In this crypto trading guide we will explain what the ByBit mutual insurance is. Also, we will compare with similar features from Binance and BitMEX.
The main purpose to buy the ByBit mutual insurance is to hedge the positions for potential loss. In this way you can minimize loss when the market is against you and still ride on the profit when the market is with you.
All insurance funds are not similar and we will explain the differences in this aricle.
What is ByBit?
Bybit is a crypto trading site from the British Virgin Islands.
Bybit is offering few trading pairs with high leverage, up to 100x. The trading site has a great sign up offer where you can get up to $90.
Regarding safety, Bybit continuously improves the safety and reliability of the trading platform.
What is ByBit Mutual Insurance?
ByBit Mutual insurance is an optional crypto risk management tool for a perpetual contract.
Traders holding perpetual contract positions on Bybit can purchase mutual insurance to hedge the potential loss.
The premium fee paid by traders for the mutual insurance will be credited to the Mutual Insurance Fund.
If you have an insured perpetual contract position that experiences loss, you can receive compensation from the Mutual Insurance Fund.
ByBit Mutual Insurance Explained
Mutual insurance on ByBit presented by CEO
Binance also offer trading insurance. However, its a bit different from ByBit insurance
ByBit Mutual insurance VS Binance insurance
In the video below, the ByBit mutual insurance is explaned by the ByBIt CEO and co-founder.