Bybit is a cryptoasset exchange located in British Virgin Islands. Their volume over the last 12 months is $385.65B. The exchange is rated “A” which means “Transparent.” They allow trading with the following fiat currencies: USD.
Launched in March 2018, Bybit is a cryptocurrency trading platform that focuses solely on derivatives margin traders. The company is registered on the British Virgin Islands, headquartered in Singapore well-known for its favorable attitude towards new technologies, and also has offices in Taiwan and Hong Kong.
At the time of writing, Bybit supports only 4 cryptocurrencies: Bitcoin BTC, Ethereum ETH, Ripple XRP, and EOS. The platform operates across a wide range of countries and claims to have gained more than 300,000 users. Among restricted regions are the US, Cuba, Québec (Canada), Crimea, Iran, Sudan, Syria, North Korea and surprisingly Singapore. The restriction comes from the complexity of local regulation.
Since Bybit offers only derivatives and has no option to trade fiat currencies, the signup procedure is pretty simple. A new user is only required to provide an email address or a phone number and invent a secure password without a necessity to upload any documents for the KYC (Know-Your-Customer) procedure. The platform has no access to users’ personal data which reduces the chances of leakage. After entering a verification code that is sent to an email address or to the mobile number depending on the user’s choice, an account is ready to use. Having got inside, users get access to the following features and products.
Perpetual contracts. Users can trade futures contracts with no date of expiry that are named perpetual contracts. 4 cryptocurrencies mentioned above are traded against a stable coin USDT with the price calculations based on the last traded price. The lack of fiat support is a serious drawback, but the implementation of a stable cryptocurrency can cover it. Digital assets can be traded with up to 100x leverage. Other leverage options include 2x, 3x, 10x and 50x.
Advanced trading tools. Traders are provided with a robust set of tools to help them make right decisions, such as stop loss limits or an informative candlestick graph. Combined with a powerful matching engine that is able to process up to 100,000 transactions per second, these tools serve to make the trading process as smooth as possible.
Coin swap. Bybit features the coin swap feature making it possible to trade cryptocurrencies that are based on different blockchain platforms (e.g. EOS and BTC). The exchange occurs instantly with a negligible fixed fee.
Beginner-friendly interface. Although margin trading is not something that beginners are recommended to cope with, still Bybit interface is not too sophisticated which facilitates the onboarding process even for the newbies in cryptocurrency trading.
High security. As it has already been mentioned above, the platform doesn’t require any personal documents to be uploaded and doesn’t store user’s data. Ever since its launch, the platform has never been hacked.
Affiliate and referral programs. Bybit runs an affiliate program to draw new users. It claims to share up to 30% of the trading commission with full transparency of affiliate’s earnings. The referral program allows new users to claim up to 60 USD bonus if they meet the deposit requirements imposed by the platform.
Bybit liquidation scheme
Trading futures is quite a risky business both for traders and for platforms providing such services, so Bybit has developed its own insurance fund mechanisms to cover these risks.
Stop-loss mechanism implemented on Bybit prevents the platform from reaching the rates that lead to liquidation. Dual price mechanism implements the mark price, i.e. global Bitcoin price, which is linked to the last traded price and liquidation. It serves to put down the risks of market manipulations.
Bybit utilices auto margin replenishment mechanism to maintain the margins at sufficient levels when the risk of being depleted becomes possible. Finally, automatic deleveraging get activated on the platform if a position becomes unavailable for liquidation while its price is still above the bankruptcy level and the insurance fund cannot cover it.
The project doesn’t display any members of its team on its official website, but the information can be found on Linkedin.
Ben Zhou is Bybit’s Co-founder and CEO. He has a Bachelor degree economics at Earlham college. Prior to founding Bybit, he has worked as China Financial Manager for 7 years in XM, a forex and CFD trading brokerage company headquartered in Limassol, Cyprus.Read More