Cryptos
  • Bitcoin
  • Ethereum
Additional info
  • .025% rebate on maker; .075% taker
    Trading Fees
  • Spot Margin
    Margin Trading
  • support@bybit.zendesk.com
    Email
Deposit
  • Crypto Only
Currencies
  • Crypto Only
Leverage
  • Up to 100:1
Pros
  • Deposit either bitcoin or ethereum (coming soon)
  • New traders given free cash to trade with
  • High leverages, low fees
Cons
  • Working on bumping up the liquidity – getting there, but still a work in progress..

Bybit is a Singapore-based bitcoin derivatives platform which is attempting to position itself as an alternative to bitmex. Bybit is very similar to the market’s largest futures exchange – and we will outline the similarities in a platform analysis below – but with some notable differences. Whether you decide to try out bybit instead of bitmex is how important those differences are to you:

  • Bitby will offer a Ethereum perpetual swap contract, which will be collateralized in Ethereum. Bitmex of course accepts only bitcoin deposits.
  • Bitby has truly EXCELLENT support, with almost instant email response and live support chat agents waiting to hear from you in the chat box. They do not have a troll box like bitmex. To be honest, the troll box on bitmex is in large part a cesspool of idiocy, and has stopped really adding anything.
  • Bitby offers only perpetual swaps, there are not futures markets.
  • Bitby offers only bitcoin and ethereum swaps, with no additional altcoins integrated.

And of course, bitby has much less liquidity at the moment, but as the product launched mid-2018, this is to be expected.

Opening an Account

ByBit makes it extremely simple to register and deposit in your account – as a matter of fact, you can get trading within just a few minutes.

Registration requires just an email, a password – don’t forget to use Referral Code ywOW6 to take advantage of exclusive offers we provide from time to time. Note that Singapore and US traders are not allowed, though the bitcoin/Ethereum only deposit options, combined with email registration, means that only IP is used to determine country.

Once you have made your deposit, you will receive a number of spins on the By Bit wheel of fortune. You get one spin for registering your email, another for registering your phone, and then up to an additional 5 spins based on your deposit amount. Anything higher than .16 bitcoin deposit gets you the max. Each spin gets you from $5 to $1,000 in trading credit. Note that this money may not be withdrawn – only the profits generated from trading with it are eligible for withdrawal.

The Trading Platform

The trading platform is conspicuously similar to bitmex – but if it ain’t broke, don’t fix it.

BitBy uses a tradingview for charting and market depth, and then a trade slip based on the bitmex design.

  

The trade slip is similar, as are the contract details methodology, though some of the vernacular is a bit different. The conditional order – what bitmex calls stop market – holds back an order from being placed until the market hits a particular trigger.  

How ByBit can offer 100X Leverage

Bybit currently offers only the perpetual swap, which is an instrument meant to track the current market value of bitcoin, while allowing for extremely high leverages. Traditionally, very high leverages have been offered only by CFD platforms, in which the platform acts as the market maker and sets the underlying price (an uncomfortable conflict of interest). How can an exchange, in which users set their own buy/sell prices, ensure that their derivative prices remain close to the actual market it is meant to represent? They use what is known as a funding rate, in which long or short positions will pay their counterpart a certain percentage once every eight hours. This percentage is set to push equilibrium towards a representative price, as if the long price is too expensive, the funding rate paid to shorts will encourage the price to move in an appropriate direction.

Leverage, fees, etc

As liquidity is still somewhat low, the initial margin varies depending on the size of the position, which is shown below.

BTC Risk LimitInitial MarginMax LeverageETH Risk LimitInitial MarginMax Leverage
100 BTC1%100300 ETH1%100
150 BTC1.5%66600 ETH1.5%66
200 BTC2%501000 ETH2%50
250 BTC2.5%402000 ETH2.5%33
300 BTC3%333000 ETH3%25
350 BTC3.5%284000 ETH3.5%20
400 BTC4%255000 ETH4%16
450 BTC4.5%226000 ETH4.5%14
500 BTC5%207000 ETH5%12
500 BTC5.5%188000 ETH5.5%11

Maintenance margin, the point under which your position will be liquidated, is always set at .5%, regardless of your position size.

The fees are extremely competitive, with maker getting a rebate of .025%, and takers contributing .075%.

Insurance at ByBit

Imagine if the market moves so quickly against your position that it is unable to be properly liquidated, and actually goes into negative. As there is no such thing as a negative balance at bybit, such a situation – and this can happen considering the massive leverages offered, though it is very rare – is managed via an insurance fund and “auto-deleveraging”. A small percentage of the fees collected by ByBit is diverted to the insurance fund, which is used to cover any negatives generated by failure to properly liquidate positions. A running track of the insurance fund is displayed by ByBit, and we can see that, as of Jan 2019, there has been no dipping into the fund.

In the case that a shortfall is larger than the insurance fund reserves, then a process known as auto-deleveraging – aka socialized losses – is used. Basically, traders with the largest profit positions will be closed with part of the profits contributed to support the losses.   

Bottom Line

ByBit has enough liquidity for trading, and is extremely focused on providing a quality experience for new traders. Support is prompt, knowledgeable, and catered to both eastern and western audiences. While the product is based on bitmex, there are some very interesting and important differences, and there is a demographic that will prefer to trade with bybit. Building exchange liquidity is not easy, but it seems that bybit is making a dent.