In this Bybit Review, we will be examining whether the Bybit Exchange is a good option.
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Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
Background and History
Bybit emerges as a peer-to-peer cryptocurrency futures exchange, anchoring its operational base within Singapore's financial landscape. The platform finds its administrative grounding through Bybit Fintech Limited, a duly registered entity within the jurisdiction of the British Virgin Islands.
The core ensemble behind this exchange comprises adept individuals straddling the realms of blockchain technology and financial acumen. The Research and Development unit orchestrates talents sourced from the corridors of BAT, leveraging their domain proficiency. Meanwhile, the risk management cohort boasts a lineage stemming from the halls of Morgan Stanley, further underpinning the exchange's professional footing.
Predominantly, Bybit's repertoire gravitates towards offering perpetual futures contracts, conspicuously marked by their non-expiry feature. These financial instruments, characterized by a generous leverage ratio of 100:1, underpin the exchange's operational axis. Presently, the platform accommodates four distinct swap options: BTCUSD, ETHUSD, EOSUSD, and XRPUSD. Notably, each of these swaps resonates with a formidable 100x leverage, with the added peculiarity of Bybit's proprietary coin standing in as collateral.
Amidst the terrain of established counterparts such as Bitmex and Deribit, Bybit does not merely find its niche through mere emulation, but rather through the infusion of distinctive attributes that warrant attention. Most notably, the exchange boasts a high-performance matching engine, a veritable cornerstone of operational fluidity. Bolstering this claim is the ability to handle an impressive 100,000 transactions per second (TPS), effectively minimizing any risk of system overloads. Notably, this commendable processing capacity ensures that order matching transpires seamlessly, devoid of any irksome delays.
Addressing the profound concern of safety within the realm of exchange engagement remains a cornerstone issue for any discerning user. This holds particularly true when the gaze falls upon newly-established platforms, bereft of an established security lineage to vouch for.
Navigating the terrain of exchange security impels us to delve into pivotal facets encompassing coin management, user security protocols, and the nuanced domain of risk management. Bybit, in its countermeasure stance against the looming specter of hacking, embraces the Hierarchical Deterministic Cold Wallet System. This strategic construct orchestrates the comprehensive storage of assets, with the added safeguard of manual processing for all withdrawals, occurring thrice within a day's span. This prudent measure translates into a majority of crypto reserves and client funds finding solace within offline wallets, securely cocooned in an "air-gapped" sanctuary.
In a calculated bid to thwart the lurking risks cast by online interlopers and the perils of phishing incursions, Bybit fortifies its digital precinct through the impenetrable veneer of full SSL encryption. This strategic mantle encapsulates the encryption of all transmitted passwords and address data, rendering them impervious to prying eyes.
This very layer of protection serves a dual role in spotlighting the authenticity of the Bybit digital sanctuary. The conspicuous presence of a secure padlock icon in the browser interface stands as a beacon. Its absence within a website masquerading as Bybit serves as a direct indicator of phishing malfeasance, warranting an immediate exit from the ill-intentioned terrain.
A critical bulwark in Bybit's risk management arsenal is their "insurance fund." This financial reservoir assumes significance in the event of a trader's liquidation at a price level beneath their designated "bankruptcy price." This price marker delineates the juncture at which a trader's initial margin is entirely exhausted. In essence, the insurance fund acts as a safety net, bridging the gap that would otherwise arise, ensuring that the counterparty to the trade isn't left bearing the brunt of the deficiency. This fund is reinvigorated through the initial margin of traders liquidated at the inception of their trade. The disparity between the liquidation price and the bankruptcy price dictates the inflow or outflow to the insurance fund.
Even as the exchange takes robust measures to fortify its precincts, a reality persists wherein the most formidable threat often stems from the traders themselves. Bybit takes cognizance of this reality, bolstering its armory with a suite of tools meticulously crafted to safeguard against breaches facilitated by compromised passwords. Foremost among these guardians is the two-factor authentication mechanism. This adds an additional layer of defense, requiring users to authenticate transactions and account access via their mobile devices. Notably, the activation of Google Authenticator stands as a prerequisite prior to initiating any coin withdrawals.
ByBit's operational architecture, steeped in leverage dynamics, paints the canvas of a platform accommodating crypto margin trading. This distinctive feature grants traders the prerogative of committing only a fractional quotient of the initial position as collateral for their trading endeavors.
Evidently, within the realm of a 100x leverage scenario, a mere 1% of the trade's initial notional value suffices as margin requisition. To illustrate, envisage a hypothetical 10BTC contract bearing a notional worth of $50,000. Within this context, a marginal investment of $500 is all that's mandated to initiate the trade. Remarkably, ByBit distinguishes itself by endowing traders with the unique flexibility to adjust leverage levels at their discretion, even subsequent to commencing a position. This noteworthy attribute stands in contrast to the modus operandi of other exchanges, where such real-time leverage modifications are curtailed.
In a twist of quantitative surprise, the perpetual contracts furnished by ByBit exhibit a modest scale. Singularly valued at 1 USD, these contracts deviate considerably from the benchmarks upheld by their counterparts on alternate exchanges. The minutiae of these contracts mirror the framework observed across other contract types, encompassing a comprehensive landscape awaiting exploration.
It merits noting that ByBit's ambit of 100x leverage is not immune to modulation. Delving into the realm of substantial trading volumes and commensurate positions, the platform assumes a dynamic stance by revising the maximum attainable leverage on contracts. This calibrated maneuver holds twofold implications - not only does it tread the line of responsible risk management, but it also serves to shield the exchange from the potential vulnerabilities posed by outsized positions.
The undercurrent threading through ByBit's leverage framework is pragmatic - it charts a trajectory that marries operational fluidity with calibrated security considerations, effectuating a nuanced balance in the ever-shifting tides of crypto trading.
Initiating your ByBit journey beckons with the creation of an account, a foundational step that carries minimal complexity. To unfurl this process, a requisite email address or phone number, coupled with a password, is solicited. If, perchance, you possess a referral code, this token can be seamlessly integrated into the enrollment process, an avenue to explore further in subsequent discussions.
Upon successful registration, ByBit promptly dispatches a confirmation code to your provided email or phone number. The temporal window for code validation spans a mere 5 minutes, rendering alacrity in execution paramount to secure a seamless account activation.
Distinctly aligning with the ethos of user autonomy, ByBit stands as a bastion of anonymity within the exchange landscape. This translates into a refreshing deviation from the pervasive KYC (Know Your Customer) norm. As such, traders are bestowed with the privilege of partaking in the trading milieu without the mandatory imposition of KYC prerequisites. Such a stance resonates harmoniously with individuals who harbor apprehensions regarding potential data breaches, resonating with those who ardently champion data privacy.
The alignment of your assessment with the tenets encapsulated within this ByBit review naturally culminates in the realization of your registration. A forthcoming expedition awaits, laden with opportunities to navigate the crypto trading arena underpinned by the platform's distinctive operational paradigm.
The canvas of ByBit's customer support narrative is somewhat uncharted due to its status as a nascent exchange. As such, precedence in terms of trader experience with their support mechanisms remains relatively sparse. However, our endeavors extended towards gauging the response dynamics intrinsic to their customer support channels, granting us a window into their operational ethos.
A pivotal linchpin within their support framework is the Zendesk live chat functionality, seamlessly nestled within their platform's precincts. This resource stands steadfast, accessible around the clock, seamlessly synchronizing with the diverse linguistic tapestry woven by their website translations.
For those preferring the avenue of electronic correspondence, an email conduit emerges as a viable recourse. While the general umbrella of customer support is diligently tended to at firstname.lastname@example.org, the terrain of more intricate, technical queries finds its appropriate address at email@example.com. The repository of support, however, doesn't stretch to accommodate direct telephonic recourse, thereby eschewing the conventional domain of phone support.
Our explorations embraced the immersive terrain of live chat, which yielded prompt results as we were expeditiously linked with a support representative. On the flip side, the troves of email interactions beckoned with a slightly elongated response window, although congruence in helpfulness endured.
Albeit, a realm of routine queries finds solace within the expanse of their comprehensive help section, an expansive repository catering to assorted informational needs. This repository, an assemblage of FAQ resources and informative guides, stands poised to shepherd traders through an array of questions and conundrums, ultimately serving as a veritable companion on the journey of trading endeavors.
Bybit Pros & Cons
- Flexible withdrawals
- Customer support
- Sign up bonus
- Excellent security
- Mobile app
Bybit Review: Verdict
We have found Bybit to be a user-friendly exchange with strong technology, reasonable fees, and a relatively intuitive user interface. We are also glad to see that they have also developed an insurance fund to manage market risk.
They are well-positioned to offer an alternative to the status quo in the crypto derivatives market. In fact, the order book liquidity on ByBit has recently exceeded that of Deribit.
While there were things that we thought warranted improvement, these are relatively easy to implement. The exchange is still new and there is no doubt many improvements are in the pipeline.
So, should you use Bybit?