Bybit Review: Cryptocurrency Derivatives Trading Platform

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Whether you’re an everyday retail client or a seasoned trader, cryptocurrency derivative contracts allow you to both speculate and hedge your trading endeavours. One of the latest entrants to this ever-growing marketplace is that of Bybit.

The Singapore-based exchange offers a number of crypto-centric perpetual contacts that can be traded on leverage at the click of a button.

If you’re thinking about opening an account with Bybit, be sure to read our comprehensive review first. We’ve covered everything from how the platform works, the types of derivatives you can buy and sell, trading fees, leverage, and more.

Let’s start by taking a brief look at what Bybit is.

What is Bybit?

Launched as recently as 2018, Bybit is a third-party exchange that specializes primary in crypto-to-fiat perpetual contracts.

For those unaware, a perpetual contract operates in the same way as a conventional futures contract, insofar that it allows you to speculate on the future price of an asset. However, the key difference is that unlike a traditional futures contract, perpetual contracts never expire. In this sense, it is very similar to an ETF.

Nevertheless, the Bybit platform currently supports four specific derivative markets. Notably, this includes Bitcoin, Ethereum, Ripple and EOS – all of which are paired against the USD.

The team at Bybit – which is led by CEO Ben Zhou, claims that the exchange platform is able to facilitate up to 100,000 transactions per second, with each trade being executed within 10 microseconds.

ByBit Features

As such, the exchange platform is suited for both retail and institutional-grade investors. Alongside Ben Zhou, the management team at Bybit is made up of seasoned professionals from the forex, investment and blockchain arenas, which includes former employees from Morgan Stanley and Tencent.

So now that you have a bit of history on the exchange, in the next section we are going to explore the trading arena in more detail.

Bybit Trading Arena

When we tested the trading arena out for ourselves, our initial impression was that the layout is extremely clean. The platform utilizes a dark background in a somewhat minimalistic look, with each segment of the trading screen organized clearly and neatly.

Exchange

This includes the main chart area that displays green and pink candles, with the order book and recent trade segments listed just to the right. On the very right hand hand side you have the ability to set your trading parameters, which you can do across limit, market, and conditional orders.

Before your trade is executed, Bybit presents a full breakdown of your order. This is especially useful considering the complexities associated with derivative contracts.

In terms of chart analysis, Bybit allows you to fully customized your trading screen. Chart candle movements can be adjusted between 1, 3, 5, and 10 minutes, all the way up to 1 month.

You can also make changes to the scale of the chart. For example, you can include metrics such as left and right axis, percentages, indicator labels, and log scales. You can also customize the layout of the chart, including the colours and your preferred time zone.

Trading View

All-in-all, while the trading arena offers a user-friendly platform to trade derivatives, Bybit have ensured that it is suitable for both novice and highly experienced traders.

So now that we’ve covered the main trading screen, in the next part of our Bybit review we are going to look at deposits and withdrawals.

Deposits and Withdrawals at Bybit

First and foremost, Bybit does not have any relationship with fiat currency, meaning that you will need to fund your account using one its supported cryptocurrencies. This includes BTC, ETH, EOS and XRP.

Other than the respective blockchain mining fee, you will not be charged anything to deposit or withdraw funds.

While there are no minimum deposit amounts, Bybit has installed a minimum withdrawal amount on each of its four support coins, which we’ve listed below.

  • Bitcoin: 0.0005BTC
  • Ethereum: 0.01ETH
  • EOS: 0.1EOS
  • Ripple: 0.25XRP

Take note, Bybit does not implement any KYC (know-your-customer) controls. As such, you won’t be required to provide the exchange with any identification documents and as such, you can start trading as soon as you open an account and make a deposit.

Bybit Fees: How Much Does it Cost to Trade?

As is now becoming quite common in the online derivatives space, Bybit utilizes a market maker/taker pricing model. As such, the fees you pay will depend on whether or not you provide the exchange with liquidity. If you do, you’re classed as a market maker, and thus, you’ll actually earn a rebate.

At 0.025%, this is paid on each and every trade that you provide liquidity for.

If you are just a regular trader, and thus, you’re classed as a market taker, then Bybit will charge you 0.075% per trade. In doing the math, this means that Bybit makes 0.05% on each trade that the platform facilitates.

On top of your trading fees, you will also need to make considerations regarding financing costs, should you decide the implement leverage within your trading strategy. We’ve covered this in the next section.

Contracts Leverage Maker Rebate Taker Fees Funding Rate Interval for Funding Rate
BTCUSD 100X -0.0250% 0.0750% 0.0100% every 8 hours
ETHUSD 100X -0.0250% 0.0750% 0.0100% every 8 hours
EOSUSD 25X -0.0250% 0.0750% 0.0100% every 8 hours
XRPUSD 25X -0.0250% 0.0750% 0.0100% every 8 hours

Bybit Leverage

If you have a slightly higher appetite for risk, then you’ll be pleased to know that the Bybit platform supports leverage trading. The amount of leverage on offer will depend on the derivative contract you plan to trade.

For example, if trading BTC/USD or ETH/USD, then you’ll be permitted to trade at up to 100x. On the other hand, EOS/USD and XRP/USD is capped at 25x, albeit, this is still a considerable amount of leverage to be trading with. As such, make sure that you have a firm grasp of how leverage works before you use it, as the reality is – you could lose your entire balance.

Moreover, Bybit has also installed risk limit levels on each of its four derivative contracts. However, this shouldn’t really have an impact on you unless you are an institutional grade investor, as you can trade up to 100 BTC or 300 ETH at the 100x level before your limits are reduced.

In terms of financing costs, this is charged on two main fronts. Notably, this includes the interest rate and any respective premium/discount factors. Funding takes place every eight hours.

Customer Support

If you need to contact a member of support, the customer service team operates 24 hours per day, 7 days per week. Support can be reached via the platform’s live chat facility, across a number of languages.

Alternatively, you can also contact the team via email, at support@bybit.com.

Bybit is also active across the vast majority of well-known social media platforms. This includes Facebook, Instagram, Telegram and Reddit.

Security: Are Your Funds Safe at Bybit?

In order to keep customer funds safe from the threat of malicious actors, the platform claims to keep the vast majority of tokens in a multi-signature cold wallet. However, the platform does not stipulate the exact figure. Nevertheless, a small amount of funds are kept in hot storage, which is used to honour withdrawals.

The security team at Bybit actually engage in three withdrawal cycles per day. Before a withdrawal request is processed, the team claims to perform a number of internal security checks.

As is now expected in the online exchange arena, you also have the option of setting-up two factor authentication (2FA). You actually have the option of installing this via email authentication or SMS. Irrespective of the option you prefer, you are strongly advised to activate 2FA in order to add an extra layer of security on your account.

Bybit’s Referral Program

As a final note, it is also worth mentioning that Bybit offers users the chance to earn referral bonuses. For every new member that you are able to refer, you will receive the Bitcoin equilievent of 10 USD.

The user that you refer does need to deposit at least 0.02 BTC. At the time of writing, the referral bonus is only available for those funding their account with BTC, meaning that ETH, XRP and EOS deposits will not allow you to claim the bonus.

Bybit Review: The Bottom Line?

In summary, Bybit offers a clean and crisp platform to engage in cryptocurrency derivative trading. While the exchange currently supports BTC, ETH, XRP and EOS perpetual contracts against the USD, it hopes to add further pairs in the very near future.

Moreover, with the ability to apply leverage of upto 100x on BTC/ETH, and 25x on EOS/XRP, the platform is also suited for those of you that have a stronger appetite for risk. In terms of trading fees, this is very competitive at 0.075%. Alternatively, you’ll get a 0.025% rebate as a market maker.

We also like the fact that the exchange platform is able to facilitate a significant amount of throughput. With the capacity to process up to 100,000 transactions per second, and a trade execution time of 10 microseconds, Bybit is even suited for institutional-grade investors.

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