Bybit Review – Top Features, Pros, Cons, and Safety Concerns

Pros And Cons Explained

Pros

Low Fees

Low trading fee is one of Bybit’s most appealing benefits, which makes it ideal for traders who wish to minimize their trading costs. 

The trading fee charged by Bybit is 0.075%, which is much lower than the industry average.

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Up to 100x Leverage

Bybit offers users leverage up to 100x on perpetual futures products to maximize potential profits, compared to Kraken, which offers leverage of about 5%. 

To put it another way, Bybit lets you trade a position worth $10,000 for just $100, which is 100 times larger than your account balance.

Despite the potential for large gains, high leverage also entails the risk of serious losses. 

It is therefore crucial for traders to understand the risks associated with high leverage and devise strategies for managing them effectively.

Huge Sign-Up Bonus

Bybit offers huge signup bonuses worth thousands of USDT and $50 in BTC if you register. However, the signup bonus can vary based on the user’s location and ongoing promotions.  

To be eligible for the signup bonus, you must create a new account with Bybit and meet certain requirements. A qualifying deposit or cryptocurrency trade is required, according to this policy. 

As soon as you meet the requirements, the bonus will be credited to your account.

Please keep in mind that the signup bonuses are subject to certain terms and conditions, and may have a time limit or a minimum trading volume requirement. 

To avoid any doubts or surprises, you are advised to carefully review the registration requirements.

Cold Wallets For Storage

Bybit values its users’ security and has developed a hardware wallet that stores its users’ funds in cold storage for protection against malicious threats. 

Even better, to enhance security, Bybit performs three withdrawals each day manually. 

Advanced Technology-enhanced Tools

Take your trading to the next level with Bybit’s advanced trading tools such as conditional orders, charting tools, API trading, technical analysis tools, and tradingview integration.  

Moreover, Bybit claims that it can handle 100,000 transactions per second, twice the speed of its competitors. In this way, Bybit faces no server downtimes, which many exchanges experience during market fluctuations when a lot of people trade simultaneously.

Risk-free Testnet To Learn And Practice

Wouldn’t it be great if you could test out and practice trading strategies without risking your real funds? It is possible with Bybit Testnet, which contains 100% replication of the products and services found on the main Bybit network.

This is a great way to learn about these advanced and complex tools if you are new to derivatives.  

Educational Resources

Bybit offers a wealth of news and educational resources to help you become a better trader. 

With “Bybit Learn,” for example, you can master technical analysis tools and understand chart patterns. 

You can even learn about decentralized finance (DeFi) and analyze individual coins in detail.

There’s an educational blog dedicated to Crypto, Blockchain, DeFi, NFTs, and other specific tokens. On top of that, Bybit offers classes on social media twice a week.

Lucrative affiliate and referral program

Bybit offers a lucrative affiliate or referral program that allows users to monetize their influence and receive rewards for referring new users. A win-win situation for everyone. 

As a Bybit affiliate, you can earn a passive return of up to 30% on all transactions you initiate through Bybit. Commissions are paid in real-time, and data is updated immediately.

Outstanding customer service

Bybit has a reputation for providing stellar customer service. Customer service staff are always responsive and do their best to assist customers.

You can reach out to their customer support team through multiple channels such as email, live chat, and social media.

Aside from that, both users on social media and Youtubers agree that Bybit’s customer service is “the best among its competitors”. 

Cons

Limited Cryptocurrencies

Bybit’s limited selection of cryptocurrencies available for trading is a major concern raised by many users around the globe. 

At the moment, major cryptocurrencies supported by Bybit for trading are Bitcoin, Ethereum, XRP, USDT, EOS, and a number of other cryptocurrencies. 

Traders who wish to trade lesser-known or niche cryptocurrencies may find this limited selection discouraging. Bybit’s primary focus, however, is derivatives trading, which involves trading contracts rather than actual cryptocurrencies. 

Another concern regarding the limited choice of cryptocurrencies is that traders may have limited diversification options. In lieu of fewer cryptocurrencies to choose from, portfolio diversification is more difficult.

Restricted in US and UK

Due to regulatory restrictions, Bybit is unavailable in both the US and UK. 

It was Bybit itself that decided to restrict US access to the platform. Why? Bybit opted to stay away from the US market entirely just to avoid being sued by US regulators like the SEC.

Moreover, the US crypto regulations were unclear, so they decided to take this step. 

Bybit constantly monitors user IP addresses, blocking US-originating IP addresses, to prevent US residents from using the platform.

Similarly, the Financial Conduct Authority (FCA) has banned the trading of cryptocurrency derivatives by Bybit in the UK. Users in the UK are not permitted to use Bybit since it involves trading cryptocurrency derivatives.

Less-than-ideal Choice For Spot Trading

The core offering by Bybit is derivative trading, which makes it an unsuitable choice for users who prefer spot trading. One reason why Bybit may not be a good choice for spot trading is that it has a limited selection of cryptocurrencies.

Bybit Exchange Overview

Founded in 2018, by Bybit owner and CEO “Ben Zhou” in an attempt to challenge the dominance of the market’s largest player, “Bitmex”. Ben, who has worked in forex for 8 years, has an extensive background in currency exchange. A number of other members of Bybit’s team have worked at other reputable companies such as Morgan Stanley, and Tencent.

A Singapore-based company registered in the British Virgin Islands, Bybit is one of the fastest-growing companies with almost 10 million registered users in 180 countries. 

A major reason for its global popularity is that it doesn’t require verification of your identity, making deposits, purchases, sales, stakes, and withdrawals easy and anonymous. This exchange was originally a derivative exchange but has now added spot trading.

What is Bybit?

Bybit is a cryptocurrency derivatives exchange, that provides a fair and reliable trading environment to trade futures at high leverage in BTC/USD, ETH/USD, BTC/USDT, EOS/USD, and XRP/USD.

How does Bybit stand out from the rest?

Bybit stands out from the crowd due to its advanced trading tools, which ensure a zero-downtime commitment along with top-notch security. 

Since its launch, Bybit has never suffered from system overload, a very promising sign of the platform’s reliability.

In addition, Bybit works well for both retail and institutional users and supports 135,000 transactions per second, which is much higher than the leading rivals.

With continued innovation and growth, Bybit is poised to take a much bigger share of the market in 2023 as its reputation grows with uptime.

How Does Bybit Work?

A phone number or an email address is all you need to sign up for Bybit. After signing up, you’ll be able to deposit cryptocurrencies or buy them with fiat using a 3rd-party app. 

In general, Bybit allows you to trade margin and futures with leverage up to 100x on cryptocurrencies such as bitcoin and up to 50x on other cryptocurrencies.

Interested in buying Bitcoin? Read our Bitcoin buying guide. 

A short-term loss insurance policy is also available to users as protection against any loss.

Bybit offers a number of trading products, ranging from perpetual contracts to futures contracts to options contracts. However, it’s up to traders to choose the contract type and set the leverage.

Upon choosing a contract, traders can then place an order to execute their strategy. 

Types of orders that Bybit accepts include:

• Market order
• Limit order
• Stop-Limit order
• Stop Market
• Post-Only
• FillorKill
• GoodTillCancelled
• Close on Trigger
• ImmediateorCancel

The profits or losses, whatever the outcome of a trade, will be credited to the trader’s account. Moreover, as part of Bybit’s “cross” margin system, traders’ entire account balances are used as collateral.

Once everything is done, users can withdraw their funds from Bybit using their external wallets.  

In case you haven’t used leverage before, it’s basically borrowing money to increase your return. This is also known as buying on margin. Investors can’t buy on margin for the simple reason that they could amplify their losses and end up with nothing. The regulations forbid it.

Bybit Cryptocurrency Selection

Bybit supports the following 15 currencies.

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Cardano (ADA)
4. Ripple (XRP)
5. Dogecoin (DOGE)
6. Tether (USDT)
7. Aave (AAVE)
8. Uniswap (UNI)
9. Polkadot (DOT)
10. Tezos (XTZ)
11. Litecoin (LTC)
12. Chainlink (LINK)
13. Bitcoin Cash (BCH)
14. NEM (XEM)
15. SushiSwap (SUSHI)

Is Bybit Safe And Legit?

In terms of safety and legitimacy, Bybit is a well-regulated exchange governed by British Virgin Islands law with cutting-edge technologies and features, giving traders ease and convenience.

They have never been hacked and ensure optimal trading security with a variety of advanced security measures.

For example, Bybit has a policy that prohibits cryptocurrency withdrawals more than three times a day. This also prevents a hacker from instantly draining an account once he gains access. 

Withdrawals are limited to a few times per day, which allows someone with compromised accounts to lock them so withdrawals cannot be made. The Bitmex exchange has a similar feature, but withdrawals are limited to one per day.

Two-factor authentication, cold storage, and regular security audits are some of its security features contributing to its high level of security. 

Not only this, but all of its employees undergo background checks.

Bybit also takes part in bug bounty programs to encourage ethical hackers to report vulnerabilities. 

The fact that Bybit has been operating since 2018, and its sophisticated security measures, make it one of the most trusted exchanges on the market.

Trading and leverage with Bybit

Contract options available on the platform include: 

1. Inverse perpetual contracts
2. USDT perpetual contracts
3. Inverse futures contracts

To help you better understand it, let me explain. 

Perpetual vs Futures Trading

Perpetual Trading

Perpetual trading also called perpetual swaps, is a form of derivative trading in which traders bet on the future price of an underlying asset, with no expiration date. Whereas the contract’s value is determined by the gap between the current market price and the closing price.

As of now, Bybit provides a perpetual swap futures product for 4 coins: 

1. Bitcoin
2. EOS
3. Ether 
4. Ripple XRP

Futures Trading

Futures trading, on the other hand, involves trading contracts at a later date for an agreed price. 

Both of these differ mainly in terms of their expiration dates and settlement times.

Due to perpetual trading’s lack of an expiration date, settlement prices can be predicted more accurately. Unlike futures trading, which commits to a future price, spot trading settles upon expiration.

Inverse Contracts

Bybit offers inverse perpetual contracts as part of its core trading product range. 

In inverse contracts, you can confirm the traded quantity with the US dollar and calculate margin, profit, and loss using Bitcoin, Ethereum, EOS, or XRP. Bybit offers this quantity setting option solely to eliminate the need for a manual entry of Satoshi figures.

Bybit settles inverse perpetual contracts in USDT, a stablecoin tied to the US dollar. Moreover, such contracts are referred to as inverse contracts because their value is inversely correlated to the price of the underlying cryptocurrency. In other words, when cryptocurrency prices rise, the value of the inverse contract falls, and vice versa.

Bybit Type of Orders

Order types on Bybit include:

1. Limit Order – A limit order is the most preferred trading strategy among traders. As in limit order you can decide how many contracts to buy, the leverage, and the price of the order. A trader places an order at a level he or she chooses, which could differ from the current market price. A buyer or seller who matches this price can “fill” this order technically since it is open.
2. Market Order – A market order can be set at a current market price and you can set the number of contracts plus the order price. In any case, the price that is executed depends on the best available price in the order book. If it is a sell order, it will be executed at the “bid”, whereas if it is a buy order, it will be executed at the “ask”.
3. Conditional Order – A conditional order is a type of advanced order triggered automatically when a specific price meets a last traded price. For each trade you place, you specify everything from a trigger price to quantity, leverage, etc. Orders of this type are typically placed when a technical level is reached.

Bybit Advanced Orders

Fill or Kill

Fill or Kill (FOK) is an advanced order type designed for traders to execute an order immediately and completely at the best price or not at all. 

Similar to the IOC order, but without the ability to execute partial orders. Traders who place Fill or Kill orders on Bybit will have their order filled in its entirety immediately. 

Upon your inability to complete the order, it will automatically be canceled.

A trader who needs to execute a trade quickly and precisely will find this feature invaluable.

Good-Till-Canceled

This type of order allows traders to place an order, which remains open until it’s filled or canceled. For traders who do not need to execute the trade immediately, but wish to execute a trade at a specific price, this feature can be useful.

Immediate-or-Cancel

An immediate-or-cancel (IOC) is a type of order that offers traders the option of executing an order immediately and partially and automatic cancellation of the remainder. 

In the case of IOC orders on Bybit, Bybit will attempt to fulfill most orders as soon as possible. Orders that are unfilled will be automatically canceled.

Traders who accept partial fills and need a quick execution can use this feature.

Bybit Deposit And Withdrawals

Bybit was originally a crypto-to-crypto exchange, which means that only cryptocurrencies could be deposited, not USD or EUR. Nevertheless, Bybit underwent some changes and introduced new features.

Today, the Bybit Platform allows you to fund and execute various transactions in over 55 fiat currencies and 20 cryptocurrencies, which include Bitcoin, Ethereum, XRP & EOS.

Additionally, over 547 payment methods are accepted on the platform, including credit cards, further enhancing the convenience of using the crypto exchange.

While Bybit does not have a minimum deposit requirement, it does have a purchase limit per order. In US dollars, it’s between $20 to $15,000. Moreover, Two-factor authentication is required for withdrawals and Bybit charges a withdrawal fee.

Bybit Fees

As a first-time trader on Bybit, you must pay attention to 3 types of fees: trading fees, withdrawal fees, and deposit fees. Let’s discuss each one of them in detail.

Trading Fees

While Bybit Trading fees are competitive with those in the industry, they are based on leverage, which means costs can spike quickly. Bybit’s platform has maker and taker fees since users are classified as either makers or takers.

Bybit will rebate you when you raise the market depth through your orders as a market maker. But, as a market taker, you will drain some liquidity from the market. That’s going to cost you a Bybit trading fee.

In fact, traders can get the same trading fees and maker rebates for the following: 

1. BTC USD
2. ETH USD
3. EOS USD
4. XRP USD inverse perpetual contracts 
5. BTCUSDT USDT perpetual contracts. 

Moreover, there is a maker rebate of –0.25%, and a taker fee of 0.075%. You will even see a change in your account balance due to all rebates and taker fees, but not in your initial margin.

Inverse contracts, based on cryptocurrencies, are listed here with their fees and leverage.

Perpetual Contracts (Inverse)	Highest Leverage	Maker’s Rebate	Taker’s Fee
BTC/USD	100x	-0.025%	0.075%
ETH/USD	50x	-0.025%	0.075%
XRP/USD	50x	-0.025%	0.075%
EOS/USD	50x	-0.025%	0.075%

Funding Fee

With Bybit’s funding mechanism, trading prices of perpetual contracts are kept as close as possible to spot prices. Depending on how the two prices interact, the funding fee is paid by one or the other.

Position holders who hold long positions must pay funding fees to short position holders if the trading price is higher than the spot price. More traders opening short positions could lead to a decline in the trading price. Those who hold short positions pay the fee if the price dips below the spot price. 

Traders can either receive a rebate or pay a fee, depending on market conditions. Every 8 hours, traders’ accounts are automatically debited or credited with funding fees.

In a scenario where there are more sellers than buyers, sellers will pay buyers a 0.02% funding fee and vice versa. In the case of a positive funding rate (0.02%), the longs (buyers) will pay the shorts (sellers). In contrast, when the funding rate is negative (-0.02%) then the shorts (sellers) will pay the longs (buyers).

Nevertheless, settlement takes place at 00:00 (UTC), 08:00 (UTC), and 16:00 (UTC). 

In other words, if you hold your position against the majority, you will receive a payout. 

It seems quite reasonable for Bybit traders to always use limit orders when trading Bitcoin. By doing so, you’ll not only get low fees but also earn money from trading.

Withdrawal Fees

Due to a standard miner fee, the company’s withdrawal fee is fixed regardless of how much money you withdraw. For details about the minimum withdrawal amount and the corresponding fee per coin, please see the table below.

Cryptocurrency	Bybit Withdrawal Fee	Minimum Withdrawal Fee
BTC	0.0005 BTC	0.001 BTC
ETH	0.01 ETH	0.02 ETH
XRP	0.25 XRP	20 XRP
EOS	0.1 EOS	0.2 EOS
USDT	10 USDT	10 USDT

The transfer fees charged by Bybit are relatively higher than those charged by other cryptocurrency exchanges, despite being fixed.

Deposit Fees

There are no fees charged by Bybit when it comes to depositing funds. Depositing cryptocurrencies onto the exchange may be subject to network fees, however. 

Moreover, depending on the type of cryptocurrency being deposited and the level of network congestion, fees are paid to the network for the processing and confirmation of the transaction.

Among the cryptocurrencies supported by Bybit are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and others. You can get more information about Bybit’s deposit options and network charges on its website.

Bybit Insurance Fund

Bybit has an “insurance fund” to cover the possibility of shortfalls in futures settlement. Essentially, this fund serves as a reserve to protect a trader whose account is liquidated so low that it falls below the “bankruptcy price”. Traders’ initial margin is depleted at the latter price.

If you’re trading long and short, it could maximize your profits during uptrends or offset losses without leaving your positions. This mutual Insurance rate includes premiums and the insurance fee (the sum of the insurance amount x 0.05%).

Bybit’s website provides more information about their insurance fund. Visit here. 

Bybit User Interface And Trading Experience

Bybit’s trading page can seem intimidating at first. However, it’s one of the easiest ways to trade crypto derivatives for those with a keen eye for the market.

However, it’s not necessary to be an experienced user to understand how everything works as long as you understand the basics. 

After you’ve become familiar with the system and are ready to trade, you’ll love modules that allow you to customize your experience. Modules can be moved, resized, or maximized on the dashboard according to your preference.

Using Bybit on a mobile device is just as easy as using it on a computer. The user interface is intuitive and highly responsive.  

The leverage slider was a particular favorite. Despite the fact that you can manually enter a specific number, this tool allows you to easily adjust leverage.

For savvy cryptocurrency traders, Bybit has a charting interface of tremendous value. As the charting interface is packed with useful crypto tools for technical analysis. 

User Experience

Bybit users report a positive trading experience. Even beginners can easily navigate Bybit’s user-friendly platform. 

Advanced trading tools exist, such as technical analysis indicators and customizable charts, that can assist traders in making informed decisions when trading.

The majority of Bybit users praise it for its quick and reliable order execution and low trading fees. Customer support at Bybit is frequently described as responsive and helpful, allowing traders to feel confident asking questions.

Bybit Security Measures

According to the CEO of Bybit, the majority of cryptocurrency exchanges are vulnerable to attacks by hackers due to their centralized nature. 

From a cybersecurity perspective, how does Bybit differ from the rest?

Bybit takes security seriously, more than any other crypto trading platform. Let’s take a look at Bybit’s security initiatives.

1. Two-factor authentication (2FA) – Every withdrawal and login in Bybit requires 2FA.
2. Cold storage – Bybit holds users’ funds in cold storage, an offline storage system less susceptible to hacking than hot storage (online storage).
3. Multi-signature technology – Bybit’s platform uses multiple signatures to guard against single-person access to funds.
4. Real-time monitoring – Bybit keeps track of all transactions in real time in order to spot suspicious activity.
5. Regular security audits – Bybit reviews its security protocols regularly to ensure that they remain up-to-date and effective.

Bybit Trading Bot

With the Bybit trading bot, you can automate the trades based on the conditions set by experienced traders.

Automating your trading activities with a trading bot allows you to streamline everything and enables you to focus on other aspects of your business. Although trading bots can be extremely helpful, they are not foolproof or guaranteed to bring profits. These are merely tools that traders can utilize in order to make better trading decisions.  

Bybit Testnet

Bybit testnet allows potential traders to get a better understanding of the benefits and features, as well as the pros and cons, without having to make a deposit. 

In other words, Bybit provides users with a replica, but with demo funds instead of real funds. With this virtual account (Testnet), you can practice cryptocurrency trading completely without risking real money. This is also helpful for new users, as it will allow them to learn more about the platform and have hands-on experience risk-free.

Even so, it is important to keep in mind that live trading environments differ from testnet environments, and testnet results may not reflect real-life trade outcomes. Thus, testnets should be used for learning purposes only and not to make trading decisions solely based on them.

Bybit Affiliate/Referral Program

As an affiliate of the Bybit trading platform, you can earn up to 30% commission on traders’ trading fees. There is a full range of services available, including real-time commission settlements plus data updates. 

Then a report is generated detailing all transactions and commissions. Moreover, affiliates can take advantage of customized marketing materials and promotional activities from Bybit.

There’s a bybit referral program that offers financial incentives to active traders for introducing family and friends to Bybit. BTC equivalent to $10 is available as an instant bonus for such traders. 

A new user’s referral bonus is shown in the table below based on his/her trade volume.

Verdict

In light of this thorough review, it’s fair to say that Bybit is a safe, reliable, and powerful derivatives trading platform with lots of unique features.

A user-friendly interface and reasonable charges also make it a good choice among traders. 

Users also appreciate the fact that they have created a fund to cover market risks. 

The platform is equipped with a robust customer support team, leverage trading, and cold wallets. So, if you desire to trade crypto over a secure exchange, Bybit is an option worth considering. Users can also take advantage of promotions and bonuses on the exchange.