Bybit Review 2023- Fees, Pros, Cons & Warnings!

• Is Bybit a safe exchange for Spot and derivative trading?
• Are Bybit fees cheaper than its alternative?
• Does Bybit require KYC?
• Is Bybit regulated?
• Should you be using Bybit?

We will learn all about these in our in-depth review of Bybit.

The number of traders and volume on derivative exchanges have increased significantly in the past few quarters.

Earlier, Bitmex used to be the best margin trading exchange, but due to a recent shift in traders’ sentiments, and controversies around Bitmex hack, a lot of traders started moving to new margin exchanges like Bybit and Binance.

Also see: Bybit Vs. Binance: Comparison

Bybit turns out to be a clear winner as they listened closely to the trader’s community, and since last year, they are constantly on a rise. It may amuse many how a young exchange like Bybit was able to capture the heart of traders in such a short span.

When we looked deeply into the Bybit operation, and how they are shipping new features, it was clear why Bybit will keep growing in the time to come.

Join Bybit (use code 3193) claim $90 bonus

In this Bybit review, I have outlined all the details you need to know to learn what is Bybit, its features, risks, security, Bybit trading fees, and few more questions, that will help you understand everything about this exchange.

Note: Bybit is not available for UK users in compliance with the FCA ban. If you are from the UK, you should check out these UK-based platforms.

What is Bybit?

Bybit is one of the fastest-growing crypto trading platforms, which its headquarter in Dubai, UAE and offices in Taiwan and Hong Kong. Bybit matching engine is capable of handling 100,000 TPS, so you don’t have to worry about overload issues, and offers low latency (1ms).

With over 100,000+ users and multi-lingual support (English, Chinese, Traditional Chinese, Korean, and Japanese), Bybit currently is one of the top 3 crypto exchanges.

Bybit products –

As Bybit is trying to build the biggest ecosystem for Crypto traders and investors, they offer multiple products. At the time of updating this review of Bybit, here are the products Bybit offers –

Spot Market –

Bybit let the beginners trader or investors trade on spot market. One can deposit funds on Bybit using Bank account or crypto, and use it to trade or buy the crypto assets they are interested in.

Derivatives market –

Bybit was initially started as a derivative trading platform, and later on they added suite of various products.

Currently, Bybit offers two kinds of derivatives contracts:

1. USDT perpetual contract: The margin used is USDT and it’s a linear contract. If you are trading in BTCUSDT, I recommend using this one for beginners.
2. Inverse Perpetual contract: An inverse contract means if a trader would like to trade BTC/ETH/XRP/EOS contract, the underlying cryptocurrency has to be used as the margin to trade the respective contract.

Currently following coins are available on Bybit for margin trading:

1. BTC
2. ETH
3. XRP
4. EOS
5. USDT
6. ADA
7. UNI
8. DOT
9. BNB
10. ADA
11. DOGE
12. BCH
13. LTC
14. SOL
15. LINK
16. Matic
17. ETC
18. FIL
19. AAVE
20. XTZ
21. SUSHI
22. XEM

We will dive deep into Bybit trading strategies in upcoming tutorials, for now, let us focus on the features and offerings of Bybit. This will help you understand what extras you could expect from this rising star.

Features of Bybit – What’s makes it special?

Unlike other margin trading exchanges, Bybit offers a minimalistic layout, but under the hood, it is packed with all those features which could help a trader like you or others to have a smoother trading experience.

In the next section, I have outlined some of the features of Bybit that you should know. As you start using Bybit, you will also be able to learn more features that I have skipped intentionally, for you to discover.

Concentrated exchange for high volume trading:

Bybit supports 24 high-volume cryptocurrencies for trading, which include BTC, ETH, BNB, SUSHI, DOGE, USDT, and many more. They recently introduced USDT perpetual trading, in which P&L is counted in USDT, and saves a lot of headaches.

Spot trading:

Even though Bybit was mostly a margin trading derivative platform, it silently launched the spot trading platform.

Fiat Gateway:

You can buy Cryptocurrencies directly on Bybit using their Fiat gateway. This feature is enabled using Moonpay which is a 3rd party that provides payment infrastructure for crypto. However, to use this feature you need to do KYC with Moonpay.

High Leverage:

Bybit offers leverage up to 100X, this is the number of funds you could borrow from the exchange.

For example, if you opened a position of 100 USD, and you use 50X leverage, you would be able to trade a contract value of 5,000 USD. By the way, 100 USD in this scenario is called “Initial margin”.

Easy to use trading terminal:

Bybit offers one of the intuitive trading terminals, and if you are someone who is moving from an existing exchange like Bitmex or Binance, it would surprise you. Bybit trading terminal is powerful, as well as robust in features.

Grid bot trading:

Bybit has started adding a lot of automated trading bots, and the latest addition is grid bot trading. This strategy lets you capture the volatility of the market, and make profit in an automated way. A lot of exchanges have started adding this feature, as it is a popular strategy among traders and scalpers.

The grid bot trading feature is free to use on Bybit (You only pay the trading fees), and there are selected pairs on which you can run grid bots currently on Bybit.

Bybit mobile app:

I have to admit, I tried the Bybit mobile app quite later after their web app, and was surprised by the simplicity and quality. It is by far a no-nonsense mobile app, with all the necessary features. While all similar mobile apps from other exchanges look busy, Bybit mobile app looks simple and easy to use. I will share a tutorial for the same in the coming days.

The mobile app is available for both iOS and Android.

Note: Bybit does not offer a native desktop app for Windows or Mac. If you wish to trade on Bybit from desktop, check out my work around here : Bybit desktop app solutions.

No KYC required:

Bybit is one of the few high-quality No KYC exchanges, and you can signup from any part of the world unless you live in a disallowed country such as USA and UK, or if you are from a sanctioned country.

To use certain Bybit products such as Bybit earn, you need to complete the KYC.

The signup process is fast, and you are also entitled to get a joining bonus, which I have explained in the further section of our detailed Bybit review.

With No KYC account, you can withdraw up to 2BTC/Day, and if you want to withdraw more, you need to complete KYC on Bybit.

Hedging:

Bybit allows you to hold both long and short positions simultaneously. They also offer an isolated mode, which lets you use different leverages for concurrent positions. I have explained both types of available margins in the further section.

Exchange coins at market rate:

Bybit also lets you exchange one coin for another. For example, if you are holding ETH, and want to convert it into BTC or USDT, you could do that as well. The pricing is the same as any other popular exchange.

Bybit Sub-account: Test Various Strategies

There are various ways by which you can trade on Bybit. For example, you can do manual trading or grid bot trading. However, one account is not good enough to test different strategies, and hence you would be needing the sub-accounts feature. The P&L will be calculated independently — so you may deploy various strategies and better track the performance of your trades.

This feature is available for all the accounts (on desktop only), and it lets you:

• Up to 20 Subaccounts are supported for each Main Account
• Fund transfers between the Main Account and Subaccounts incur zero charge

Moving on to trading fees on Bybit.

What are Bybit fees: Explained

The fees on Bybit is one of the reasons for its popularity. CEO Ben Zhou and his team have done a splendid job by keeping the fees as one of the lowest in the crypto derivatives industry.

Depending on your Bybit VIP level, your fees will be determined. The below chart shows the Bybit fees for spot trading market and also for Perpetual and Futures trading market.

If you are new to trading, and not sure what’s the Taker fee or Maker fee, refer to the chart below.

Bybit Trading competition:

Another highlight of Bybit is, it is traders-centric. It often runs various trading competitions in which you can participate, and win cash prizes. You should keep an eye on our telegram channel or subscribe to CoinSutra email to get notified of such trading competition across various exchanges.

Head over to the Bybit homepage to see if there is any ongoing trading competition.

Isolated margin and cross margin

Bybit offers two margin modes, and you could pick any based on your preference. The isolated margin mode is less risky. If you are starting out with derivative trading, my recommendation is to use the Isolated margin mode.

Let us understand both the mode in detail:

What is Isolated margin mode on Bybit:

This feature of Bybit ensures that the margin placed into a position is isolated from the trader’s account balance. This helps a trader manage their risk accordingly as the maximum amount a trader would lose from liquidation is limited to the position margin placed for that open position.

What is Cross margin mode:

Unlike isolated margin mode, in cross margin mode, your entire available balance within the corresponding trading pair is used as margin.

Note: You have an option to interchange between cross and isolated margin when having an open position. The only time this won’t be possible is when the change itself could trigger immediate liquidation. We will dwell deep into this, in our upcoming tutorials on the Bybit exchange.

Moving on…

How to claim Bybit welcome bonus of $90 (Video)

To reward and welcome the new traders, Bybit offers a joining bonus of up to $90, which you can earn by completing the following tasks as shown below:

Do remember: Bonus can be used as a trading margin but cannot be withdrawn. Profits from the bonus can be withdrawn. Bonus must be activated by trading activity within 21 days after receiving the bonus, after which it will be forfeited. Once activated, it will not expire anymore. If your bonus is not activated, you will receive a notification email 7 days before its expiry.

Here is a video that explains how Bybit bonus and coupon works:

Bybit referral code:

You can use this link directly which adds the Bybit referral code that you need. In case you need to add a direct referral code, here it is:

Bybit referral code: 3193

Is Bybit safe?

In my learning and research, I have found Bybit to be safer. The only caveat is it is not regulated, so there is always the risk which is a standard among all crypto derivatives exchanges. Do enable 2-factor authentication, and use a secure password to enhance your Bybit account safety. And trade only with the much amount of money, you are ok to lose.

Last but not the least, do not use exchanges as a wallet to store BTC or huge sum of cryptocurrencies, rather get a hardware wallet like Ledger Nano X to store your coins for the long term. Use only those funds that you need for trading. You can also consider using a mobile wallet like Trust Wallet to keep moving funds from your Bybit account to your own wallet.

Is Bybit regulated –

Bybit was established in March 2018 and registered in the BVI (British Virgin Islands). Earlier, Bybit’s headquarter was based in Singapore, and in April 2022, Bybit announced that they were moving their headquarters to Dubai (UAE).

Bybit has secured in-principle approval to conduct services in the United Arab Emirates UAE.

As cryptocurrency exchanges are largely unregulated, so is Bybit. The regulation of exchange meant that a particular crypto exchange has to take a license from local authorities to offer financial services in a specific country.

However, they are working closely with regulators from various countries and complying with local laws. For example, On Jan 31, 2023, Bybit stopped offering specific services to Spanish citizens to comply with instructions from the Spanish National Securities Market Commission (“CNMV”).

Similarly, Bybit does not offer services in countries like the UK and USA. A huge list of banned and disallowed countries cannot use Bybit services. When users from countries like USA or UK visit Bybit, they are not allowed to sign up, which is a good sign for Bybit, as they aim to comply with the local laws of various countries fully.

Overall, Bybit is one of the exchanges slowly becoming legally compliant in certain jurisdictions where financial authorities are willing to work with them.

As a user, if your country is on the allowed list of Bybit, you should adhere to your local laws. For example, you should file your taxes and report your income generated from trading and investing activities on Bybit.

Bybit withdrawal fees:

A lot of exchanges have hidden fees in form of withdrawal fees. However, Bybit withdrawal fees is minimal, and you would pay only the blockchain fees.

Here is the breakdown of Bybit withdrawal fees:

However, one thing you should know here is; Bybit withdrawal is not instant. They withdraw funds in batches, so it could take 2 minutes to one hour for completing a withdrawal request.

Here is the minimum withdrawal limit for supported coins:

Note: There is no minimum deposit limit.

Conclusion: Bybit review

Bybit is one of the safest and fastest spot and derivative exchanges that you can find. The company usually participates in all major public crypto events, which adds significant trust. The multi-lingual customer support and dedicated account manager ensure traders like you have better onboarding.

The trading engine is one of the best I have seen in recent times, and no wonder it has become crypto traders’ derivative exchange.

As mentioned above, Bybit offers a welcome bonus which is also appealing for new users.

Overall, in my review, I have found Bybit to be a solid exchange for everyday use.

Here are some of the most frequently asked questions related to Bybit:

• How’s your experience of using Bybit?
• What do you like about this popular derivative exchange?
• What more features would you like to see?

Disclaimer: Trading using margin is more rewarding, and at the same time riskier. You should trade only when you have honed your trading skills, and use only the amount of money, you are ok to lose.

Any article on our website is not trading or investment advice.