What Is Bybit and How to Use It? | CoinMarketCap (2024)

A comprehensive guide to Bybit, a comparatively new crypto exchange that offers multiple trading options with a user-friendly interface. Read more!

Bybit is a cryptocurrency exchange and trading platform headquartered in the British Virgin Islands, specializing in derivatives products. Through derivatives, users have the right to buy or sell supported cryptocurrencies for specific prices in the future. In addition, users can open long and short positions and leverage their position through derivatives without owning the underlying asset. Using derivatives is a great way to capitalize on volatile crypto price swings, either in bullish or bearish conditions.

You may check out our guide on leverage in crypto trading!

Ben Zhou founded Bybit in 2018 with an aim of forming a team of investment banking and fintech professionals.

The platform provides access to the following products:

  • Inverse perpetual contracts
  • USDT perpetual contracts
  • Inverse futures contracts

Leverage is available on the platform for users looking to boost their potential gains if the price goes in the right direction. However, users will be able to exert less leverage as the value of their contracts go up.

It is also possible to engage in spot trading through Bybit, with dozens of pairs to choose from. Popular supported assets include BTC, ETH, LINK, USDT, USDC, LUNA, SOL, DOGE, etc. In addition, traders can also explore "subcategories" such as DeFi, NFT, metaverse, GameFi, and more.

Traders seeking more exposure and risk can experiment with margin trading and use up to 100x leverage. However, keep in mind that leverage comes with severe risks, and while it can incur much bigger profits, it can also increase steep losses if trades are unsuccessful.

To save yourself from losses, check out our guide on cross vs isolated margin!

Bybit recently introduced support for non-fungible tokens, enabling exposure to various supported collections. Users can buy and sell these NFTs for Ether, USDT, or BIT tokens. The platform currently supports five collections: Monster Galaxy, Mobland, ONBD, Tap Fantasy, and 3space Art.

Where Is Bybit Located?

Although Bybit was initially founded in Singapore in March 2018, the company has set up its headquarters in the British Virgin Islands. It is registered as Bybit Fintech Limited. There is no official crypto regulation today in the British Virgin Islands, allowing companies to set up headquarters without worrying about too much paperwork or red tape.

Bybit also has offices across Hong Kong and Taiwan, as its primary focus is on the Asian crypto market. However, the company eyes a strong European expansion and they may set up more offices in that part of the world.

Why Is Bybit Not Allowed in the US?

Even though Bybit appears to be on a global expansion mission, the platform is not accessible to people living in the United States. It is a well-known fact the US is not too crypto-friendly, and every state has its own regulations and requirements. However, nothing prevents companies like Bybit from operating in the country. That makes the team's decision not to offer services in the US rather remarkable. It appears the decision was made to avoid any regulatory conflicts or issues.

American traders are locked out of the platform through geo-restrictions. Users can bypass this blockade through a VPN, although they should do so at their own risk. Moreover, Bybit reserves the right to terminate accounts of any Americans using its services through a VPN or other means of masking their original geographical location.

Does Bybit Require KYC for Withdrawals?

One reason why many people flock to Bybit is that the exchange does not require identity verification. Users do not need to submit an ID scan or proof of residence when creating an account. Traditionally, financial service providers need to verify the identity of all users regardless of how active they are on the platform. However, Bybit takes a different approach on that front.

Users who are fine with withdrawing up to 2 BTC per day can use the platform without verifying their identity. Everyone else will have to go through a KYC process, which will raise their limits to 50 BTC or 100 BTC, depending on how much information they submit. Keep in mind these limits apply to daily withdrawals and not lifetime withdrawals.

Users going through the KYC process will be asked to submit a passport or ID scan and complete a facial recognition screening. To achieve Level 2 verification, a proof of address is required.

In addition, any Bybit user not going through the Know-Your-Customer verification process may receive a KYC verification request if the exchange deems it necessary.

Important Note: Although the exchange advertises that it doesn't require KYC verification process for withdrawals of up to 2 BTC per day, several Bybit customers from different parts of the world flocked to a post on Reddit calling it a false claim. In response, Bybit shared its list of Service Restricted Countries and its Terms of Services that dictates the exchange reserves the right to implement KYC requirement on an account if a violation of its rules is detected. Therefore, it is advised to do your own research.

KYC Requirements for Businesses on Bybit

The guidelines above apply to individuals and businesses alike. However, business users only have Level-1 verificaton - rather than two levels for individuals - which will raise their daily withdrawal limit to 100 BTC. Documents required for this process include:

  • Certificate of Incorporation
  • Constitution of Association
  • Register of members and directors
  • Passport or ID and proof of residency of the ultimate beneficial owner representing 25% interest (or more) in the company
  • Information of one director (passport/ID and proof of address)
  • Information of the account operator or trader (passport/ID and proof of address)

Business can use Bybit without completing a KYC procedure, but will be limited to withdrawing a maximum of 2 BTC per day.

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What Is Bybit and How to Use It? | CoinMarketCap (2024)


What Is Bybit and How to Use It? | CoinMarketCap? ›

Bybit is a cryptocurrency centralized exchange (CEX) that offers a professional platform featuring an ultra-fast matching engine, quality customer service and multilingual community support for crypto traders of all levels.

Is Bybit good for beginners? ›

The app also features advanced order forms, a rarity among mobile trading apps. Trading Platform: Bybit offers a user-friendly and intuitive trading platform. The interface is designed to cater to both novice and experienced traders.

Why can't Americans use Bybit? ›

Bybit is banned in the US due to the regulations imposed by the Securities and Exchange Commission (SEC) and other financial regulatory bodies. These regulations are in place to protect investors, but they also limit the availability of certain crypto trading platforms that haven't complied with these regulations.

Why do people use Bybit? ›

Bybit has a proven track record when it comes to security. In addition, you'll never have to worry about losing access to your funds because Bybit's 24/7 live customer support will always be there to help you out.

How do you trade in Bybit for beginners? ›

Step 1: To perform Spot Trading, please ensure you are currently in the Spot tab. Then, choose to Buy or Sell an asset. Step 2: Enter your order value or quantity. If you place your order through other order types, such as Limit Order and Conditional Order, you will need to enter your order price or trigger price.

Why is Bybit illegal? ›

Another significant factor contributing to the Bybit ban in the US is the concern over customer protection and potential violations of securities laws. Regulatory bodies aim to ensure that trading platforms adhere to strict guidelines designed to safeguard customer funds and prevent fraudulent activities.

What are the disadvantages of Bybit? ›

Disadvantages: 1. **Limited Fiat Support:** Bybit primarily focuses on cryptocurrency trading and offers limited support for fiat currencies. This means that traders may need to use other platforms to convert fiat currency into cryptocurrency before trading on Bybit.

Does Bybit report to IRS? ›

Does ByBit report to the Internal Revenue Service (IRS)? Because ByBit no longer operates in the United States, it's unlikely that the platform reports to the IRS. However, it's important to remember that you're required to report all taxable income to the IRS.

Is Bybit safe? ›

Bybit is a well-established cryptocurrency exchange with a strong focus on security. The platform employs robust security measures, including cold storage for the majority of user funds, multi-signature wallets, and advanced encryption protocols.

How much does Bybit charge USA? ›

VIP LevelSpot Trading*USDC Options Trading
Supreme VIP0.0450%0.0150%
Pro 10.0600%0.0180%
Pro 20.0500%0.0150%
Pro 30.0450%0.0150%
9 more rows

How do I get my money from Bybit? ›

Here's a step-by-step guide to withdrawing assets on Bybit via Internal Transfer. Step 1: Click on Assets at the top right-hand corner of the home page and go to your Funding or Spot Account. Step 2: Click on Withdraw in the column of the currency you want to withdraw.

Is Bybit Chinese? ›

Although Bybit is registered in the British Virgin Islands their headquarters are in Singapore. They also have offices in Hong Kong and Taiwan. While their clientele is primarily Asian, Bybit also caters to the European cryptocurrency market.

What's better than Bybit? ›

Kucoin: A Diverse Cryptocurrency Exchange

Unlike ByBit, which specializes in derivatives trading, Kucoin offers a broader range of financial instruments, including spot trading, margin trading, and a variety of other services.

Do you need ID to trade on Bybit? ›

Identity Verification of at least Lv.1 is mandatory for all Bybit products and services. For more information, please refer to the benefits of different KYC levels .

What is the minimum deposit for Bybit? ›

Is there a minimum requirement? A: Your deposit will be automatically channeled to your Funding Account. Once the deposit has been credited, please manually transfer funds from the Funding Account to your Bybit MT4 Account. There is no minimum deposit required.

Is it easy to withdraw money from Bybit? ›

If you use the ByBit app, simply tap “Assets” followed by the “Withdraw” button. Enter your withdrawal wallet address or if you haven't withdrawn from ByBit before, click “Add” to add one.

Is my money safe in Bybit? ›

Asset Protection and Platform Security

Bybit stores user funds offline in cold wallets. To make sure that these wallets are protected from unauthorized access, they employ advanced multi-signature, Threshold Signature Schemes (TSS), and Trusted Execution Environment (TEE).

Is Bybit better than Coinbase? ›

Bybit vs Coinbase cryptocurrency exchange overall score comparison reveals that Bybit has a higher overall score of 9.6, while Coinbase gathered an overall score of 9.1. If we look at the ease of use, it's clear that in this Bybit vs Coinbase comparison, Bybit has better & smoother user experience than Coinbase.

Can Bybit be trusted? ›

Bybit operates a safe, secure, transparent, and efficient futures trading platform with over 20 million users worldwide and offers more than 230 perpetual and futures contracts. Professional-grade cryptocurrency trading exchange!

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