Last update: Apr 15, 2022

Bybit Review

Investors may wonder if they have enough information to gauge whether cryptocurrencies are right for them. Even if they want to buy or sell cryptocurrencies, many investors haven’t yet found a cryptocurrency exchange that they can trust.  Our Bybit review will help you evaluate the strengths and limitations of the Bybit cryptocurrency exchange.

  • ByBit


    1. Operating Since 2018
    2. Currencies Supported 15+ cryptocurrencies
    3. Fees Varies
    4. Deposit Methods Credit and debit cards, bank transfers, and ApplePay
    5. Fiat Currencies Yes
    6. Verification Methods 2FA
    7. Margin Trading Yes
    8. Futures Trading Yes

What Is Bybit All About?

Bybit is a cryptocurrency exchange registered in the British Virgin Islands. As an exchange platform, it allows account holders to buy and sell cryptocurrencies.

Founded in 2018, Bybit takes a visionary approach to investing. The company views its mission as empowering both new and experienced traders to achieve financial and personal success.

Bybit has carved out an interesting niche in the crypto market. Specifically, it focuses on spot trading and derivatives trading. Our Bybit review will consider these distinguishing elements of the exchange. It will also evaluate the platform’s features that could help or hinder investors in pursuing general financial success.

Our Bybit review serves investors at all skill levels. We do not shy away from using crypto terminology. However, we also do not want our review to come off as esoteric or obscure. Therefore, we will start with the basics of Bybit to ensure that all readers can interpret and use our review effectively.

Overall, this Bybit review will rate the platform’s ability to help both new and veteran investors increase the value of their portfolios.

Caveats and Reminders

Many of Bybit’s investment and trading options are only suitable for experienced investors. These options may expose novice investors to risks that can exceed the amount they invest. Derivatives trading particularly involves substantial risk and can be difficult to understand without some expertise in finance.

Bear in mind that no review can capture the full experience of using a cryptocurrency platform or replace years of investment experience. So, as you plan your investment strategy, keep in mind the level of risk you can tolerate. As such, you should avoid any investment vehicle you do not understand or exceeds your risk tolerance.

Pros of Bybit

A Variety of Cryptocurrency Options

Bybit allows you to execute spot trades in a variety of cryptocurrencies. Spot trades consist of instantly trading coins and tokens by posting buy and sell orders.

Spot trading allows traders to choose from a variety of cryptocurrencies including:

  • Bitcoin
  • Cardano
  • Chainlink
  • Etherium
  • LitecoinZ
  • XRP
  • And others

As of 2021, Bybit offers some spot trading options with a more limited number of trading pairs. The platform is likely to increase its spot trading options in the future.

USDT (Tether) Trading

The volatility of Bitcoin trading is a strong point for many risk-taking investors. Yet, stability has its value in a diversified crypto portfolio.

Bybit offers Tether (USDT), a type of stablecoin. Tether and other stablecoins maintain a value equal to one US dollar, reducing cryptocurrency’s volatility.

Many traders favor the efficiency of trading between volatile cryptocurrencies and a safe harbor in the form of Tether. That way, they don’t have to transfer a cryptocurrency into a fiat currency.

Spot Trading

Bybit allows its users to make spot trades between many cryptocurrencies. Note that spot trading involves actual ownership of cryptocurrency, unlike derivatives trading such as CFD trading.

CFD Trading

Contract-for-Differences (CFD) trading is a form of derivatives trading. It involves parties agreeing to pay each other based on the short-term changes in a commodity without actually owning the commodity. Bybit provides users with opportunities for CFD trading and other types of derivatives trading in many cryptocurrencies.

Leverage

Bybit, as with other crypto exchanges, allows traders to capitalize on leverage. Leverage consists of borrowing a multiple of the amount you are investing and using that amount to buy a much larger stake in the commodity. Keep in mind that leveraging raises potential risks as well as potential profits.

Bybit allows for leverage up to 100:1, which is advantageous to investors who can tolerate a high level of risk. However, allowing high levels of leverage combined with derivatives trading could pose significantly high risk to new investors. This aspect has sometimes landed Bybit in trouble with regulatory agencies.

Nonetheless, Bybit has insurance to protect investors’ assets in case of default on derivatives contracts.

Opportunities to Learn

Unlike some cryptocurrency exchanges, Bybit’s founders included education in their mission statement. Consistent with that goal, Bybit hosts resources for investors such as a glossary and informational articles.

New crypto investors might appreciate this guidance as they gain experience and become accustomed to the Bybit interface. These resources can especially help investors learn how to interpret the platform’s tracking tools and order book.

One of Bybit’s most useful features is its demo trading feature. The platform allows users to practice using its exchange before investing any money. As a result, this demo feature reduces an investor’s risk of losing money due to mistakenly using the interface.

Transparency

Bybit received the Most Transparent Exchange award from Crypto Expo 2021. Cryptocurrencies by their very nature involve codes and hidden information. Furthermore, they derive their value from “dark pools” of money from anonymous sources. Therefore, a transparent exchange like Bybit offers conservative investors more reason to trust crypto trading.

Dual Pricing

Dual pricing is a process that prevents traders from manipulating the price of an asset on an exchange. For example, in some “pump-and-dump” schemes, unscrupulous investors purchase an asset to drive up its price. Their hope is to dupe other investors by selling the asset at this inflated price.

Bybit uses two prices, the Mark Price and the Last Traded Price. The Last Traded Price reflects an asset’s value on the exchange while the Mark Price reflects the actual global value of the asset. So, if someone tries to manipulate a cryptocurrency’s value on Bybit, its dual pricing will stop trades from executing until the exchange realigns with the global value.

Convenience

Bybit allows people to trade quickly, securely, and easily using their mobile app. The app puts all the platform’s trading and performance data at your fingertips. This feature sets Bybit apart from numerous other cryptocurrency exchanges that lack an app.

Inverse Trading

Inverse trading is a form of derivatives trading that allows an investor to profit if an asset decreases in value. It is similar to a short position in the result it delivers. However, like other forms of derivative trading, it does not require the investor to own the commodity.

Bybit gives traders the tools to profit from the rise and fall of currencies through derivatives trading.

Two-Factor Authentication (2FA)

On Bybit, you don’t have to worry about someone getting into your account by stealing your phone or your password if you enable the 2FA feature. You (or anyone else) would need to have both your phone and your password to access your account.

Cold Wallets

Security is often paramount for crypto investors. Bybit allows investors to use cold wallets to store cryptocurrencies. Cold wallets are disconnected from the internet so they are not susceptible to hacking, ransomware, and malware when not in use.

Bybit Earn

Besides spot trading and derivatives trading, Bybit allows investors to invest in bitcoin mining and more conventional interest-bearing accounts.

Their dual asset accounts include two different cryptocurrencies within the same account. These accounts sometimes have phenomenal rates of return well above 100% APY.

However, keep in mind that many of these accounts are not asset protected. In other words, you could potentially lose the value of all your assets.

Cons of Bybit

Bybit is a popular, growing platform but it has some drawbacks that might turn off some investors. Note that some of the following downsides may no longer apply in the future as the platform expands and develops:

Limited Regulation

Based in Singapore, Bybit is becoming integrated into the global regulatory framework. However, its current lack of regulation could concern some investors, not to mention regulatory agencies.

The Site Can Be Confusing

Compared to some other cryptocurrency platforms, Bybit requires more computer savvy. It also demands a deeper understanding of computer and finance terminology to maximize its features.

Cryptocurrency is a new field for many investors, even those with prior investing experience. In a rapidly growing marketplace, Bybit and other crypto exchanges could benefit by easing newcomers into the trading experience.

For example, the instructions for Bybit’s withdrawal page warn that failing to select the correct network during withdrawal could cause loss of funds. Novice investors already have to keep track of different currencies, trades, strategies, and investments.

Altogether, new users should practice in Bybit’s demo mode to master the interface. They should also exercise caution while performing trades, deposits, and withdrawals.

Limited Support

Unlike other platforms that offer around-the-clock technical support, Bybit offers support only through online documentation and e-mail. This attribute might be frustrating if you need immediate help executing a trade, withdrawing funds, or accessing features of your account.

Nonetheless, Bybit users should not worry about losing funds because they mistakenly used the interface.

Trading Limitations

Bybit trading is not allowed in the United States. As a result, the number of trading pairs between cryptocurrencies is lower than those offered by other competing crypto exchanges.

These limitations may decrease over time as Bybit expands its offerings and works toward compliance with regulatory frameworks around the world.

Trading Fees

Bybit charges a 0.075% taker fee for some transactions. Withdrawal fees vary based on the type of cryptocurrency you are trading.

Furthermore, investors who place orders that go into effect conditionally—thereby increasing the currency’s stability—receive a 0.025% rebate. These fees and rebates are subject to change after the publication of this Bybit review. For that reason, check Bybit’s fee structure before investing.

Overall Impressions

Bybit is a solid choice of crypto exchange for newcomers who are eager to learn. It may be a stronger choice overall for experienced investors due to its emphasis on more advanced investment strategies. Nonetheless, its transparency still makes it a good option for more squeamish investors new to cryptocurrency.

Bybit’s focus on derivatives trading could convince new investors to take on considerable risk. However, as long as new investors do not let the user-friendly interface lull them into thinking derivatives trading is easy, they could benefit from Bybit.

author Marco Vela

A crypto obssessed digital marketer passionate about making a difference in the world. When he's not behind the computer he can be found hiking, camping and relaxing with his dog.