Risk Warning: Trading in digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
- Hassle-free account creation process
- Fund insurance protection
- Leveragex100
- Limited spot trading instruments
4 minutes
Established in March 2018, Bybit is one of the fastest-growing cryptocurrency derivative and spot exchanges with more than a million registered users. Built on customer-focused values. They aim to provide professional, smart, intuitive and innovative trading experience to better serve our customers in a timely manner.
The products currently available on the Bybit platform include BTC/USD, ETH/USD, XRP/USD, EOS/USD and BTC/USDT perpetual contracts and spot trading.
Bybit provides decent future volumes when it comes to cryptos. As of January 2021 Bybit had a daily trading volume of more than $10 billion in BTC Futures according to Coinmarketcap.
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Bybit tutorial
Crypto Derivatives
Derivative trading with leverage allows traders to enter positions larger than their wallet balance and to enter short positions. Both profit and loss will be accelerated if a trader trades more than 1x leverage. In order to trade with leverage, trades will operate on margin. Margin refers to the amount of capital that is required to enter a leveraged position.
Inverse Contract
The Inverse contracts use BTC/ETH/EOS/XRP as the base currency. Traders need to confirm traded quantity in terms of USD and then use their base currency (such as BTC, ETH) to calculate margin, profit and loss. If a trader wants to trade BTCUSD contract, he must use BTC as his base currency. If he trades on ETHUSD contracts, he needs to hold ETH. Inverse Perpetual Contracts are quoted in USD, but all the profit & loss will be settled in base currency (BTC and others). Each contract is 1 USD value. This feature is specifically designed to provide convenience to all traders as it allows trades as low as 1 USD to be easily keyed instead of inputting a string of decimal places in BTC such as 0.000XX BTC.
Long position Profit & Loss = Contract Value x (1/Entry Price – 1/Exit Price)
Perpetual Contract
USDT perpetual contract is a linear contract. The margin used for a linear contract is USDT. On the other hand, an inverse contract means if a trader would like to trade BTC/ETH/XRP/EOS contract, the underlying cryptocurrency has to be used as the margin to trade the respective contract.
Inverse perpetual contract is traded based on the underlying cryptocurrency. Traders need to hold a much volatile BTC/ETH/EOS/XRP as margin. Hence, even if traders choose not to trade, holding the cryptocurrency itself involves risks. On the other hand, USDT perpetual contract uses stablecoin as margin and thus, traders do not have to hedge their position to avoid the risk of holding the cryptocurrency.
Spot trading
When an order is filled, a spot trade allows you to buy and sell the crypto asset “on the spot” and at the current market rate. Crypto assets are transferred directly between buyers and sellers on the spot market. To put it another way, a spot trade gives you direct ownership of the underlying assets.
On Bybit's spot market, you can place limit, market, and conditional orders. Bybit market liquidity will allow you to seamlessly purchase cryptocurrency at the best available rates.
BTCUSDT, ETHUSDT, XRPUSDT, and EOSUSDT will be supported in the initial rollout; more trading pairs will be added in the near future.
Bybit Leverage
Bybit offers leveraged trading to give more exposure to an asset that you have in the funds. It provides the advantage of money-making through “borrowed funds”. You can earn even the asset price drops
You can trade with leverage up to 1:00.
Bybit Fees
For Futures trading, the underlying fee varies for both makers and takers.
Other applicable fees included the following:
Derivatives Trading Fees:
The trading fee is negative (-0.025%) for liquidity providers/makers (order enters the order book and increases market depth). In other words, traders receive trading fees as a rebate from the platform.
The trading fee is positive (0.075%) for liquidity consumers/takers (order executed immediately and reduces market depth). In other words, traders pay trading fees to the platform.
Spot trading fees
The current maker spot trading fees on BTC, ETH, XRP and EOS is 0%
The fees for taker orders are 0.1%
Bybit Safety
Bybit uses the Insurance Fund to decrease the possibility of Auto-Deleveraging: In the event of Liquidation, if the liquidated order is closed at a price worse than bankrupt price, Bybit will use the balance of the Insurance Fund to cover the gap. If the Insurance Fund is insufficient, Auto-Deleveraging will be triggered.
Bybit alternatives
| Trading Platform | Leverage | Available futures Cryptos | Review | Promotion | Website |
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| Over 100 |
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3 |
| Over 100 |
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2 |
| 37 |
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4 |
| Over 100 |
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5 |
| Over 100 |
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6 |
| 5 |
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7 |
| 5 |
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8 |
| 5 |
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Conclusion
Bybit is the only derivatives platform that is able to offer leverage up to x100 on, BTC, ETH, XRP and EOS.
Users can use it to speculate on short-term price or long term movements or help reduce risk exposure in underlying assets with the options to also hedge their position.
