As an individual or institutional crypto investor, you do not want to end up in a crypto exchange that does not give you enough ways to make money, is not secure enough or has high fees. An excellent way to ensure this does not happen is by sticking with reputable platforms like Bybit.
While Bybit is a secure top-tier crypto exchange platform with a lot to offer, it still has its fair share of pros and cons like any other platform. Therefore, it is crucial to know it better before investing your money.
This Bybit tutorial provides some of the key information you need to know about the company to help you make an informed decision on whether to give it a try.
Bybit Trading Tutorial: What Is Bybit?
Bybit is s fast-growing and innovative crypto exchange platform established in March 2018 by Ben Zhou. Its official name is Bybit Fintech Limited, and it is registered in the British Virgin Islands but with its headquarters in Singapore and other offices in Taiwan and Hong Kong.
The team behind it has vast experience in the Fintech, Forex and investment banking industries. Also, some of the people at the top management levels are former employees of companies like Morgan Stanley and Tencent.
With over 4 billion dollars in 24-hour trading volume and more than 2 million registered traders on the platform, Bybit is one of the largest crypto exchange platforms in the world.
What Does Bybit Offer?
Bybit offers both derivatives and spot markets to give traders more control over how they trade their crypto assets and more options for making money. Both their markets are pretty robust, secure and with enough liquidity.
Bybit is a peer-to-peer (P2P) cryptocurrency exchange that allows traders to buy and sell their digital assets at the best rates. The exchange has one of the best liquidities in the market, with a daily trading volume above 4 billion, ensuring seamless spot trading.
Traders can exchange more than 20 different crypto assets that form over 70 trading pairs. Also, the traders can use various order types for their spot trading, but the three most common ones are market, limit, and conditional orders.
Bybit also allows for derivatives trading, and they have several contracts for traders to choose from when investing.
- Inverse Perpetual Contract: Bybit has inverse perpetual contracts for trading pairs like BTC/USD, EOS/UHD, XRP/USD and ETH/USD. Traders can go long or short and use the underlying coins as collateral. These contracts have a maximum leverage of 100x and being perpetual, they do not have an expiry date.
- Inverse Futures: Traders can open inverse futures contracts for BTC/USD and ETH/USD pairings. The futures contracts are a commitment to go long or short on these crypto assets in the future at a predetermined price and size. The maximum leverage for these contracts is 50x, and they are often 6-month contracts.
- USDT Perpetual: Bybit supports the trade of crypto/USDT pairings with leverage, where USDT acts as the collateral. Since these are perpetual contracts, they do not have an expiry date. The traders can use maximum leverage of 50x and trade at least 20 different pairings, including BTC/USDT, XRP/UST, and ETH/USDT.
Bybit Insurance Funds
Since Bybit allows traders to open highly leveraged positions with a maximum leverage of up to 100x, trading on the platform can be riskier than many other exchanges. In the volatile crypto market, highly leveraged positions can be liquidated easily, leading to massive losses.
Bybit has an insurance fund setup that helps absorb some of this loss to ensure that traders will never lose more than their initial margin. The insurance funds also help ensure the traders making a profit will not have to cover the difference.
Given the high volatility of the crypto market, things can change quickly. Bybit tries to help by providing mechanisms to manage the risk. These mechanisms include the take-profit and stop-loss tools.
Take-profit is an instruction to the exchange to close your position when the asset price gets to a certain point to guarantee that you make a profit before the market direction changes. Stop-loss also instructs the exchange to sell the asset when the price reaches a certain point to minimize potential losses.
With these risk management tools, the traders will not need to constantly monitor the market as they will still retain some control even when they are away.
Another product that Bybit offers is the fiat gateway to make fiat deposits easy. Like most other crypto exchanges, they support crypto deposits and have a fiat deposit mechanism for user convenience.
The fiat gateway supports more than 50 different fiat currencies, including the USD, GBP, AUD and CAD. When you click on the fiat gateway, the platform will redirect you to a website where you can make the deposit.
How do I register on Bybit?
You need to sign up for an account before you can start trading on Bybit. You can sign up using your phone or a desktop by following the simple steps below
- Go to the Bybit homepage, https://www.bybit.com/
- Click on the “Sign Up” button at the top right corner
- Fill up the form that pops up with your email address and create a password. Also, enter the promo code if you have one
- Click on the “Continue” button at the bottom, and you will be asked whether you are from a restricted country or not. Click “No’ if you are not
- You will then receive a verification code in your email address that you should use to verify it to complete the basic registration process
How do I Deposit and Withdraw on Bybit?
You need to have crypto in your account before you can start trading on Bybit. Luckily, the company makes it easy to deposit cryptocurrency from your existing wallets. Also, they have a fiat gateway that will come in handy for those that want to deposit fiat currency.
Here are the steps to follow when depositing on Bybit;
- Click on the “Account” drop-down menu on the top right side of the Bybit home page
- Select “Accounts” from the drop-down menu
- Choose the crypto asset that you want to deposit. The platform accepts BTC, ETH, XRP, EOS and USDT deposits
- Click the “Deposit” button next to the asset you want to add to your Bybit account
- The screen that opens will include your Bybit wallet address for the asset.
- Copy the address or scan the QR code and send the digital coins to it from your other wallet
- Crypto traders that do not already have a crypto wallet can also use debit/credit cards to buy crypto from the Bybit exchange by going to the “Trade Section.”
The withdrawal process is relatively straightforward also. Instead of choosing “Deposit” in the steps above, click on the “Withdrawal” button next to it.
However, it is essential to remember that you will need to verify your Bybit account and set up 2FA before withdrawing more than 2 BTC from your account. Also, the platform has a minimum and maximum withdrawal limits.
For example, traders can withdraw a maximum of 100 BTC (with KYC 2 verification), and the smallest withdrawal you can make is 0.001.
Bybit provides clear withdrawal limit guidelines, so traders should not have any difficulties understanding how much they can take out for all the assets on the platform.
How To Trade Bitcoin & Altcoins On Bybit?
Once you have funds in your account, you can start trading. The process is simple, whether you are spot trading or want to invest in one of the many derivative contracts.
Bybit allows you to go long or short when trading on their platform. You can go longer if you think the price will go up and go short if you believe the market will tumble. Additionally, you can place your order with either limit, market or conditional orders.
If you are looking to spot trade on Bybit, you should follow the steps below.
- Hover on the “Spot” tab at the top of your Bybit home page to open the drop-down menu
- Choose the trading pair that you want to trade from the drop-down menu
- Next, choose your order type from limit, market and conditional order
- Now select how much crypto you want to buy or sell
- Click the buy or sell icon to complete your order
Once you have your order active, you can review details by going to the history section at the bottom of the “Spot” trading section.
If you want to trade bitcoin and altcoin derivatives, you have to go to the “Derivatives” tab on the Bybit home page. Here you can choose whether to trade your crypto pairing using USDT perpetual, inverse perpetual or inverse futures.
Once you decide which contract to use, you have to choose the specific pairing to trade from the drop-down menu before placing your order.
The order placement requires you to decide on the order type (limit, margin or conditional), the leverage to use and the quantity to trade. After filling out these sections, the last step is to choose whether to go short or long to open your position.
What are the Various Trading Fees on Bybit?
You need to know about different fees if you are planning to trade on Bybit. The main one is the trading fee you will incur as you transact on the exchange. Bybit charges 0.075% taker fees and pays 0.025% maker fees.
The taker fees are for trades that take liquidity from the order books, such as when using a market order. Adding liquidity to the books when using the limit order attracts a -0.025% fee, meaning the platform will pay you when you execute the order.
These fees are for derivatives trading, but market makers will also not need to pay any fees for spot trading, while market takers will pay 0.1%.
Other fees include the assets exchange fee, as Bybit will charge you a 0.1% flat rate fee when converting one digital asset to another.
The withdrawal fees will depend on the specific asset you are withdrawing. Also, it is essential to note that Bybit does not support direct fiat currency withdrawals. Here is a summary of the withdrawal fees for some of the common digital assets on the platform.
Does Bybit Require KYC?
Bybit does not have mandatory KYC verification requirements. However, if you use the platform without verifying your account, you will have lower withdrawal limits and a few other restrictions.
Therefore, although it is not mandatory to verify your identity, it is always a good idea to do it so that you can fully utilize what the crypto exchange has to offer.
Bybit KYC Levels?
Bybit has 3 KYC levels: KYC Level 0, KYC Level 1 and KYC Level 3. Traders that are yet to verify their identity are on the KYC level 0 and have the lowest withdrawal limits on the platform as they can withdraw a maximum of 2 BTC per day.
With KYC level 1 verification, traders on the Bybit exchange can withdraw up to 50 BTC per day. Those with KYC level 2 verification which is the highest on the platform, can withdraw up to 100 BTC every day.
It is also worth noting that you will first need to get a level 1 verification before applying for the level 2 KYC verification.
How To Complete KYC on Bybit?
If you want to remove transaction limits in your account, you must verify your identity. Sometimes Bybit can also request you to do KYC verification, and in such instances, it will be mandatory to do it to continue using their platform.
Here are the simple steps to follow to request for KYC level 1 verification:
- Go to “Account & Security” at the top right corner
- Click on “Account Information” and then “Verify Now” (it will be under the “Identity Verification” section)
- Locate the Level 1 Verification section and then click “Verify Now”
- Next, you need to submit the required documents. For level 1 verification, you will need an identity document like a passport or ID card.
- Lastly, you have to do facial recognition screening
Note: All the documents you upload should be clear enough with the date of birth and your names readable. Also, Bybit allows you to upload documents in any format.
Once you have level 1 verification, you can proceed to level 2 verification if you want to. Here the process is similar to the level 1 verification. However, you will also need to provide proof of address with documents like utility bills, bank statements or any government-provided residential proof documents.
Bybit is one of the largest crypto exchange platforms in the world, with over 2 million registered traders and daily trading volumes above 4 billion dollars. The company also allows both spot and derivative trading to cater to all traders.
With other things like risk management tools, insurance funds, mobile app, and servers that never have any downtimes, Bybit is an excellent trading platform for both beginner and experienced crypto traders.
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