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. The platform has even recently been recognized by Forbes as one of the top ten best cryptocurrency exchanges in 2023.

On top of the mentioned features, BYDFi also offers copy trading capabilities, which have become increasingly popular in the crypto space, as well as a variety of limited-time promotions and ways to earn lucrative rewards through the BYD Point Center.

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 between each other as a way of showing 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 their 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 to frame the platform and display some of the features that have made it so significant in the space so far, and which have attracted its current user base.

Huge Trading Variety

Perhaps the most exciting part of BYDFi is that it provides a tremendous range of trading options, pairs, and instruments. For starters, BYDFi has spot trading facilities, with 400+ cryptocurrencies on offer. This is great for people who enjoy focusing their time and attention on altcoins, as these can yield some lucrative returns.

However, spot trading is just the beginning. Where BYDFi really shines is with its derivatives. It offers perpetual contracts that settle in USDT, as well as COIN-M perpetuals. These are where a specific coin or token is used as collateral for the contract. For its USDT perpetuals, it offers over 150 distinct pairs and provides up to 200x leverage.

Besides, they have very low slippage. With this in mind, it is worth keeping in mind that this is more than most US exchanges can offer. As for its COIN-M perpetuals, it only offers five, but these five are highly sought-after and significant cryptocurrencies that have clearly been meticulously and carefully chosen.

This is just the beginning of the platform's variety, though. It also offers "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 this 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. The calculator even offers a demo trading function, where you can try out trading strategies in a sandbox-style safe space without worrying about losses.

Alongside its lite contracts, mentioned in this BYDFi review, the company offers options for leveraged tokens. In fact, they have 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 them 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 and has created 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 in a defined range, all without requiring constant monitoring in real-time, allowing 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 if you want a more personal approach.

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.

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 a type of incentive for the copy trader 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, which you can easily create, customize, and make public so everyone can see them. This way, you can share your trading habits as well.

Compliant and Secure

People who are 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.

Another thing that's worth pointing out is that 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.

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, there is arguably no feature more critical than 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 then subsequently sell crypto for that tender, is highly sought after. It is the primary means by which people enter and exit the market.

Fortunately, the BYDFi crypto exchange supports this. The service offers a plethora of fiat buying options, including USD, GBP, EUR, and a 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. Banxa even integrates with Apple 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.

One challenge many newcomers face is buying their first crypto 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 BYDFis fees are definitely no exception. The good news is that their structure seems very much fair and reasonable, and in line with the current rates found in this industry.

Let’s start with spot trading– for these transactions, all maker and taker fees fluctuate between 0.1% to 0.3%. While 0.3% can be a little steep for some, generally speaking, 0.1% is the norm and is not especially high.

For their perpetual contracts, namely USDT-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 for taker fees to be 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.

The nature of perpetual contracts means that, having no expiry date; 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’s fees regarding leveraged tokens, these are calculated in the form of transaction fees. This rate is set to 0.2%. Overall, you can see that none of these numbers are tremendously high, which is a huge relief to both retail traders who handle small quantities of funds, and institutional traders who might handle huge volumes.

It is good to know that, regardless of what type of trader you are, BYDFi’s fees will not eat too much at 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 that you're looking to deposit or withdraw, as well as the network that you're using, but if we were to take USDT as an example, your minimum withdrawal could be as low as $10 worth of 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.

Besides, when it comes to withdrawals, even though BYDFi employs a rigorous KYC process, it allows users to withdraw up to 0.5 BTC without KYC daily (though, if you pass it, you'll be able to withdraw up to 10 BTC!). 

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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 big one for some traders is that there is no NFT marketplace or functionality.

While it is not necessary for every crypto exchange to have NFT buying and selling instruments available, in this current day and age, NFTs are viewed as an integral part of the industry, and so it makes sense that some level of integration would exist.

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, and would mean they do not need to take their assets elsewhere to perform this action.

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 fact that you cannot 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, for many traders, they like to have multiple avenues for making money, and if staking was integrated, it would keep more people 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 a lot of discourse sparked around whether Coinbase’s activity was fair or reasonable, with arguments on both sides.

This could mean that BYDFi is carefully waiting for more legislation and guidelines to exist before they embark on building such a tool. That way, they can ensure that everything stays above board, keeping BYDFi legitimate and confirming its strong status.

As a platform that is so deeply focused 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 what stance the US is taking with staking, and can act accordingly, should they choose. Perhaps, after that, they might open up staking from right inside the BYDFi wallets.

How to Sign Up to BYDFi

If this BYDFi review has enticed you, or you would like to try its services out for yourself so you can make up your own mind, then you should sign up and get stuck in. Let’s take a look at how to do this, and see what is happening.

Step 1: Go to the BYDFi homepage, and make your way to a button in the top right corner titled “Get Started”.

Step 2: After clicking on this, you will be given a textbox, instructing you to enter an email address and a password to sign up. However, there is a slight difference here, compared to other platforms. On BYDFi, you are asked to confirm your email address before you choose a password.

Step 3: Once you enter your email address, press a button requesting an email verification one-time password. Retrieve this password from your emails and enter it in the verification section.

Step 4: Then, choose a password and sign up. You will be given a verification puzzle to complete. This puzzle will tell you how quickly you completed it.

Step 5: After this is done, you will be signed up! At this point, you may be offered a promotional deal by BYDFi, as a welcome gift.

After doing all of this, you should be registered. However, this does not mean you are a fully verified user just yet, as this would require KYC and AML. If you like what you see, then verification would be the next logical step.

Conclusions

My BYDFi review should have given you a comprehensive understanding of the company, its aims, and some of the elements that make it up. The BYDFi crypto dashboards are feature-rich and extremely useful, it offers copy trading utilities with strong incentives for both sides, and among other things, BYDFi’s fees are fair and reasonable. Not only this, but the fact that it is available in the US, offering a huge range of derivative options, is fantastic.

Truth be told, considering all of BYDFi's features, it's no wonder why the exchange is sometimes 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 look after funds reasonably.

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.

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