How To Use Bybit – Step by Step guide

How to use bybit

The Bybit cryptocurrency exchange platform is designed to deliver a state-of-the-art trading experience to all Bitcoin and cryptocurrency users. So, understanding how to use Bybit platform will help you take advantage of its many outstanding features when trading.

Many experienced traders are already pitching their tents with Bybit. Bybit provides users with a secure, fast, and easy-to-use platform. There, traders can experience high-end crypto derivatives and perpetual futures contracts.

Like any other exchange platform, there’s also a lot to learn about trading crypto on Bybit exchange. But given the proper guidance, you’ll be good to go.

So, before we dive into using Bybit, let’s get familiar with some of its outstanding features.

Bybit Quick Features

  • Up to 100x Leverage: Bybit offers crypto derivatives exchange with up to 100x leverage. Leverage is available on XRP and EOS trades for up to 25X.
  • Anonymous Trading: Bybit trading does not require verification or KYC
  • Insurance Fund: Bybit has an insurance fund to settle deficits in the event a trader is liquidated below the bankruptcy price.
  • Dollar Contracts: Each Bybit dollar contract is worth $1
  • Multiple Trading Pairs: The platform allows multiple trades across multiple major cryptocurrencies in the pairs of BTC/USD, ETH/USD, XRP/USD, and EOS/USD. 
  • Super-fast matching engine: According to Bybit, they have a matching engine that works 10x faster than other industry matching engines, able to deliver 100,000 TPS per pair.
  • Multi-Language Support: The exchange platform supports major international languages such as English, Chinese, Traditional Chinese, Korean, and Japanese

Bybit’s Available Deposits

  • BTC
  • ETH
  • EOS
  • XRP

What is Bybit?

Bybit is a cryptocurrency exchange platform that offers crypto traders with Bitcoin and altcoin derivatives and perpetual contracts to perform leverage trading across multiple major cryptocurrencies.

According to the company, they aim “to revolutionize today’s cryptocurrency market by combining the best of cryptocurrencies and traditional finance to bring about the industry’s safest, most reliable, fairest, and most user-friendly exchange to date.”

An Overview of Bybit’s Platform

From a user experience standpoint, Bybit has got a clean and organized platform. You can easily navigate around the platform following a few pointers here and there. And if you’re an experienced trader, you’re likely not going to need much help, if at all.  

From the platform, you can find the order entry panel much similar to the one you would find on all other exchanges. Bybit utilizes an additional feature of a sliding limit price bar and the conditional order bar. These additional features are not found in many other exchanges.

With the sliding bar, it becomes effortless to adjust to a fast-moving market. Hence, no need to re-enter your price continually, you can just slide beyond or below, and you’re good.

Besides these, you’ll also find the isolated margin, which is made so you do not need to expose your account to potential flashes in the market. So, what it means is that you can place individual trade with individual margin allotments.

Why Use Bybit

Although still new, Bybit is at a pace where it is expected to surpass other known exchanges in the industry. For one thing, Bybit has won the hearts of many experienced traders, especially through its high-speed trade matching performance. 

Experienced traders understand the importance of high-speed matching. Otherwise, a system overload would constantly occur – a meme often associated with BitMEX. But with Bybit’s high technical standard, the platform is designed and ready for the future. 

With the ever-increasing popularity of crypto trading, all brokers will become busier and busier. This means that Transactions Per Second is no superfluous luxury. Bybit’s super-fast matching ability makes it a far superior alternative to its counterparts like BitMEX and Deribit.  

Benefits of Using Bybit

Technically, as of now, no exchange platform has even come close to Bybit’s matching engine speed. Exchanges like BitMEX and Deribit pale in comparison, as they could only afford a matching speed of 500 TPS and 5000 TPS respectfully, against Bybit’s 100,000 TPS.

There’s a need to be concerned about an exchange’s ability to conduct order matching systematically. The faster it is, the less likely it is to experience system overload, which could invariably affect orders placed while trading.

Coming to know the benefits and the exciting features of Bybit precedes knowing how to use it. Therefore, let’s whet your appetite by considering a few other things you need to know about Bybit.   

Funds Security

For the security of funds, Bybit utilizes the Hierarchical Deterministic Cold Wallet System for storing all traders’ assets. They also conduct manual withdrawal processes up to three times a day.

Additionally, Bybit has a robust financial plan for insuring funds in the even in the event a trader is liquidated below the bankruptcy price.

Super-Fast Matching Engine

Technically, as of now, no exchange platform has even come close to Bybit’s matching engine speed. Exchanges like BitMEX and Deribit pale in comparison, as they could only afford a matching speed of 500 TPS and 5000 TPS respectfully, against Bybit’s 100,000 TPS.

With Bybit’s super-fast matching engine, traders can enjoy the seamless trading experience without any impact on their trading profits and losses.

No System Overload or Server Downtime

A system overload occurs when the number of orders to be processed by the trading matching engine exceeds its capabilities to handle such orders. The system would be unable to accept new incoming orders until it cleared all the ones in the queue.

When this happens, it becomes challenging for traders to take advantage of the market movement. The result could lead to losing more than they should. What happens is that their orders would stay pending due to technical difficulties and not a lack of bids/offers.

The ever-increasing demand for crypto trading has caused many cryptocurrency exchanges such as BitMEX to experience system overload often than usual. 

What is System Overload?

A system overload occurs when the number of orders to be processed by the trading matching engine exceeds its capabilities to handle such orders. The system would be unable to accept new incoming orders until it cleared all the ones in the queue. 

When this happens, it becomes challenging for traders to take advantage of the market movement. The result could lead to losing more than they should. What happens is that their orders would stay pending due to technical difficulties and not a lack of bids/offers.

The ever-increasing demand for crypto trading has caused many cryptocurrency exchanges such as BitMEX to experience system overload often than usual. 

Take-Profit And Stop-Loss Orders Combined

Take-profit is when an order is closed after attaining a particular level of profit. Bybit provides users with information on how to setup a take profit order in 4 different ways.

Unlike many other exchanges, Bybit allows you to place a trade with both a target and a stop in place, all at once. Rather than have to go through these steps individually, Bybit simplifies this entire process. 

When entering into a trade, you no longer need to set all triggers separately. Leaving a trade open could expose your order position. Even in that short period of opening an order, the market can easily switch directions.

How to Trade on Bybit

Basically, Bybit is the crypto exchange platform for the future.  On it, you place both long and short positions orders. Place a long order by simply clicking on the Buy/Long button if you think the price of the commodity will rise. Otherwise, place a sell/short order if you believe the price of the commodity will go in the opposite direction. Learn more about placing long or short orders on Bybit platform by clicking on this link. 

Also, Bybit contains some advanced order types, namely: Limit, Market, and Conditional orders.

Bybit’s Market Orders

The market order is the simplest type of order. For example, you can select an amount of Bitcoin that you wish to buy or sell. You can then hit the Long or Short button, respectively. Once the order gets to the best available price on the order nook, it will be automatically executed.

Bybit’s Limit Orders

Using the limit order, you can set the price at which your order will be closed. For example, suppose you believe that the price of Bitcoin will drop by $100, but it currently trading say at $9,500. You can just set a limit order to buy it at $9,400. At such, when the market drops to that price, your order will be filled.

Bybit’s Conditional Orders

If you’re still new with crypto trading, then conditional order is not for you. At least, not until you have gained enough experience with trading. Conditional orders are performed automatically once the triggered price is reached. 

For experienced traders, you can set a conditional order by entering a trigger price along with the limit price. 

When you push the trigger price, your order will enter the order book. So, the moment the trigger price is reached, only then will the order be delivered to the market, whether it’s limit or market.

Conditional orders can be used to mimic common orders such as stop-entry orders, stop-loss orders, and take profit orders. 

How Does Bybit work?

In a straightforward term, the Bybit exchange platform is all about cryptocurrency trading. But first, it is crucial to know that accessing and trading on the Bybit platform is done exclusively using cryptocurrency. 

What that means is that you need to deposit an acceptable form of cryptocurrency into the platform after creating an account.  As of today, Bybit does not support asset deposits in fiats such as USD, EUR, or GBP. This indicates that Bybit only allows traders to start trading by depositing either BTC, ETH, EOS, or XRP.

For each trade you execute on Bybit, you can set leverage to indicate whether you want to go for a long or short position. What is leveraging? Simply put, leveraging allows you to increase your profits exponentially. In other words, leverage trading lets you use a small value to trade on a large amount to make an enormously high profit.

How to Margin Trade on Bybit

Earlier, we talked about Bybit’s additional advanced order types, such as the Limit, Market, and Conditional orders. We also talked about short and long position trading.

Ensure you read through the link we suggested above to get a broader understanding of leverage trading and a step-by-step guide on placing your first trade on Bybit

Now, before you enter the position amount on Bybit, you’ll have to select a margin level. Once you do this, Bybit will adjust your position by re-calculating it, and then, you’ll be ready to go. On Bybit, you can trade and lever up some of your assets up to 100x.

CAUTION WHEN SETTING YOUR LEVERAGE POINT: For no reason should you go as high as 100x leverage point due to a high level of market volatility. But most especially, if you’re still a newbie to crypto trading. To be on the safest side, choose 10x as your highest leverage point. You can then go higher as you gain more experience and confidence.

Order Positions

Once you have logged into your account on Bybit, you can view the available order positions in the “Positions” section of the website. There, you can perform different activities such as;

  • Viewing your contracts’ quantity, price, liquidation price, realized and unrealized P&L, etc.
  • Adjusting the margin and leverage
  • Set or change take profit, stop loss and trailing stop
  • Close the position

Opening a Position

Opening a position on Bybit is practically straightforward. After you’ve chosen an order type, all you have to do is enter your desired metrics. Once you’ve done so, you’ll open your position by clicking on the “Buy/Long” or “Sell/Short” button. This depends on whether you want to long or short the cryptocurrency at hand.

After you’ve done so, you will see your position appear in a designated space where you can monitor its performance.

Closing a Position

There are two different to close a position on Bybit. 

  1. The first way to close a position is to click on the Limit” or” Market” icons under the “Positions” section and follow through on the request.
  2. Secondly, you can close a position by placing a new order in the opposite direction. Once the new order has gone through, the position will be closed.

Utilizing Bybit’s Perpetual Contracts

Perpetual Contracts works similar to a traditional futures contract. The only difference is that it does not have an expiry date. As such, traders can enter and hold a position for as long as they want.

Additionally, perpetual contracts imitate the spot margin trading index. It also tracks the underlying global market index price from three major spot trading exchanges through the “Funding” mechanism.

What are Bybit’s Trading fees?

It’s natural for traders to feel concerned about an exchange’s trading fees. Traders want to be sure that the exchange platform they intend to use provides them with a fair trading environment in terms of profits. 

It becomes even more critical when trading more substantial position sizes. Especially, on a leveraged exchange that attracts larger fees than your margin. 

Bybit’s trading fees are, however, quite clear and transparent, as outlined on their website. For a better understanding of Bybit’s trading fees, it’s crucial to know how the Maker and Taker are being operated.

Trading Fees

As mentioned above, Bybit uses the Maker and Taker model for determining its trading fees. On Bybit, trading fees are generally decided on the type of order placed. For the takers, the trading fee is 0.075%, while for the makers, a small 0.025% rebate is given. 

MakerTaker
Bybit Trading Fees 0.075%0.025%

The trading fee is deducted from the account balance, and will not affect the initial margin of the order.

Deposit / Withdrawal Fees

There is no deposit or withdrawal fee on Bybit. There is, however, an adjustable deposit miner fee. Also, there is a fixed miner fee when you’re withdrawing, as shown below:

CoinsBTCETHXRPEOS
Mining Fees0.00050.010.250.1

How to Deposit and Withdraw on Bybit

As of now, to trade on Bybit, you’ll first need to deposit cryptocurrency funds. 

To make a deposit;

  • Select the “Assets” tab on the top navigation bar. You will then see all of the available perpetual contracts. Select the coin you want to use and then click on ‘deposit.’
  • To proceed with your transaction, scan the QR code, or use the wallet address.
  • IMPORTANT: Do not deposit any other coins apart from the ones listed, or risk losing your coins forever. 

Further things to know when making a deposit:

  • For ETH coin, use only direct transfers and not the smart contracts.
  • When depositing XRP coin, ensure you input your UID under the ‘Memo.’
  • For EOS, ensure you input UID under the ‘Optional Notes and ‘Tag’ section

To make a withdrawal;

Follow the following instructions to withdraw your funds on Bybit.

  1. Select the ‘Assets’ box on the top left side of the website. Select the coin to withdraw from, then click ‘Withdraw.’
  2. Next, add a wallet address by clicking on ‘Manage Wallet Address’ under the ‘Assets’ page section. You can also remove a wallet address in this section. Read more on how to add your wallet address HERE.
  3. Select the wallet address and enter the amount you’d want to withdraw. Click ‘Next.’
  4. Verify your withdrawal by clicking on the preferred verification method, say; Google authentication, SMS, or email.
  5. Expect confirmation message on your email and then click on the confirmation link. 

Read detailed information on funds withdrawal on the Bybit exchange HERE.

Conclusion Thoughts

Understanding how to use Bybit is crucial to getting the most out of your trading experience. Bybit takes the security of its traders’ funds seriously. Still, you should be aware that you can lose your money in a flash. 

Trading on any cryptocurrency exchange comes with many risks due to cryptocurrency market volatility. It is then crucial that you trade with caution.

Ensure you take the time to understand how each unique trading feature works on Bybit to increase your chances of profit-making. Leveraged trading will even multiply your profits exponentially if done accurately.  

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