Bybit Review 2021 | Leverage Trading, Fees, Bonus and Testnet
By: Gaurav Agrawal
Tags: Cryptocurrency, Trading, Investing, Crypto Trading, Bitcoin

Bybit review

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.

Summary

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.

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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 review: Registration Page

Bybit Leverage

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.

Bybit Orders review

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 Contracts

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.

ByBit review: Deposits

Bybit Withdrawals

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 review: withdrawal limits

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.

Bybit Fees

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.

Bybit fees review

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

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.

ByBit calculator review

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

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.