Selecting the perfect futures trading exchange is nothing short of a challenge that demands several factors be taken into account such as:
- The features that are offered to the users
- The charting interface
- Trading pairs
- Overall security
- Level of customer support
ByBit is one such platform that not only satisfies the stated factors but is also considered to be one of the most popular leverage exchanges in the world. The purpose of this piece is to provide an honest and unbiased review of ByBit as per the latest information at the time of the composition of this piece. For all the latest updates and developments, we advise that the readers visit ByBit website.
Trade with ByBit
With an emphasis on leverage trading (up to 100x leverage) on cryptocurrency pairs such as Ethereum and Bitcoin, ByBit is a globally recognized derivatives cryptocurrency trading platform.
ByBit has quickly become one of the world’s best futures trading exchange platforms having over 100,00 users which are growing day by day. It has been ranked number 5 on the basis of trading volume by Coinmarketcap and surged to become one of the top crypto derivatives platforms.
For new traders, ByBit offers a variety of lucrative features including:
- A robust yet beginner-friendly user interface.
- Order-book with high liquidity and minimum spreads.100x leverage for Bitcoin futures trading with margin platform.
- Mutual insurance along with advanced risk-management tools.
- A highly advanced and powerful Matching engine capable of processing over 100,000 transactions/sec.
- Utilizing the measures of offline cold storage, highly secure wallet.
- Stop-loss and take-profit orders setting with a single click.
- Availability of over 99.99% with no server downtime.
- A powerful app for mobile trading that allows users to monitor their trade and performance from anywhere.
- In case of system error or downtime, ByBit offers to bear the full cost of funds lost; guaranteed.
- Multilingual customer service support available 24/7.
- For bringing more users to the platform, there is an affiliate program that rewards the existing users.
The charting interface offered by ByBit is perhaps one of the most important considerations for seasoned crypto traders. With advanced features, layout, technical analysis tools, easy-to-read layout, the users who are already familiar to trading on Binance or BitMEX are going to love ByBit.
When the users initially log in, the first thing they will notice about the ByBit trading interface is that it is laid out extremely well, having advanced features that are also easy on the eye. On the top bar, users can find statistics along with options to return to trade window (Trade button) and checking assets (Asset button) along with a drop-down menu (More button) that has a number of useful links from where user can reach FAQs and Guide section.
More proficient users may notice that the clean, smooth, and intuitive charts are from TradingView which the traders can leverage utilizing the indicators and advanced trading tools provided along to further refine their trading along with minimizing the potential risks and maximizing the profits.
For perfectly timing a trade order utilizing limit, market, or a stop order; the charts of TradingView offer a wide range of frames along with numerous tools so the traders can add indicators, draw trend lines, as chart the pattern as they please.An expansive suite of chart indicators is offered by ByBit which a trader can add to each chart. This includes:
- RSI (Relative Strength Index).
- Simple Moving Averages.
- Average True Range.
- Bollinger Bands.
- Stochastic Volume.
- MACD and many others.
The tools and charting interface offered by the ByBit is highly exceptional and unlike any other in comparison to what is offered by other exchanges. The smooth charting experience offered by ByBit is enough to satisfy any technical analysis trader.
An advanced ordering system is offered by ByBit which allows a single click setting for stop loss and take profit from the ‘’order confirmation’ window. The window also has time and multiple order types in force as well which makes it an amazing feature. No need to manually enter orders to take profit or stop loss. Before an order is executed, a window will show to prompt for trade targets.
There are three order types available which most of the traders must be familiar with including:
ByBit’s order system allows for proper risk management by giving the traders amazing control and flexibility with conditional orders along with the option to control its duration utilizing the criterion given below:
- Good Until Cancelled
- Immediate or Cancel
- Kill or Fill
As for how to use these options, there are detailed guides available in the FAQs section but hovering over the option with the cursor will also bring up a short description.
To ensure there is no trading manipulation or and a fair trading environment flourishes, a Dual Price Mechanism is used by ByBit. ByBit uses Mark Price Aka Global Spot Index Price as a trigger for liquidation in comparison to other exchanges that use Last Traded Price as a trigger for liquidation.
This provides the crypto traders with an advanced level of protection against manipulators and malicious liquidation as this makes it extremely difficult to manipulate the market.
Fiat currency (USD, etc.) are not accepted at ByBit as it is strictly a crypto futures trading exchange where only Bitcoin deposits are accepted. For new users, they will have to first buy Bitcoin from reputed crypto exchanges that accept fiat currency in exchange for a cryptocurrency (particularly Bitcoin).
In comparison to other futures exchanges in the cryptocurrency trading industry, ByBit offers highly competitive prices based on the marker and taker fee structure. The trading fee or the rebate to be applied will be determined by the type of order placed (Limit or Market order). Trade fee for popular paid is given below:
An explanation on the ByBit fee and their application is given below:
A Maker is someone placing a Conditional or Limit order which adds depth to the market and goes to the order book irrespective of whether the trader wishes to go short or long. They are called makers as they help shape the market.
Takers are the ones placing market orders which get fulfilled prior to reaching order book and decrease market depth by taking orders from the order book.
When it comes to depositing a fee to the exchange, no fee is charged by ByBit. And as for the withdrawal fees, a minimum amount is charged that is determined by the network load on the blockchain (around 0.0005 BTC typically).
Shortfalls in the ByBit future contract settlement poses some inherent risks that need to be mitigated. ByBit Insurance Fund exists as a contingency; in the event of liquidation, it can decrease the possibility of auto-deleveraging. In the event ByBit is unable to liquidate a position at bankruptcy price, the insurance fund will serve to protect the traders.
In the case of the events mentioned above, the shortfall will be covered by the fund. The current balance, as well as all the inflows and outflows from the insurance fund, are displayed on the website which makes it an extremely transparent system.
In the case of unfavorable market movements, a risk management tool by the name of Mutual Insurance has been made available for the traders by ByBit. Within the effective period of the insurance, a user will receive a pay-off form the mutual insurance fund if they experience loss on their insured position.
Instead of taking the traditional stop-loss order on the long and short positions, if a trader can foresee volatility increasing in the market, they may rather opt for insurance which will last for a predetermined period of either, 2, 12, or 48 hours.
Traders that are insured will be compensated in case the market move against their position. The Mutual Insurance Fund will be credited with a premium for each trade it will protect.
A testnet service is also offered by ByBit which allows the traders to trade on the platform without making any actual deposit. It is only a demo account that allows practising crypto trading with virtual funds that copy the live price of the Bitcoin. It is a good option for beginners that can be accessed at testnet.bybit.com where the users can easily register. All that is needed is an email address and a phone number. But to trade, the users will need to obtain testnet Bitcoin coins from the faucet.
By joining the platform and claiming coupons, a new user can get a reward of up to 90 USD in BTC; all a user has to do is create an account and visit the reward page of ByBit. A simple yet enticing way to get small rewards for both, new and existing traders. It is as simple to claim a reward that merely filling a survey form that will take 3 minutes at max will get you a bonus of 5 USD.
A great feature for experienced traders where they can participate in a competition which is a relatively new innovation in this industry. Traders can participate in safe and friendly global events and compete against traders from around the world. The previous global event called BTC Brawl featured big price amount that went up to 100 BTC in giveaways. With the size of ByBit growing day by day, we can only assume that the competition and the giveaway prices are also going to grow along with it.
ByBit has taken proper measures to ensure it can protect the funds, as well as the information of its users online. The following security measures can be credited for no cyberattacks or hacks/theft on ByBit.
To store and secure all the digital assets of the website and the users, it is built on the industry’s leading hierarchical deterministic cold wallet system. In an offline hardware wallet, a big amount of client’s funds are stored along with each deposit address assigned to its indigenous user. A hacker will never be able to have complete access to the required keys to steal the funds even if the system is compromised anyhow. As no private key is present on cloud service anywhere, it significantly reduces the risk of cyber-attacks.
In case the public keys don’t match, the trading stops immediately and the system immediately gets shutdown as the withdrawal is a multi-signature process. Offline withdrawals are slow, but security is a top priority; despite this, withdrawals are allowed 3 times a day.
Account authentication requires not just password, but also a registered mobile number for authenticating a login as well as for the withdrawal of funds.
As a relatively new exchange, there aren’t that many reviews available online but the feedback on telegram and social media profiles is generally positive. What makes it stand out is the extensive FAQ suite and guidelines along with numerous articles that cover a number of things including:
- Q&A for Beginners
- How to Get Started
- Guides on Depositing and Withdrawing Funds
- Leverage and Margins.Profit and Loss
If you still have a query that you need to be answered, you can contact them on social media or via email. Their automated chatbot is highly responsive and available 24/7.
To sum it all up, ByBit is, without a doubt, a robust, genuine, and reliable cryptocurrency exchange that is suitable for all types of traders irrespective of their level of expertise. It is a sweet and unique amalgamation of the traditional finance market and crypto exchange and trading. Ideal for traders that want leading-edge derivatives trading platform with a high leverage margin for crypto trading.
If you are looking into Futures Trading, check out our comprehensive guide on the best crypto futures trading exchanges around the world.Futures Trading
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