Bybit has rapidly become a major player in the cryptocurrency exchange landscape, particularly known for its focus on derivatives trading. This comprehensive guide explores what Bybit is, its key features, and provides a step-by-step tutorial for new users to get started.
An Overview of the Bybit Exchange
What is Bybit?
Bybit is a centralized cryptocurrency exchange (CEX) founded in March 2018. While it initially focused primarily on cryptocurrency derivatives like perpetual futures contracts, it has since expanded its offerings to include spot trading, various passive income products, an NFT marketplace, and more. The platform is designed to cater to both retail and professional traders with its advanced tools and user-friendly interface.
The founding team, led by CEO Ben Zhou, consists of professionals with extensive experience in forex trading, fintech, and blockchain technology. Their vision was to create a reliable, transparent, and efficient trading platform for cryptocurrency enthusiasts worldwide.
According to data aggregation platforms, Bybit regularly ranks among the top derivatives exchanges by trading volume, serving over 20 million registered users across more than 160 countries as of 2024.
"Bybit has quickly established itself as a significant force in the crypto derivatives market thanks to its intuitive interface, high liquidity, and competitive fee structure. However, new users should note that derivatives trading carries substantially more risk than spot trading." - Market Analyst
Where is Bybit Based?
Bybit is registered and headquartered in Singapore, a jurisdiction known for its clear regulatory framework that is friendly toward cryptocurrency businesses. The exchange operates globally with additional offices in Hong Kong, Taiwan, and the United Arab Emirates (UAE).
Key Products and Services Offered by Bybit
- Derivatives Trading: Perpetual futures contracts (USDT and inverse settled) with leverage up to 100x, and options trading for advanced strategies.
- Spot Trading: Buy and sell popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and numerous altcoins directly.
Bybit Earn: A suite of passive income products including:
- Staking: Earn fixed or floating rewards by locking assets.
- Dual Asset: Earn double returns through structured products.
- Liquidity Mining: Provide liquidity to pools and earn rewards.
- NFT Marketplace: A platform for buying, selling, and auctioning non-fungible tokens (NFTs).
- Launchpad: Access to new token sales and initial exchange offerings (IEOs).
- Copy Trading: Automatically replicate the trades of experienced professionals.
- Trading Bots: Automated trading strategies that execute based on predefined parameters.
Advantages and Disadvantages of Using Bybit
Advantages of Bybit
- High Liquidity: Significant trading volumes ensure quick order execution with minimal price slippage. Bybit consistently ranks among the top 5 derivative exchanges by volume.
- High Leverage: Offers leverage up to 100x on perpetual contracts, enabling potential profit magnification (while significantly increasing risk).
- Competitive Fees: Utilizes a maker-taker fee model that is generally lower than many competing platforms.
- User-Friendly Interface: Intuitive design across both web and mobile applications (available for iOS and Android), complete with advanced charting tools and technical indicators.
- Wide Asset Support: Lists over 400 cryptocurrencies and more than 500 trading pairs.
Strong Security Measures: Implements industry-standard protections including:
- Cold storage for the majority of user assets.
- Mandatory two-factor authentication (2FA).
- SSL encryption.
- A substantial insurance fund to protect users in extreme scenarios.
- 24/7 Customer Support: Accessible via live chat, email, and social media channels.
Disadvantages of Bybit
- No Direct Fiat Support: Users cannot deposit or withdraw government currency (USD, EUR, etc.) directly. Cryptocurrency must be acquired elsewhere first and then transferred to Bybit.
- High Risk for Beginners: The complex nature of leveraged derivatives trading poses significant risks of rapid capital loss for inexperienced users.
- KYC Verification Challenges: Some users occasionally report difficulties or delays during the identity verification process.
- Withdrawal Limits: Non-KYC verified accounts face daily withdrawal limits, which can be restrictive.
Getting Started on Bybit: A Step-by-Step Guide
How to Register a Bybit Account
- Visit the official Bybit website.
- Click the "Sign Up" button in the top right corner.
- Choose to register using your email address or mobile number.
- Enter your email/phone, create a strong password, and enter a referral code if you have one.
- Click "Create Account."
- Enter the verification code sent to your email or phone.
- Enable two-factor authentication (2FA) using an app like Google Authenticator for enhanced security.
How to Verify Your Bybit Account (KYC)
Identity verification (KYC) is mandatory for higher withdrawal limits and full access to platform features.
- Log in to your account and navigate to "Account & Security."
- Find the "Identity Verification" section and click "Verify Now."
- Select your document type (Passport, National ID, or Driver's License).
- Upload clear photos of the front and back of your chosen ID.
- Complete the facial recognition process using your device's camera.
- Wait for review and approval, which is typically processed within minutes or a few hours.
Completing KYC increases your daily withdrawal limit significantly and grants access to all trading products.
How to Deposit Funds into Bybit
- Log in and go to "Assets" -> "Spot Account."
- Find the cryptocurrency you wish to deposit (e.g., USDT, BTC) and click "Deposit."
- Copy the deposit address generated by Bybit.
CRITICAL: Ensure you select the correct blockchain network (e.g., ERC-20, TRC-20, BEP-20) that matches the network of the wallet you are sending from. - Initiate the transfer from your external wallet or another exchange to the copied Bybit address.
- Wait for the transaction to be confirmed on the blockchain. Confirmation times vary by network congestion.
How to Withdraw Funds from Bybit
- From "Assets," select either your "Spot Account" or "Derivatives Account."
- Find the cryptocurrency you want to withdraw and click "Withdraw."
- Paste the address of your external wallet.
CRITICAL: Always double-check the withdrawal address, as transactions to wrong addresses are irreversible. - Select the correct blockchain network.
- Enter the amount you wish to withdraw.
- Confirm the transaction using your 2FA method.
- Wait for processing. Bybit processes withdrawals promptly, but finality depends on the specific blockchain.
Withdrawal fees apply and vary depending on the cryptocurrency and network. These fees are displayed before you confirm the transaction.
How to Buy Crypto on Bybit (Spot Trading)
- Ensure you have funds in your Spot Account.
- Navigate to "Trade" -> "Spot Trading."
- Select your desired trading pair (e.g., BTC/USDT).
Choose your order type:
- Limit Order: Set a specific price at which you want to buy or sell. The order executes only if the market reaches your price.
- Market Order: Buy or sell immediately at the current best available market price.
- Stop-Limit Order: Combines a stop price and a limit price. The order is activated once the stop price is reached and then executed as a limit order.
- Enter the amount you want to trade.
- Click "Buy" or "Sell" to place your order.
Types of Orders on Bybit
Bybit offers a robust set of order types for sophisticated trading strategies:
- Limit Order: As described above.
- Market Order: As described above.
- Stop-Limit Order: As described above.
- Take Profit (TP): An order to close a position at a specified profit target.
- Stop Loss (SL): An order to close a position at a specified price to limit losses.
- Trailing Stop Order: A dynamic stop-loss that follows the market price at a set distance, locking in profits as the price moves favorably.
- Conditional Order: An order that triggers only when a specific market condition is met (e.g., if another asset reaches a certain price).
How to Trade Futures on Bybit
- Deposit collateral (margin) into your Derivatives Account.
- Go to "Trade" -> "USDT Perpetual" or "Inverse Perpetual."
- Select a trading pair (e.g., BTCUSDT).
- Choose your order type (Limit, Market, etc.).
- Select your leverage level (from 1x to 100x). Warning: Higher leverage exponentially increases risk.
- Input the number of contracts you want to trade.
- Click "Buy/Long" if you predict the price will rise, or "Sell/Short" if you predict it will fall.
- Manage your open position actively, setting Take Profit and Stop Loss orders to protect your capital.
A Note on Trading Futures
Futures trading involves speculating on the future price of an asset without owning it. While it offers the potential for high returns through leverage, it also carries an extreme risk of loss.
Key Considerations for Derivatives Trading:
- Leveraged trading can result in the loss of your entire margin very quickly.
- Always use a Stop Loss order to define your maximum risk per trade.
- Start with low leverage until you are highly experienced.
- Only trade with capital you can afford to lose entirely.
- Continuously educate yourself on risk management and market analysis.
"Risk management is the single most important element of derivatives trading. Define your acceptable risk level before entering any trade and adhere strictly to your capital management plan." - Trading Expert
Understanding Bybit's Fee Structure
Bybit uses a maker-taker fee model for both spot and derivatives markets.
- Maker: A trader who provides liquidity by placing an order that doesn't fill immediately (e.g., a limit order away from the market price). Makers typically receive a rebate or pay a very low fee.
- Taker: A trader who removes liquidity by placing an order that fills immediately (e.g., a market order). Takers pay a higher fee.
- Spot Trading Fees: Generally range from 0.1% to 0% for both makers and takers, depending on the user's VIP level and 30-day trading volume.
Derivatives Trading Fees:
- Maker: Typically from 0.01% to 0%.
- Taker: Typically from 0.06% to 0.03%.
- Funding Rate (Perpetual Contracts): A periodic fee paid between long and short traders to keep the perpetual contract price aligned with the spot market price. This rate can be positive or negative.
- Withdrawal Fees: Network fees that vary by cryptocurrency and are subject to change based on blockchain congestion.
👉 Compare real-time fee structures across exchanges
Advanced Features and Other Products
- Bybit Earn: A hub for all savings and passive income products.
- Bybit Web3: A self-custody wallet and gateway to decentralized applications (dApps).
- Launchpad: Participating in early-stage token sales.
- Copy Trading: Follow and automatically copy the strategies of successful traders.
- NFT Marketplace: Browse and trade digital collectibles.
- API Trading: Allows developers to build automated trading systems and tools connected to Bybit.
- Trading Bots: Pre-configured or customizable bots for automated trading strategies.
Conclusion
In summary, Bybit is a reputable and feature-rich cryptocurrency exchange that excels in derivatives trading. Its strengths include a user-friendly platform, high liquidity, competitive fees, and a strong security framework, making it an attractive option for intermediate and advanced traders. However, the inherent risks of leveraged trading, coupled with the lack of direct fiat on-ramps, mean beginners should approach with caution, prioritize education, and never risk more than they can afford to lose.
Frequently Asked Questions (FAQ)
Is Bybit safe to use?
Yes, Bybit is considered a safe exchange. It employs industry-standard security measures like cold storage for funds, mandatory 2FA, and SSL encryption. It also maintains a large insurance fund to protect users in unlikely events of a security breach.
Can I trade using my local currency (like USD or EUR) on Bybit?
No, Bybit does not currently support direct deposits or withdrawals in fiat currencies. You must first acquire cryptocurrency (like USDT, BTC, or ETH) from another platform and then transfer it to your Bybit wallet to start trading.
Is Bybit a scam?
No, Bybit is a legitimate and well-established cryptocurrency exchange that has been operating since 2018. It is trusted by millions of users globally and is regularly ranked among the top exchanges by trading volume. As with any financial platform, users should always exercise caution and follow security best practices.
What cryptocurrencies are supported on Bybit?
Bybit supports a wide range of major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Ripple (XRP), Solana (SOL), and hundreds of other altcoins. The full list of supported assets is available on their official website.
How do I contact Bybit customer support?
Bybit offers 24/7 customer support primarily through live chat on their website and mobile app. You can also reach out for help via email or their official social media channels. Response times are generally quick.