What is Bybit? Exploring the Features, Benefits, and Trading Options

If you've been diving into the world of crypto trading, you've probably come across the crypto exchange Bybit. But what is Bybit, why is it becoming such a popular platform, and how does it compare to other big names in the industry?

This article will explore the key features, benefits, and trading options Bybit provides, helping you understand what makes it stand out. Whether you're interested in spot trading, leveraging your trades, or using advanced tools like copy trading, Bybit offers a comprehensive range of services.

I'll also compare it to other major exchanges like Binance and Kraken so you can see how Bybit stacks up. So, what is Bybit, and why should you consider using it? Let’s dive in to find out more about this growing platform and why it's becoming a go-to for crypto enthusiasts.

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What is Bybit?

So, what is Bybit? Bybit is a cryptocurrency exchange that has quickly gained popularity for its focus on derivatives trading, particularly perpetual and futures contracts. Established in 2018, Bybit was designed to cater to both professional and retail traders who are looking for a more advanced platform.

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What sets Bybit apart is its user-friendly interface, which makes it easy for newcomers to get started, while also offering powerful tools for experienced traders. With millions of users globally, Bybit has solidified its place among major exchanges like Binance and Kraken.

Who is Bybit For?

Bybit is especially popular among those interested in trading crypto derivatives. Whether you're looking to trade perpetual contracts without an expiration date or futures contracts that settle at a specific time, Bybit has you covered.

However, it's not just for seasoned traders—if you're a beginner, you can benefit from features like the Bybit demo account to practice your trades in a risk-free environment. The demo account lets you simulate real trades without using actual funds, which is perfect for those looking to learn before diving into the market.

Comparing Bybit to Binance and Kraken

Now, let’s look at how Bybit compares to other giants like Binance and Kraken. While Binance offers a wide range of services, from staking to an NFT marketplace, Bybit shines when it comes to derivatives trading. The platform’s leverage options, which I'll get into later, make it appealing for traders who want to amplify their positions.

Another standout feature is Bybit copy trading, allowing users to replicate the strategies of experienced traders. Bybit's focus on user-friendly design also makes it less overwhelming for beginners compared to Binance’s feature-heavy platform.

Why Bybit Stands Out

In addition to its focus on derivatives, Bybit’s range of tools and features, like its demo account and copy trading, make it appealing to both beginners and experts alike. So, what is Bybit? It is a versatile crypto exchange for almost everyone. Whether you're looking for a smooth user experience or more advanced trading tools, Bybit balances simplicity with sophistication, making it a solid choice for anyone in the crypto space.

Key Features of Bybit

Now that I’ve covered the basics of what is Bybit, let’s dive into some of the key features that make this platform stand out. From advanced trading tools to user-friendly options for beginners, Bybit offers a wide range of features designed to cater to different types of traders. Let’s take a closer look at what it has to offer.

Derivatives Trading

When talking about what is Bybit, one of the platform’s biggest draws is its derivatives trading options. Bybit offers a range of contracts that allow traders to speculate on crypto prices without actually holding the assets.

• Bybit Perpetual Contracts – Bybit is well-known for its perpetual contracts, which let you trade Bitcoin, Ethereum, and other cryptocurrencies without an expiration date. Unlike traditional futures contracts, these don’t settle on a specific date, meaning you can hold your position as long as you want—ideal for those who want flexibility.
• Bybit Futures Contracts – For traders looking for a more structured option, Bybit futures contracts come with fixed expiration dates. These contracts allow you to trade cryptocurrencies with a predetermined settlement time, offering more predictability. Whether you're shorting or going long, Bybit futures are designed for traders who prefer a time-bound approach to the market.
• Bybit Options Contracts – Besides perpetual and futures contracts, Bybit options provide even more flexibility. With Bybit options, you have the right, but not the obligation, to buy or sell an underlying asset at a specific price by a set time. This feature adds another level of strategy, allowing traders to manage risk more effectively while maximizing potential rewards.

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Spot Trading

If you’re wondering what is Bybit beyond derivatives trading, let me introduce you to its spot trading feature. Spot trading is the most straightforward way to buy and sell cryptocurrencies. With Bybit, you can directly trade one crypto for another at real-time market prices.

Bybit’s spot trading platform offers a wide range of cryptocurrency pairs, from popular ones like BTC and ETH to lesser-known altcoins. Whether you're looking to invest long-term or just want to make a quick trade, Bybit’s spot market provides the liquidity and depth to ensure smooth transactions.

Additionally, the platform also offers a Spot Margin trade feature. It enables you to leverage your position, meaning you can trade with more than your initial investment. This is accomplished by borrowing funds from the platform. Bybit leverage can amplify your profits, but it can also amplify your losses. It's crucial to use leverage responsibly and understand the risks involved. If the market moves against your position, your losses could exceed your initial investment.

Another great thing about Bybit’s spot trading is its user-friendly interface. It’s designed to make trading easy, even if you’re just getting started. The clean layout, intuitive charts, and customizable trading view make it easy to track your positions and analyze the market in real time. So whether you’re buying or selling, Bybit makes the process seamless and accessible.

If you're more into holding and accumulating coins rather than actively trading, the spot market might be where you spend most of your time on Bybit. It’s simple, fast, and effective—perfect for traders who want a straightforward way to exchange cryptocurrencies.

Earn and Invest

Beyond just trading, what is Bybit doing to help users grow their crypto holdings? Bybit offers several ways to earn passive income through its Earn and Invest features, making it easier for traders to maximize their assets. One of the standout features is Bybit Earn, which lets you earn interest on your crypto holdings. You can participate in flexible or fixed-term savings plans where your deposited assets earn interest over time.

Bybit also offers staking opportunities, allowing you to lock up certain cryptocurrencies in exchange for rewards. It’s a simple, hands-off way to grow your assets without having to worry about active trading.

Another way to invest in Bybit is through their Launchpad. Bybit Launchpad allows users to get early access to new, promising crypto projects. The Launchpad is a great place to start if you’re looking to invest in the next big token before it hits the broader market. By participating in token sales, you can diversify your portfolio and potentially earn big returns if the project takes off. So, whether you’re more into saving, staking, or looking for the next crypto gem, Bybit has a range of options that make investing and earning easy.

Tools and Features

Bybit goes beyond just being a trading platform—it offers a wide range of tools and features designed to enhance your trading experience. Let’s take a closer look at some of the standout features that set Bybit apart from other exchanges.

Advanced Trading Tools

When you're on Bybit, you have access to professional-grade trading tools, perfect for analyzing the market and making informed decisions. Bybit offers advanced charting features, various order types, and risk management tools to help you stay on top of your trades. Whether you're placing limit orders or adjusting your stop-loss settings, Bybit gives you everything you need to execute precise strategies.

Bybit Copy Trading

If you're new to crypto trading or just want to take a more hands-off approach, Bybit copy trading is a fantastic option. Bybit copy trading allows you to follow experienced traders and replicate their strategies automatically. This feature is especially useful if you’re not confident in making your own trading decisions just yet. 

You can browse through a list of top traders, view their performance, and choose who to follow based on their results. By automating your trades through Bybit copy trading, you get the benefit of expert strategies without having to put in the time and effort to manage your trades.

Bybit Demo Trading

Bybit demo trading is a risk-free way to experience the Bybit platform. It allows you to trade with simulated funds using real market data. This is a great option for beginners to learn the ropes of cryptocurrency trading without risking their hard-earned money. By practicing on a Bybit demo account, you can develop your trading strategies, test different indicators, and gain confidence before venturing into live trading.

Trading Bots

For those who prefer even more automation, Bybit also offers trading bots that execute trades based on predefined rules. These bots can follow strategies like dollar-cost averaging or take advantage of specific market conditions, freeing you from the need to constantly monitor the market. If you’re into passive or algorithmic trading, Bybit’s bots make it easy to set up and forget.

P2P Trading

Another useful feature of Bybit is peer-to-peer (P2P) trading. This allows you to buy and sell crypto directly with other users, bypassing centralized exchanges. It’s a great option for traders who prefer to negotiate prices directly or for those in regions where access to certain fiat currencies may be limited.

Security and Safety

When it comes to crypto, security is everything, and what is Bybit doing to protect your assets? Bybit takes security seriously, offering multiple layers of protection to ensure your funds are safe.

Bybit stores most of its users’ funds in cold wallets, which are offline and out of reach from hackers. This is crucial for anyone who’s concerned about the security of their digital assets. If you’re using the Bybit Web3 wallet for decentralized applications or interacting with the broader Web3 ecosystem, you’ll also benefit from similar safety measures.

Another essential security feature is two-factor authentication (2FA). By enabling 2FA, you add an extra layer of protection to your account, making it much harder for unauthorized users to gain access. Whether you're logging in or withdrawing funds, 2FA ensures that even if someone gets hold of your password, they’ll still need an additional code to break in.

For added security, Bybit lets you set up a withdrawal whitelist. This means you can pre-approve specific wallet addresses for withdrawals, preventing any unauthorized transfers. Even if someone tries to withdraw funds to an unlisted address, the transaction won’t go through, keeping your assets safe.

Whether you're using the standard Bybit wallet or the Bybit Web3 wallet, these security measures give you peace of mind as you trade and invest.

Additional Features

Bybit has even more to offer beyond trading and security, making it a well-rounded platform for crypto enthusiasts. Let’s dive into some of these additional features that add value to the Bybit experience.

One feature that stands out is the Bybit Card. This debit card allows you to spend your crypto just like regular money, whether you’re shopping online or in-store. It’s available as both a physical and virtual card, giving you the flexibility to use it wherever Visa or Mastercard is accepted. This is perfect for those who want to bring their crypto into everyday spending without needing to convert it to fiat first.

Additionally, Bybit offers a testnet platform. Bybit Testnet is a simulated environment that allows users to experience Bybit's platform without risking real funds. It's a great way to learn about the platform's features, practice trading strategies, and familiarize yourself with the interface. Unlike a Bybit demo account, which uses real market data but simulated funds, Bybit Testnet operates on a separate blockchain, providing a more isolated and controlled environment for testing.

Bybit is also moving into the decentralized world with Bybit Web3 features. Bybit Web3 enables users to interact with decentralized applications (dApps) and the broader Web3 ecosystem. If you're into NFTs or decentralized finance (DeFi), Bybit’s Web3 integration makes it easier to explore this new frontier without leaving the platform.

Lastly, the Bybit mobile app makes it easy to trade and manage your assets on the go. Whether you’re traveling or just away from your computer, the app has everything you need to keep up with your portfolio. It’s user-friendly, and all the core features from the desktop platform are available right at your fingertips.

So, what is Bybit offering that’s unique? From spending your crypto to diving into Web3, Bybit’s additional features give you a full range of options.

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Benefits of Using Bybit

As one of the top exchanges in the industry, Bybit comes with various advantages that make it a viable option among many big names. Let's take a look at the benefits of using this platform.

Low Fees and Competitive Rates

Fees are one of the most important aspects people tend to focus on when choosing a crypto exchange. So, what is Bybit doing to make itself stand out in the already crowded market? The answer is by offering a competitive fee and rate structure for its users.

Bybit implements a tiered fee structure. To put it simply, your fees will be different based on your VIP level and users with higher VIP levels enjoy lower trading fees. You can improve your account’s VIP level by increasing either your asset balance or last 30-day trading volume.

In other words, this fee structure incentivizes users to keep their funds in Bybit or increase their monthly trading volume. Bybit also uses the “maker-taker” fee model. This means Bybit pays rebates to makers who are traders placing orders in the order book and charges fees to takers who are traders taking orders from the order book^[1].

To better illustrate Bybit’s fee structure, take a look at the table below:

Table: Bybit's spot trading fee structure.

Bybit offers competitive fee rates compared to other big names in the industry like Binance and Kraken, a fact that is often mentioned in many Bybit reviews. The platform also provides a transparent structure which is easy to find on its website. This makes it convenient for those who want to understand the fees and rates first before deciding to use the exchange.

High Liquidity and Fast Trade Execution

Another big advantage of trading on Bybit is its high liquidity and fast trade execution. As of May 2024, Bybit has reached 30 million registered users globally. This means that there are always plenty of buyers and sellers in the market, and your orders are filled quickly. This is crucial for traders who need to react to rapidly changing market conditions.

Imagine trying to buy a rare collectible. If only a few people are selling it, you might have to wait a long time to find one at a price you're willing to pay. But if there are many sellers, you can quickly find one at a competitive price. That's essentially what high liquidity is in the crypto market.

A liquid market is often understood as a market where purchases and sales can be made immediately with a minimal price impact^[2]. Bybit's advanced matching engine ensures that your orders are matched with the best available price in a matter of milliseconds. This is especially important for high-frequency traders who need to execute trades at lightning speed.

Global Accessibility and Mobile-Friendly Platform

There is no point in having numerous features and competitive fees if your platform is hardly accessible anywhere. Thankfully, this is not the case for Bybit. At the time of writing this article, Bybit supports more than 180 countries across the globe. Making it a fitting option for most crypto enthusiasts.

However, keep in mind that a few countries like the US, UK, and Canada are not supported by the platform. Some features like One-Click Buy and fiat services are also restricted in some regions, so consider this before you decide to use Bybit.

In addition to its wide accessibility, Bybit also offers an intuitive mobile application. With this app, you can easily access Bybit’s platform on the go. One of the major advantages of the Bybit App compared to other mobile offerings is that it has most of the features from the desktop version. These include charting tools and advanced order management.

The Bybit App is available on the App Store, Google Play, and other app marketplaces. If you are someone who appreciates the ability to access and manage your crypto investment anywhere, this should be a great benefit.

Perfect for Professional and Retail Traders

As I covered so far in this article, Bybit offers a wide range of features that suit the needs of both professional and beginner traders. For professionals, Bybit provides advanced tools like Bybit leverage, allowing them to amplify their profits (or losses) on their trades. The platform's high liquidity and fast trade execution are also crucial for those who need to react quickly to market movements.

For beginners, Bybit offers a supportive environment to learn and grow. The Bybit demo account is a great way to practice trading without risking real money. The Bybit Testnet provides a simulated environment for testing strategies and familiarizing yourself with the platform.

Additionally, Bybit copy trading allows beginners to follow experienced traders and learn from their strategies. Whether you're a seasoned pro or just starting out, Bybit has something to offer.

Risks and Considerations

No exchange is perfect. Even with numerous advantages, using Bybit also comes with several potential risks. Let's take a look at the factors you need to consider before choosing Bybit as your preferred platform to help you make a more educated decision.

The High-Risk Nature of Derivatives Trading

Even though Bybit is a versatile platform that offers a variety of crypto trading solutions, its main focus is on derivatives trading and it is notorious for its high-risk, high-reward nature. There are four main factors that make derivatives trading highly risky:

• Leverage – Bybit allows users to leverage their positions, meaning they can control larger positions with a smaller amount of capital. While this can amplify profits, it also magnifies losses.
• Volatility – Cryptocurrencies are known for their extreme price fluctuations, which can make derivatives trading even riskier. A sudden price movement can lead to significant gains or losses.

• Complexity – Derivatives can be complex financial instruments, and understanding their risks requires a high level of knowledge and experience.
• Counterparty Risk – When trading derivatives, you're entering into a contract with a counterparty. If the counterparty defaults, you may lose your investment.

Knowing these factors, it is essential to engage with Bybit’s advanced trading features with caution. Equipping yourself with enough knowledge and doing your own research is the best action you can take before deciding to dive deeper into some of Bybit’s offerings.

Regulatory and Regional Restrictions on Bybit

When considering what is Bybit, it’s essential to be aware of regulatory and regional restrictions that might affect your trading experience. Bybit’s margin trading features, like Bybit leverage, are incredibly powerful but come with certain regulatory hurdles.

For instance, Bybit is not available in several countries due to varying financial regulations. Some regions have stricter rules around margin trading and leverage, limiting access for residents. It’s crucial to check whether Bybit operates in your country and understand local regulations to ensure compliance.

Additionally, in places with strict crypto regulations, you might face limitations on leverage or specific trading features. So, before diving into Bybit’s margin trading and leveraging its advanced tools, make sure to verify if the platform aligns with your local regulations to avoid any legal complications.

How to Get Started on Bybit

Now that I’ve answered the question of “What is Bybit?”, you’re probably curious about how to start using the platform itself. I’ve prepared easy step-by-step guides on how to get started with Bybit to help you go through the process more easily.

Signing Up and Verifying Your Account

The first step to get started with Bybit is to create a new account and verify it. Follow this step-by-step guide on how to do them on desktop:

Step 1: Visit Bybit’s website and click the “Sign Up” button on the homepage.

Step 2: You can choose between signing up using your email and mobile number. Here, enter the necessary details. After that, click the “Create Account” button.

Step 3: Complete the reCAPTCHA verification and enter the verification code that you’ve received based on your preferred method of registration.

After you’ve successfully created your account, it is time to complete the Know Your Customer (KYC) process. Here is how you can do it:

Step 1: Click on the profile icon in the upper right corner of the navigation bar, then choose “Account & Security”.

Step 2: Click on “Verify Now” beside the “Identity Verification” column to enter the Identity Verification page.

Step 3: Look for the “Lv. 1 Identity Verification” and click “Verify Now”.

Step 4: Select the country or region that issued your ID, and your identity document type to upload. Click on “Next” to continue.

Step 5: Complete your facial recognition scan through your camera. You may need to switch to your mobile device for this step.

Step 6: Click “Submit verification” to verify your submission.

Once you’ve completed all the processes, you’ll see a Verified icon in the top left corner of the Lv.1 window.

Pros

• Very low trading fees
• Exceptional functionality
• Mobile trading app

Main Features

• Very competitive trading fees
• An intuitive mobile app
• Up to 100x leverage available

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Pros

• A very well-known crypto exchange platform
• More than 500 different cryptos available
• Two-factor authentication

Main Features

• Over 500 different cryptocurrencies available
• Strong security
• Small withdrawal fees

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Pros

• Fully reserved and transparent
• Multiple tradable asset classes
• Early new token support

Main Features

• 265 supports cryptocurrencies
• Secure & transparent
• Fully reserved

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Depositing Funds to Your Account

Depositing funds is the next step you should take before you can start trading on Bybit. Here is the step-by-step guide on how to do it:

Step 1: Go to the Assets tab at the top right corner of the homepage and click on “Deposit”.

Step 2: Choose the crypto you want to deposit, the chain type for the coin, and where you want the funds to be transferred: Spot account, Derivatives account, or Funding account. If you prefer the funds to go to your Derivatives account, specify it in the Deposits auto-channeled to the field.

Step 3: Once you’ve verified the details, either scan the QR code or copy the deposit address to use as the destination address.

After you deposit funds into your Bybit account, you can start making your first transaction on the platform.

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Conclusion

So, what is Bybit? It’s a dynamic crypto trading platform that offers a range of powerful features for both new and experienced traders. Whether you’re looking into Bybit futures or taking advantage of Bybit leverage, the platform gives you tools to maximize your trading potential. With its advanced features, low fees, and user-friendly interface, it’s clear why Bybit is gaining popularity alongside bigger names like Binance and Kraken.

However, like any platform, Bybit comes with its risks—especially when using leverage. It’s important to fully understand these tools before diving in. The platform’s global accessibility and unique offerings like Bybit copy trading and Web3 integration make it stand out in the crowded crypto exchange market.

Ultimately, if you’re looking for a comprehensive trading platform that balances power with ease of use, Bybit is worth exploring. Just be cautious and trade wisely!

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. Yagi I., Hoshino M., Mizuta T.: Analysis of the Impact of Maker-Taker Fees on the Stock Market Using Agent-Based Simulation;

2. Zöbeli M., Kley C., Stumpp B. E.: Crypto Currencies : an Analysis of Market Liquidity.