Bybit: A Cryptocurrency Derivatives Trading Exchange

Bybit is one of the fastest-growing cryptocurrency derivatives trading exchanges, currently boasting more than 1,600,000 registered users.

The crypto ecosystem has come a long way in recent years. In 2017, cryptocurrency is still a bubble. Today, Bitcoin price ascended to a record high, vaulting over a commemorative milestone at $64,000. As crypto becomes more mainstream, a more comprehensive range of investment vehicles surface and that include derivatives.

Derivatives are essentially a contract that derives their value from one or more underlying assets’ performance. In this case, the assets are Bitcoin and cryptocurrencies. Derivatives offer investors a capital-efficient way to gain exposure to cryptocurrencies without the technicalities to trade them directly.

Currently, most crypto exchanges offer derivatives. Among them, there is one that stands out — Bybit.

Bybit: An Cryptocurrency Derivatives Trading Exchange

Bybit exchange was created in March 2018 and is ranked the top 5 derivatives exchange with $14billion trading volume on average. The founding team consists of pioneering professionals from the investment banking industry who were early adopters of blockchain technology and industry enthusiasts.

So far, the platform has not suffered any major disruptions, not even during times of extreme load. That is because the exchange prioritizes customer satisfaction. The team constantly strives to provide a professional, smart, intuitive, and innovative trading experience by listening and nurturing customer feedback. Hence, Bybit is actively adding new trading pairs such ADA/USDT, DOT/USDT, and UNI/USDT to satisfy the consumer’s demands. 

Currently, Bybit is specializing in perpetual swaps, including the USDT and perpetual inverse contracts. These products include the perpetual contracts of BTC/USD, ETH/USD, XRP/USD, EOS/USD, BTC/USDT, ETH/USDT, LTC/USDT, XTZ/USDT, and LINK/USDT. On top of it, Bybit recently added inverse futures to allow traders to lock in an underlying asset’s future price. The contract will converge to the spot price and settle upon expiry. 

BTCUSDT Perpetual Contracts Features

BTCUSDT perpetual contracts do not have an expiration date. Each contract is worth $1 in BTC. While the funding takes place every 8 hours, the last funding was March 14, 2021, 00:00:00 UTC.

Bybit uses the interest rate and the premium index to calculate the financing rate through the Time-Weighted-Average-Price (TWAP) over the series of minute rates.

Here’s the breakdown of the final funding rate with an interval of 8 hours.

Funding Rate (F) = Premium Index (P) + clamp(Interest Rate (I) – Premium Index (P), 0.05%, -0.05%)

Which the components include:

  • BTC Loan Rate = 0.03%
  • USDT Loan Rate = 0.06%
  • BTCUSDTPI – Premium Index

Bybit Trading Fees

The trading fees are derived from the makers’ or takers’ fees. Generally, the market orders are executed immediately by takers. Whereas both makers or takers can execute the limit orders, but they are not instantaneous. 

The trading fees depending on if you are a maker or a taker. Takers trading on Bybit must pay 0.075%, and makers earn 0.025%. 

Inverse Futures Contracts

The BTCUSD0625, which will be agreed on on June 25, 2021, has been available for trading on Bybit since March 11. One more contract, BTCUSD0924, to be agreed on September 24, 2021, was published on March 18. Both contracts will be available in the next update of the Bybit app.

The expected liquidation price is $53,000, and the bankruptcy price is $52,950. Due to market volatility, the brand price has dropped to $52,500, below its liquidation price.

In this case, Bybit will automatically take over your remaining positions, transfer them to the market, and draw capital from the Insurance Fund generated by the BTCUSD Perpetual Contracts to cover your negative equity. That helps to minimize the risks of self deleveraging (ADL).

A futures contract is an agreement to sell something at a future date at a price decided in the present. In the case of Bitcoin and other cryptocurrencies, the futures are traded on an exchange that becomes an intermediary.

All futures contracts have an expiration date that indicates when the buyer and seller liquidate their pending positions.

Bybit’s Mobile App

The Bybit app, fully compatible with iOS and Android, is designed for all users, from beginners to advanced traders. Both widgets and strategic price alerts help you stay one step ahead of the market volatility. Thus, when a stipulated price is reached, you will be the first to receive a notification.

Here’s an overview of the characteristics:

  • Four of the most used buttons can be easily located on the application’s home page: make a deposit, activate strategic alerts, refer friends, and access the rewards center.
  • You can monitor your onboarding process at the top of the home page: your registration, deposit, and trade.
  • You can select your preferred language in the upper left corner, your mode (light/dark), and access other settings.

Similarly, you can easily make deposits and withdrawals, choose indicators, and draw on the price chart in real-time. You can also check your account balance, set up strategic alerts, and much more.

Whether you want to place conditional orders, limit orders, or market orders, the app’s trading experience is as seamlessly integrated as the desktop user experience.

The crypto derivatives arena is expanding rapidly as the number of new products and contracts shows.

On the other hand, futures contracts allow exposure to Bitcoin and cryptocurrencies without physically buying and storing them. Also, they are well suited to traditional traders who are used to dealing with such investment vehicles for other assets.

As the industry grows, there will be more ways to trade and invest in cryptocurrencies through intuitive web platforms and smartphone apps. Derivatives contracts are quickly catching up to spot trading and may even 

surpass it in terms of volumes in the coming years, and Bybit is an excellent platform for this.

Welcome Bonus for New Users

Currently, Bybit has specially prepared a welcome event for new customers. Thus, the first-time depositor on Bybit will receive up to $600 worth of rewards at Rewards Hub.

Even if you’re already a registered user, a good news is you can deposit and trade to receive bonuses and coupons.

However, the bonuses cannot be withdrawn, while profits from trading with rewards can be withdrawn.

*Please take note that the referral bonus is available for a limited period only. 

Customer Support 

Currently, Bybit supports up to eight languages. They comprise English, Simplified and Traditional Chinese, Japanese, Korean, Spanish, Vietnamese, and Russian. One of Bybit’s highlights is the 24/7 customer support live chat for help. Hence, there’ll always be a representative to help you resolve an emergency.

Summary of the Main Features of Bybit:

  • Featuring a smart trading system to quickly take profit, stop loss at entry, receive strategy alerts, and adjust your order.
  • You can configure your TP/SL from the entrance to receive strategy alerts. You can also adjust your orders with a single click.
  • Offers best-in-class depth of market; every trade is executed with minimal price impact.
  • It has an HD Cold Wallet which guarantees the safety of your funds.
  • 100K TPS Matching Engine. This way, you should not worry about system overloads.
  • State-of-the-art pricing system.
  • Robust API to conduct high-frequency trading, with market data, sent every 20 ms. 
  • A system with 99.99% functionality. There’s little to no server downtime Server without downtime thanks to the gray launch function and hot patches.
  • Enjoy customer service 24 hours a day. 
  • It offers a Mutual Insurance service to obtain complete protection against reduced earnings.

FAQ

Can I withdraw funds from Bybit?

To withdraw funds from Bybit, you must click on the button that displays “withdraw” and select the desired crypto for withdrawal. Currently, Bybit processes all withdrawal requests three times a day at UTC Time 0800, 1600, and 2400. The cut-off time for withdrawal requests is 30 minutes before the scheduled withdrawal processing time. For example, all requests made before 0730 UTC will be processed at 0800 UTC; but both maximum and minimum are depending on the asset.

Can I buy Bitcoin on Bybit?

Bybit crypto derivatives exchange allows users to buy and sell Bitcoin and other cryptocurrencies in real-time, 24/7. So, yes, you can both buy and sell Bitcoin (BTC), Ether (ETH), Ripple (XRP), and USDT on Bybit using the fiat gateway through your credit card. 

How to buy Bitcoin on Bybit?

Bybit features an intuitive interface to eradicate the frustrating Bitcoin buying process. Bybit has partnered with payment providers like Banxa, Mercuryo, MoonPay, and XanPool to accommodate a broader audience pool.

*Do note that some of these payment providers may not be available to you due to geographical constraints.

Here’s the step-by-step guide to buying Bitcoin on Bybit:

  1. Sign up and verify your account, or log in to your Bybit account
  2. Visit the Fiat Gateway on Bybit by clicking “Buy Crypto”
  3. Enter the desired amount to be purchased in fiat or crypto
  4. Proceed with payment upon selecting your preferred service provider