Is Bybit Safe? A Rundown of Bybit’s Security Features

Bybit is one of the most popular trading platforms, notable for exceptional benefits, such as low maker/taker fees and various contracts that cater to diverse trading styles. However, some might hesitate to use it before they confirm the burning question of “Is Bybit safe?” with nothing less than an empathetic, yes.

Just like any investment, crypto trading is a risky venture, so knowing how well your exchange protects your assets and transactions is paramount. Furthermore, ever since Bitcoin took the internet by storm as the first decentralized cryptocurrency in 2009, a lot has been done to make transactions safer and more secure.

Fortunately, Bybit stays ahead with the times, making it one of the best and safest crypto exchanges alongside Binance and Kraken.

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Bybit: A Concise Overview

Before we can get to the heart of whether Bybit is safe, it won’t hurt to have a brief refresher on the exchange's history and what it offers. After all, some people might still wonder whether Bybit is legit, in the first place.

The trading platform was founded by Ben Zhou in 2018 and established in the British Virgin Islands. As of May 2025, it reported 70+ million active users worldwide.

Often highly recommended alongside other cryptocurrency powerhouses, Bybit offers a suite of unique features. It boasts an ultra-high-speed matching engine, timely and responsive quality customer service, and a variety of options for crypto loans.

Furthermore, the currencies available are extensive. With over 1,900+ supported crypto, 65+ fiat currencies, and various contract options, the platform caters to a wide range of trading styles regardless of experience.

So, to reiterate, is Bybit legit? So far, yes, it is – but let's look further into this.

📚 Read More: What is Bybit?

Is Bybit Safe? Bybit’s Security Measures Explained

Continuing with the elephant in the room – is Bybit safe? Let’s find out what makes it a trustworthy platform and how it is committed to user safety.

Multi-Signature Cold Wallet Storage

Bybit places a strong emphasis on funds' security, primarily by locking away the majority of users' holdings in multi-signature cold storage.

Unlike hot wallets, which are connected to the internet and thus more susceptible to cyberattacks, their cold counterparts remain offline, significantly reducing the risk of unauthorized access.

📚 Read More: Hot VS Cold Wallets

Meanwhile, the multi-signature feature requires multiple authorized signatures to initiate any transaction. This means that no single individual has the authority to move funds unilaterally. Instead, coordinated approval from designated parties is necessary to prevent malicious actors from tampering with user funds.

To further fortify its security infrastructure, Bybit employs advanced technologies such as Trusted Execution Environment (TEE) and Threshold Signature Schemes (TSS). The former provides a secure area within the main processor, safeguarding sensitive data from unauthorized access.

The latter, on the other hand, allows for the distribution of a private key among multiple parties, ensuring that a predefined threshold of key holders must collaborate to authorize a transaction. Such a distributed approach minimizes the risk associated with a single point of failure, thereby enhancing the overall protection of user assets.

Two-Factor Authentication (2FA) and Data Protection

Bybit enforces two-factor authentication (2FA) to add an extra layer of security to user accounts. 2FA is required for logging in, making withdrawals, and adjusting security settings.

On top of that, the exchange employs industry-standard encryption protocols to protect user data and communications.

Sensitive information, such as passwords and personal details, is encrypted using advanced security algorithms, making it nearly impossible for hackers to decipher. This ensures that your private data remains secure, even in the event of a cyberattack.

In addition to encryption, the platform enforces strict authorization controls to regulate access to personal information. Only authorized personnel with verified credentials can access sensitive data, minimizing the risk of internal breaches.

Anti-Phishing Code for Email Security

To protect users from phishing scams, Bybit provides an anti-phishing code feature. Users can set a unique string of code that appears in all official emails from the company, helping them verify legitimate communications.

Phishing attacks often involve malicious actors impersonating official entities to steal login credentials or personal information (like your debit/credit card). The anti-phishing code serves as a defense against such schemes.

If an email claiming to be from Bybit lacks the user's unique code, it signals a potential phishing attempt, prompting users to avoid clicking on any links or providing sensitive information.

📚 Read More: How to Master Cryptocurrency Security

Real-Time Monitoring and Security Audits

Bybit employs a comprehensive security framework to protect user assets and data. Central to this system is a real-time monitoring feature that scrutinizes user activities, from login attempts to trading actions, enabling the platform to promptly detect and respond to suspicious behaviors.

Not only that, but it also implements strict withdrawal security measures. All withdrawals undergo manual verification, ensuring that no unauthorized transactions take place. If unusual withdrawal patterns are identified, the exchange enforces enhanced authentication protocols to prevent illegitimate fund transfers.

To further bolster its defenses, Bybit undergoes regular third-party security audits. These independent assessments are conducted by reputable cybersecurity firms, such as Hacken, which evaluate the platform's infrastructure for potential vulnerabilities.

Such audits are also conducted on its reserves to ensure the platform holds sufficient assets to cover all customer deposits. This process enhances transparency and trust by providing evidence that user funds are fully backed and accessible.

In June 2024, the exchange completed its 11th Proof of Reserves audit, verified by Hacken, confirming that its reserves exceed user deposits by over 100% for 40 major cryptocurrencies.

Additionally, Bybit collaborates with security researchers through bug bounty programs, encouraging the identification and remediation of potential vulnerabilities.

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Bybit’s Regulatory Measures and Compliance

Is Bybit safe, legally? The short and quick answer is yes. It legally operates in over 160 countries across regions, such as the Asia Pacific, Europe, the Middle East, Africa, and South America.

Bybit has secured provisional (non-operational) approval for a Virtual Asset Exchange Services license from Dubai's Virtual Assets Regulatory Authority (VARA) in September 2024, marking a significant step toward full operational approval in the United Arab Emirates.

In the European Union, the exchange is actively pursuing a Markets in Crypto-Assets Regulation (MiCAR) license in Austria, aiming to align with the EU's comprehensive regulatory framework and expand its services across member states.

Additionally, Bybit obtained registration as a Virtual Asset Service Provider (VASP) in November 2024 from the National Bank of Georgia, enabling it to offer a range of crypto services within the country.

Its dedication to compliance is further evidenced by its recent removal from France's Autorité des Marchés Financiers (AMF) blacklist in February 2025, following over two years of collaborative remediation efforts. This reflects Bybit's proactive approach to operating within established legal frameworks.

Though, as I've mentioned before, due to regulatory constraints, Bybit restricts access in several regions, notably including the United States, the United Kingdom, Mainland China, Singapore, and specific Canadian provinces like Quebec and Ontario.

Additionally, Bybit is unavailable in countries facing geopolitical tensions, including North Korea, Iran, Uzbekistan, Syria, and Russian-controlled areas of Ukraine, such as Crimea, Donetsk, and Luhansk.

Despite those limitations, Bybit continues to expand its global presence, aiming to navigate complex regulatory landscapes while providing services to a broad user base. The platform's availability is subject to change as it seeks to comply with evolving laws and explore new markets.

So, if you live in any of the restricted regions, I suggest you wait and find other alternatives like Kraken or Binance in the meantime.

Bybit’s User Experience and Feedback

Yes, Bybit is safe, but don’t just take it from me. Take it from other users on the platform. For instance, as of writing, Bybit is ranked number #3 on BitDegree’s crypto exchange tracker. Plus, the platform is rated 9.4 out of 10 based on average user reviews.

This data shows that the exchange is well-regarded within the community, following the platform’s commitment to maintaining a safe and secure environment for all users. However, it doesn’t end there.

When it comes to crypto trading, Bybit is also responsible for verifying the authenticity of its users to mitigate the risk of exploitation. This usually means requiring users to pass Know Your Customer (KYC) verification as a part of Anti Money Laundering (AML) compliance.

However, not all exchanges enforce this policy, so another question remains: Is Bybit safe and trustworthy enough to implement this compliance practice? If so, how does it do that? I will elaborate more in the next chapter!

📚 Read More: Bybit Review

Does Bybit Require KYC?

The short answer to “Does Bybit require KYC?” is yes! Like any reputable platform, all users are required to pass verification checks before they can access the full functionalities of the exchange, such as the buy and earn crypto services, various promotions, as well as special events.

So, why does Bybit require KYC? The goal is to identify your risk profiles, preventing the financing of illegal activities or money-laundering practices.

Bybit has the right to hand over a suspicious user’s information to relevant authorities if there is any indication that they are involved in criminal activities. In the long run, this practice cultivates a safe and secure environment for traders, ensuring the best compliance with government regulations.^[1]

Passing the verification check is essential in case a user loses their credentials or access to their accounts. The process of recovering an account that has already been KYC-verified is simpler compared to accounts that do not pass the checks, since Bybit already has the necessary information to verify your ownership and restore your access.

Requirements

So, now that you know that Bybit is safe, thanks to its user screening process and various security measures, let’s find out how you can pass identity checks and get your account approved in no time.

Users are required to submit several documents to be verified by the platform. Business entities and individual accounts have different Bybit KYC requirements and processes to follow.

Keep in mind that an account can’t have both corporate and individual KYC-verified status. So, you have to make separate accounts for them if you need their verification approvals.

For Individuals

Bybit KYC requirements for individuals are divided into level 1 and level 2. Each level comes with its own privileges and access.

For level 1, you only need to submit a national identification document like an ID card, a passport, a driver’s license, or a residence permit.

Make sure that the document is the original copy, uncropped, unedited, and not photocopied. It should also clearly display your full legal name and birth date. Next, you need to pass a facial recognition scan and upload it to the website to complete this first-level verification.

Meanwhile, level 2 verification requires you to submit additional documents as further proof of address. Accepted documents include:

• Official bank statements;
• Utility bills;
• Government-issued official bank statements;
• Certificates of residence issued by the government;
• Tax returns;
• Council tax bills;
• Internet, cable TV, or landline phone bills.

For the documents listed to be eligible, they must not be older than the last three months at the date of submission.

Also, keep in mind that Bybit does not accept the following documents:

• Mobile phone statement;
• Domestic passport;
• Border passes;
• Insurance documents;
• Bank transaction slip;
• Bank or company referral letter;
• Medical bills;
• Handwritten purchase receipts or invoices.

As long as you get the right documents submitted and no other problems arise in verifying your background, the process of getting your individual KYC approved usually only takes around 15 minutes.

For Businesses

In case you’re still wondering whether Bybit is safe for trading and exchanging enterprise-owned digital assets, the answer is yes.

To ensure that new corporate accounts are legit, the platform imposes a dedicated verification process, which typically takes longer. This extended timeframe is due to the requirements and documents businesses have to submit to establish their trustworthiness in protecting user assets.

When you submit KYC verification as an established entity, you can only do so via Bybit’s business KYC portal. Submissions via email will not be accepted or processed.

The following information is required to verify your corporate account:

• Incorporation certificate;
• Articles, constitutions, or memorandum of association;
• Latest register of members and directors;
• Name and nationality of the Ultimate Beneficial Owner (UBO), defined as an individual owning 25% or more interest in the company. The referred UBOs will need to verify the validity of this information via the verification link sent to their email;
• All the directors’ passports or IDs and proof of address if they’re not the UBO;
• The account operator’s passport or ID and proof of residency if they’re the UBO;
• The company’s organizational chart.

After you send all the necessary documents, you must wait around three to five business days to hear back. Sometimes, this may take longer, depending on how complex the background check is.

KYC Benefits

On top of making sure that Bybit is safe as a platform, passing the KYC comes with a lot of attractive perks for users.

By completing KYC Level 1 or higher, users gain access to essential features like fiat deposits and the ability to purchase crypto via credit cards, third-party payment channels, or P2P trading.

Verifying your identity also enables access to advanced trading tools and financial products. These include spot trading, margin trading, derivatives like perpetual contracts and futures, and innovative features like trading bots, launchpads, and liquidity mining.

📚 Read More: Bybit Trading Bots

Additionally, verified users are eligible for Bybit’s Earn products, such as savings programs and ETH 2.0 staking, offering diverse options for earning passive income.

Now, does Bybit require KYC for withdrawals? No, but if you'd like to increase your withdrawal limits, then you will need to verify your account. Here's the breakdown:

Table: Bybit KYC tiers and perks

Business accounts follow a similar structure. Non-KYC accounts are limited to 20,000 USDT daily and 100,000 USDT monthly. Business KYC accounts start with limits between 4 million and 6 million USDT, increasing with VIP tiers. Supreme VIPs can withdraw 12 million USDT daily, while Pro-level accounts range from 12 million to 30 million USDT, catering to high-volume traders.

Bybit Wallet: Is It Safe?

Before I answer that, you have to know that Bybit offers three distinct wallet options, each catering to different user preferences and security needs:

• Seed Phrase Wallet: This is a fully non-custodial wallet that does not require an account, allowing users complete control over their private keys. It supports importing and exporting seed phrases across multiple platforms, providing flexibility for experienced users.
• Keyless Wallet: This wallet requires a personal account but does not mandate identity verification. It enhances security by using a dual-key share system. One part of the private key is stored securely by Bybit, while the other is encrypted and saved on the user's cloud drive, accessible only with a recovery password.
• Cloud Wallet: A fully custodial option where Bybit manages private keys on behalf of users, requiring an account but no identity verification. It provides maximum convenience by supporting all features on the Bybit Web3 platform. However, since users do not control their private keys, it is considered less secure compared to non-custodial options and remains exclusive to Bybit’s ecosystem.

So, to reiterate, is Bybit wallet safe? Yes! Not only that, but they also come in three distinct flavors of safety and security, ensuring that there is the perfect wallet for every trader, regardless of their needs.

📚 Read More: Bybit Wallet Review

How to Protect Your Bybit Account

One of the most critical steps in securing your Bybit account is enabling Google Two-Factor Authentication (2FA) immediately after logging in. This adds an extra layer of security by requiring a verification code alongside your password^[2], making it significantly harder for anyone to compromise your account.

Other than that, you also need to pass the KYC verification to access the full features of the platform. Let's find out how to do any of this.

How to Activate 2FA on Bybit

Activating the 2FA feature for your Bybit account is easy. Here’s what you need to do:

And that’s pretty much it! Your account now has a 2FA activated, so every time you log in, you will need to enter the code in your Google Authenticator App to proceed.

How to Complete KYC Verification on Bybit

Now, let's take a look how to complete the verification process on Bybit. For the most part, the instructions are pretty straightforward on both the Bybit app and desktop. After you finish preparing all the necessary information, continue with the following:

Repeat the same steps to upgrade your KYC level to level 2. The process to verify your Bybit business account is more or less the same, but it's just done via the business portal (and has more intricacies).

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Amending KYC Information After Verification

If you want to change or update your KYC information after the verification is done, you can do so as long as your account fulfills the following conditions:

• Individual KYC-verified;
• Not a sub-account;
• Not currently restricted or suspended;
• Not in the process of updating or transferring its KYC status;
• Its KYC has not been updated within the last six months (180 days).

Keep in mind that you have to use the same name for both the first and second KYC process.

Other Tips to Secure Your Bybit Account

Bybit is a safe and secure platform, but like any online exchange, it is not without risks. While it implements robust security measures, users must also take precautions to safeguard their accounts and assets. Fortunately, there are several tools to help with that.

Activating anti-phishing code is one vital measure. It helps users identify legitimate emails from Bybit by including a custom code known only to the account holder. Emails lacking this code or displaying an incorrect one can be safely ignored, protecting you from phishing attempts.

Additionally, enabling the New Withdrawal Address Lock adds further security. This feature prevents new withdrawal addresses from being used 24 hours after being added, giving you time to secure your account if unauthorized access occurs. By utilizing these tools, you can enhance your account’s security and trade with greater peace of mind.

Furthermore, you can set up a unique fund password separate from your login credentials. This way, your asset is protected even if your login details are compromised. You can also take your account security up a notch by using a YubiKey, a hardware-based authentication device that you can connect to your Bybit account.

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Conclusions

To summarize, is Bybit safe? The answer to that is yes. This exchange comes with a plethora of features to safeguard users’ assets, ensuring all traders can perform crypto transactions with peace of mind.

Moreover, its KYC verification practice is packed with various benefits and perks that incentivize users not to skip the checks, fostering a safe and secure environment for crypto trading.

So, no matter your expertise level, this platform is a digital asset exchange that a lot of users trust.

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. Arner W. A., Zetzsche D. A., Buckley R. P., Barberis J. N.: 'The Identity Challenge in Finance: From Analogue Identity to Digitized Identification to Digital KYC Utilities';

2. Reese K., Smith T., Dutson J., Armknecht J., Cameron J., Seamons K.: 'A Usability Study of Five Two-Factor Authentication Methods'.