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What is Bybit?
Bybit exchange is a popular peer-to-peer (P2P) bitcoin and cryptocurrency futures exchange based in Singapore. This Bybit review will give you the lowdown on all there is to know about the platform so you can make an informed decision on whether this is the right exchange for you.
Bybit Quick Facts
For starters, Bybit exchange operates under Bybit Fintech Limited – a company registered in the British Virgin Islands.
In the about us section, the exchange shows its team of experts in cryptocurrencies and finance. More specifically, the Bybit team boasts ex-Morgan Stanley, Tencent and other known institutions which are all available on linkedin.
Primarily, Bybit exchange offers perpetual futures products with 100:1 leverage. This means that they are trying to compete with established exchanges such as Binance and Phemex which have similar non-expiry futures products.
While there are many similarities between the exchanges, there are some unique features that Bybit has over its competitors. We will touch on these features when we cover their trading technology.
The exchange is open to most traders all over the world and the platform has been translated into English, Chinese, Korean, Japanese and Russian. Still, there are some jurisdictions Bybit does not operate in and these include the likes of the USA, Syria, and the Canadian province of Quebec.
Why Choose Bybit Exchange?
Due to these developments, traders are looking to find a less risky and more technologically advanced exchange suited to their needs. Indeed, BitMEX had a history of order book issues which could result in failed trades and critical errors that would ultimately cost traders money. In addition to the latest developments surrounding BitMEX, there is little reason for traders to stay on the platform given that this is the end of the BitMEX era.
Better than the competition?
Today, new exchanges have emerged as alternatives, offering a far better interface and leveraged trading experience among other things. Of all the new exchanges, Bybit is positioned to take a big share in 2021. The reasons will be made clear in this complete Bybit review.
Trading engine capacity of these top 3 exchanges:
1. Bybit: 100,000 transactions per second.
2. Deribit: 10,000 transactions per second.
3. Bitmex: 500 transactions per second.
Bybit‘s features have the capacity to handle 100,000 TPS (transactions per second), which is far better than the competitors. To this day, Bybit has never experienced a system overload, which is very promising. As an exchange, your reputation increases with up-time. This is one of the main reasons why traders are currently choosing Bybit over BitMEX and other exchanges.
Who Owns Bybit?
Bybit was founded in 2018 by the owner and CEO of Bybit, Ben Zhou. Ben has experience from the forex market as he ran a forex exchange successfully for 8 years. Other members of the Bybit team have experience from places like Morgan Stanley, Tencent and other very reputable companies.
Bybit has a very impressive list of co-founders and other team members. This is probably one of the main reasons behind the explosive success of the exchange.
Where Is Bybit Based?
Bybit has its headquarters based in Singapore, and they also have operational offices in Hong-Kong. The exchange operates under the name Bybit Fintech Limited registered in the British Virgin Islands.
Bonus points: Bybit Interface & User Experience
The first impression when looking at the Bybit interface is that it looks much more user-friendly than most other exchanges in crypto.
If you compare the exchange with competitors, it seems like Bybit has been inspired by the interface of Binance. This is a good thing because a big part of the success of Binance arguably comes from their user-friendliness.
The image below is of the Bybit interface on dark mode, you can switch between dark and normal mode easily if you want to.
The Bybit mobile App
For digital natives and traders who are on the go, you will probably want to keep track of your open positions. This is why Bybit has created a mobile application that is available on iOS and Android, with good functionality.
In fact, the application has the same functionality of the Bybit desktop version with advanced charting and order management. Traders can also set a whole host of price levels to be sent as push notifications on their phone.
As a Bybit crypto derivatives trader, you also have these advanced order forms available on the main exchange. This is not very common on other exchanges except for perhaps Phemex which also has its mobile application. Most of the time the order functionality is stripped down and easy to use so it’s great for quick access.
The application is listed in both the iTunes store as well as Google Play. There are tens of thousands of Android and iOS installations, and reviews appear to be quite positive.
The ByBit app is functional but as a trader, you will probably prefer to use web and PC-based trading. However, if you’re a digital nomad who is constantly on the go, or if you have errands and need to monitor a trade, then the Bybit application allows you to do this. Granted, you can’t easily study charts and monitor numerous markets at the same time but it’s a welcomed tool for monitoring positions.
Bybit Exchange Customer Support – 24/7
One of the biggest selling points of Bybit is their 24/7 support. In fact, this might be one of the most convincing reasons to trade on Bybit: their incredible support. Customer service agents respond very quickly and they seem to always do everything they can to help you as the customer. Users on social media and YouTube-influencers all seem to agree that the customer support of Bybit is maybe the best among its competitors.
If we compare with the customer support of BitMEX, it’s easy to see that Bybit is the winner. BitMEX does not seem to care about its custumers. BitMEX will give you slow responses and they are not always giving the customer a satisfactory solution to a given problem.
For quick communication with the Bybit team, just click the chat box in the bottom right corner of the interface.
The most successful contract BY FAR in crypto for the past years has been the Bitcoin perpetual futures contract on BitMEX. Why? Well, with the perpetual swap model you can trade Bitcoin with up to 100x leverage without having a settlement date where the position is closed.
The perpetual swap model is genius, and Bybit has actually copied the exact same model as BitMEX. This means that you can long and short Bitcoin with up to 100x leverage on Bybit, and you can keep your position open until YOU decide to close it. If you want to learn more about how to trade Bitcoin on Bybit, you can read our Bybit tutorial.
Buying and selling Bitcoin on Bybit
Bybit has an advanced order functionality that is the cream of the crop in terms of leveraged trading capabilities. This is arguably one of the best features of the crypto trading platform as it allows you to not only customize your entries but also to manage risk.
When placing an order, you will see this order form. At the top of the form you can select between various order types. Just below that, you can adjust the leverage, price and quantity (in USD). There is also additional information on the contract specifics.
Basically, there are three order types to choose from on the Bybit platform, outlined below:
Bybit Order Types
- Market Order: This is an order that is placed at the current market price. It will place and execute the order at the “bid” if it its a sell order or the “ask” if it is a buy order.
- Limit Order: This is an order that is typically the recommended way to trade. The order is placed at a level that is chosen by the trader which could be away from the current market price. Technically, this order is open and is waiting to be “filled” by a buyer or seller who is willing to match that price.
- Conditional Order: This is an order that will either execute as a market or limit order as soon as a certain price level is reached. When the trade is placed, you define the trigger price along with the direction, quantity and leverage. Such orders are typically used when technically meaningful levels are reached.
Stop losses: When using leveraged trading, stop losses are an essential feature that could make or break a trading account. There are several ways to set up a stop-loss on Bybit and traders should familiarise themselves with these functions to optimise the trading experience.
As mentioned, with the Limit order and the Conditional limit order, the order will have a certain order life. This is for how long the order will remain open until it is “killed”. There are three order life options at Bybit:
- Good-Till-Cancelled (GTC): This is an order that will remain open until you actively close the open order.
- Immediate-or-Cancel (IOC):: This order is designed to be filled instantly and at the best price. If any part of the order remains unfilled then the remainder will be cancelled. This order type allows for partial order execution.
- Fill or Kill (FOK): Finally, the FOK order is designed to be filled entirely and at the best price or not at all. This is very similar to the IOC order with the exception that it does not allow partial orders to be executed.
On top of this, you can also choose how such orders are executed. For instance, with your Limit and Conditional order you’re able to choose the “Post Only” option. This will ensure that when the order is executed, it will be done as a “market maker” and you will benefit from the maker fee.
Additionally, you also have the option of making your limit order a “Reduce Only” order. This essentially means that the order will only execute only if it would reduce your position. If the order position were to be increased due to the market, then this would be amended down or cancelled entirely.
A similar parameter exists on the Condition order, called “Close on Trigger”, which can be used in conjunction with your conditional stop losses. This ensures that your stop losses reduce the position with no extra order increases.
Another useful tool is the Bybit leverage calculator, which you might be familiar with from other exchanges.
This let’s you calculate your crypto Profit / Loss (P/L) and return on investment (ROI) target levels. It can also be used to determine your liquidation levels.
Your Position Shown In BTC & USD With Fees
Something that Bybit has that the others don’t is the very basic detail of always showing the value of your position in USD. Traders who trade on BitMEX or other exchanges know that it’s inconvenient to have to calculate the conversion yourself. As you can see in the image down below, the Bybit interface will show your position profits both in terms of BTC and in terms of USD.
Bybit is a crypto-to-crypto exchange, which means that you can only deposit cryptocurrencies, not USD or EUR to the exchange. On Bybit you can deposit Bitcoin, Ethereum, XRP & EOS.
Does Bybit Require KYC? (Know Your Customer)
No, there is no KYC required to start trading on Bybit. This means that you can sign up to Bybit and start trading bitcoin immediately. Registering an account takes 30 seconds and the only thing you need to provide is an email and create a password.
ByBit Market Data Analytics
Another cool feature which seems to be increasing in popularity among bitcoin derivatives exchanges is the ‘Advanced data’ section. This contains some useful graphics and charts that could be useful to inform your trading strategies.
As a Bybit trader, market analysis is super important. To conduct this analysis, you can pull up some of these charts and even download the data as an image, vector file or as a csv. Below, you can see an example using the rolling volatility chart.
ByBit Data Analysis Tools
Here is a list of the data analysis tools you are able to download as well as what it means:
- Price Moving Averages: This shows bitcoin’s price along with several moving average indicators for various time frames.
- Monthly Price Range: This section looks at the monthly highs and lows in instrument’s price and allows you to observe the range in the asset traded.
- Rolling Volatility: This indicators shows the realised volatility over the last 30 days in comparison to the average for the period. The idea is to give traders a sense of how much the price varied within a given period.
- BTC Daily Realised Volatility: The daily realised volatility shows the actual volatility over a period of time.
Thanks to the Bybit tech team, there are a whole slew of other indicators, metrics and data points you can check out in the tabs. This includes information on the specific index price, funding data as well as the insurance fund.
Bybit Vs. BitMEX – System Overloads
Anyone who has traded bitcoin on BitMEX or any other big Bitcoin exchange knows that sometimes there are system overloads. These overloads occur when the market moves very quickly and too many people are trying to submit their orders at the same time.
Now, if the BitMEX exchange does not have the ability to handle that volume then there might be an overload. During an overload, it’s impossible to submit an order. In other words, during these moments you can’t trade at all.
The fantastic thing about Bybit in comparison to BitMEX is that they have been active since 2018 and they have still not had a single system overload. Even during times where the Bitcoin price jumped over 20% in a day, Bybit has always been functional while the competitors were down. This is a really big advantage when trading on Bybit.
Trading engine capacity of these top 3 exchanges:
1. Bybit: 100,000 transactions per second.
2. Deribit: 10,000 transactions per second.
3. Bitmex: 500 transactions per second.
Are Your Funds Safe On Bybit?
Bybit has never been hacked, just like BitMEX, Kraken, Coinbase and a few other players in the space. That said, there is no such thing as a risk-free exchange. When you deposit Bitcoin to Bybit you need to understand that you are trusting the exchange with your funds.
All your funds on Bybit are safely stored in cold storage. Per the website, if Bybit gets hacked then the platform will give full compensation to the customer for the loss.
Bybit Withdrawal Time
Something that differentiates Bybit from other leverage exchanges is that you can withdraw funds 3 times per day, at specific times. While on BitMEX and the other competitors, you can actually only withdraw your funds once a day at a specific given time.
The 3 times per day for withdrawals happen at 0800, 1600, 2400 UTC. Your withdrawal will be pending until it is confirmed by Bybit. In other words, your withdrawal time could be several hours if the next withdrawal time is several hours in the future. However, the maximum time is 8 hours, as the withdrawal confirmation times happen every 8 hours.
It’s good to note that there is a 30-minute rule, which means that fund withdrawals submitted after 0730 will not be confirmed at 0800, but will be confirmed at 1600 instead.
Can You Use Bybit In The US?
Just like all the other leverage exchanges, the United States is geo-blocked, which means that if you are in the US, you’re prohibited from logging in to Bybit USA. If you are in the US and need to access your Bybit account you’ll need a VPN (Virtual Private Network). A VPN will allow you to hide your IP so you can successfully log in to Bybit and access your funds. Most traders in crypto use NordVPN when trading Bitcoin.
Of course, as a responsible trader you would do this at your own risk is your are living in the US and nothing written here is meant as financial advice.
Bybit Bitcoin Trading Fees & Rebates
Bybit has the same fee structure as BitMEX. However, Bybit has a very low withdrawal fee of 0.0005 BTC, compared to the average on other exchanges which is roughly 0.0008 – 0.0009 BTC. This means that the Bybit withdrawal fee is 41% lower than the Bitcoin exchange average. You can compare the fees between the exchanges in our Bitcoin trading exchange list.
The most interesting part about the fees is that if you use a limit order, you’ll actually get a rebate instead of paying a fee. In other words, you are paid by Bybit for submitting limit orders into the order book. If you want to learn more about this, visit our Bybit tutorial.
- Market order fee (taker fee): 0.075%
- Limit order fee (maker fee): -0.025%
- Withdrawal fee: 0.0005 BTC
- Bybit funding rate: 0.02%/ -0.02%
By The Numbers: Bybit Fees VS Other Exchanges
Fee Rates of Perpetual Contract Trading
|Platform||Maker Fee Rate||Taker Fee rate||Net Fee Accrued|
Fee Rates of Spot Trading
|Exchange||Maker Fee Rate||Taker Fee Rate||Net Fee Accrued |
The Bybit Funding Rate
The contracts traded on Bybit are futures contracts, and to make sure that the futures price is the same as the spot price there is a Bybit funding rate. Buyers and sellers settle this fee directly and NOT to Bybit.
If there are more sellers than buyers, then the sellers will pay the funding rate of 0.02% to the buyers and vice versa. If the funding rate is positive (0.02%) then the buyers (longs) will pay the sellers (shorts). However, if the funding rate is negative (-0.02%) then the sellers (shorts) will pay the buyers (longs).
The funding rate will be charged every 8 hours at 16:00 UTC, 00:00 UTC and 08:00 UTC. You will only be affected by this funding rate if you are currently in an open position at the time of the funding rate.
This means that if you trade against the majority, you will get paid for holding your position. Logically, when trading Bitcoin on Bybit you should try to always use limit orders and trade against the majority. This way you’ll not only have low fees, but you’ll actually earn money for trading through rebates.
Bybit offers a very user-friendly test net where the user can try the exchange without using real funds. This is important for new users if they want to play around with the exchange before deciding if they want to commit. Also, if you’re a beginner to trading Bitcoin, you should first use the test net. When you’re comfortable with trading on the test net you can deposit real Bitcoin and apply your strategy thereafter.
ByBit Promotion & Trading Competitions
As an added bonus to your trading experience, the ByBit exchange also hosts trading competitions where traders battle it out to win massive prize-pools.
In fact, just this Summer ByBit hosted the World Series Of Trading (WSOT) competition with a total prize pool of 150 BTC and nearly $300,000 USDT.
Typically, trading competitions include a ‘troop’ showdown and traders can join teams, start their own troop or even enter individually.
Of course, Bybit does not hold such competitions simply to be charitable. In fact, these competitions encourage more trading volumes on the platform which secures higher revenues via fees. As such, traders who participate in these big tournaments and events should closely watch funding rates when playing the game.
Bybit Bonus Referral Program
A big reason for the explosive growth of Bybit is their referral program or affiliate program. Basically, you will get a 30% commission from all the trading fees from the users that sign up under you. Also, you’ll get 10% off of the sub-affiliates that sign up under your direct affiliates. If you have a friend who wants to sign up, make sure he uses your referral link to get some kickback off of his fees.
Now, if you have a website, YouTube channel or other traffic, then you can easily make $10,000 per month from promoting your referral link. As stated above, this is one of the reasons why Bybit is growing so fast. BitMEX and Deribit for example, only offer 20% commission to their affiliates.
What’s next for Bybit exchange?
Bybit is without a doubt one of the best bitcoin derivatives exchange on the market right now. Thep platform has also sought to include new features to cater for increasingly savvy investors whose expectations are growing and adapting to new circumstances.
Here are a few updates in the Bybit pipeline:
- Sub-accounts: These accounts allow traders to build different strategies on separate accounts without ever having to leave the platform.
- More altcoins pairs for USDT perpetual contracts: Traders will soon be able to exchange contracts with another 11 altcoins.
- MT4 integration: MetaTrader 4 is one of the most popular platforms for Forex traders, and dedicated integration with this platform is expected to launch shortly.
This Bybit review was written in light of the fact that bitcoin derivatives trading is on the rise, and the recent mass exodus of traders from BitMEX have left many on the lookout for alternative exchanges.
Today, the platform is fast becoming a household name. The platform has never been hacked and Bybit have operated for a few years now with an excellent track record. The order book is also one of the largest around which provides plenty of liquidity to all but the largest retail investors around.
Perhaps the best feature of Bybit is that instead of just offering BTC / ETH futures products they’ve also created XRP and EOS futures, as well as several new products for traders’ insatiable appetite. For those looking to trade futures for these coins Bybit is a great option.
With their multiple order types and functions, insurance fund and superb matching engine Bybit, is certainly a great contender for the top derivatives platform on the market for both newbies and experienced traders.