Key Insights
- The world of crypto has evolved massively so far, with many platforms now available for trading, lending, etc.
- One of these is Bybit, which started off as a derivatives exchange and is now an all-rounder.
- This exchange is one of the best to choose from when it comes to perpetual contracts.
- The derivatives market is complex and not very beginner friendly, but Bybit does a great job at bridging the gap.
Crypto has come a long way so far. However, many aspects of this innovative technology are still foreign to some interested investors.
One of these aspects is the issue of exchanges.
It has been more than 15 years since the creation of Bitcoin. And in such a span of time, hundreds of exchanges have popped up all around the world.
These platforms help you to easily buy or sell your favorite cryptocurrencies and in this example, we will be going over Bybit.
What exactly is Bybit and what does it offer? Let’s answer this question.
Bybit, Derivatives and Beyond
One of the aspects of Bybit that helped catapult it into the limelight is its derivatives offerings.
Think of derivatives as assets that “derive” their value from another underlying asset—like Bitcoin or Ethereum.
It’s a lot like holding a signed cheque, instead of having actual money in hand.
The key idea of derivatives is that they allow their investors to speculate on the prices of cryptocurrencies, without actually owning it.
ByBit is great for perpetual contracts in particular, which have no expiry date.
This allows traders to hold positions indefinitely.
However, despite being known for its focus on derivatives, the exchange has broadened its scope to include spot trading, like Binance.
It even has a launchpad for new tokens and a platform for earning passive income.
What Are Bybit’s Key Features
So what makes Bybit truly unique? To start with, the exchange features Derivatives Trading as mentioned earlier, especially with perpetual contracts.
The exchange includes a wide range of popular cryptocurrencies like Bitcoin and Ethereum, as well as a whole lineup of altcoins.
Bybit also offers high leverage to traders, allowing them to amplify their possible gains (or losses), depending on how the market moves.
The exchange also features a spot platform which allows users to buy or sell cryptocurrencies directly.
This is a lot more straightforward compared to derivatives, and allows customers to own the actual digital assets.
ByBit Earn
Moreover, ByBit features sub-platforms like Bybit Earn, which is a section that gives users various ways to earn passive income.
Users can also choose to stake their cryptocurrencies to earn passive rewards, not to mention flexible savings accounts and dual asset investment products.
Bybit Launchpad
The launchpad feature of the exchange allows new crypto projects to gain exposure and raise funds for their actual launch.
Users can participate in things like token sales and even acquire new tokens at early stages.
This can be a great way for users to gain access to new projects before they become widely available and their prices skyrocket.
Copy Trading
Bybit even allows users to copy the trades of experienced traders. This is a great way for newcomers to take advantage of the market.
It is also very useful for users who do not have the time to actively manage their portfolios.
User Interface and Security
Bybit is particular about maintaining a user-friendly interface. While the derivatives market can be very complex for newcomers, ByBit presents data in such a way that it is relatively intuitive for even the newest of users.
The platform is available on both desktop and mobile devices, with all versions providing all the important features on the go.
Bybit also offers great charting tools and order types to cater to different traders with different trading styles.
Asides from user interfacing, Bybit offers top-notch security, and has taken steps to secure the safety of user funds.
The exchange uses cold storage to keep a major portion of its assets, and has implemented multi-factor authentication for that extra kick of security.
Bybit also has one of the best risk-management strategies on the market, especially with how it continued to process transactions even despite being hacked for $1.5 billion only recently.
Bybit caters to a wide range of users.
Traders interested in derivatives trading will find a powerful and feature-rich platform to trade with on Bybit.
The same goes for beginners who want to buy and hold their crypto on the spot exchange.
Users who want to earn passive income can explore the Bybit Earn section, while “early birds” will easily feel comfortable on the launchpad.
However like any other platform, Bybit has its strengths and weaknesses.
For the pros, Bybit is a robust derivatives platform with a user friendly interface and a wide range of services.
It features strong and proven security measures, along with high liquidity that makes trading as smooth as can be.
On the other hand, derivatives trading can be risky in general, and new traders must be especially careful on Bybit.
Its fee structure can also be complex, and it takes some time to get the hang of.
However, Bybit is still growing, and the regulatory landscape for crypto is still evolving.
The exchange remains one of the most comprehensive platforms that caters to both seasoned traders and beginners alike.
Investors must always remember to do their own research before trading, and remember that Bybit is merely a tool on the path to the true freedom that crypto aims to provide.
