they don’t hold sufficient funds in their wallets.

To start margin trading on Bybit, users need to go to the Spot Trading page by clicking on trade –> Spot trading on the navigation bar. On this page, users can select a Spot Pair for margin trading. Bitcoin, Ethereum, and USDT are currently supported for margin trade on the Bybit platform. After selecting the Spot Pair, users have to click on “Acknowledge & Enable Margin Trading. ” However, before final confirmation, users are advised to read and fully understand the risk information provided in the risk alert pop-up box.

Bybit Rewards

The exchange offers a large bouquet of rewards through the Bybit Rewards Hub, where users can earn bonuses, coupons, cash backs, etc., for completing simple tasks. New users can get up to 30 USDT in reward by signing up for the exchange. Bybit offers USDT coupons worth $10 to the new spot and derivative traders. A 3-day active trader can get a USDT coupon worth $5, and a similar amount is offered for following Bybit.

Bybit is currently running WSOT, the world’s largest crypto trading competition, with a prize pool of 8 million USDT. The competition started on 26th May 2022 and will continue till 1st August 2022. The last date to apply for this competition is 22nd June 2022.

Bybit Earn

Bybit Earn platform allows users to grow their crypto holdings easily without getting into risky trades. The platform offers competitive APYs for higher yield and best-in-class security to safeguard investors’ funds. Earn options include Bybit Savings, Dual Asset, Liquidity Mining, and Launchpool. Bybit Savings is a low-risk option, much like a bank’s savings account, providing a guaranteed yield and the facility to withdraw tokens at any point.

The Dual Asset product allows users to earn floating returns on non-principal protected investment products. It’s a short-term investment product that may provide a higher yield than the Savings product. Bybit’s Liquidity Mining allows users to earn high yields derived from trading fees. Users can also add leverage to increase their share of the pool and maximize their yield. Through Launchpool, users can stake and earn tokens for free. Assets worth more than $500 million have been invested through Bybit Earn till now.

NFT MarketPlace

On Bybit’s NFT Marketplace, users can list and trade Non-Fungible Tokens (NFTs) of digital art, collectibles, GameFi, metaverse, etc. You can buy an NFT on this platform with ETH, BitDAO (BIT), XTZ, or USDT with your Bybit Spot Account.

Each NFT is priced with one token only. To sell an NFT, users need to go to their profile page, click on the “List Now,” select the NFT they want to sell, and enter the NFT Listing page. You can contact the Marketplace by writing to nft-service@bybit.co.

Bybit Trading Fees

Bybit charges one of the lowest trading fees in the market. The trading fee is even lower for VIP members. The exchange has different fees for market makers, adding liquidity to the market, and takers, taking liquidity out of the market. The exchange also rewards makers through a Market Maker Incentive Program, offering up to a 0.015% rebate on the maker fee. Take a look at the full chart of Bybit trading fees below:

Bybit Security Measures

Bybit spends 20% of its annual budget on ensuring the platform’s security against the industry average of 15%.

The Bybit team has implemented various security protocols, including full SSL encryption on the website, to enhance the security and protection of user assets and personal information. It’s also working with leading security experts, blockchain businesses, and data analytics companies to improve its security infrastructure.

The exchange requires users to enable two-factor authentication (2FA).

Bybit also stores 100% of client funds offline using a Deterministic Cold Wallet System to enhance the platform’s security. The team reviews each withdrawal request manually to exclude unauthorized withdrawals.

How to Register a Bybit Account

A new user must register a trading account on Bybit through email or mobile phone without a KYC verification process. To sign up through email, users need to provide an email address and create a strong password. The exchange sends a verification code to the email address provided by users. You need to enter it to complete the registration process. Users must also read and understand the terms and privacy policy before signing up.

To sign up through a mobile phone, users must provide the country code with the mobile number and create a strong password. The exchange sends an SMS verification code to the provided mobile number. You need to enter the code to complete the signup process.

Final Words

According to our Bybit review, the Bybit exchange stands out as a highly-secure crypto derivatives and margin trading platform.

The Bybit exchange incorporates cutting-edge tech, solid security protocols, a wide range of trading features and market orders, 24/7 multilingual customer support, consistently high liquidity levels, and valuable educational resources.

With Bybit’s risk-free testnet, you can conduct demo trades with testnet funds to decide if the Bybit exchange is the solution for you.