Bybit is a cryptocurrency exchange that was founded in 2018, offering a wide range of spot trading services and cryptocurrency derivatives.
Despite being fairly new, this exchange is among the top ten on rating site Coinmarketcap with a total daily trading volume of over 270 million USD for spot transactions. And almost 4 billion USD volume transactions for the derivatives market. With an exchange score of 7.4. The rating score is based on website traffic. Then the average liquidity and confidence volume were reported.
Bybit uses an innovative platform for professionals and novice investors, offering crypto trading by supporting Android and iOS-based platforms whose applications are available on the Play Store and Application store.
- 1 What is Bybit exchange?
- 2 Bybit exchange ranking
- 3 Who owns Bybit exchange?
- 4 Is Bybit a centralized exchange?
- 5 Bybit exchange from which country?
- 6 Bybit exchange fees
- 7 Security
- 8 Bybit exchange native token
- 9 Testnet platform
- 10 Customer service
- 11 Bybit product and service
- 12 Is Bybit a good exchange?
- 13 Bybit review Trustpilot
- 14 Conclusion
What is Bybit exchange?
Bybit is a centralized cryptocurrency exchange that provides cryptocurrency trading services on the spot market and cryptocurrency derivatives market. There are various cryptocurrency pairs available, such as BIT/USDT, BTC/USDT, ETH/USDT, XRP/USDT, LUN, DOT, and many more.
Bybit exchange registered the company in the British Virgin Islands in March 2018. The Bybit exchange team is made up of blockchain investors and financial executives, researchers, and developers. In its operations, ByBit focuses more on leveraged trading and perpetual contracts, which allow traders to trade different cryptocurrencies both short and long term.
More than 2 million registered users in the Bybit exchange site Bybit.com in the last month getting 5,699,000.0 pageviews traffic. Coverage of this exchange out to serve clients all over the world with its services to almost global countries, except the US and Singapore.
Bybit exchange ranking
- Ranking on Coinmarketcap for spot trading is in 9th place under Gate.io, while in derivatives trading it is 5th under Coinflex.
- Bybit exchange ranks on Coingecko, for spot trading at 12th place after Binance US, and 3rd in derivatives trading under FTX.
- Bybit exchange is ranked 20th for spot trading, and 4th in derivatives trading on Coinrank.io.
On both rating sites, the average derivative trades on Bybit exchange reached $3.9 billion and spot trades were $270 million. Why derivative trading volume is bigger than spot trading because Bybit is focusing on derivative trading.
But we didn’t find Bybit on Coinranking, maybe this exchange doesn’t cooperate with Coinranking. Although Bybit’s trading volume should be high enough to rank the exchange.
Who owns Bybit exchange?
The founder of Bybit is not new to the financial market. The name is Ben Zhou who is also the founder of XM forex and CFD broker who has succeeded in becoming one of the leading brokers in the world.
Ben Zhou in developing Bybit took a team involving investment banks, technology firms, forex industry, and adopting blockchain experts. This includes experienced talent at Morgan Stanley, Baidu, Alibaba, and Tencent.
Bybit exchange is growing so fast with affiliate marketing promoted by the development team, although this exchange which focuses on the derivatives market has only been running for three years.
Is Bybit a centralized exchange?
The main difference between centralized and decentralized exchanges is the governance within the environment. Centralized exchanges are powered by an entity or company that controls or acts as an intermediary between traders and the crypto market.
While the decentralized exchange uses smart contracts and is an AMM or Automated Market Maker, where on the one hand the user can be the provider of liquidity, and on the other side the user can buy the liquidity.
Bybit exchange is a crypto trading platform controlled by Bybit Fintech Limited, a Singapore-based company that has been operating since 2018. The Bybit platform fully caters to digital currencies, this exchange operates without the need for a license.
Bybit exchange from which country?
Bybit is an exchange based in Singapore, but the development team is mostly located in China. The exchange has approximately 200 employees according to the Linkedin page, and the team consists of foreign exchange professionals, investment banking, and blockchain experts.
However, it may be important to note that Bybit exchange is not regulated. Although one source says Bybit is registered on the Virgin Islands, other reports say the OSC (Ontario Securities Commission) failed to discuss with Bybit to finalize legal provisions and compliance. About regulation, maybe some users think it is important. This exchange platform supports 12 languages and offers customer support 24/7 days a week.
Not all country coverage by Bybit exchange
Although it does not require completing KYC, not all countries can use the bybit platform, the following countries are not included in the Bybit exchange coverage: United States, Singapore, Cuba, Québec, Crimea, Syria, Iran, Sudan, North Korea, and Sevastopol.
To implement the rules, to find out the origin of traffic, Bybit analyzes the IP of the computer used by the user to access the platform.
Bybit exchange fees
For deposits, ByBit does not charge any fees, although you do have to pay the standard mining fees associated with the underlying blockchain. The platform also does not charge any additional withdrawal fees beyond the standard network fees, which are currently set at 0.0005 BTC, 0.01 ETH, 0.25 XRP, or 0.1 EOS.
In Trading, ByBit charges a 0.0075% fee for trading that reduces liquidity (Takers) and provides a 0.025% discount for traders who increase liquidity (Makers). Apart from that, there is also a position funding fee that traders need to keep in mind. This fee is between long and short exchanges to correct price deviations from the index price.
For user account security this platform provides additional security options such as SMS, email, and Google Authentication options.
ByBit ensures the security of user funds by storing 100% of user funds in cold storage using an offline signature for users to make withdrawals three times a day.
They also have insurance funds such as reasonably to protect against automatic deleveraging. It can occur when there is a shortage of liquidity in the market and liquidated positions near the lower price of the bankruptcy price.
In this case, ByBit will use the balance from the insurance fund to cover the difference between the last liquidation price with the bankruptcy price. About its insurance funds, the exchange is very transparent with publicly updating the balance daily.
The fee structure in Bybit exchange
Spot trading fees are average above 0.2% higher than the fees for derivative contracts. On the platform, there is only a 0.05% fee per transaction from takers and makers. For structure, trading fees on all spot trading pairs for takers and makers are 0.1%.
Meanwhile, for derivative contracts, the maker is charged a fee of -0.025%, and the taker fee is charged 0.075%.
Below comparison table fee Bybit exchange with other exchanges.
Bybit exchange native token
Bybit does not have a native token like Crypto.com, but it is known that the exchange contributed $19.3 million in ETH, USDC, and USDT to BitDAO Treasury. BitDAO has a native token called BIT.
And how about deposit and withdrawal methods, Bybit supports a wide range of crypto assets such as USDT, ETH, XRP, EOS, and more.
This is a unique thing for Bybit by providing a Testnet platform. using the Testnet platform allows users to test the functionality of the exchange and execute trades without risking real money.
The Testnet platform is a copy of the Mainnet specifically for testing purposes. It is a kind of demo account in forex trading.
For the first time, customer service Bybit provides a FAQ to provide basic information on how to use the platform, how to make deposits and withdrawals, and other important information.
Besides all of that, also available education about cryptocurrency for users. It is open for everyone to learn articles about blockchain and cryptocurrencies.
There is also an online chat function, this is customer support which helps users when complaining about problems at any time.
Bybit product and service
Bybit’s products and services are mainly on spot trading and derivatives trading. Where the focus is more on derivatives trading. As the result, volume transactions on this exchange are higher in the derivatives market than in the spot market.
ByBit offers Pair Trading derivatives including BTC/USD, ETH/USD, XRP/USD, and EOS/USD. The BTC/USD pair can be traded with 1:100 leverage. While the other 3 pairs can only be traded with up to 1:50 leverage.
In Bybit’s product, there is a so-called perpetual contract. This refers to contract trading without an expiration date. The transaction will be completed automatically.
Bybit is a derivative trading platform, all transactions that occur are based solely on the underlying asset. This means that there is no actual Bitcoin transfer between buyers and sellers on ByBit. However, the contract is based on the underlying asset referring to the USD rate.
As in trading the forex platform, Bybit also has to Take Profit and Stop Loss functions on the platform. Another feature similar to forex is the Trailing Stop. This feature allows the user to set the trailing stop distance to auto-lock profit. Or minimize losses through the modified stop loss.
Is Bybit a good exchange?
Bybit is an exchange that is easy to sign up for. As users don’t have to submit any verification documents. This exchange uses cryptocurrencies for deposit and withdrawal processes. Bybit exchanges are unregulated. Making them quite vulnerable to violating official government regulations.
In terms of trading models using leverage. This gives the advantage that with low trading margins you can trade at higher values. But besides this leverage also increase the risk. It is rare for exchanges to provide leverage up to 1:100, most crypto leverage is only 1:3.
This exchange is also not available for the US, while a large crypto market is in the US. This is a shortcoming Bybit should strive for. From its trading platform, Bybit includes using sophisticated technology, with platform support available for smartphones.
Bybit review Trustpilot
Trustpilot reviews for Bybit.com, 144 users share their experiences using Bybit. Of these, Bybit, in general, got a score of 3.5 out of a total score of 5. 46% of reviewers gave an excellent rating. 20% gave a Great rating. 7% gave an average rating. Only 1% poor and a bad score received 26% of reviewers.
The conclusion from the review is that not all users get a good experience on the Bybit platform. Some complaints about blocking the account. Some complaint about the wrong stop-loss, which caused the trader to lose. But there are some of those who get satisfied with Bybit’s service because they don’t face any serious problems.
Bybit derivative exchange is one of the exchanges that does not require users to comply with KYC. But the payment method only supports crypto assets. Does not support credit cards and bank transfers like most centralized exchanges.
However, it is important to understand that trading on margin or using leverage is potentially high risk. This requires understanding how leverage works. But luckily Bybit exchange provides a Testnet platform. Where users can test the platform without risking a loss of real money.
Note: this article is for personal information and opinion only, does not constitute investment advice. Each investor is responsible for their investment.
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