Exchanges

Bybit Review and tutorial (2020)

Derivative exchange, Bybit has been growing in size and popularity since its creation in 2018. As Bybit begins 2020, here is an up to date review on the exchange.

What is Bybit?

Hailing from Singapore, Bybit is an exchange which has looked to build an institution with users in mind. Typified by their P2P cryptocurrency focus which refuses the need for third parties and the fees which incur.

Set up under the Bybit Fintech Limited, the derivative exchange boasts a wide and varied team who have experience working at major tech companies like Morgan Stanley and Tencent.

The exchange has looked to open itself to the world as much as they can, with their exchange available in most nations. However, it is unavailable to the USA, Syria, and the Canadian province of Quebec.

That being said, the exchange is a great one for Asian users with their website translated into Chinese, Korean, and Japanese English, Simplified and Traditional.

What is Bybit’s Unique Selling Point?

Since their conception, exchanges have been looking for ways to outdo each other and offer their users something special. Be it the tokens they provide, pairings or user face, exchanges are in a race for popularity and traffic.

One area in which exchanges look to stand out from the crowd is through trading options. Bybit has decided to go down the leverage/margin trading route and offers 100:1 leverage for BTC, XRP, EOS and ETH.

This option for futures trading through the margins contracts puts Bybit into a niche market occupied by fellow major exchanges BitMEX and Deribit.

Bybit Features

Bybit has a number of features which make up the ecology of the exchange and often sets them apart from the competition. These include:

Market Analytics: Bybit has a wide variety of graphs and statistics with which their users can analyse the market. Data analysis options include: Price Moving Averages, Monthly Price Range, Rolling Volatility and BTC Daily Realised Volatility.

Mobile apps: Bybit has its own app which is available on Android and IOS. The app has largely the same features as the desktop version, even having advanced order forms available. Price levels can also be sent via push notification so you never miss a big price movement.

API: Through its API those who wish to manage trading by code algorithms and bots. If you want to use the API you must generate an API key which is completed in the “API management” section.

Bybit’s Security

Security is an integral factor for most users when choosing an exchange. Hacks and security breaches are often felt in the industry and exchanges are always looking at ways to keep their information secure.

Bybit decided to go down the secure cold storage solution route. This places their cryptocurrency funds and their users in offline wallets which are stored in a secure “air-gapped” location. A small portion is in hot wallets which usually service those looking to withdraw funds.

User Security on Bybit

User funds are also insured on the site through Bybits “insurance fund”. This fund will bail out users should they fall under the “bankruptcy line”. This also protects users should Bybit be unable to liquidate at a price better than the bankruptcy line.

Alongside their crisis payments, users details are protected through the two-step verification process Bybit uses. This means when you log in, withdraw funds or send transactions you will need to use your phone, adding another level of protection. However, Bybit does not offer KYC verification.

Bybit Registration

The registration process is fast and easy. The requirements are an email address or phone number and the creation of a password. Confirmation codes are sent which are valid for five minutes.

Deposit and Withdrawal

Much like the registration, deposits and withdrawals are also relatively easy. However, be warned that Bybit is a cryptocurrency only site so you can not withdraw to fiat or fund your account on the exchange.

Deposit

To deposit simply create a wallet address and complete a transaction into the wallet through the asset page. This will take you to your wallet balances where you can select “deposit” and input the address. Once that is input, you can complete the transaction.

Withdrawal

To withdraw, click withdraw on the asset you would like and input the wallet address. This will have to be confirmed by two-step verification. After that, a miners fee will be deducted. The withdrawal times are at 0800, 1600, 2400 UTC time). The min / max limits are:

Bitcoin: 0.002BTC / 10BTC

Etherem: 0.02ETH / 200ETH

Ripple: 20XRP / 100,000XRP

Eos: 0.2EOS / 10,000EOS

Limits on daily withdrawals in total from the exchange are set to 100BTC and 10,000ETH.

Bybit Trading

Bybit has a state of the art user face for trading with great charts and data sets to help you track your activities on the site. Here is an example of what the trading interface might look like:

Here is an example of the trading user face(Source: Coinbureau.com)

Trading Options

Entry levels and order types are subject to user choice and Bybit gives three options for its customers, these include:

Market Order                Limit Order     Conditional Order

How you see the order types on Bybit (Source: Coinbureau.com)

For both limit order and conditional, the orders will have a life span. This is where the various order lengths come into play. These are:

Good-Till-Cancelled (GTC): This order closes when you decide.

Immediate-or-Cancel (IOC): This order is filled when the best price is available. If there are any portions that are unfilled then this portion is cancelled. The order type allows for partial order execution.

Fill or Kill (FOK): Similarly to the IOC order type, this order is filled at the best price but unlike IOC, if the order is not filled at the best price then it is not at all.

There are other options available to you for trading like Post Orders, Close on Trigger and Reduce Only Orders. Bybit also has other handy tools like position calculators which help you analyse the market.

Bybit Fees

Fees are determined in two different areas. As previously mentioned, Bitmex does P2P cryptocurrency so there is no third party fee, however, there is a market maker or a market taker payment. The fees for maker/taker are below:

Other fees that may incur are 0.0005 BTC if you withdraw BTC from the Bybit trading platform. This puts Bybit near the top of the pile for withdrawal fees, 40% lower than the average exchange. The withdrawals may also require a small mining fee as previously mentioned.

Pros and Cons

Pros:

  • High leverage amount
  • No KYC verification
  • Trading and Reward Bonuses
  • Good features

Cons:

  • Network unregulated
  • Young exchange

Rewards Hub: Bybit has a number of rewards available. The best is of course reserved for the new users, who can get $50 if their first deposit is over 0.5 Bitcoins. You can see the latest rewards here. There are also Trading bonuses available which can be found under the assets option on the site.

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