A crypto exchange guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of Bybit consists of four parts: general info, fees, deposit methods and security.
Bybit is a crypto exchange from the British Virgin Islands. On the date of last updating this review (13 January 2021), Bybit informed on their website that they had more than 1.2 million users, which is very impressive.
Bybit is a crypto derivatives exchange where you can trade with as much as 100x leverage on a certain number of assets (see above what cryptos you can trade here). But that’s not all you can trade. At this platform, it is even possible to trade quarterly futures contracts. These contracts will expire based on its calendar cycle and converge to the spot price. One key advantage is that users no longer need to pay any funding fees.
Bybit’s matching engine is allegedly capable of up to 100,000 TPS (Transactions Per Second) which is incredibly impressive and a great future for anyone interested in leveraged trading. We say “allegedly” as there is no way for us to verify this information, not because we mistrust it in any way. Bybit continuously improves the safety and reliability of the trading platform. For instance, on 2 December 2020, they made a number of speed improvements to the platform that made order placements 50% faster, made the trading platform require 50% less CPU and memory load and made the connections to EMEA and Latin America 500% faster.
Bybit Mobile Support
This platform is not only available for desktop, but also Android and Apple mobile phones. Most traders in the crypto world today carry out their trades via desktop (around 70% or so). However, there are naturally people out there that want to do it from their smart phone as well. If you’re one of those people, then this platform can still be for you, seeing as it has a native mobile application (unlike e.g. BitMEX).
As mentioned above, Bybit allows you to trade with leverage. This means that you can receive a higher exposure towards a certain crypto’s price increase or decrease, without actually holding the necessary amount of assets. You do this by “leveraging” your trade. In simple terms, this means that you borrow from the exchange to bet more. You can get as much as 100x leverage on this platform.
For instance, let’s say that you have 100 USD in your trading account and you bet this amount on BTC going long (i.e., going up in value). If BTC then increases in value with 10%, you would have earned 10 USD. If you had used 100x leverage, your initial 100 USD position becomes a 10,000 USD position so you instead earn an extra 1,000 USD (990 USD more than if you had not leveraged your deal). However, the more leverage you use, the smaller the distance to your liquidation price becomes. This means that if the price of BTC moves in the opposite direction (goes down for this example), then it only needs to go down a very small percentage for you to lose the entire 100 USD you started with. Again, the more leverage you use, the smaller the opposite price movement needs to be for you to lose your investment. So, as you might imagine, the balance between risk and reward in leveraged deals is quite fine-tuned (there are no risk free profits).
Like most other exchanges offering leveraged trading, Bybit also has a referral program. The referral program gives any user who has a referred a customer that has deposited at least 0.02 BTC a reward of USD 10. This is not the most generous referral program we have heard of. But hey, it’s better than nothing!
Bybit Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at Bybit:
US-investors may not trade here. The exclusion of US-investors is primarily due to regulatory reasons. The US-legal regime imposes obligations on many companies accepting funds from US-investors..
Bybit Trading fees
Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers for “makers” as their orders make the liquidity in a market. Takers are the ones who “take” this liquidity by matching makers’ orders with their own.
At Bybit, takers are charged 0.075% per order. When it comes to the makers, their fee is -0.025%. This essentially means that each maker get paid to trade. To clarify, let’s say that you are the maker in an order where you purchase cryptocurrency for USD 1,000. This means that instead of paying USD 1,000, you will only have to pay USD 997.50. This is a very competitive trait indeed.
According to the most extensive industry report ever prepared on contract trading average fees, the global average contracts trading taker fee and maker fee was 0.063% for takers and 0.018% for makers. Accordingly, Bybit is slightly above average when it comes to its taker fees but substantially below average with respect to maker fees. All in all, the fees here are attractive.
Bybit Withdrawal fees
When withdrawing BTC from the Bybit trading platform, you will have to pay 0.0005 BTC. This is 40% lower than the global industry average BTC withdrawal fee (0.0008 BTC) and thus also a very competitive withdrawal fee.
Bybit does not accept any deposits of fiat currency. This means that new investors (i.e., investors without any previous crypto holdings) can’t trade here. In order to purchase your first cryptos, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency.