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Our take on Bybit
Bybit is globally recognized as one of the most popular derivatives exchanges. It has over 5 million registered users and consistently ranks in the top 10 for derivatives trading volume.
The exchange is secure and has never been hacked. Private keys are held in cold storage wallets and 2FA is supported – KYC is recommended for additional security.
Bybit offers low trading fees for both spot and derivatives trading.
Some downsides to the exchange are that it isn't available to US residents, derivative products are difficult and risky to use and the number of trading pairs is less extensive than some competitor exchanges.
Bybit could be right for you if:
- You are a seasoned trader who understands the risks of trading with leverage
- You want to take advantage of low trading fees
- You want to use the exchange's risk-free testnet service to practice trading crypto derivatives before using real funds
Bybit pros and cons
- Up to 100x leverage
- Low trading fees
- Testnet platform offers environment to practice risk-free leveraged trades
- Extensive educational materials
- Private keys are kept in multi-signature cold storage wallets
- Not available in the US
- Offers derivative products that are difficult for beginners to use
- Fewer spot trading pairs than some competitor exchanges
- Not completing KYC requirements can put your account and funds at risk
- Leveraged trading is highly risky
How Bybit works
Bybit offers traders many features, including NFT trading, an earn platform and hundreds of spot market pairs. Due to its vast range of several hundred perpetual and quarterly futures trading contracts, it is best recognized as a crypto derivatives exchange.
Futures contracts are financial derivatives that allow traders to speculate on an underlying asset’s price movement without holding the asset itself – this opens up the possibility to trade using leverage.
Leverage or “margin trading” allows you to borrow from a broker and open a position larger than your account balance – Bybit supports up to 100x leverage.
Key points of leverage trading:
- Leveraged buy trades are known as long positions
- Sell trades are referred to as short positions
- The broker holds your assets as collateral
- Liquidation (broker seizing assets) occurs if the price goes against you and hits a maintenance margin
- Perpetual futures never expire – trades can be held indefinitely
- Quarterly futures contracts can be held up to 3 months
If BTC rises 10%, you stand to make $100 (10% of your initial investment * 10x leverage). However, if BTC falls drastically and your maintenance margin is hit, the position will be liquidated and you will be left with nothing.
Leverage trading is considered high-risk and not recommended for beginners.
Listed Bybit crypto exchange assets
Bybit supports over 278 cryptocurrencies. In total, Bybit carries 18 of the top 20 cryptos by market cap.Popular assets on Bybit
Depositing funds to Bybit
You can deposit funds into Bybit in two different ways:
- You can transfer crypto assets into your Bybit account from another crypto wallet.
- You can deposit funds through a bank, wire transfer or third-party payment provider. Please note that you must complete the KYC process to deposit most fiat currencies.
Bybit fees overview
|Maker fee||Taker fee|
|Spot trading pairs||0.10%||0.10%|
These fees are reduced if you become a VIP member of the platform.
Bybit exchange features
Express buys – The interface for express buys is simple. You choose your payment method, choose the digital asset you’d like to buy and then in one click you can confirm your digital asset purchase.
Spot market trading – This feature allows you to create bids and asks for digital assets you’d like to purchase. This type of trading is done in a peer-to-peer manner.
Derivatives trading – Derivative contracts allow traders to speculate on an underlying asset’s price movement without holding the asset itself. Both profits and losses are amplified when trading with leverage.
Earning features – Bybit offers a number of earn products, some more complex than others. For example, there is the “USDC Bybit Savings” product, which allows you to earn yield on the USDC that you stake with the platform.
There are also “Dual Asset Short Term High Yield” products that come and go quickly on the site. Dual asset products may involve DeFi operations to generate yield, and as such should be considered high risk.
Please keep in mind that when you lend or stake assets on a centralized platform, you are adding counterparty risk. This means you are trusting the platform to manage your assets responsibly.
Bybit’s NFT marketplace supports the minting, listing and trading of NFTs on the Ethereum blockchain and the listing and trading of NFTs on the Solana blockchain.
Is Bybit easy to use?
Certain features of Bybit are easier to use than others. For example, the express buy feature is quite easy to use while the derivatives trading platform is a bit more complicated.
Bybit has an extensive help section that provides guides on how to use a number of features on the platform.
It gives you instructions on how to submit a query around an issue you’re having and how to reset your two-factor authentication (2FA).
The platform also has a frequently asked questions section and a customer support email. You should receive a response within one business day.
Bybit does not offer phone or live chat support.
Is it safe to use Bybit?
Bybit could be safe to use for the following reasons:
- Private keys are kept in cold storage
- The exchange has never been hacked
- The exchange offers two-factor authentication
It’s safer to use Bybit once you complete the KYC process.
Bybit KYC requirements
While KYC isn’t required to use Bybit, you are opening yourself up to risks by not going through the KYC process. Risks include:
- Potentially having your account flagged and frozen by authorities
- Potentially violating anti-money laundering (AML) laws or other laws like it
- Not being able to withdraw large sums of crypto
- Non-KYC platforms are typically not registered with local regulators
Financially, Bybit can be dangerous to use, as trading crypto derivative products is risky and the chance of losses is higher than spot trading.
Past hacks – Bybit has never been hacked.
Security audits – Bybit has disclosed which security audits it has undergone, and the exchange’s CEO, Ben Zhou, has gone on the record saying that cryptocurrency exchanges should work with “reputable security firms to carry out security audits” according to CoinTelegraph.
Insurance fund – Bybit’s insurance fund is a reserve pool that the exchange can use to help protect traders from entering negative equity territory – or going below the bankruptcy price – on a trade.
Cold storage – 100% of the private keys to assets on the Bybit platform are held in multi-signature cold storage wallets.
Alternatives to Bybit
If you are looking for margin trading in the US on a trusty exchange and already have a high net worth: Kraken began to allow customers who can certify that they have $10 million in assets to use 5x leverage on the exchange. These customers have to complete the required paperwork to become an Eligible Contract Participant.
Frequently asked questions
- “What is Bybit NFT marketplace?” Bybit Learn, Jan. 20, 2022
- “Bybit fees: Everything you need to know before trading crypto [updated],” Bybit Learn, Sept. 17, 2021
- “Hello, how can we help you?” Bybit
- “Most crypto exchanges are vulnerable by design, says Bybit CEO,” CoinTelegraph, Sept. 27, 2020
- “What is the Bybit insurance fund?” Bybit Learn, Apr. 14, 2021
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