Bybit Options review

ByBit stands out as a platform that prioritises the security of your financial assets. The exchange employs various robust security measures to guarantee the safety of your funds at all times. Therefore, if you are looking for a crypto Options trading opportunity, Bybit would be a great option.

Is Bybit safe for Options trading?

In today’s Bybit review, we will discuss the nuts and bolts of Bybit Options trading based on our analysis and observation. Therefore,if you are looking for an Options trading facility in Bybit, you can read this review till the end.

Bybit overview and background

Bybit is popular for its security measurements, where the key point is the implementation of cold wallets. Cold storage wallets are renowned for their formidable malware resistance. In addition, the platform meticulously reviews each withdrawal request to reduce the possibility of unauthorized transactions.

Despite its Singapore headquarters, the company is officially registered in the British Virgin Islands. This uncommon combination of locations contributes to its popularity, especially among Asian customers.

Regarding regulatory oversight, it is essential to observe that ByBit operates without formal government regulation. Despite the absence of regulatory supervision, the platform has amassed a sizable and diverse clientele.

Bybit Options trading basics

Crypto Options trading is a contract to provides holders the right but not the obligation to sell or buy a crypto asset.

Options trading in the crypto market has become popular as it needs a smaller margin than being involved in the crypto futures. This is because Options trading does not involve the contract directly. However, the value of an Options contract comes from the strike price of the following asset. This value is known as premium and depends on several factors like the Options value or the price change. 

Understanding the basics of the strike price, premium, and the expiration date is crucial before joining the Options market. Moreover, the primary option is another term that a trader should know. For example, the American Options can be exercised before the expiration date, while the European Options need to be exercised at the expiration date. 

In Bybit, Options trading is limited to the European style, merged and settled in USDC. Also, investors can trade Options in the BTC and ETH markets. 

Bybit Options' key features

Crypto Options are an exciting opportunity to trade with a lower risk and cost. Also, there is some difference between Options trading with other derivative products, which needs attention before jumping into it. 

If you are looking to step into the Bybit Options trading, you might find this section helpful as we will cover key observations based on our research.

First-in-Market USDC Options

Bybit offers USDC Options only, which means you have to convert your assets to this stablecoin before initiating the trade. The process is very simple; you can do it from the convert menu from the Bybit spot section, or you can receive funds at your USDC address on Bybit.

Bybit Options eliminate the need to buy from the low and sell from the high. Instead, you can choose different expiration dates from daily, 2 days, weekly, bi-weekly,  Monthly, Bi-Monthly, and Quarterly.

Enhanced capital efficiency

Portfolio margin, a risk-based margin policy, is implemented by Bybit in Options trading, besides the general portfolio risk. Using this tool, users can lower the margin requirement against hedged positions.

Coin availability

Like other crypto exchanges, Bybit offers trading in Bitcoin (BTC) and Ethereum (ETH) Options only. Traders can easily implement any Options trading strategy on these instruments. Also, the platform is user-friendly so that novice and experienced traders can easily pick and play any method. 

The drawback of Bybit Options is that there is no opportunity to go beyond ETH and BTC Options.  Our research shows that these cryptos have the highest liquidity, but some platforms offer LTC, BTH, and other contracts.

Easy-to-use interface

The USDC Options are available on the “derivatives’ tab on the home screen. You just have to scroll down to see the BTC and ETH Options.

After accessing the platform, we have found a sophisticated interface consisting of several needful Options and settings. 

Details about the balance are shown on the top right corner, while on the bottom side, a list with several expiration dates is available. Also, some trading tools are available; from them, remarkable Options are Delta, Gamma, Vega, reverse position, Auto margin replenishment, etc.

Position builder

The Options position builder is a unique tool to create, customize, and build several basic and advanced Options trading strategies. With the position builder, traders can easily choose a strategy and adjust it with the desired expiration dates.

Some popular BYbit position builders are as follows-

• Straddle
• Stangle
• Iron condor
• Call/put Options
• Covered call

Bybit learn

Bybit Learn covers the basics of advanced crypto education, where a separate part is implemented for Options trading. Therefore, new and inexperienced traders can easily learn and understand Options trading before joining the market.

During our review, we found 35 unique crypto Options trading articles that are free to read for everyone. 

Why Trade Bybit Crypto Options?

There are several purposes for trading crypto Options, but popular reasons are mentioned here:

Risk hedging

Like traditional Options trading, traders can buy a put option to protect their funds against a falling price. 

Expand trading portfolio

It is easy to make a profit from Options trading by implementing several market strategies in different situations or at a time. The ultimate outcome is a good profit regardless of the market condition.

Limited risk, unlimited upside

As an Options holder, you can potentially make unlimited profits when you're right and limit your losses when you're wrong.

Bybit Options trading cost

In Bybit Options trading, trades should pay three different fees- trading fee, delivery fee, and liquidation fee.

Trading fee

The trading fee is like other traditional charges, where traders will be changed in USDC while opening and closing a position.

As per our findings, Bybit takes the same fee on maker and taker orders.

Delivery fee

Bybit will charge the delivery fee when the option is exercised. When a  call option is exercised, traders will make a profit when the underlying price is higher than the strike price. When the buyer receives the option profit and the seller determines to sell the option, they both need to pay a delivery fee.

Liquidation fee

In Bybit Options trading, an additional fee is known as the liquidation fee, which you need to pay based on the following formula-

Liquidation Fee = Liquidation Fee Rate × Option Traded Size × Index Price

Is Byibit Options trading safe?

Bybit offers services worldwide except in these countries- the United States of America, Iran, Syria, China, Québec, Hong Kong, Singapore, Cuba, Crimea, Sevastopol, North Korea, Taiwan, Macau, and Sudan.

Therefore, if you are not a citizen of these countries, you can enjoy seamless trading through Bybit. 

Funds safety is a crucial fact in a crypto exchange, and Bybit has a strong position on it by having the following safety measurements-

• Multi-signature cold wallets
• Zero-trust architecture
• A partnership with white hat hackers
• Multiple authentication layer

Overall, Bybit is a safer place to trade and store crypto assets, and there is no history of any incident regarding this platform yet.

Conclusion

Bybit is a prominent crypto trading platform where traders can enjoy a wide range of trading and investment opportunities. Among the spot, futures, and margin trading, Options would be great for traders. 

There are several security features in Bybit to make it a safer place to hold cryptos. However, this platform might ask for several security queries, which might need additional effort. 

Overall, we have found this platform to be legit and trustworthy, but traders are requested to research it a bit before investing money.