EXCLUSIVE OFFER: If you sign up to Bybit using this link, you can receive up to USD 600 in welcome rewards! All you have to do is complete simple tasks and reach trading milestones after signing up.
The rewards include an exclusive USD 50 coupon when a new user makes a first time deposit of at least 0.05 BTC or equivalent within 48 hours of joining the exchange.
- Offers derivatives trading
- Early access to new tokens
- Integrated NFT marketplace
- Not available in the US
About ByBit Exchange
What makes Bybit stand out is that it is a derivatives exchange. In addition to the traditional functions of trading, you can also buy derivatives, making this exchange best for traders with some experience. They also have a learn-to-earn section and staking options for all types of users.
Earning Passive Income
The Bybit exchange offers a few ways to earn passive income.
The Launchpool at Bybit allows you to stake tokens and thus earn interest on them. This can be done with tokens that work with Proof-of-Stake (PoS), a more efficient version of validating than the original Proof-of-Work (PoW).
You can think of it as working like a government bond. You let the blockchain use your tokens for a while, and they pay you for it. You can unstake your tokens at Bybit at any time. Other exchanges have unstaking periods, so having this freedom to stake and unstake at will is a nice advantage.
Decentralized finance (DeFi) mining works a lot like staking. You put in some tokens and start to earn a yield. Normally mining requires a ton of computing power and a source of very cheap electricity.
Decentralized finance allows you to do this simply by putting in some tokens. This is different from staking in that there are minimum deposits and a staking period. However, your yield will be higher if you go with this option.
Bybit trading fees vary depending on your membership level and the type of trading you are doing. Your level is determined by your asset balance and your 30-day trading volume.
There are 7 membership levels:
- VIP 1x
- VIP 2
- VIP 3
- Pro 1
- Pro 2
- Pro 3
For USDC options trading, the maker and taker fee are both 0.03% for all membership levels. This is the easy one.
For contracts or derivatives, trading non-VIP members have a 0.06% fee for takers and a 0.01% for makers. This drops to 0.03% and 0% respectively at the highest membership level.
According to the most extensive industry report ever prepared on contract trading average fees, the global average contracts trading taker fee and maker fee was 0.0594% for takers and 0.0242% for makers. This means that the maker fee for Bybit is lower than the industry average whereas the taker fee is marginally higher, considering the lowest membership level.
Spot trading for non-VIP members comes with a 0.1% fee for makers and takers. Makers start to pay nothing at the membership level Pro 1, while takers pay a minimum of 0.02% as Pro 3 members.
No matter your membership level, this is substantially below the global industry averages, which are 0.2323% and 0.1904% according to the same report.
Bybit Withdrawal fees
When withdrawing BTC from the Bybit trading platform, you will have to pay 0.0005 BTC per BTC withdrawal. This is slightly lower than the current global industry average, being 0.0004723 BTC per BTC withdrawal.
Bybit has launched a VIP program for those who trade larger amounts. Your membership level is determined by your 30-day trading volume and your asset balance:
According to their website, they offer the following perks to VIP members:
- An exclusive dedicated VIP Ambassador
- Priority access to Bybit customer support live chat
- Exclusive gifts when you join the VIP program
- Exclusive trading fee rate
- Early access with a 1-on-1 introduction, and private walkthroughs to new product launches
- Exclusive invites to special events and campaigns
Coins and Tokens Available
With nearly 200 cryptocurrencies to choose from, you will probably be able to find all the currencies you are looking for. This is quite the range. Though there will inevitably be some that are not here, in general, you will be able to find and trade major and minor cryptos.
Plus, they have a launchpad that gives their users early access to soon-to-be-released cryptos. You can commit money to a subscription of the token. While this comes with some risk, as the token is not even launched yet, many will take off in value as soon as they are released, making this a nice feature you will not see everywhere.
You cannot store fiat currencies on Bybit, so when you make a deposit, you will have to transfer using a cryptocurrency. You can use an entry-level exchange to do so. You can find one using our exchange filter!
Alternatively, you can use Bybit’s Fiat gateway - a service provided by a third-party provider.
Who Can Sign Up Here?
Bybit is available in most countries, however, they are not available in the United States. The Securities and Exchange Commission is a difficult regulatory agency, so many exchanges simply avoid it altogether.
Users from around the world can sign up, except for the following excluded jurisdictions:
- United States
- Mainland China
- Quebec (Canada)
- North Korea
Bybit has lots of trading options. In addition to the traditional spot trading, they also have P2P, leveraged, and derivative trading.
One of Bybit’s main attractions is its derivative functions. Derivatives are financial contracts that derive their value from an underlying currency or asset. For example, they have future derivatives, which agree to buy certain tokens at a certain price in the future.
They also offer perpetual derivative trading. This is similar to a future derivative in that you buy and sell tokens at an agreed-upon price, but these do not expire. They are increasing in popularity and tend to trade closer to the current price of the asset compared to futures.
In January 2022, Bybit opened up its P2P offering to all of its users. P2P can be compared to an online store for the relevant cryptocurrencies. Investors at the exchange post different “ads”, where they offer a price quote for a specific cryptocurrency. This ad can be for both buying or selling or either one of those actions. If you as another buyer/seller opine that the offer is good, you can just take it. Bybit highlights that with Bybit P2P, you can "complete transactions at lightning speed in a safe and secure trading environment, and at optimal prices agreed upon by you and the merchant."
As mentioned above, Bybit allows you to trade with leverage. This means that you can receive a higher exposure towards a certain crypto’s price increase or decrease, without actually holding the necessary amount of assets. You do this by “leveraging” your trade. In simple terms, this means that you borrow from the exchange to bet more. You can get as much as 100x leverage on this platform.
For instance, let’s say that you have 100 USD in your trading account and you bet this amount on BTC going long (i.e., going up in value). If BTC then increases in value by 10%, you would have earned 10 USD. If you had used 100x leverage, your initial 100 USD position becomes a 10,000 USD position so you instead earn an extra 1,000 USD (990 USD more than if you had not leveraged your deal). However, the more leverage you use, the smaller the distance to your liquidation price becomes. This means that if the price of BTC moves in the opposite direction (goes down for this example), then it only needs to go down a very small percentage for you to lose the entire 100 USD you started with. Again, the more leverage you use, the smaller the opposite price movement needs to be for you to lose your investment. So, as you might imagine, the balance between risk and reward in leveraged deals is quite fine-tuned (there are no risk-free profits).
Spot trading is when you buy a cryptocurrency in the moment at the prevailing rates. It is the most simple type of trading and was launched on the ByBit portal sometime in July of 2021. This reveals that their main focus is on the contract or derivative trading. However, their spot trading is still quite nice. Their trading view is fairly standard, and they offer markets on plenty of cryptos.
ByBit has an extensive non-fungible token marketplace. Here you can gain early access to metaverse products. There are also zero transaction fees in their NFT marketplace. They pride themselves on hosting early access to NFTs from creators around the world.
You can also use this exchange on your smartphone or tablet. The app is available for download from the Apple Store, the Google Play Store, or directly from their homepage, scanning a QR code.
Who is Bybit for?
Bybit is a trustworthy exchange with lots of functions that are unique or harder to find. The early access to tokens, the integrated NFT marketplace, and contract trading. With the addition of spot trading and the Bybit Fiat gateway, they are also more to new users than ever.