ByBit Review – Scam or Not?

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ByBit offers perpetual crypto derivative contracts with up to 100x leverage. Speed, market depth, 24/7 live support are all offered by ByBit as they listened to customers and aimed to provide them the best possible trading experience. Is ByBit really working and fulfills the expectations? Let’s see what this derivative trading platform can offer for anyone who are interested in bitcoin and altcoin perpetual contracts.

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About ByBit

ByBit is a cryptocurrency derivatives exchange, which has its headquarter in Singapore and the company operating the exchange is registered in the British Virgin Islands. The exchange is offering its service since March 2018.

The founding members of the team include professionals from the forex, investment banking industry and all of them are blockchain enthusiasts who adopted the technology early. The technological team has been working for such companies as Morgan Stanley, Tencent, Ping’an Bank and Nuoya Fortune in the past.

Trading with ByBit

ByBit’s co-founder and current CEO is Ben Zhou a crypto and forex expert from Singapore. Prior to taking up the lead of ByBit, Zhou has been working as the China general manager at a forex and CFD trading platform for a couple of years. If you can want to speak directly to the CEO, ByBit encourages users to reach him on Twitter, where he directly responds to the user’s questions.

The company is actively spreading information on various social media channels. Beyond the CEO, you can also find the company as well on Twitter to get official updates from the platform. On its own Reddit thread, you can also find they’re regularly updating content and ask them questions about their services too here.

You can get notifications from their Facebook posts and follow their blogs on Medium and Steemit. If you prefer video walkthroughs, on Youtube you can find several guides about how to use the platform. The most useful information came through their Telegram Trading Chat, here you can find tips, best practices, and interviews as well.

Services Offered on ByBit

ByBit is a cryptocurrency derivatives platform which includes BTC/USD and ETH/USD perpetual contracts. They are soon planning to launch EOS/USD, XRP/USD and Litecoin/USD perpetual contracts.

Assets

Perpetual contracts are a new, innovative cryptocurrency derivative, which is halfway between spot margin trading and futures trading. They do not have an expiry date, like futures, so traders can hold perpetual contracts as long as they wish to do so. There is a funding mechanism in place which ensures the prices are always up to date and no unnecessary liquidation takes place.

Leverage is offered up to 100x which leaves more than enough room for profit-making. The maintenance margin of the account must be kept always above 0.5% to prevent liquidation. The auto deleveraging mechanism gives an extra layer of protection when large losses are prevented on risky trades if the market moves against the desired direction.

The ByBit matching engine can handle up to 100,000 transactions per seconds, and each matching is completed within only 10 microseconds. The service is running 24/7 in every single day without an error – as you can read later in the security related section, ByBit guarantees uptime all the time and if something goes wrong they even offer compensation for this.

Contracts

The advanced order system at ByBit lets the traders to set up their take-profit and stop-loss orders within just one single click from the order confirmation window. This feature also gives you access to multiple order types and time in force function.

On the ByBit testnet, you can try our all the features the platform can offer including the advanced order types, the high margin options and the full features chart provided by TradingView.

Take note, that if you are located in or a resident of the United States of America or Québec (Canada), Singapore, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan, you are not allowed to open an account or trade on ByBit’s platform.

ByBit supports trading for BTC, ETH, EOS, and XRP.

Getting Started at ByBit

You can select from two options at registration. Provide your email address or you can enter your phone number to create an account at ByBit. After adding your password a confirmation email or SMS is sent out where you can confirm your account registration with a verification code.

Register

Once you have confirmed your account opening you are ready to trade. ByBit is a crypto-only exchange, so there is no direct fiat trading option. This also means you do not need to go through a KYC process to verify your identity, but you can start trading right after you have deposited funds to your account.

In order to deposit funds to your account, go to My Assets. Here you can see all the available coins you can deposit on your account. Select the wallet you wish to top up funds for.

On the right hand side, you can click on ’Deposit’ and your unique address will be revealed where you can send BTC, ETH, EOS or XRP. Take note, that only send the specific coins to your unique address otherwise the assets will be lost permanently as blockchains cannot handle coins from other networks.

ByBit deposits funds to your account even after the first confirmation so you do not need to wait for long to use your account for trading. There is no minimum deposit applicable at ByBit.

Deposit

To withdraw funds from your ByBit account, go again to My Assets and click on Withdraw at the right for the specific wallet from which you would like to withdraw the coins from.

Although there is no KYC needed to withdraw funds from the account, ByBit asks you to take an extra step to secure your account before you can proceed. You have to setup 2FA access before you can withdraw funds from your account.

Once that is setup and you have verified your email address at registration you can withdraw your profits from the exchange. The minimum withdrawal is set by each of coins and usually equals to the twice of the average mining fee applicable on the network. Withdrawals happen three times each day, at 8AM, at 4PM and at 0AM, make sure you check the time before you hit withdrawal to avoid unnecessary unexpected delays.

BTC Withdraw

Trading at ByBit

Go to the Trading screen on ByBit to start your first order.

There is a full featured chart provided by TradingView where you can select all the indicators and charting tools which are available in TradingView. Select the time horizon you are looking at or choose to follow the market depth at a certain point in time. The order book is updated live on the middle screen.

To various order types are listed on the right side of the trading screen. Select Limit, Market or Conditional order to use an order type which best suits your trading strategy. Set the price and the amount of leverage. You can trade on leverage from 2x to up to 100x with BTC on ByBit. To finish your order hit Long or Short buttons and review your contract details. After finalizing the deal your live positions and order history is listed on the bottom of the screen along with your daily and all time PnL.

Trading screen

Each perpetual contract with 1 USD in BTC so you can trade as little as a really small fraction of Bitcoin as you want.

Alternatively, you can also use ByBit’s testnet platform, where you can trade with BTC and ETH testnet coins. In order to obtain coins, you can use a testnet faucet as suggested by one of their articles and

Pricing on ByBit

Deposits are completely free of charges at ByBit. For withdrawals, you only need to pay the miner fee to the network, but ByBit does not charge any additional withdrawal fee.

In terms of trading, ByBit employs a maker-taker fee model. The takers need to pay 0.075% after each perpetual contract, this fee is considered already low range on the market. But ByBit even goes beyond this: for makers, they apply a negative (!) fee of 0.025%, so they effectively pay you for providing liquidity to the market when you trade.

Fees

The funding rate is flat 0.01% for all types of digital assets and updated regularly in every 8 hours. A positive funding rate in your trading history means you have paid a funding rate, while a negative rate means you received funding. ByBit does not pay or receive any of these funding rates.

Funding rates are exchanged directly between the buyers and sellers trading on ByBit in every 8 hours. When funding rate is positive long position holders pay the short position holders, while when the funding rate is negative it is on the other way around.

Traders only need to pay or can receive funding rates if they hold positions at the preset cut off times: at 8AM, at 4PM, and at 0AM UTC time zone. The funding rate is calculated based on the BTC Lending Rate, the USD Lending Rate, and the BTCUSD Premium Index. You can follow the values of all of these components on ByBit’s dashboard. Historical funding rate information is also provided by ByBit.

Customer support and security on ByBit

ByBit does its best to offer an outstanding user experience. In order to achieve this, they offer 24/7 customer support. You can reach them in chat, in Email, and on their Telegram channel, but they also respond to questions on Twitter. You can get immediate feedback Chat live 24/7 with their professional multilingual Customer Support Team.

Chat

You can set two factor authentication to secure your account with SMS authentication or alternatively using Google or other application base authenticator software. The email address linked to your account cannot be altered for any reason to make sure security is ensured in terms of account access. The account activities are logged and can be viewed from the account dashboard, it is advisable to check once in a while what has happened to the account, so you can spot any unauthorized access.

2FA

The exchange makes sure to keep your funds safe all the time. The platform is built on the industry’s leading hierarchical deterministic cold wallet system which stores all digital assets of users and the platform. Each deposit address assigned to users is a cold wallet address. Digital assets collection and withdrawal are done through offline signatures to ensure secured access.

The withdrawal review includes all blockchain deposit records, transaction records, individuals account balances and platform account balances, to safeguard the asset security of the users and the platform. In order to create a positive user experience, they have invested in more human resources to conduct withdrawals 3 times per day.

ByBit uses an Insurance Fund to mitigate the losses on contracts cause by extreme market conditions, where the liquidation occurred too widespread. Current amount of the insurance fund is over 400 BTC.

Insurance fund

Thanks to the so called ’grey release’ feature and as all the hot patches released on the go any maintenance and upgrades of the system will not affect normal usage during normal trading circumstances. This ensures system functionality and availability is up to 99.99%, so basically all the time.

ByBit promises that the data of accounts and transactions will be never compromised due to a system error. Otherwise, ByBit guarantees to bear the full cost of such error, therefore it looks like they indeed invested a lot of funds and energy into security so they can make such promise.

Conclusion

ByBit is a new derivative trading platform which offers perpetual crypto trading contracts with leverage option up to 100x. The platform focuses greatly on security and did their best to ensure the safest possible trading environment you can achieve in bitcoin and crypto trading.

They also try to be transparent about their activity so ByBit is actively available on all major social media network. In case you have any question or comment on their service, you can even send a note directly to their CEO! Not something that major crypto exchanges would let you do.

Pros

  • open communication
  • low fees
  • high security

Cons

  • new company, with no real track record in business
  • fiat deposits and withdrawals are not possible
Go to Bybit.com