ByBit review: our experience with the leverage trading exchange

In this article we would like to share our review after our experience trading on Bybit exchange.

After trading on the exchange for several years, we can say that Bybit stands out among other exchanges and trading platforms. Especially with its secure, efficient and user-friendly leveraged cryptocurrency trading platform.

With its low trading fees, comprehensive education centre and advanced features, Bybit has quickly become a favourite choice for us.

ByBit is an exchange that allows you to trade Bitcoin, Ethereum, Ripple and EOS with leverage of up to 100:1. In a very short period of time, they have managed to build a customer base of more than 2,000,000 traders and a steadily increasing number of transactions.

For more crypto exchanges comparison and ratings, check our Crypto Exchanges hub.

ByBit margin crypto exchange – review

For a long time, Bitmex was our number 1 in margin trading. Over time, however, other exchanges, notably Deribit and Bybit, have gained momentum both in terms of number of users and trading volumes.

Bybit is the youngest of the three exchanges and has been operational since March 2018. However, it is Bybit that has experienced the most growth over the past 24 months. After trading with the exchange we would like to share with you our experience with the leverage exchange.

Bybit Review and Overview

• Headquartered in Singapore with offices in Hong Kong and Taiwan, it operates under Bybit Fintech Limited, a company registered in the British Virgin Islands.
• A strong team of blockchain and financial industry experts
• BAT’s research and development staff, risk management staff are Morgan Stanley graduates
• Strong focus on security: hierarchical deterministic cold wallet system, full SSL encryption, manual withdrawals three times a day
• Leveraged trading for perpetual contracts on BTC, ETH, XRP and EOS with leverage up to 100:1
• No KYC up to 2 BTC
• Producer discount -0.025%, buyer commission 0.075%
• PnL display in USD and BTC, trailing stop with close function
• No system overhead, processing up to 100,000 transactions per second
• 24/7 live technical support

Margin Trading Limits

Bybit platform provides high-leverage trading with certain restrictions in place. For perpetual Bitcoin trading, the sole 200x leverage option has a maximum cap of 150 BTC. Ethereum leverage can go up to 50x, with trading limits surpassing 3,000 Ethereum.

Ripple (XRP) and EOS trades also face the same 50x leverage constraint. These limitations are in place because Bybit believes that these altcoins exhibit greater volatility compared to Bitcoin.

Trading Speed and Scalability (TPS)

One of the main reasons why we looked for an alternative to Bitmex is probably the well-known system overload error. When this ‘overload’ occurs, there are so many orders in the queue that new requests cannot be accepted.

In margin trading, speed is of utmost importance due to the high leverage, which can cause large swings in a matter of seconds. Of course,  as experienced traders, we are aware of this, but it is still unpleasant.

Bybit claims that this problem cannot occur on its exchange and by our experience that was proven correct.

The matching mechanism used can process 100,000 orders per second

ByBit’s user-friendly interface

We faced a user-friendly and intuitive interface of paramount importance in trading.

Bybit app’s interface is similar to that of Bitmex. Traders like us, accustomed to the intuitive user interface of Bitmex can easily switch to the Bybit app.

Bybit Mobile App

The app is available for download on both Android and iPhone app stores. Similar to using a desktop computer, users can purchase crypto through credit cards, debit cards, and bank transfers.

While comprehending trading view charts and tracking multiple markets on the app might be challenging, it serves as a useful tool for monitoring open positions. Crypto accounts are secured with an encrypted cold storage wallet.

Bybit’s Dual Price Mechanism

The dual-price mechanism is a measure used by cryptocurrency exchange platforms to protect against unwarranted liquidations due to drastic price fluctuations caused by market manipulations. Instead of using the last traded price, the mechanism uses a fair price called the “mark price,” derived from the average spot price across multiple exchanges. This ensures that positions are only liquidated if the mark price reaches the liquidation level, providing a safer trading environment and preventing unnecessary liquidations during abnormal price fluctuations.

The dual-price mechanism is beneficial for traders because it protects their positions from unnecessary liquidations during sudden and drastic price fluctuations, often caused by market manipulations. By using the mark price, which is derived from an average spot price across multiple exchanges, the mechanism ensures that the price better reflects the overall market conditions. This approach prevents traders from suffering losses due to isolated incidents or manipulative actions on a single exchange.

What is Isolated Margin mode on Bybit

Bybit platform enables traders to separate their margin positions from their account balances, allowing them to manage risks more effectively. As a result, the maximum loss in a liquidated trade is limited solely by the initial margin positions taken, providing a more controlled risk exposure.

Depositing and Withdrawing Funds on ByBit

Until recently, Bybit did not work with FIAT currencies. This meant that we had to fund our account with one of the supported cryptocurrencies (BTC, ETH, EOS or XRP). Apart from the usual transaction fee, this type of deposit incurs no other costs.

Bitcoin: 0.0005 BTC

Ethereum: 0.01 ETH

EOS: 0.1 EOS

Ripple: 0.25 XRP

However, since recently, it has also been possible to make deposits on Bybit via credit and debit card. Keep in mind that Bybit has introduced KYC (know-your-customer) checks only for deposits or withdrawals exceeding 2 BTC.

Therefore, unless you exceed this limit, you do not have to present any ID to the trading platform. You can therefore start trading directly after opening an account and making a deposit.

Bybit withdrawal fee

Numerous exchanges impose concealed fees, including withdrawal charges. Bybit, however, maintains minimal withdrawal fees, with users only responsible for blockchain fees.

The withdrawal fees for Bybit can be reimbursed without incurring additional costs. Withdrawals are processed in batches, taking anywhere from 2 minutes to 2 hours for completion.

ByBit trading fees

As with derivatives traded online, Bybit fees structure uses a ‘market maker/taker’ pricing model. Your commission depends on whether you provide liquidity. If so, you will be classified as a market maker and will receive a discount. 0.025% is paid for every single trade for which you provide liquidity.

If you are a regular trader and are therefore classified as a market maker, Bybit charges 0.075% trading fees on each transaction. Transaction fee = value of the position * transaction fee rate:

Contract	Maximum leverage	Maker	Taker
BTC/USD	100x	-0,025%	0,075%
ETH/USD	100x	-0,025%	0,075%
XRP/USD	25x	-0,025%	0,075%
EOS/USD	25x	-0,025%	0,075%

Other features

• Integration with Tradingview
• SL/TP (Stop Loss and Take Profit). This function is missing on Bitmex and Deribit exchanges.
• Trailing Stops: A useful function for traders who focus on trends and/or have little time.
• Free educational content: On Medium and Twitter, Bybit often publishes free content that allows traders to learn more about trading. Given the high risk associated with margin trading, this is a very sensible solution that is not offered in this form by any other exchange.

How can I register for the Bybit service?

1. Register

Registration for us was very simple. As Bybit has not introduced a KYC procedure for up to 2 BTC, all we needed to do is register:

• Email address
• Password

– to start trading. After clicking on the confirmation link in the next e-mail, your account is ready to be used

2. Deposit in Bybit

3. First trading

Immediately after receiving your deposit, you can start trading. In the top menu of the interface, you can choose whether you want to trade BTC, ETH, EOS or XRP:Selecting “BTCUSD Perpetual” will take you to the trading interface for this pair: The screen below shows you how to enter data to make a trade:

Here you can choose between limit, market and conditional orders. Using the slider below, you can select the leverage at which you wish to trade. Below this are fields for entering the desired order price (here for a limit order) and the number (‘Qty’; Quantity) of contracts, order value and available margin.

The transaction is closed by clicking on the ‘Buy/Long’ or ‘Sell/Short’ button. All open positions are displayed in the same interface below the chart and include information on all important details such as position volume, entry price, settlement price, margin used, unrealised PnL, realised PnL and stop limits

Bybit Welcome Bonus 5,000 USDT Deposit Blast-Off

The 5,000 USDT Deposit Blast-Off Rewards is a promotional campaign where users have a chance to win rewards based on their deposits. In this campaign, users who deposit a specific amount of funds (usually in USDT) into their account can earn various bonuses or rewards.

Please note that the details provided below are based on general information, as the specifics of the campaign may vary depending on the platform and time. It is essential to check the platform’s website or contact their support team for the most up-to-date information about the 5,000 USDT Deposit Blast-Off Rewards.

Here’s an example of how the rewards structure could look like:

Deposit Amount	Reward
≥ 1,000 USDT	$20
≥ 2,000 USDT	$50
≥ 5,000 USDT	$150
≥ 10,000 USDT	$300
≥ 20,000 USDT	$600

Trading Competitions

A unique aspect of the Bybit trading platform is its competition system, where the platform hosts daily market events. Users can participate in these contests, requiring only a minimal balance in their account – typically 0.25 TBTC – to be eligible.

These competitions are team-based events with designated leaders. Team leaders generally receive 30% of the prize, while the remaining winnings are distributed evenly among team members. The typical prize for such contests is 100 Bitcoin.

Bybit Trading Bot

Differing from typical trading bots, this bot functions autonomously and adheres to trading guidelines set by an experienced trading broker. Crypto trading bots that facilitate autotrading on Bybit include TradingView, 3Commas Alertatron, and Autoview.

Bybit Review: Exchange Security

Bybit employs secure cold storage methods to protect against unauthorized hacker access. Cryptocurrencies can be stored in an offline wallet situated in a highly secure location. Only a minimal amount of their own coins is kept in hot wallets for withdrawal purposes.

Additionally, when transferring funds from storage, the bank is required to have multi-signature addresses. This means that the exchange must possess multiple keys for signing transactions between various wallets.

Two Factor Authentication

Although exchange security is crucial, traders often encounter significant risks concerning their personal account safety. Bybit has integrated useful features to help secure accounts against hackers.

They have implemented two-factor authentication, which is a highly effective security measure. This requires the use of your mobile number when authenticating your account or conducting transactions. Additionally, Google Authenticator must be used before withdrawing funds from your account.

Bybit Insurance Fund

The Insurance Company’s funds serve to safeguard against losses resulting from a decline in the bank’s market value. If a trade remains above zero and cannot be liquidated, the insurance company compensates for the loss.

Many exchanges employ socialized loss schemes as an alternative to insurance funds, where trading losses can be distributed among all trades within a specific trader. Socialized loss is widely unpopular, making Bybit’s insurance fund an attractive choice for most traders.

Bybit Affiliate Program and Refer-a-Friend

Refer a friend

The crypto exchange Referral Program allows you to earn commissions by referring new users to the platform. Here is a general outline of the program:

1. Sign up: To participate in the referral program, you must first create an account on the Bybit platform. Once you have an account, you can access the referral section from your dashboard.
2. Referral link: Bybit provides you with a unique referral link that you can share with your friends, family, or followers on social media, blogs, or websites. When someone clicks on your referral link and signs up for an account, they become your referral.
3. Commission structure: Bybit offers a tiered commission structure. You can earn a percentage of the trading fees generated by your referrals. The percentage you receive can vary depending on the total derivatives trading volume of your referrals and other factors. Bybit may also offer additional incentives or bonuses to high-performing affiliates.
4. Payouts: Commissions are typically paid out in the cryptocurrency that was used for the transaction fees. You can view and withdraw your commissions from your Bybit account.
5. Tracking and reporting: Bybit provides a dashboard where you can track your referrals, their trading volumes, and your earned commissions.

Please note that the specifics of the referral program may change over time. It’s important to visit the Bybit website or contact their support team for the most up-to-date information on their affiliate program.

Affiliate program

The Bybit Affiliate Program is designed to offer lifetime commissions to its partners. This means that as long as the users you refer continue to trade on the platform, you will keep earning commissions from their trading activities. Both for spot trading and derivatives trading volume of your referred users.

Here are the key points about the Bybit Affiliate Program:

1. Lifetime commissions: Bybit rewards its affiliates with ongoing commissions for the users they refer to the platform. As long as your referrals keep trading on Bybit, you will continue to earn commissions from their trading fees.
2. Real-time commission calculation: Commissions are calculated in real-time as your referrals trade on Bybit. This allows you to track your earnings and performance more accurately and efficiently.
3. Dedicated account manager: Bybit provides its partners with a dedicated account manager who can offer marketing and technical support. This personalized assistance can help improve conversion rates and enhance the overall success of your affiliate activities.
4. Tools and resources: Bybit may also offer additional tools and resources to its partners, such as marketing materials and promotional content. These resources can help you promote Bybit more effectively and attract more referrals.

Remember that the details of the affiliate program may change over time, so it’s important to stay up-to-date with the latest information by visiting the Bybit website or contacting their support team.

Bybit Customer Support

Bybit Customer Support is available 24/7 and is available to help with any questions or problems if necessary. These languages can be found in English, Chinese (Cantonese and Chinese), Japanese Korean, Russian, Spanish and Vietnamese.

Is Bybit Legit?

Cryptocurrencies other than Bitcoin might not share the same reputation due to a variety of factors, including market perception, adoption rate, and use cases. Bybit, indeed, is considered a reputable platform.

They have not been compromised, and they employ multiple security measures to ensure the safety of their users’ trading activities.

One such measure is limiting cryptocurrency withdrawals to three times a day, which helps protect against hackers gaining quick access to your data and stealing funds.

This withdrawal restriction allows users with compromised accounts time to secure their accounts and prevent unauthorized withdrawals. BitMEX also offers similar functionality but, under certain circumstances, permits only one withdrawal per day.

Bybit review: The Bottom Line

ByBit is the best alternative to Bitmex for both beginners and professionals already trading on other exchanges. The Bybit team is constantly working to improve an already very good platform and is eager to incorporate user feedback.

In my opinion, the clear user interface, seamless advanced trading options thanks to a good technical infrastructure and the rapidly increasing liquidity mean that this exchange still has a great future ahead of it.

Wondering is Bybit is better than Binance? Check our comparison Bybit vs Binance to find out.

FAQ about Bybit Exchange

What is Bybit?

Bybit is a cryptocurrency exchange platform that offers leveraged trading on various digital assets, including Bitcoin, Ethereum, EOS, and Ripple.

Is Bybit a safe trading platform?

Yes, Bybit takes multiple security measures to ensure the safety of its users, including two-factor authentication, secure cold storage solutions, and withdrawal restrictions.

What are the Bybit fees?

Bybit has minimal withdrawal fees, with users only responsible for blockchain fees. The platform does not have any deposit requirements.

Does Bybit offer leverage trading?

Yes, Bybit offers leverage trading with certain restrictions in place, such as a maximum leverage of 200x for Bitcoin trading pair and 50x for Ethereum, Ripple and EOS or the corresponding trading pair.

Who owns Bybit?

In March 2018, Ben Zhou founded Bybit. Ben Zhou is the co-founder and CEO of Bybit.

Is Bybit better than Binance?

Comparing Binance and Bybit crypto exchanges overall scores shows Binance scored more at 9.1 while Bybit scored 9.0 overall. So there is only slight difference if any.

Can I use trading bots on Bybit?

Yes, Bybit supports the use of crypto trading bots, including, 3Commas Alertatron, and Autoview.

Is there a mobile app for Bybit?

Yes, Bybit offers a mobile app that can be downloaded on both Android and iPhone app stores.

What are the contest systems on Bybit?

Bybit hosts daily market events in the form of team-based contests. Users can participate with a minimal account balance and have the opportunity to win prizes, typically 100 Bitcoin.

What are the reward options for first-time depositors on Bybit?

Bybit offers a welcome bonus for first-time depositors, including a $50 coupon valid for up to 48 hours after the initial deposit. Users who don’t deposit within this timeframe can still receive a $10 bonus upon making the required minimum deposit.