Here we will present our ByBit guide and review for 2022. There is a sign-up bonus with Bybit where you can get up to $30.000 free.
ByBit is a relatively old derivative crypto trading platform offering futures and perpetual swaps. Bybit offers spot trading, copy trading, trading bots, and more but derivative trading it’s still the main feature and Bybit is one of the best crypto leverage trading platforms.
We will go through trading features, deposit methods, and fees.
What is Bybit Exchange?
What is ByBit crypto exchange?
Let us guide you through some history and company information in this intro section for our review 2022.
ByBit was launched in March 2018, making it one of the older great derivative sites in the cryptocurrency market.
Bybit is a P2P cryptocurrency futures exchange that is based in Singapore. The trading site operates under Bybit Fintech Limited, and this is a company that is registered in the British Virgin Islands.
Where is Bybit located?
Can I trade on Bybit without KYC?
Does Bybit allow US traders?
What is the Bybit Welcome Bonus?
Why should I trade on Bybit?
ByBit Exchange Features
Perpetuals are an agreement to non-optionally buy or sell an asset at a specified price but at an unspecified date in the future (open ended futures).
For an inverse contract, margin and profit/ loss are denominated in the base currency. Thus, an inverse future on BTC quoted in USD is margined and settled in BTC.
Futures are an agreement to non-optionally buy or sell an asset at a specified price at a specified date in the future.
Crypto options allow a trader to buy or sell a specific cryptocurrency at a set price on a future date(This is optional in contract to futures and perpetual).
Spot trading with margin (leverage).
A simplified version of perpetual trading with less leverage and no liquidation risk.
The basic one-to-one exchange.
Copy trading allows a trader to find successful traders and copy their strategy completely in a passive mode.
Bybit arrange many crypto trading competitions with great price pools.
Bybit has a limited supply of earn products.
Bybit has an NFT marketplace with limited liquidity.
What are Bybit Perpetual Futures?
Bybit perpetuals futures are open-ended futures with no expiration date. Bybit lists 185 perpetual contracts for trading but has no standard futures with an expiration date. In our article about the best Bitcoin BTC perpetual contract with the highest leverage, read more about perpetual futures.
What are Bybit Inverse Perpetual Futures?
For the Bybit inverse perpetual futures, the contract value is calculated in USD equivalent but settled and collateralized in BTC. These contracts are good if you aim to collect Bitcoin long-term instead of collecting USDT/USDC. Read more about the best bitcoin BTC inverse futures trading site.
What are Bybit Options?
Bybit offers European-style cash-settled options that can only be exercised when the contract expires. Read more about the best crypto options trading sites for BTC and ETH.
What is Bybit Margin Trading?
Bybit margin trading is limited to Bitcoin BTC, Ethereum ETH, and 3x. There are better crypto trading sites for margin trading than Bybit. Read more about the best crypto margin exchanges and platforms.
What is Bybit Leveraged Tokens?
Bybit Leveraged Tokens represent a basket of perpetual contract positions. When you trade Bybit leveraged tokens, you buy a basket of contracts for the underlying asset. Leveraged tokens have no liquidation risk and no collateral requirement. Read more about the best crypto leveraged tokens trading sites.
What is Bybit Spot Trading?
Even though Bybit supports spot trading, they have few markets and a low trading volume. Still, they have low spot trading fees. Read more about the crypto exchanges with the lowest fees for spot market trading.
ByBit KYC Requirements
Bybit doesn’t require you to complete KYC to be able to trade on their platform.
However, you’ll need to complete your KYC verification if you want to withdraw more than 2 BTC a day.
You may also receive a KYC verification request from Bybit.
Can you use Bybit in New York and United States?
Bybit allows US citizens to register but doesn’t hold a US license.
Bybit restricted countries
Bybit does not offer services or products to Users in a few excluded jurisdictions, including the United States, mainland China, Singapore, Quebec (Canada), Ontario (Canada), North Korea, Cuba, Iran, Crimea, Sevastopol, Sudan, Syria, Donetsk, Luhansk.
What are the daily KYC withdrawal limits for Bybit?
Bybit has three KYC levels, and withdrawal limits are connected to your KYC level.
What are KYC document requirements for each level on Bybit?
The documents for Bybit KYC levels requirements are similar to other crypto exchanges.
- Individual KYC Lv. 1: Identity Verification with proof of identity document(s).
- Individual KYC Lv. 2: Residency verification with Proof of address documents such as utility bills, bank statements, and residential proof issued by your government. The documents must be dated within the last three months, a standard requirement.
Guide: How to start trading derivatives on Bybit
This section will provide a step-by-step guide on how to start trading derivatives with ByBit. Bybit is one of the best crypto leverage trading platforms.
- Sign up with ByBit
- Once you are in, go for the “Derivatives” button in the header menu. Here, you find
- USDT Perpetuals
- Inverse perpetuals
- Inverse futures
- USDC perpetual
3. Now, when you are in, make sure you have selected the cryptocurrency pair you want to trade. Some additional information you should be aware of regarding the perpetual futures are:
- The contracts have no expiry date since they are all perpetual contracts.
- Funding occurs every 8 hours.
4. Now, we have to go to the right column and select all trading criteria
a. The first choice is Limit order, Market order, or Conditional order
- Limit order – Set a limit price on your order (You pay the maker fee)
- Market order – You will buy at the best price on the market (You pay a taker fee)
- Conditional order – You set predetermined conditions
- Isolated margin – Margin only on this position
- Cross margin – Margin on all positions you have
5. Leverage – In the example below, you can see the leverage slide. In this example, it was set to 1.00x, but you can change the bar up
6. Quantity – For how much USD do you want to buy?
7. TP/SL – If you want to set predetermined criteria for Taking profit or Stop limit.
8. Buy / Long or Sell / Short – Buy long means you will be profitable if the price increases. Sell Short means that you will be beneficial if the price decrease. Make sure you understand what cryptocurrency pair you are trading. In the example below, you are speculating on the cryptocurrency pair ETHUSD.
Can I Short Bitcoin on ByBit?
Yes, you can short Bitcoin and many other cryptocurrencies on Bybit. Bybit offers perpetual contracts and futures contracts. In addition, ByBit has a cross margin up to 100x and an isolated margin for long and short contracts. Read more about how to short Bitcoin on Bybit.
Bybit Deposit Methods and Fees
There are both fiat and crypto deposit options on Bybit. For fiat deposits, Bybit uses 3rd parties (Simplex, Moonpay, Banxa) to process these transactions. These offer different deposit alternatives, but Credit cards, SEPA, and Apple Pay are some accepted payment methods.
For cryptocurrency deposits (we use Bitcoin as an example)
- Go to “Assets” in the top menu and click “Spot Account.“
- Click on “Deposit“
- Select BTC
- Copy the BTC address (Don’t transfer any other cryptocurrency than BTC)
For Bybit fiat deposits
- Go to “Buy Crypto” in the left-top menu
- Click on “Express“
- Choose purchase amount
- Choose payment channel (Simplex, Moonpay, Banxa)
What is the minimum deposit to Bybit?
There are no minimum deposit requirements on Bybit except for the Solana native currency, SOL.
SOL deposits of less than 0.01 SOL will not be credited to your account, and assets will not be recoverable.
ByBit Derivative and Spot Trading Fees
With significant derivative listings, low fees, high trading volumes, and liquidity Bybit is considered one of the best crypto derivative trading sites.
Like almost all other crypto trading platforms, ByBit charges maker and taker fees for crypto derivative and spot market crypto trading. According to the following fee table, the Bybit trading fees were updated on 2022-03-02.
What is the Bybit funding rate?
The funding rate is how much you have to pay in interest to borrow capital for leverage trading. Some exchanges have a dynamic funding rate set by the market conditions, while some exchange have a fixed funding rate. For example, the funding rate on Bybit is fixed at 0.01%.
What is the Bybit Token BIT?
Actually, there is no Bybit token. BIT is the native token of BitDAO. BitDAO is one of the world’s largest Decentralized Autonomous Organizations (DAOs).
BitDAO aims to support the growth of the Defi space by allocating financial capital and talent resources.
BitDAO is supported by Peter Thiel, Founders Fund, Pantera, Dragonfly, Spartan, Alan Howard, Kain Warwick, SushiSwap, Polygon, and more.
Bybit has pledged recurring contributions to the BitDAO treasury, which at 2021 rates exceeds $1B per year.
Bybit Security Review
Bybit can be considered a safe trading site.
Below we go through the exchange, communication, insurance fund, and two-factor authentication.
Bybit Exchange Security
Bybit stores the funds of their traders in cold wallets protected by multi-signatures. Withdrawals are processed daily to ensure top crypto and asset security. Our Bybit traders are stored in our multi-signature cold wallet, and all withdrawals are manually processed three times a day to ensure maximum asset security.
Bybit Encrypted Communication
Bybit uses SSL protection on their website, meaning your password and addresses are protected.
ByBit Mutual Insurance Fund
ByBit mutual insurance is a risk management tool for a perpetual contract.
If you hold a contract on ByBit, you can purchase mutual insurance to hedge your potential loss.
The premium you pay for the mutual insurance will be credited to Mutual Insurance Fund. If your insured perpetual contract position experiences a loss, you can receive compensation from the mutual insurance fund.
Does Bybit has Merkle tree proof of reserves?
Bybit is one of many crypto exchanges working towards more transparency regarding storing customers’ funds.
Bybit is currently working on a Merkle tree proof of reserves.
ByBit VS Binance Summary
Bybit and Binance are both popular and great crypto exchanges and derivatives trading platforms. Still, there are some differences.
- Bybit has USDC settled perpetual futures, while Binance has BUSD settled futures.
- Both Bybit and Binance have low trading fees
- Bybit has the best welcome and signup bonus
- Bybit has no KYC requirements for withdrawals of up to 2 BTC per day, while Binance has restricted trading features for non-KYC customers.
- Bybit is more transparent about what countries and citizens can sign up for and uses the platform.
Please read our complete comparison of Binance VS Bybit Trading Review.
ByBit Compatible Crypto Trading Bots
Below, we list some of the best free and premium crypto trading bots compatible with the Bybit trading platform. A crypto trading bot is good if you trade according to a developed strategy with predetermined criteria. A crypto trading bot can monitor the market 24/7 and execute your trades while you sleep.
The crypto arbitrage trading bot is one of the most popular crypto trading bots by category. Here, you can gain profits with almost zero risk. However, the gains are small and must be accumulated often over an extended period. This is why it’s perfect to program a crypto trading arbitrage bot to take a profit.
Please read our full article about free and premium crypto trading bots.
Is Bybit a good exchange for an automated crypto scalping strategy?
A trader must look for at least two fundamentals for a successful automated crypto scalping strategy.
- Meager fees since a scalping strategy involve many trades with small margins.
- Compatibility for integration of bots or other automated strategies to exit and enter a market without necessarily observing it at all times.
Bybit is considered one of the best crypto exchanges for a scalping strategy.
Best Bybit compatible crypto trading bots
ByBit Crypto Trading Tournaments and Competitions
Bybit is one of the best crypto exchanges for arranging crypto trading tournaments and competitions. They almost always have something ongoing with great rewards and prize pools. Read more in our article about the best crypto trading tournaments and the highest prize pools.
Can You Trade Crypto Options on Bybit?
Yes, you can trade crypto options on Bybit.
Bybit added crypto options to its trading platform in May 2022. However, for the moment, there are only BTC options listed on the markets.
Bybit offers European-style cash-settled options that can only be exercised when the contract expires.
There are two types of Options:
Call Options – gives the buyer the right, but not the obligation, to buy an asset at a set price on an expiration date.
Puts Options – allows you to sell the underlying asset at a predetermined price before/at the contract’s expiration, regardless of the market price at that time.
Read more about the best crypto option trading sites for BTC and ETH.
What is ByBit Learn?
With Bybit learn, you can explore the fundamentals of crypto trading from beginners to advanced guides. This is not as good as Binance academy, but there are many blog posts about great topics here.
The covered topics are
ByBit Guide and Review 2022 Pros and Cons
In this article, we presented a guide and review for ByBit 2022. Here is a summary of pros and cons of Bybit
- High welcome bonus
- Inverse perpetuals
- Low fees
- High trading volumes
- Up to 100x leverage
- Bybit Learn
- Bybit is unregulated
- Not as many listed pairs and trading instruments as Binance
Track ByBit Trading with Coin Market Manager
There are numerous software compatible with ByBit trading platform.
We have chose to mention Coin Market Manager in this article since they have some unique features including automated journaling and risk exposure analysis.
Coin Market Manager is offering a three different plans including one FREE.
Below you can see the different subscription plans for Coin Market Manager.
Read more about Coin Market Manager and other crypto trading tools to take your crypto trading to the next level.