Bybit is a powerful cryptocurrency derivatives exchange suitable for many traders, with products such as Bitcoin Perpetual futures with leverage. The exchange offers the ability to Long or Short cryptocurrency assets, giving traders to make profit from both the rise or fall of Bitcoin Price.
Bybit exchange popular due to social media as it is frequently featured on different YouTube and Social Media Channels. The exchange offers generous sign up bonuses and trading bonuses, enticing users to join the exchange for up to $90 in trading credit – but there is a catch. Bybit requires users to trade on the exchange where fees are based on the amount traded – hence trading fees can rack up to thousands of dollars (similar to other crypto derivatives exchanges). In this article we’ll look at what is derivatives tradings and features of Bybit to ultimately answer – is Bybit a good exchange
- Leveraged Trading
- Perpetual futures contract
- Trading activities
Generally accepts your local currency
USD, TRY, AUD, GBP, EUR & HKD
USD, EUR, GBP and more
EUR, USD, GBP & TRY
What is Derivatives Trading
The core trading product offered by ByBit is cryptocurrency derivatives trading. Derivatives are financial tools that derive value from the underlying product – in this case cryptocurrencies such as Bitcoin. ByBit exchange trades contracts based on the underlying asset instead of the asset themselves – this allows higher leverage and more types of products. Derivative products are by institutions, companies, miners and traders to gain advantage of market conditions. For example, Bitcoin miners who know they will receive Bitcoin in the future may choose to short Bitcoin at current prices to protect themselves from future price volatility.
Derivative products allows traders to speculate on the future value of various digital assets and trade their corresponding futures. This is different from regular trading as there are “shorting” options where traders benefit from an asset falling in price (without initially owning the asset). Traders can also take averaged positions where they can drastically increase their exposure to an asset with 5, 10 or even 50x leverage.
Bybit is currently the 7th most popular derivatives platform by volume. As of the 14th of April, the exchange handles $874 Million USD per day on the platform. This is a huge amount of trade volume as users can easily trade large amounts due to leveraged assets.
Types of Derivatives Products on ByBit:
- Futures – Futures is a type of standardized forward contract, a legal agreement to buy or sell an asset at a predetermined price.
- Options – Options are a special form of futures contract that gives the holder the right but not the obligation to sell at a future strike price. These are common used to protect against price volatility.
Bybit Services are not available to clients located or residing in the United States, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Antigua or Barbuda.
Bybit Offers and Coupons
Bybit offers a vast amount of coupons and initial funding offers for new users. This includes a $50 dollar bonus for funding the account, along with offers for following their social media account. The exchange also offers weekly trading rewards for active traders on the exchange.
You can also test transactions on the Bybit Testnet. This allows users who are unfamiliar with features to trade without using real Bitcoin.
Bybit Controversy and Affiliate Programs
Bybit gained notoriety due to users losing money on leveraged trades on the exchange. Leveraged trading is extremely dangerous due to the volatile nature of cryptocurrencies. It is important to remember these advanced trading tools are for advanced users only, and the risks associated with trading must be full understood.
The exchange does not allow US Citizens to trade on its platform for regulatory reasons. This rule is enforced by I.P. verification, where traders with a US I.P. address will not be able to trade. It is possible to trade on the exchange without KYC (passport verification) verification.
Currently Bybit does not require passport or ID verification to trade on the exchange. There are currently no withdraw limits.