BybitBritish Virgin Islands
US investors permitted
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Bybit consists of four parts: general information, fees, deposit methods and security.
Bybit is a cryptocurrency exchange registered in the British Virgin Islands. It is a cryptocurrency derivatives exchange, focusing on the trading pairs BTC/USD and ETH/USD. You can trade with as much as 100x leverage on these assets. Bybit’s matching engine is allegedly capable of up to 100,000 TPS (Transactions Per Second) which is incredibly impressive and a great future for anyone interested in leveraged trading. We say “allegedly” as there is no way for us to verify this information, not because we mistrust in any way.
A word of caution might be useful for someone contemplating leveraged trading. Leveraged trading can lead to massive returns but – on the contrary – also to equally massive losses.
For instance, let’s say that you have 10,000 USD on your trading account and bet 100 USD on BTC going long (i.e., increasing in value). You do so with 100x leverage. If BTC then increases in value with 10%, if you had only bet 100 USD, you would have earned 10 USD. As you bet 100 USD with 100x leverage, you have instead earned an additional 1,000 USD (990 USD more than if you had not leveraged your deal). On the other hand, if BTC decreases in value with 10%, you have lost 1,000 USD (990 USD more than if you had not leveraged your deal). So, as you might imagine, there is potential for huge upside but also for huge downside…
US-investors may not trade here. The exclusion of US-investors is primarily due to regulatory reasons. The US-legal regime imposes obligations on many companies accepting funds from US-investors. If you are a US-investor, don’t despair! Why don’t you just try finding the best cryptocurrency exchange for you to trade at by using our Exchange Finder or using the filters in our Cryptocurrency Exchange List? Check it out.
Bybit Trading fees
Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers for “makers” as their orders make the liquidity in a market. Takers are the ones who “take” this liquidity by matching makers’ orders with their own.
At Bybit, takers are charged 0.075% per order. This is difficult to compare to the global industry average taker fees for regular centralized exchanges, as the instruments traded at the different exchanges are also different from each other. In any event, 0.075% is a fair fee. One can note here that the other exchange famous for its derivatives trading platform (BitMEX) also charges 0.075% in taker fees.
When it comes to the makers, their fee is -0.025%. This essentially means that each maker get paid to trade. To clarify, let’s say that you are the maker in an order where you purchase cryptocurrency for USD 1,000. This means that instead of paying USD 1,000, you will only have to pay USD 997.50. This is a very competitive trait indeed. For the sake of transparency, it should be pointed out that the other exchange famous for its derivatives trading platform (BitMEX) also have negative maker fees of -0.025%.
Bybit Withdrawal fees
When withdrawing BTC from the Bybit trading platform, you will have to pay 0.0005 BTC. This is 40% lower than the global industry average BTC withdrawal fee (0.0008 BTC) and thus also a very competitive withdrawal fee.
Bybit does not accept any deposits of fiat currency. This means that new cryptocurrency investors (i.e., investors without any previous holdings of cryptocurrencies) can’t trade here. In order to purchase your first cryptocurrencies, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
We run all exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/). The score in such test is one of many indicators of the exchange’s security. Bybit only received a score of D- in this test. This is below industry average and is thus not a competitive advantage for this exchange.
If you have concluded that this is the exchange for you, congratulations! Go for it. If you sign up here you might be the lucky winner in the exchange’s give-away of up to $7,000 USD of BTC as a credit for trading there, AND, you will receive a 10% discount on trading fees.
But if this is not the exchange for you, find the best cryptocurrency exchange site for you by using our revolutionary matching tool.