In this article, we present a new exchange ByBit, where you can trade Bitcoin, ETH, EOS and XRP with leverage.
ByBit is an exchange that allowed us to trade cryptocurrencies with up to 100:1 leverage. In a very short period of time, it has managed to build a customer base of over 2,000,000 traders and a steadily increasing number of transactions. You can check out ByBit no deposit with 10 USDC free.
ByBit cryptocurrency exchange – review
For a long time, Bitmex was our number 1 in margin trading. Over time, however, other exchanges, notably Deribit and Bybit, have gained momentum both in terms of number of users and trading volumes.
Bybit is the youngest of the three exchanges and has been operational since March 2018. However, it is Bybit that has experienced the most growth over the past 24 months. After trading with the exchange we would like to share with you our experience with the leverage exchange.t.
ByBit Bankroll promo and free bonus.
Reviews and overview of Bybit
- Headquartered in Singapore with offices in Hong Kong and Taiwan, it operates under Bybit Fintech Limited, a company registered in the British Virgin Islands.
- A strong team of blockchain and financial industry experts
- BAT’s research and development staff, risk management staff are Morgan Stanley graduates
- Strong focus on security: hierarchical deterministic cold wallet system, full SSL encryption, manual withdrawals three times a day
- Leveraged trading for perpetual contracts on BTC, ETH, XRP and EOS with leverage up to 100:1
- No KYC up to 2 BTC
- Producer discount -0.025%, buyer commission 0.075%
- PnL display in USD and BTC, trailing stop with close function
- No system overhead, processing up to 100,000 transactions per second
- 24/7 live technical support
Trading Speed and Scalability (TPS)
One of the main reasons why we looked for an alternative to Bitmex is probably the well-known system overload error. When this ‘overload’ occurs, there are so many orders in the queue that new requests cannot be accepted.
In margin trading, speed is of utmost importance due to the high leverage, which can cause large swings in a matter of seconds. Of course, as traders we are aware of this, but it is still unpleasant.
Bybit claims that this problem cannot occur on its exchange and by our experience that was proven correct.
The matching mechanism used can process 100,000 orders per second.
ByBit’s user-friendly interface
We faced a user-friendly and intuitive interface of paramount importance in trading.
Bybit’s interface is similar to that of Bitmex. Traders like us, accustomed to the user-friendly interface of Bitmex can easily switch to Bybit.
What are bitcoin futures, swaps, margin and leverage?
Before delving into the Bybit review, we would like to briefly explain some basic concepts that will help you better understand the topic of ‘margin trading’ if you have never dealt with it before.
Bitcoin futures: a Bitcoin futures contract is a contract that is settled at a specific time in the future.
There is usually a reference price or index that is used for settlement. A futures contract can be quoted above or below the reference price, but will eventually settle at the reference price.
When a contract is quoted above the reference value, it is called a ‘contango’. Thus, if a contract is 5% contango at maturity, it will settle at a price 5% below what it was quoted at. Conversely, if its price is below the benchmark, we have an inverse return. Typically, bitcoin contracts can be held ‘long’ or ‘short’. It is nothing more than a bet on whether the price will rise or fall.
Bitcoin swaps: There is another type of contract: the swap or perpetual swap. Perpetual means that this swap is never permanent, but lasts forever. Short positions are swapped for long positions and vice versa
Bitcoin margin/leverage trading: You can usually trade these bitcoin contracts on a ‘margin’ basis. This means that you borrow money to multiply your profits or losses. This allows you to use leverage in your trades. Some cryptocurrency exchanges that offer margin trading allow leverage of up to x100. The amount you pay to trade is the margin.
Suppose you are trading 0.1 BTC with 10 times leverage. You only need to deposit 0.01 BTC. All your profits are multiplied by ten. But so are your losses. So if the price drops by 10%, your loss is 100%, which means your position is liquidated and your margin is used to pay back the borrowed BTC that financed the trade.
Depositing and Withdrawing Funds on ByBit
Until recently, Bybit did not work with FIAT currencies. This meant that we had to fund our account with one of the supported cryptocurrencies (BTC, ETH, EOS or XRP). Apart from the usual transaction fee, this type of deposit incurs no other costs.
Bitcoin: 0.0005 BTC
Ethereum: 0.01 ETH
EOS: 0.1 EOS
Ripple: 0.25 XRP
However, since recently, it has also been possible to make deposits on Bybit via credit and debit card. Keep in mind that Bybit has introduced KYC (know-your-customer) checks only for deposits or withdrawals exceeding 2 BTC.
Therefore, unless you exceed this limit, you do not have to present any ID to the platform. You can therefore start trading directly after opening an account and making a deposit.
ByBit trading fees
As with derivatives traded online, Bybit uses a ‘market maker/taker’ pricing model. Your commission depends on whether you provide liquidity. If so, you will be classified as a market maker and will receive a discount. 0.025% is paid for every single trade for which you provide liquidity. If you are a regular trader and are therefore classified as a market maker, Bybit charges 0.075% on each transaction. Transaction fee = value of the position * transaction fee rate
- Integration with Tradingview.
- SL/TP (Stop Loss and Take Profit). This function is missing on Bitmex and Deribit exchanges.
- Trailing Stops: A useful function for traders who focus on trends and/or have little time.
- Free educational content: On Medium and Twitter, Bybit often publishes free content that allows traders to learn more about trading. Given the high risk associated with margin trading, this is a very sensible solution that is not offered in this form by any other exchange.
- 24/7 technical support: via the integrated chat, Telegram group or Twitter, you will always receive a quick and satisfactory response in the event of problems with the platform or your account.
How can I register for the Bybit service?
Registration for us was very simple. As Bybit has not introduced a KYC procedure for up to 2 BTC, all we needed to do is register:
- Email address
– to start trading. After clicking on the confirmation link in the next e-mail, your account is ready to be used
2. Deposit in Bybit
3. First trading
Immediately after receiving your deposit, you can start trading. In the top menu of the interface, you can choose whether you want to trade BTC, ETH, EOS or XRP:Selecting “BTCUSD Perpetual” will take you to the trading interface for this pair:The screen below shows you how to enter data to make a trade: Here you can choose between limit, market and conditional orders. Using the slider below, you can select the leverage at which you wish to trade. Below this are fields for entering the desired order price (here for a limit order) and the number (‘Qty’; Quantity) of contracts, order value and available margin. The transaction is closed by clicking on the ‘Buy/Long’ or ‘Sell/Short’ button. All open positions are displayed in the same interface below the chart and include information on all important details such as position volume, entry price, settlement price, margin used, unrealised PnL, realised PnL and stop limits
ByBit is the best alternative to Bitmex for both beginners and professionals already trading on other exchanges. The Bybit team is constantly working to improve an already very good platform and is eager to incorporate user feedback. In my opinion, the clear interface, seamless trading thanks to a good technical infrastructure and the rapidly increasing liquidity mean that this exchange still has a great future ahead of it.