Bybit is a cryptocurrency derivative exchange that launched its services at the end of 2018.
The exchange gives traders the ability to trade Cryptocurrency perpetual contracts with up to 100: 1 leverage. In their short time in operation, the exchange has managed to build up sizable liquidity.
However, can such a new exchange really be trusted?
In this Bybit review, we will give you everything you need to know about the exchange. We will also give you some top tips when it comes to trading crypto futures.
Bybit is P2P cryptocurrency futures exchange that is based in Singapore. The exchange operates under Bybit Fintech Limited which is a company that is registered in the British Virgin Islands.
In their about us page, the exchange claims that they have a team which is comprised of experts in blockchain technology and finance. For example, their technology team has people who hail from Morgan Stanley, Tencent etc. You can check them out on linkedin.
The primary product offered on the exchange is perpetual futures products with 100:1 leverage. This means that they are trying to compete with established exchanges such as BitMEX and Deribit which have similar non-expiry futures products.
While there are many similarities between the exchanges, there are some unique features that Bybit have included that could make them attractive. We will touch on these features when we cover their trading technology.
The exchange is open to most traders around the world and the website has been translated into English, Simplified and Traditional Chinese, Korean, Japanese and recently Russian. However, there are some jurisdictions that they do not operate in and these include the likes of the USA, Syria, and the Canadian province of Quebec.
Is Bybit Safe?
This is one of the most important questions that any exchange user will have. This is especially true when it comes to a new exchange with no established security track record to turn to.
As such, when we look into the safety of an exchange, we are interested in their security policies as it pertains to their coin management, user security tools and of course risk management.
Exchange Security
To counter the threat posed by hackers, Bybit operates a secure cold storage solution. This means that they store the bulk of their crypto reserves, and all of the clients’ funds, in offline wallets that are stored in a secure “air-gapped” location.
There is only a small portion of their own coins that are kept in their “hot wallets” in order to service the needs of traders when it comes to withdrawals. Moreover, if they ever need to move funds from cold storage, they need to use a multi-signature address scheme.
Multi-signature means that the exchange will need more than one key in order to sign a transaction from one wallet to another. This prevents the risk posed by having a single individual manage all the funds on the exchange.
Encrypted Communication
Go for Green with Padlock
In order to prevent the risk posed by online snoops and phishing attacks, the Bybit website has full SSL encryption. This means that all passwords and address information that you send them will be encrypted.
This is also helpful in order to spot a phishing site. If you are on a website that looks like it could be that of Bybit but it does not have a secure padlock in the browser, it is an immediate indication that you are on a phishing site and you should leave immediately.
Insurance Fund
In order to manage the risk posed by shortfalls in futures contract settlement, Bybit operates what they call their “insurance fund”.
Essentially, this fund will be used in the case that a trader gets liquidated at level that is below their “bankruptcy price”. The latter is the price at which the trader’s initial margin has been completely depleted.
