In this Bybit Review, we will be examining whether or not the Bybit Exchange is a good option.
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ByBit is a cryptocurrency derivatives exchange that launched its services at the end of 2018.
The exchange gives traders the ability to trade Bitcoin, Ethereum, Ripple, and EOS perpetual contracts with up to 100:1 leverage. In a short time in operation, the exchange has managed to build up a 100,000+ customer base, sizable liquidity (around $30M currently), and average daily traded volume ($200M).
However, can such a new exchange really be trusted?
In this ByBit review, we will give you everything you need to know about the exchange. We will dig into their security, fees, customer support, and trading platform. We will also give you some top tips when it comes to trading crypto futures.
ByBit is P2P cryptocurrency futures exchange that is based in Singapore. The exchange operates under Bybit Fintech Limited which is a company that is registered in the British Virgin Islands.
The team is comprised of experts in blockchain technology and finance. R&D team has experts that hail from BAT and the risk management team is comprised of Morgan Stanley alums.
The primary product offered on the exchange is perpetual non-expiry futures products with 100:1 leverage. Currently offering 4 swaps: BTCUSD, ETHUSD, EOSUSD, and XRPUSD; all with lOOx leverage and own coin as collateral.
While there are many similarities between established exchanges like Bitmex and Deribit, there are some unique features that ByBit has included that could make them more attractive:
Bybit offers one of the fastest matching engines in the industry with up to 100,000 TPS, this guarantees no overloads, and all orders are matched with no delays.
This is one of the most important questions that any exchange user will have. This is especially true when it comes to a new exchange with no established security track record to turn to.
This means that they store the bulk of their crypto reserves, and all of the clients’ funds, in offline wallets that are stored in a secure “air-gapped” location.
In order to prevent the risk posed by online snoops and phishing attacks, the ByBit website has full SSL encryption. This means that all passwords and address information that you send them will be encrypted.
This is also helpful in order to spot a phishing site. If you are on a website that looks like it could be that of ByBit but it does not have a secure padlock in the browser, it is an immediate indication that you are on a phishing site and you should leave immediately.
In order to manage the risk posed by shortfalls in a futures contract settlement, ByBit operates what they call their “insurance fund”.
Essentially, this fund will be used in the case that a trader gets liquidated at a level that is below their “bankruptcy price”. The latter is the price at which the trader’s initial margin has been completely depleted.
Without the fund, there would be a shortfall whereby the counterparty to the trade would not be made whole. It is essentially an insurance policy that will protect traders in the case that ByBit is not able to liquidate the position at bankruptcy price or better.
These funds are replenished with the initial margin that liquidated traders have at the outset of their trade. The difference between the price at which the trader is liquidated and the bankruptcy price is how much will be sent to, or taken from, the insurance fund.
One of the most important tools that they have included is two-factor authentication. This means that you will have to use your phone in order to authenticate into your account or send transactions. You have to enable google authenticator before you are allowed to withdraw any coins.
Given that ByBit is a leveraged exchange, it means that they allow crypto margin trades. Traders will only have put up a small percentage of the initial position as collateral for their trades.
They have pretty much the same terms on other contracts and you can find more information about that here. This is different from other exchanges such as BitMEX as, contrary to Bybit, these do not propose a lOOx leverage product for ETH, EOS, and XRP yet.
While ByBit does offer lOOx leverage on their contracts, this is not constant. If you are a large trader and are entering sizable positions then they will bring down the leverage that you can achieve on your contract.
If you have decided that you would like to give ByBit a go then you will have to create an account. In order to do this, they will require either an email or phone number, and a password. If you have been given a referral code then you can use this (more on this below).
Once you have registered, ByBit will send you a confirmation code that you will need to use to confirm your email/phone number. This is only valid for 5 minutes so make sure that you do it right after creating the account.
Something that many traders may appreciate is the fact that ByBit is a fully anonymous exchange. They do not require you to complete KYC before you can trade. This is great for those privacy hawks who are worried about the risks of certain data breaches.
If you agree with our Bybit Review, you will probably want to complete your registration!
Bybit: Customer Support
Given that ByBit is a new exchange, there is not that much in the way of previous trader experience with their customer support. However, we did try reaching out to their customer support lines to get an idea of typical response times.
In terms of support options, you have a zendesk live chat function that is available on their platform. This is available 24/7 and is offered in all the languages that they have translated their website into.
You can also reach out to them via email on [email protected]for customer support or [email protected] if your query is more technical in nature. Unfortunately, there is no phone support or direct telephone line into the exchange.
We tested out the live chat function and we were able to get a support agent almost immediately. Email support took a bit longer but was similarly helpful.
Of course, if your question is more routine in nature and not specific to your account then you can always make use of their extensive help section. This includes their FAQ resources as well as other helpful guides that could help your trading.
Bybit Review: 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 their pipeline.
So, should you use ByBit?
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