Bybit Review 2021 | Leverage Trading, Fees, Bonus and Testnet
In this article, we will review Bybit, a crypto derivatives exchange that was launched in March 2018 on British Virgin Island. It has more than one million registered users and focuses on experienced traders. Bybit is easy to use and has a user-friendly interface. It can handle 100,000 transactions per second. Bybit offers perpetual futures with up to 100 x leverage.
- Margin trading with up to 100x leverage.
- Three types of order — Market, Limit, and Conditional.
- USDT and inverse perpetual contracts.
- Quick and safe deposits/ withdrawals.
- Robust security management using SSL communication, two-factor authentication, and an advanced Mark and Index pricing system.
- Integration with best trading bot services.
- ByBit testnet to know how the platform works before investing real funds.
- A user-friendly and intuitive user experience.
- Apps available in Android and iOS to track information on the go.
- Referral Incentives and Affiliate programs to earn passive income.
- Insurance fund and Mutual insurance for risk management.
- A 24/7 extensive customer support.
How to create a Bybit account? How does Bybit work?
To create an account, you have to visit the Bybit website and enter your email and password. You will receive a verification code in your registered email. The verification code will be valid for five minutes. Once you confirm it, your account will be created.
Bybit is an entirely anonymous exchange, therefore, Know Your Customer (KYC) is not mandatory.
Bybit offers you 100x leverage. You will have to put up a margin of 1% as the initial notional amount. You can adjust the leverage after opening a position, which is not offered by many other exchanges.
Each perpetual contract on the exchange is 1 USD. Bybit also offers futures contracts on Ripple and EOS with leverage of 25x.
If you are trading in large volumes and entering sizable positions, the leverage could be less. As your position size increases, your initial margin also increases. You can check the risk limits here. The maintenance margin is 0.5% for contracts irrespective of their size.
Type of Orders
Bybit offers three types of orders.
- Market Order: They are placed at the prevailing market price. They are placed as “bid” if it is a sell and “ask” if it is a buy.
- Limit Order: They are placed at a specific level away from the market.
- Conditional Order: Once specific levels are reached, it acts as a market or limit order.
You have to define trigger price, leverage, quantity, and direction.
The order is applicable for a certain period, also known as order life. There are three types of order life-
- Good-till-canceled (GTC) — These orders are valid until you choose to close them.
- Immediate-or-Cancel (IOC) — You have to fill them immediately at the best price. The unfilled portions will be canceled. Therefore allowing partial order execution. Hence there is a risk attached that the order may not even execute.
- Fill or Kill (FOC) — It means no partial execution, orders will be filled completely or not at all.
Bybit offers two main types of perpetual contracts Inverse and USDT.
For USDT, USD is a base currency, and Tether is a stable coin. The collateral value is one dollar, and Tether acts as the underlying margin. Bybit offers BTCUSDT, ETHUSDT, LINKUSDT, XTZUSDT, and LTCUSDT.
For Inverse contracts, the cryptocurrency acts as the underlying margin. If you are not trading in Bitcoin, then it falls under the inverse perpetual contract. They are 1 USD in value. Bybit offers BTCUSD, ETHUSD, EOSUSD, and XRPUSD.
Bybit Review: Deposits
You can use the Bybit Fiat Gateway to deposit fiat and convert it into BTC, USDT, and ETH. You can enter the desired amount, then you have to choose your preferred service provider. After the completion of the transaction, you can check your Balance on Bybit’s assets page.
You have to generate a wallet address if you want to deposit crypto directly. You can do the same under the Assets section. You have to initiate the transaction once you have the address. It takes some time for this process to get completed. Meanwhile, You can monitor the progress in Blockchain Explorer.
You have to click the withdrawal button on the desired asset and enter the wallet address. Then, you have to confirm the transaction using two-factor authentication. Additionally, you need to pay the miner fee, which is a small amount.
All accounts have withdrawal limits though they are not very restrictive.
Bybit also has limits on daily withdrawals to ensure they have funds in their Hot wallet. They are 100 BTC and 10,000 ETH. If the funds are depleted, you have to wait for Bybit to transfer them from the cold wallet.
Whenever you are using a cryptocurrency exchange, you will either act as a maker or taker. Makers increase the depth of the order book and provide liquidity. Takers take liquidity off the order book.
Market Orders are always executed as takers, while Limit Orders can be maker or takers. Market orders are immediate orders, whereas Limit Orders are not immediate.
If you are a taker, you have to pay 0.075%, while if you are a maker, you can earn a 0.025% rebate. ByBit makes 0.05% of the transaction from maker and taker fees.
Spot trading fees are above 0.2%. They are 3 to 15x higher than perpetual contract trading.
You will pay the following fees for futures contracts in ByBit.
The financing charge, also known as the “overnight” rate, is directly exchanged between the traders and not Bybit. You will either pay the financing charge or receive it.
You are not charged for depositing your funds. You will be charged a miner or network fee while withdrawing your funds, which is relatively small.
You will have to pay a $5 fee for any asset exchange orders for exchanging physical crypto at the spot.
ByBit Funding Fee
The daily USD and underlying interest is 0.06% and 0.03%, respectively. The fund rate interval is three, which is once every eight hours. The current interest rate is 0.01%. The funding fee is calculated by position value multiplied by funding rate. The interest rate is calculated by USD interest subtracted by underlying asset interest divided by funding rate.
ByBit Calculator allows you to use your current account information and calculate profit, loss, liquidation, and target price. You can manage your position easily using this. The calculator is available on the top right of the website.
You can calculate the Profit and Loss, excluding fees using this formula — Quantity of contracts (1/entry price — 1/exit price).
Additionally, you can calculate the Profit and Loss Percentage as (Profit &Loss /Open value) * 100% Open value: Quantity of contracts/Entry price.
You can calculate the Return of Investment(ROI) as the ratio of return on assets to the initial margin used in the position.
Bybit Trading Bot
3Commas has integrated with Bybit to provide ByBit trading bot that can buy and sell your crypto assets programmatically. You can copy trading strategies from the best portfolios or choose from simple, short, composite, and composite short bots. You just need to link your Bybit account to the 3Commas trading platform using the API keys.
Bybit testnet is for those who want to test the platform before signing up. You can make demo accounts and check how orders work. You can get the demo coins from the testnet faucet. In addition, you can follow this guide to understand the borrowing of demo coins. On the Testnet, you will get a minimal amount of bitcoin as it has a release rate of 0.01 BTC per hour.
Bybit review: User Experience
Bybit is a user-friendly platform and you can easily toggle between wallets, account management, BTC, and ETH futures market. In addition, you have the trading charts on the left, the order book in the middle, and contract details on the right-hand side. It also offers a night mode.
The interface is entirely customizable and modular. Bybit uses Tradingview’s charting technology. Therefore, you can manage your position by checking your ADL Ranking and manage your potential deleveraging if ADL is triggered.
They provide a robust order matching engine that executes a total of 1,00,000 transactions per contract. Fast order execution reduces the risk of slippage.
If you want to track information on the go, you should try Bybit App. They are available on both Android and iOS platforms. You can also scan the QR code and download the app from the website. It provides almost the same features as the website. You can also set and receive price level notifications and can view advanced order forms. Majorly, exchanges that offer apps don’t allow that, so this is an advantage.
Users generally prefer using the desktop application as the trading charts are more precise and can simultaneously monitor various positions. The application is mostly used when you are away from your desktop.
Bybit Referral Incentives
If you like the platform, you can earn by referring it to your connections. For every 0.2 BTC that your connection deposits in Bybit, you will receive $10. You can get your referral code and link from your dashboard. Your connections can either sign up using your referral code or link.
You can also share these links on your social media channels and make unlimited referrals. In addition, you can check how many total referrals you have made, the amount they have deposited, and the trading bonus you have earned.
The referral program works well for many traders, but if you think you can refer your connections to Bybit, who do high volume trading, you should join the ByBit Affiliate Program. You can earn up to 30 % commission of the trading fee and 10 % of your affiliate commissions on a daily basis. Bybit also supports settlement cash withdrawals.
Bybit offers complete data transparency and provides you a multidimensional report. You can review your commission reports and details in the dashboard. You have access to customized marketing material and marketing activities according to your needs. You will have one on one support from the BD manager for business support.
If you are using the referral program, you cannot participate in the Affiliate program. You have to choose between them.
Bybit review: Security
According to Mozilla’s Observatory Test, Bybit has scored B, which is quite impressive. Like any other crypto exchange majority of its funds are stored in a multi-signature cold wallet(offline) safe from hackers. Only a small percentage of the funds are stored in hot wallets for client withdrawals. For transferring funds from cold storage to hot storage, Bybit uses a multi-signature address, i.e., it needs more than one address for completing the transaction.
The entire website uses SSL communication to prevent phishing attacks. They use two-factor authentication. You have to enable Google Authentication before you withdraw from your account.
Bybit uses an advanced Mark and Index pricing system to provide reliable rates and guarantees a 99.99% availability.
Bybit Insurance Fund
The insurance fund acts as a reserve pool for Bybit to protect traders from negative equity and excessive loss. It is used when the trader gets liquidated below the bankruptcy price, i.e., at which the trader’s initial margin has been completely depleted. It provides cover for situations before an auto deleveraging mechanism takes them over. The price difference between the bankruptcy price and at which a trader is liquidated is taken from the insurance fund.
Bybit Mutual Insurance
Mutual insurance is a robust risk management tool that protects you from any undesired market fluctuations. You can receive well-rounded protection from your declining profits and increased losses. You can also lock in profitable positions that reduce your fear of fluctuations.
There are three ways in which you can receive your insurance compensation.
- You will be automatically credited the losses by Bybit upon expiration of your mutual insurance.
- You can do manual settlement anytime during the insured period.
- You can also receive an immediate payoff upon liquidation.
Bybit review: Customer Support
They offer 24/7 multilingual customer support. They provide live chat functionality on their platform, which is available in seven different languages.
You can also write to them at email@example.com and for a related technical query at firstname.lastname@example.org. For any media related query, you can reach out to them at Media@bybit.com.
They also run a Telegram channel. If you think your questions might have been asked earlier, you can check their FAQ.
You can also give your feedback. You will earn ByBit exclusive swag ( T-shirts, Hoodies, Stickers, and many more) if your recommendation is implemented.
Bybit review: Pros and Cons
- Bybit uses a robust 100K TPS Matching Engine.
- It has a powerful API where market data is pushed every 20 ms.
- The size of each contract is smaller compared to other exchanges.
- Bybit offers futures contracts on EOS and Ripple, unlike other platforms.
- Extensive customer support.
- Best trading bot services has integration with Bybit.
- It is a comparatively new platform.
Bybit review: Conclusion
In conclusion, Bybit provides a transparent, trustworthy, and efficient trading platform. It uses strong technology to make the entire trading process secure and smooth. You can leverage 100x margin using Bybit, at the same time its insurance funds secure trades and covers their losses. In addition, it supports fiat deposits and doesn’t require your KYC. Bybit has an awesome customer support and you can live chat with their team anytime you want. You can also use trading bots with Bybit, which helps you automate your trading strategies.
Frequently Asked Questions
1. Where is Bybit located?
ByBit has been registered in the British Virgin Islands. The headquarters are in Singapore, and they have offices in Hong Kong and Taiwan.
2. Can you use Bybit in the United States?
US citizens cannot use ByBit.
3. How does Bybit work?
ByBit, a crypto derivatives exchange, can be accessed through their desktop application. They also have apps that support both Android and iOS.
4. How much are Bybit fees?
They use a maker-taker model. If you are a taker, you have to pay 0.075%, while if you are a maker, you can earn a 0.025%
5. How to get a Bybit bonus?
You can earn a bonus by participating in Bybit promotion program. They offer various categories of promotion. Your bonus is immediately credited to your wallet. You cannot withdraw the bonus. They can be used as trading/funding fee, covering your losses and margin.
6. What are the Bybit withdrawal times?
You can withdraw three times a day at 8:00, 16:00, and 24:00 UTC.
7. Is Bybit safe?
They use robust security tools and are graded B by Mozilla’s Observatory Test. They use SSL communication, two-factor authentication and an advanced Mark and Index pricing system.