thanh tuyen
26/12/2024
If you are looking for investment opportunities in cryptocurrencies, Bybit is undoubtedly a prominent name. With more than 20 million users worldwide, it has established itself as a leading player in the industry. Bybit is not just an ordinary exchange, it is highly appreciated for its powerful tools that provide maximum support for novice and experienced investors. However, among the myriad of choices on the market, what makes Bybit stand out and draw millions of users? In this in-depth Bybit review, we will delve into the Bybit exchange, from its outstanding features to its pros and cons, helping you have a more comprehensive view of the platform.
Bybit is one of the largest and most reputable cryptocurrency exchanges founded in 2018 by Ben Zhou. Within a few years of operation, the exchange has quickly affirmed its name in the crypto market with a daily trading volume of up to 10 billion USD. As statistically determined by CoinMarketCap, Bybit ranks 2nd among the world's leading derivatives exchanges by trading volume.
Bybit hosts a diverse ecosystem with outstanding products such as spot trading, perpetual futures, trading bots, etc., and focuses on developing derivative tradings. Currently, it offers over 1,000 cryptocurrencies and 300 trading pairs, meeting all users’ trading needs. This fifth-largest exchange has also expanded its scope of operations to more than 180 countries, supporting a user-friendly multilingual interface.
Upon its initial launch, Bybit primarily concentrated on derivatives trading products and quickly established a reputation in the industry. Then, the exchange has continued to evolve, providing a comprehensive trading ecosystem with a wide range of products. In this section, we will dive into the standout features of these products and their appeal to traders.
Spot trading allows users to buy and sell various currencies directly at the current market price to deliver the traded coins immediately. With this form of trading, users can “buy low and sell high” on more than 270 assets with highly competitive fees. For example, if you wish to buy 1 BTC with USDT, Bybit will match you with a seller at the best current price. You will instantly own the BTC, which can be securely stored in your wallet or sold when the price appreciates.
Trading bots let you make transactions automatically by executing Buy and Sell orders based on pre-defined strategies. Users merely need to set parameters such as capital, price range, and order quantity, after which the bot continuously operates to optimize profits. Bybit offers a variety of trading bots, each designed with unique features to align with specific investment goals.
The Grid Trading Bot enables traders to capitalize on price fluctuations by automatically purchasing when prices decline and selling when prices rise within the price range set in advance. This bot is particularly suitable for sideways markets, where price movements remain relatively stable and lack significant volatility.
The DCA bot is designed to automate cryptocurrency purchases at regular intervals over a preset time frame. Instead of investing your entire budget, the bot systematically divides the capital into smaller portions and executes periodic purchases. For instance, if you desire to invest 1000 USDT in Bitcoin, the bot can split this amount into 10 small parts and buy 100 USDT weekly. By automating this process, the DCA bot helps traders build their investment positions steadily and consistently, focusing on an average acquisition price instead of trying to predict the perfect market entry point.
Another popular bot on Bybit is the Copy Trading bot. The bot allows you to replicate the trades of professional investors. If you are a beginner or lack experience, you can choose a skilled trader on Bybit, and the bot will automatically copy all their trades. This feature best suits beginners looking to learn from seasoned experts while potentially earning profits without extensive market knowledge.
P2P trading is a method of directly buying and selling cryptocurrencies between users without the involvement of intermediaries or transaction fees. For example, when purchasing BTC, users can select a seller on Bybit's P2P platform, negotiate the price, and make payment directly via bank transfer or e-wallet. Bybit supports over 300 payment methods, so you can choose the one that is appropriate for your needs and preferences.
The exchange employs an escrow mechanism in P2P trading. When making a trade, Bybit temporarily holds the seller's coin in an intermediary account until the buyer completes the payment transaction. Once the seller confirms the receipt of the funds, the coin is released to the buyer. This mechanism protects both parties from fraud and guarantees a safe trading experience.
Convert trading is a feature designed to facilitate the seamless exchange of one cryptocurrency for another at a competitive exchange rate. For instance, if a trader holds BTC but wishes to convert it to ETH, they simply select the amount of BTC and initiate a convert transaction. The system will display the equivalent amount of ETH at the most favorable available rate. It is considered an ideal option for users who want to quickly change or diversify their investment portfolio without navigating complex trading processes or placing limit orders.
Margin trading allows traders to borrow funds from the exchange to open orders with a value greater than their initial capital. For example, with 10x leverage, you only need 100 USDT to open an order worth 1000 USDT. If the asset price increases by 10%, you will gain 100 USDT instead of 10 USDT without leverage. However, margin trading is a double-edged sword. If successful, you can earn significant profits, but if the price falls in the opposite direction, you can lose all your initial capital. Therefore, margin trading aligns with experienced traders looking to leverage price fluctuations to increase profits. If you are a beginner with limited experience, it is essential to carefully consider the risks before engaging in this form of trading.
Bybit Launchpad provides users with early access to new cryptocurrency projects and the opportunity to purchase tokens at a discounted price. To qualify for it, you need to hold a certain amount of tokens and stake them on the platform. You will receive a portion of the project's tokens according to the number of tokens you staked. Once the tokens are listed, you can profit from their value changes. However, this feature is currently restricted to certain countries, including the United States, North Korea, Cuba, mainland China, etc.
Derivative trading is a form of trading in which buyers and sellers do not directly own assets but trade through contracts based on the value of cryptocurrencies. On the Bybit exchange, derivatives trading is divided into 3 main types of contracts with unique characteristics, providing users with flexible and attractive investment opportunities.
Futures contracts are agreements to buy or sell a cryptocurrency at a predetermined price on a specific date. Suppose you hold 1 BTC currently valued at $18,000 and are concerned that its price may drop. To protect your profit, you sell a futures contract, committing to sell BTC at $18,000 in a month. If the price of BTC falls to $16,000, you still keep the selling price of $18,000, preserving your profit. However, if the price rises to $20,000, you will still have to sell at $18,000 as committed. Accordingly, this form helps limit risk and protect investors from future price fluctuations.
Perpetual contracts are a type of futures contract without an expiration date, you can hold the position permanently as long as you have enough margin to cover losses or prevent liquidation. Perpetual contracts allow trading in over 448 cryptocurrencies with leverage of up to 125x. These contracts also include a mechanism called Funding, a fee agreement between buyers and sellers designed to prevent significant price differences compared to spot trading.
Option contracts give traders the right to buy or sell at a certain price in the future. Its key advantage is that risk is limited to the premium you pay, while the potential profit is unlimited if the price moves in the predicted direction. For instance, you purchase a Bitcoin call option with a strike price of $30,000 and pay a premium of $500. If the price rises to $35,000, you are entitled to buy Bitcoin for $30,000 and make a profit. If the price declines, you only lose the $500 premium you paid.
Bybit does not charge any fees for depositing. However, when withdrawing, the exchange applies a fixed fee depending on the cryptocurrency, regardless of the withdrawal amount. Below are the withdrawal fees of some popular coins:
Bybit offers a highly competitive and preferential fee schedule compared to the general market. Transaction fees on Bybit vary depending on the type of trade and typically range from 0.1% to 1%. In particular, for spot and derivative tradings, fees decrease according to the user's VIP level. The higher the VIP tier, the lower the applicable transaction fees. This tiered system is part of Bybit's incentive program, designed to reward active and long-term traders with reduced costs.
Liquidation fees are incurred when trading with leverage and the account lacks sufficient assets to maintain the position. The higher the leverage, the greater the risk of liquidation, resulting in higher fees. In addition, trading with large positions or during periods of significant market volatility may lead to increased liquidation costs.
Funding fees are applied to perpetual contracts to ensure no excessive difference in price between the perpetual contract and the spot trading. These fees are calculated based on the interest rates between the parties and fluctuate over time depending on market conditions.
Bybit is designed to cater to the needs of professional investors and newcomers. So what makes this exchange a top priority for various traders? Let's find out the answer by considering the factors below:
One of Bybit's standout features is its highly competitive trading fees, capped at a maximum of 0.055% for contract trading and 0.1% for spot trading. Additionally, it delivers flexible fee adjustments based on the user’s VIP level. This is a significant advantage, allowing users to save on costs, particularly for frequent traders or those handling large trading volumes.
Bybit has solidified its leading position in the market by offering maximum leverage of up to 125x, one of the highest available today. With a small initial investment, you can trade with a much larger position, amplifying potential profits from even small market fluctuations.
Bybit’s robust security system is one of its key advantages, which helps protect users’ assets from the risk of being compromised. First, Bybit requires users to enable two-factor authentication when logging in and making important transactions. This adds an extra layer of protection to your account, even if someone gains access to your password. Whenever you log in or make critical changes, you will receive a verification code sent via an app like Google Authenticator or SMS, preventing unauthorized access. In addition, Bybit stores over 95% of user’s assets in cold wallets, completely disconnected from the internet, thereby minimizing the risk of cyber attacks.
Bybit has a dedicated insurance fund to protect traders from excessive losses in Derivatives trading. When a trader's position is liquidated, if the closing price is better than the bankruptcy price, the remaining margin will be added to the insurance fund. On the other hand, if the closing price is worse than the bankruptcy price, causing the total loss to exceed the trader's initial margin, the insurance fund will cover the difference.
Bybit ensures transparency with the Proof of Reserves tool, enabling users to verify the assets held by the exchange. This feature helps confirm that Bybit maintains sufficient reserves to safeguard users’ interests and guarantees its payout capabilities. In addition, users can publicly and transparently check this exchange balance, consolidating trust and peace of mind while trading.
Bybit is not just a regular cryptocurrency exchange, it stands out as a pioneer in derivative trading and blockchain technology. Before joining Bybit; however, it is recommended to execute a few crucial steps:
Bybit provides various products such as Spot, Futures, Perpetual Contracts, etc. to help you flexibly choose the appropriate trading method. However, before initiating trading, it is crucial to define your objectives. Are you a long-term or short-term investor? Is your goal to maximize profits or minimize risks? If you are a long-term investor, you might focus on Spot trading with stable assets. Meanwhile, if you are pursuing quick profits from short-term fluctuations, tradings such as Futures and Perpetual Contracts with leverage are more likely to be a better choice. For novice traders, starting with Spot trading is a great way to get familiar with the market.
Bybit's biggest draw is its offering of up to 125x leverage. However, leverage is a double-edged sword. Profits can increase quickly, but the risk of blowing up your account is equally high. If you are a beginner, it is advisable to begin with low leverage (2x–5x) and gradually increase it as you understand the market.
The Testnet feature is incredibly valuable for those new to the market. It is a simulated environment that enables you to trade risk-free. You can experiment with different trading strategies without worrying about losing real money, helping you build confidence and understand how the market and the trading platform work. Therefore, take the time to familiarize yourself with the interface and its features before making an official investment.
Bybit also regularly holds exciting events and airdrops. Participating in these programs allows you to receive free tokens from new projects or incentives for reaching a certain trading volume. It is a great way to maximize your profits on Bybit.
Bybit's security system is quite robust, but it is recommended not to overlook this step. Enable two-factor authentication (2FA) to enhance the security of your account and avoid trading on public devices to protect your assets from potential risks.
Cryptocurrency trading is always risky, but with a clear plan and solid knowledge, Bybit can become a powerful tool for you to enter the world of digital finance. If you are a novice, cautiously start and only invest in what you can afford to lose. Take the time to learn and experiment with the tools on Testnet before committing to real trading. Once you feel confident, open an account on Bybit to kick off your investment journey. Remember that understanding and patience are the keys to your success in the cryptocurrency market.
In the end, we hope this blog post will help you make an informed decision before making a significant investment. For more information about the Bybit exchange, please contact us at TRADEGURUZ. We are always ready to support you.
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