Key Information Bybit
ByBit is a cryptocurrency derivatives exchange offering its services since the end of 2018.
The exchange provides traders with the opportunity to trade perpetual contracts for Bitcoin, Ethereum, Ripple and EOS with a leverage of up to 100: 1. Over a short period of time, the exchange managed to create a client base of 150,000 traders, provide high liquidity (currently about $ 50 million), and achieve an average daily trading volume of $ 500 million by selecting 25% of the Bitmex market share in half a year ( Main competitor).
But can you really trust the new exchange?
In this ByBit review, we will tell you everything you need to know about this exchange. We will take a closer look at its reliability, commissions, customer support and trading platform. In addition, we will share proven tips for trading cryptocurrency futures.
ByBit is a Singapore-based exchange that allows individuals to trade cryptocurrency futures. The operation of the exchange is controlled by Bybit Fintech Limited, registered in the British Virgin Islands.
ByBit team is formed by experts in the field of forex, blockchain technology and finance. The research and development team includes specialists who previously worked for BAT, and the risk management department includes graduates from Morgan Stanley and Tencent.
The main product offered by the exchange is perpetual futures, for which trade a leverage of up to 100: 1 is provided. Currently 4 specific derivatives markets are available: BTCUSD, ETHUSD, EOSUSD and XRPUSD, leverage up to 100: 1, own coins as collateral and trading pairs with USD.
For the uninformed, we explain that perpetual contracts work similarly to traditional futures contracts, as they allow you to speculate about the future price of an asset. However, the main difference between traditional futures contracts and unlimited contracts is that the latter do not have a due date. In this they are very similar to exchange-traded investment funds.
Although ByBit is in many ways similar to eminent exchanges such as Bitmex and Deribit, it offers several unique features that make it more attractive:
Bybit offers one of the fastest order ordering cores in the industry, capable of processing up to 100,000 transactions per second per contract, guaranteeing no overloads and instant order processing.
When creating Bybit, it was possible to scale, in all aspects of the exchange’s work, the latest technologies have been used from the very beginning of its launch, and thanks to the “gray release” functions, software updates are quickly released and the server works without any downtime.
The main priority for Bybit is the security of customer funds, therefore, to store all assets, the exchange uses a system of hierarchically determined offline wallets, and all withdrawal requests are processed 3 times a day manually.
Bybit Support always answers customers’ questions in a timely manner and solves their problems by offering a round-the-clock, affordable 24/7 online chat with instant answers and service in several languages.
“Customer feedback is extremely important to us, because it is they that help us to improve.”
How is Bybit different from its competitors?
Bybit system eliminates rejection of orders and delays in their execution, the exchange server works without downtime or the so-called constant technical work.
Improved order placement system
Traders have the ability to immediately customize their trading strategy. Bybit allows traders to set take profit and stop loss along with entry orders. When an entry order is executed, TP / SL is activated for this order. In addition, Bybit offers a trailing stop function for a position.
Online Support Available 24/7
Own Coin Supply
Customers can trade with leverage up to 100: 1, using their own coins as a margin (not only BTC, but also ETH, XRP, as well as EOS).
Low maintenance margin; positions are liquidated less often
Maintenance margin on Bybit is fixed at 0.5%, so the probability of liquidation of a position on Bybit is lower than on other exchanges.
The exchange website is available in English, simplified and traditional Chinese, Korean, Japanese and Russian. However, in some countries, such as the USA, Syria, Crimea and the Canadian province of Quebec, the exchange does not provide its services.
Is it safe to trade on ByBit?
When we talk about the reliability of the exchange, we are interested in its security policy, since it affects coin management, user security tools and, of course, risk management.
To counter the threat of hacking, Bybit uses a system of hierarchically determined offline wallets, which stores all assets, and all withdrawal requests are processed manually three times a day.
This means that the entire amount of cryptocurrency reserves and all customer funds are stored in offline wallets, in a safe place disconnected from the network.
Encrypted communication channel
To protect against the risks arising from online espionage and phishing attacks, ByBit uses full SSL encryption. This means that all passwords and addresses sent to the exchange will be encrypted.
In addition, it helps identify a phishing site. If you visit a site that looks like ByBit, but there is no lock next to the address bar in your browser that indicates the site’s security, this clearly indicates that you are on a phishing site, you should immediately leave it.
To manage the risks caused by under-receipt of funds in settlements under futures contracts, ByBit has created a so-called insurance fund.
The bottom line is that this fund will be used when a trader’s position is liquidated below his “bankrupt price”. The latter is the price at which the trader’s initial margin will be fully used up.
Without an insurance fund, this would entail a loss of payments, in which the damage to the counterparties of the transaction would not be compensated. In fact, this is an insurance policy that protects traders in cases where ByBit does not remove the liquidation of a position at a bankrupt or more favorable price.
This fund is replenished from the initial margin available to traders whose positions were liquidated at the beginning of trading. The difference between the liquidation price of the trader’s position and the bankrupt price forms the amount that is sent to the insurance fund or reimbursed from it.
Two-factor authentication ByBit has implemented a number of measures to protect your account from a hacker who knows your password.
One of the most important security measures implemented by Bybit is two-factor authentication. That is, in order to enter your account and carry out operations, you will need your mobile phone. Before you can withdraw any coins, you will have to authorize the use of Google Authenticator.
Given that ByBit is an exchange that allows you to trade using borrowed funds, traders are given the opportunity to margin trade in cryptocurrency. They will need to deposit only a small fraction of the initial position as security for their transactions.
For example, for trading BTC / USD or ETH / USD, leverage of up to 100: 1 is provided. On the other hand, the leverage for transactions with EOS / USD and XRP / USD is limited to 25: 1, but even such a leverage represents a significant amount for trading.
This means that with a leverage of 100: 1, you will need to make a margin of 1% of the initial nominal transaction price. Thus, if the face value of a 10BTC contract is $ 50,000, you will need to deposit $ 500 as an initial margin. It is worth noting that the leverage easily changes even after opening a position, no other exchange is able to offer such an opportunity.
Surprising is the size of perpetual contracts on ByBit. The cost of each contract is only 1USD, and this is much less than on other exchanges. Below are the features of the exchange contract on BTCUSD.
Liquidation happens when you have almost exhausted your initial margin, and the labeling price reaches the liquidation price. In these cases, the trader’s position is liquidated, and the remaining margin, if any, is sent to ByBit Insurance Fund.
And although liquidation for many traders may be a cause for frustration, it is an important risk management tool on the futures exchange. However, ByBit offers many tools to help traders avoid the risk of liquidation. These include:
- Fair price marking mechanism: To eliminate the risk of market manipulation on the exchange, ByBit uses a fair price marking mechanism as an indicative price. It includes the “marking price”, that is, the liquidation-activating price, and the “last deal price” used to calculate the price at which the position is being closed. The former is the global price of Bitcoin, while the latter is the current market price of ByBit. The use of external price components reduces the risks of manipulation on a separate exchange.
- Automatic margin replenishment: if you want to guarantee a constant required margin level for your position, you can set up its automatic replenishment. Automatic margin replenishment allows you to keep your position open, replenishing the margin from your funds every time it approaches zero.
- Stop Loss: Properly set stop loss on your positions will help you not to approach the level of liquidation.
For obvious reasons, trade commissions are an important criterion for us. This criterion is especially important when studying futures exchanges on which commissions are paid on positions whose size significantly exceeds the margin.
ByBit operates on the basis of the so-called “maker-taker” commission model. This means that the exchange charges fees from traders if they reduce liquidity, and returns part of the funds if they supply the exchange with liquidity.
In other words, if you place an order, and it is instantly executed, you reduce liquidity. However, if you place a limit order whose execution price differs from the current price, you supply the exchange with liquidity.
The commission at the rate of 0.025% is paid every time and for every transaction in which you supply the exchange with liquidity.
If you are an ordinary trader and thus treat market takers, Bybit will charge you 0.075% for each transaction. If you count, the Bybit commission in the end will be 0.05% for each transaction on the platform.
Another commission that you will see information about when making a transaction is financing. It is similar to an overnight rate and is a financing fee. Bearing in mind that margin trading is based on “borrowing” positions, you will either pay for financing or receive a payment for financing. However, unlike commissions for operations, financing is paid by traders directly, without the participation of Bybit.
The financing rate depends on market conditions and interest rates, that is, it is not fixed and can change from day to day. You can find out the financing rate applicable to your position when you open a position in the “position information” column.
In terms of deposit / withdrawal fees, ByBit does not charge you any such fees. However, when withdrawing funds from you, a miner or network commission for blockchain mining may be withheld. As a rule, its size is negligible.
Register for ByBit
If you decide to try trading on ByBit, you will need to create an account. To create it, you will need an email address or phone and password. If you have a referral code, you can enter it.
After you sign up, ByBit will send you the code you need to verify your email address / phone number. It is valid for only five minutes, so try to enter it immediately after creating your account.
What else traders can appreciate is that ByBit is a completely anonymous exchange. It does not require verification before you start trading, and this is simply excellent for privacy advocates who are worried about the risks of disclosing certain information.
Deposit / Withdraw funds
ByBit is an exclusively cryptocurrency exchange. This means that it is impossible to replenish your account with fiat currency. And although this can be annoying for some, you can easily convert your fiat money to Bitcoin in many exchangers such as Bitstamp or Kraken
To replenish your account with cryptocurrency, you will need to create a wallet address and transfer to a wallet. You can do this by going to the “Assets” section located in the header of the site. It shows the balances of your wallets. Clicking on the “deposit” will open the wallet addresses for BTC / ETH / EOS / XRP.
After receiving the address, you can proceed to the operation. Funds are not credited instantly, as the transaction must go through the network. You can watch the process on the blockchain.
Withdrawals are also simple.
In the selected asset, you need to click on the ‘withdraw funds’ button. The system will require you to enter the wallet address for withdrawal and confirm the action using 2FA. In addition, you will receive information about the miner commission charged for your operation.
Paying special attention to security, Bybit manually processes requests for withdrawal of funds stored in an offline wallet three times a day (at 8, 16, and 00 hours UTC).
Although there is no limit on the minimum deposit amount, Bybit has set a minimum withdrawal amount for each of the supported coins, information about them is given below.
- Bitcoin: 0.0005BTC
- Ethereum: 0.01ETH
- EOS: 0.1EOS
- Ripple: 0.25XRP
Please note, Bybit does not require any user verification. Thus, you do not have to provide the exchange with any documents proving your identity, you can start trading immediately after registering your account and making a deposit.
Trading platform ByBit
Having an effective trading platform with modern technology is extremely important for a margin trader. This is especially true for traders using a large leverage.
What is the situation with ByBit?
The trading platform looks relatively well-arranged and intuitive. From above, you can navigate between your wallets and account management. In addition, you can switch between the futures markets for BTC, ETH, EOS and XRP.
The standard interface on the left displays charts and market depth (you can switch between them). In the center is a book of warrants and information on recent transactions. On the right, you will find order forms and contract information.
In the interface of the trading platform, we really liked the ability to configure it and the block-modular design. You can remove some of the modules, resize the modules and move them as you like.
For owls, Bybit offers a night mode, which is much easier to read in a dark room. It can be found in the lower right corner of the exchange window, next to the languages.
Experienced traders may have noticed that ByBit uses Tradingview chart display technology. This third-party charting software is widely known in the industry as the most functional and offers the most extensive list of tools.
With Tradingview charts, novice analysts among you can easily carry out their research and monitor important trends. In addition, Tradingview is often used on many other platforms, so it will be relatively easy for you to adapt if you decide to go somewhere else.
Among the accomplishments that ByBit seems to be proud of is the core of order exchange information. The management of the exchange claims that they have one of the fastest order processing information in the cores industry, capable of processing up to 100,000 transactions per second per contract, which ensures that there are no overloads and all orders are reduced without delay. And this is for every new asset added.
Functionality of orders
There are three types of orders on the ByBit trading platform. They are described below:
- Market order: This is an order placed at the current market price. A sell order is placed at the bid price, and a buy one at the bid price.
- Limit order: this is an order placed at a different price than the market price. This order remains open for a certain period of time, we will talk more about this below.
- Conditional order: this order becomes either a market order or a limit order when certain price levels are reached. When placing an operation, you determine the trigger price, direction, quantity and leverage.
As mentioned above, limit orders and conditional limit orders are opened for a certain period, the life of the order until it is canceled. On Byit there are three order lifetimes:
Good for cancellation (GTC): this order will remain open until you decide to close it.
Execute immediately or cancel (IOC): this order provides for instant execution at the best price. If any part of the order is not executed, the order for its execution is canceled.
Execute immediately or cancel (FOK): this order provides for the instant execution of the entire order at the best price or its cancellation. This type of order is used in cases when you are not interested in partial execution of orders.
Bybit allows traders to set take profit and stop loss for entry orders; When your entry orders are executed, TP / SL are activated. In addition, Bybit offers the function of trailing stop positions. After opening a position, you can observe it and even manage it in the window with Trading View charts, take profit and stop loss are displayed on this chart.
Special offer from ByBit
After making your first deposit, do not forget to collect your welcome bonus equal to $ 60 in BTC ($ 10 for registration and $ 50 for making your first deposit in 0.2 BTC), and go to the main page of the exchange to open a contract. We offer market, limit and conditional orders for both long and short positions.
Referral program ByBit
If you already have experience in trading on ByBit, and you were impressed with this product, you can always invite other traders to the platform. If at your invitation a user signs up and makes a deposit of at least 0.02BTC, ByBit will reward you with a $ 10 trading bonus.
To participate in the referral program you will need to get a code. It can be either a unique code used by users invited by you during registration, or your referral link. You can share this link on the Internet and in your social networks.
The referral program is attractive for those who can invite friends who make a small amount of deposit. But if you are going to invite many traders whose trading volumes are usually large, then perhaps you should register in the ByBit affiliate program. So you will receive a reward in the form of a percentage of profits on transactions of partners invited by you and sub partners invited by these partners.
In addition, Bybit offers the industry’s most detailed partner reports, including all the detailed information about the actions of traders. In addition, you can create your own campaigns and links for subsequent analysis of the effectiveness of each campaign separately. All data is continuously updated, and information on commissions received is displayed in real time.
It is impossible to register in both the referral and affiliate programs, so you will have to think carefully about which one to choose.
We consider ByBit a convenient exchange with the latest technology, reasonable fees and a relatively intuitive interface. In addition, we were pleased with the insurance fund created by the exchange, which allows us to manage market risks.
ByBit is focused on offering an alternative to the established order in the cryptocurrency derivatives market. In fact, the liquidity of the ByBit order book recently exceeded the liquidity of the Deribit order book.
And although some aspects require refinement, it is relatively easy to implement. The exchange is new, and there is no doubt that in the near future many aspects will be finalized.