BYDFi Review

Many traders in the crypto and blockchain space desire variety; they not only want to trade top coins like Bitcoin and Ethereum, but they also wish to engage with altcoins. Not only this, but many traders seek both spot and derivative options from their platform of choice. In this BYDFi review, I will discuss an exchange that aims to address all of these areas and many more.

BYDFi is a company focused on providing essential tools and utilities to investors, both retail and institutional. They are positioning themselves as a primary hub for individuals engaged in crypto trading, offering a range of necessary and exciting features. These features will be examined and analyzed, along with some of the quirks and specific qualities that BYDFi has to offer.

For instance, topics like BYDFi fees, the BYDFi app, its trading dashboard, and many other areas will be scrutinized, with the goal of providing the best and most comprehensive knowledge of this platform. This means I will be evaluating the points that make it shine, as well as bringing attention to its limitations, as this is crucial for a truly well-rounded review.

What is BYDFi?

BYDFi is a crypto exchange that offers a vast variety of crypto trading pairs, from top-performing coins like Bitcoin, Ethereum, and Ripple, as well as more niche and lesser-known altcoins.

Along with this, it also provides various financial instruments, such as spot, derivatives, and even leveraged tokens. On top of these features, BYDFi also offers copy trading capabilities, which have become increasingly popular in the crypto space, just like trading bots.

📚 Related: Best Crypto Trading Bot

Yes, BYDFi also offers bots designed to automate various trading strategies, making it easier to trade efficiently without constant manual input, as well as a variety of limited-time promotions and ways to earn lucrative rewards through the BYD Point Center.

Beginners can also take advantage of BYDFi’s demo trading feature, which allows users to explore the platform and test strategies risk-free before committing real funds.

Essentially, the platform is an entire ecosystem of tools and projects, with the company working to build an interconnected digital space for crypto enthusiasts from all walks of life. Their slogan, which exemplifies this, is “BUIDL Your Dream Finance”.

The “D” and “L” are swapped with each other to show their alignment with the individuals. This type of deliberate misspelling has become a years-long indicator that people use to express their relationship to the crypto trading world, and so BYDFi has chosen to show its connection to this space in the same way.

BYDFi Review: PROS

Let's dive into this BYDFi review by taking a look at their positive traits. This will help us frame the platform and showcase some of the key features that have made it significant in the space and attracted its current user base.

Huge Trading Variety

Perhaps the most exciting aspect of BYDFi is its vast array of trading options, pairs, and instruments. For starters, BYDFi offers spot trading with 1,000+ cryptocurrencies. This is ideal for individuals who prefer to focus their time and attention on altcoins, as they can offer potentially lucrative returns.

However, spot trading is just the beginning. Where BYDFi really shines is with its futures contracts. It offers USDT-M, USDC-M, and COIN-M perpetual contracts, boasting over 500 offerings in total and providing up to 200x leverage.

It even offers a demo trading environment, where you can try out trading strategies in a sandbox-style safe space without worrying about losses.

BYDFi also provides "lite contracts," an instrument that allows traders to magnify their returns with the use of leveraged assets. These are a great way of increasing your potential profits, although, as BYDFi makes clear within their documentation, users should exercise caution and attempt to minimize risk wherever they can.

It should be highlighted in any BYDFi review that the company goes the extra mile by providing people with a lite contract calculator, which assists with risk assessment, as well as providing useful data for creating the best trades.

Alongside its lite contracts mentioned in this BYDFi review, the company offers options for leveraged tokens. In fact, it has one of the largest ranges of leveraged tokens in the industry. This is where users can trade the price changes of different coins and tokens with leverage, but without margin.

This means that people can engage in a x3 leveraged token for coins like BTC, ETH, and a range of altcoins, without putting up their own finances to secure the trade. This makes BYDFi safer and less daunting to newcomers.

It is important to stress that, despite the wide array of financial instruments provided, BYDFi does not cut corners when it comes to its trading dashboards. From its spot dashboard to its leveraged token application, they are all rich with features and tools, making them perfect for all traders.

In fact, I want to stress in this BYDFi review that the company goes one step further by creating a slightly simplified dashboard and an advanced option for those interested in spot trading. This is great for beginners, who typically prefer to stick with spot trading as it is more straightforward than many derivatives.

Lastly, there's one more instrument that should be mentioned - BYDFi's grid trading robot. It places buy and sell orders within a defined range, eliminating the need for constant real-time monitoring and enabling you to automate your trading. It's a great tool for both beginners and advanced traders. Note that you can either use the predefined AI Grid robot or customize your own for a more personal approach.

📚 Read Further: Grid Trading Bots Explained

Copy Trading Protocol

This BYDFi review would be incomplete without properly discussing its copy trading toolkit. Copy trading is the act of replicating someone else’s trading actions with your own money. You don't need to invest the same amount as the individuals you copy; the main objective is to invest similarly. Essentially, it's a way of syncing your actions with another person's.

While copy trading has been around for quite some time, in its most primitive form being when two people choose to invest together as friends or colleagues, it is now viewed as more of a fusion of online trading and social media. Nowadays, it is very popular to align your trades with individuals who have a proven track record of profits and activity.

BYDFi assists users with this process through its integrated copy trading functionality. Users can easily peruse a growing catalog of high-performing members on the platform. The BYDFi application showcases a leaderboard of top performers, based on either 30-day ROI, 30-day win rate, 7-day PNL, and cumulative followers.

The ability to organize traders by these metrics is useful and worth highlighting in this BYDFi review, as it helps day traders find the right people to copy, as well as those who prefer to hold for longer periods.

📚 Related Reading: Best Practices for Copy Trading

When you click on a trader's profile, a range of different stats and types of information are displayed to help make an informed decision. For starters, two graphs show their 30-day activity. Scrolling down, you'll see a breakdown of the assets and trading pairs they've engaged with over their history.

Two other crucial pieces of information are presented at the top of a trader’s profile. First, some traders include a comment or quote. While this might not seem particularly important at first glance, this one-liner essentially serves as a bio for the user, revealing their trading philosophy. This is significant because if you are going to tie your finances to someone else's, you should understand their mindset.

The second thing you can see from the top of a trader’s profile is their profit share percentage. This is the percentage of your profits that you hand over to the trader you’re copying. It serves as an incentive for copy traders to provide guidance to others.

By default, the profit share percentage appears to be set at 8%. However, it might be possible for copy traders to set a different amount. As it stands, this is a relatively low percentage, which means that people copying won't be giving away too much. Yet, for a copy trader with many followers, this could serve as a fantastic avenue for income.

In this sense, the benefits for both parties seem to be constructed reasonably, with those copying gaining access to experts who could help grow their money and those offering their services receiving fair compensation. This balance likely contributes to the overall integrity and growth of the copy-trading space BYDFi has created.

As a side note, BYDFi introduced another feature that could also be perceived as a social trading tool – Coin Lists. Essentially, these Coin Lists are preset portfolio pages that you can easily create, customize, and make public for everyone to see. This way, you can share your trading habits as well.

Compliant and Secure

People unfamiliar with this company may be wondering, "Is BYDFi safe?" This is a common question in the crypto world. However, one of the first things I noticed when researching BYDFi’s app and website is its compliance with a range of regulatory bodies. This includes a Money Service Businesses (MSB) license from both the US (No. 31000215482431) and Canada (No. M22636235).

The fact that the company is compliant in more than one location cannot be overstated in this BYDFi review. By adhering to multiple regulations, it is bound to numerous laws from around the globe, ensuring it must be mindful of all matters it engages with. The more regulatory bodies that have approved it, the more credible and professional the company appears.

As a result, BYDFi is able to offer its services in over 150 countries worldwide, including the United States. Some of these countries are:

• United States
• Canada
• Australia
• Singapore
• Japan
• Turkey

Additionally, BYDFi employs a variety of advanced security measures. Apart from the usual two-factor authentication and cold storage to keep users' funds, it also uses encrypted SSL protocols to shield data traffic and a trade aggregation engine programmed in the kdb+ language. On top of all that, its system relies on Amazon Web Services.

BYDFi also maintains a reserve ratio exceeding 100%, ensuring that all user assets are fully backed and available for withdrawal at any time.

Not only this, but it also adheres to rigorous KYC and AML measures, both when users get verified and when they make trades. This is extremely important as it indicates that the company operates above board, adhering to all legal and ethical standards. This serious approach is increasingly significant as the industry grows, evolves, and attracts more scrutiny.

So, I'd say that the answer to the question "Is BYDFi safe?" is a pretty solid yes.

Fiat On and Off Ramps

When it comes to centralized exchanges, arguably the most critical feature is the ability to buy and sell fiat. Having fiat on and off ramps (also known as fiat gateways) is a significant perk of CeFi platforms, and one area where they always outperform decentralized exchanges.

The ability to buy crypto with legal tender and sell it back for that tender is highly sought after. It is the primary means by which people enter and exit the market.

📚 Read More: Best Fiat-to-Crypto Exchanges

Fortunately, the BYDFi crypto exchange supports this. The service offers a plethora of fiat buying options - over 70 in total - including USD, GBP, EUR, and a wide range of other currencies from different countries. This provides a lot of variety and indicates that the company is striving to establish itself as a truly international enterprise.

When it comes to selling, the BYDFi app has a slightly more limited set of options, composed entirely of AUD, EUR, GBP, and CAD. While it lacks USD, this is still a robust range of assets. To manage both of these on and off ramps, BYDFi uses various payment channels. Its main options for buying include Transak, Banxa, and Coinify.

All of these support VISA and Mastercard transactions, as well as SEPA transactions for those in Europe. Thanks to Banxa and Mercuryo integrations, you can even use Apple Pay and Google Pay, which is excellent for those using the BYDFi app on an iPhone or iPad.

By integrating with these payment channels, the company has made a conscious decision to create an open and simplified experience for beginners and newcomers. You can also easily see the methods and fees on the same page before completing the transaction.

One common challenge for newcomers is buying their first cryptocurrency and then selling it. Therefore, the existence of these gateways facilitates a smoother flow, allowing traders to focus on more complex tasks, such as making the right investments and developing effective strategies.

Fair Trading Fees

Every exchange should be considered from the perspective of its fee structure, and BYDFi's fees are definitely no exception. The good news is that their structure seems very fair and reasonable, and in line with the current rates found in this industry.

Let’s begin with spot trading. BYDFi applies a flat 0.1% fee for both makers and takers. Generally speaking, 0.1% is the norm among the best crypto exchanges and is not especially high. Thus, it is competitive and sits comfortably on the lower end of the typical fee spectrum.

For their perpetual contracts, namely USDT-M, USDC-M and COIN-M, their maker fees are 0.02%, and their taker fees are 0.06%. These, too, are good numbers, especially for makers. However, it is not a surprise that taker fees are a little higher with perpetual contracts, because they incorporate the funding rate, which is exchanged between long and short holders to keep the contract price tethered to the underlying spot price.

BYDFi fee structure depending on trading type

The nature of perpetual contracts means that, having no expiry date^[1], they require a mechanism to mimic the interest rate and storage costs that would normally be associated with holding the underlying asset. The taker fee in this case helps to compensate for these additional costs and risks involved in maintaining the perpetual contracts.

As for BYDFi fees regarding leveraged tokens, these are calculated in the form of transaction fees. This rate is set to 0.2%. Overall, it's clear that none of these numbers are exceptionally high, which is a significant relief to both retail traders handling small quantities of funds and institutional traders managing huge volumes.

It is good to know that, regardless of what type of trader you are, BYDFi’s fees will not eat too much of your prospective profits.

One more thing worth mentioning here is that BYDFi employs some great numbers when it comes to minimum deposits & withdrawals. It obviously depends on the crypto you're looking to deposit or withdraw, as well as the network you're using. For example, if we take USDT, your minimum withdrawal could be as low as $10 worth of USDT.

Besides, when it comes to withdrawals, even though BYDFi employs a rigorous KYC process, it allows users to withdraw up to 5,000 USDT daily without verification (and if you complete KYC, this limit increases to 50,000 USDT!).

Deposit-wise, it would appear that you can deposit as little of the crypto as you'd wish. This is, evidently, quite appreciated by many retail-level traders.

MoonX for Meme Coins

If you're passionate about trading meme coins, BYDFi offers a dedicated on-chain platform called MoonX, specifically designed for this purpose. It operates across major blockchains like Solana, BSC, and more. Core features include advanced market orders, smart money tracking, copy trading, and one-click execution.

It’s backed by Safeheron, a trusted partner known for advanced security technologies. Like all BYDFi products, MoonX comes with high-level security measures.

📚 Further Reading: Best Meme Coin Trading Platform

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BYDFi Review: CONS

All fair discussions need to be balanced, including this BYDFi review. And so, it is necessary to take a look at the cons prevalent on this platform. Seeing and assessing the negatives is necessary for adding clarity and for giving potential users as much information as possible, so that they can make informed decisions about how they should use their money.

Lack of NFT Services

Within this BYDFi review, I have made it clear that my research has led me to believe this company is trying to build an interconnected and rich ecosystem. While I believe this is true and that it has been achieved, it cannot be ignored that there are some limitations to its functionality. A significant drawback for some traders is the lack of an NFT marketplace or functionality.

Of course, NFTs and cryptocurrencies are different, and there is nothing wrong with a platform focusing more on one than the other. If BYDFi wants a fully-fledged ecosystem, it might make sense for them to branch out and offer a marketplace of some sort.

The existence of an NFT hub for buying and selling would offer more utilities to users, and would allow them to sell NFTs for crypto, and then subsequently use that crypto with various financial instruments, such as spot or perpetual. In other words, it would make their money more useful^[2] and would mean they do not need to take their assets elsewhere to perform this action.

📚 Read Further: Best NFT Marketplaces

This is not a huge demerit, of course, but it does appear to be a blind spot for the company. The aim of widespread ecosystems in the crypto space is usually to provide a space for traders and investors to perform every action they would want from within. If they want to achieve this, then building an NFT marketplace could do wonders for both them and their user base.

No Staking Capabilities

Another element that is lacking is staking. Again, while it is not necessary for every exchange to offer this, it is undeniable that many crypto traders enjoy doing this as a form of passive income, and there are a multitude of platforms out there that offer this. The inability to use the BYDFi wallet, built into the website and app, to quickly and easily stake your assets is disappointing. It is a sorely missed feature.

While many novices do not stake their assets, and some people prefer not to hold crypto but rather sell it for fiat, users who are more advanced, or who are looking to expose themselves to a range of income streams, may find this both frustrating and disheartening. What this means is that they need to take their money and move it somewhere else, which can facilitate it.

Of course, it is fair to state in this BYDFi review that this is, first and foremost, a trading platform, and so it is not tremendously saddening for there to be a lack of staking tools. However, many traders prefer to have multiple avenues for making money, and integrating staking would help retain more users within their ecosystem.

With all of this being said, there may be a legitimate reason why BYDFi is avoiding this route. Staking has become a hot and inflammatory topic for the US regulatory body, the SEC. In 2023, they launched an investigation into Coinbase for offering certain staking capabilities. There has been considerable debate sparked around whether Coinbase’s activity was fair or reasonable, with arguments on both sides.

Given its deep focus on regulatory and legal compliance, it might make the most sense for BYDFi to play it safely and watch the SEC’s investigation unfold. This way, they can learn about the US stance on staking and act accordingly, should they choose to. Perhaps, after that, they might open up staking directly from the BYDFi wallets.

How to Use BYDFi

Now it's time to dive into the practical aspects of this BYDFi review and see the platform in action.

How to Sign Up on BYDFi

Let's start with the sign-up process.

To pass KYC on BYDFi, you have to provide your ID, a selfie, and proof of address.

How to Deposit to BYDFi

Once you have an account, you'll naturally need to have some funds in it to start trading. Both crypto and fiat deposits are available, but, as you know, the latter requires KYC. In this tutorial, I'll go over a crypto deposit (but fiat deposits are quite similar).

Alternatively, you can use the QR code.

Conclusions

My BYDFi review should have given you a comprehensive understanding of the company, its goals, and the main components of its platform. This feature-rich and highly functional crypto exchange offers advanced trading options, like derivatives and copy trading utilities, with strong incentives for both sides. Besides, BYDFi fees are fair and reasonable.

Not only this, but the fact that it is available in over 150 countries, including the US, offering a global base of users, is fantastic. Truth be told, considering all of BYDFi's features, it's no wonder that the exchange is viewed as one of the best options for crypto enthusiasts from the US and Canada.

While it does have some significant drawbacks highlighted within my BYDFi review, in the sense that it lacks some tools and products that you would hope to see in a crypto trading ecosystem, its adherence to regulations around the globe means that, if people were to ask "is BYDFi legit?", they could most likely reach an affirmative answer.

BYDFi is both safe and legitimate as a crypto exchange. This is great news, as it is extremely important that people only use crypto exchanges and networks that take serious measures to keep their operations running smoothly and safeguard funds effectively.

With all of this in mind, my BYDFi review is a great place to gain an understanding and overview of the platform. However, if you want to truly learn more about it, it is best to sign up and try it out for yourself. This way, you can see what BYDFi’s crypto exchange and wallets are like, as well as get a feel for what interacting with the interface is like.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. J. Hossinzadeh: ‘The Concept, Structure and Validity of the Perpetual Futures Contract in the Cryptocurrency Market’;

2. D. Griglani, S. W. Thakre: ‘NFT Marketplace’.