Bybit is a cryptocurrency derivatives exchange with a wide range of advanced trading tools. It has top-notch security and a no-downtime commitment, but it’s not available in the U.S. Read our full Bybit review to find out if it’s right for you.
Full Bybit review
This cryptocurrency derivatives exchange is a good fit for: Non-U.S. cryptocurrency traders who want to use margin and other derivatives.
- Up to 100x leverage on crypto
- Advanced tools supported by great technology
- Risk-free test environment to learn and experiment
- Educational resource
- Not available in the U.S.
- Crypto derivatives are extremely risky
- Not suited to spot trading
- May share your data with third parties for marketing
Before we get into the perks, let’s take a quick look at what exactly derivatives are. Derivatives are financial instruments — also known as contracts — that base their value on an underlying asset. You don’t own the asset. Instead, you own a contract to buy or sell that asset at a specific price in the future. In this case, that asset is cryptocurrency. Bybit is a cryptocurrency derivatives exchange, which means it’s a place where those contracts are bought and sold
Up to 100x leverage on crypto
You can trade cryptocurrencies on Bybit at up to 100x leverage. This means you could trade a position of $10,000 from a $100 investment. Experienced traders can make high profits from leveraged trading as it magnifies the potential trading rewards. But it also magnifies the risk.
Users can go long or short on the 15 available currencies (bet on the price rising or falling, respectively). Bybit offers a range of advanced trading options.
Technology and tools set it apart
Bybit says it can handle 100,000 transactions per second, which is significantly faster than its competitors. It does everything possible to avoid any server downtime, a problem a number of exchanges face whenever a change in the market pushes a lot of people to trade at once.
Its charting tools are popular with traders as they have a lot of functionality and extra features. You can also download data in various formats.
Risk-free testnet environment
Bybit has a testnet site where new traders can test strategies and learn how to use the site without using real money. If you’re new to derivatives, it’s a way to get used to these advanced — and sometimes complex — tools.
Since leveraged trading can be extremely risky, it makes sense to gain confidence in the test environment before risking your hard-earned cash. If you decide to trade for real, start small and make sure you understand how to minimize risk.
Bybit has an impressive selection of resources, news, and insights for traders of all levels. For example, “Bybit Learn” explains how to use technical tools and understand chart patterns. It teaches users about decentralized finance (DeFi) and has a detailed analysis of individual coins. You also have “ByBit solved” that shows you how to start using the platform to get set and start trading. Plus, Bybit hosts classes on social media twice a week.
That’s a good thing since futures and margins are advanced financial tools and you’ll need to have a sound understanding before you use them.
Bybit has a number of security measures in place to protect your assets. It stores 100% of client funds offline in cold storage. It also individually reviews each withdrawal request manually to avoid unauthorized withdrawals.
Is your cryptocurrency safe with Bybit? Bybit participates in a bug bounty program that encourages ethical hackers to report any loopholes in its system. It also carries out background checks on all its employees.
At a user level, Bybit has enabled two-factor authentication for withdrawals and changes to account security settings.
The three types of fee to watch out for are trading fees, withdrawal fees, and deposit fees. For trading, Bybit charges a maker/taker fee. This depends on whether you are adding or taking liquidity from the market. Here are fees and leverage for inverse contracts, which use cryptocurrencies as their base.
You’ll also pay standard withdrawal fees, depending on the currency you withdraw.