Bybit Experience 2021 - Serious Broker or Pure Scam?
Bybit has a narrow range of crypto futures and derivatives of some of the most popular cryptocurrencies. But how reputable is the provider? Is Bybit regulated? What are the benefits of the crypto exchange? What security features does the exchange offer?
We have summarised our Bybit experiences for you in a detailed test report. In it, we go into the functions, features, security and offer - here are the results of our Bybit test.
What is Bybit?
Bybit is a young crypto exchange that was launched on the market in 2018. Registered on the British Virgin Islands, the company has its headquarters in the Southeast Asian financial metropolis of Singapore. By the end of 2020, the company already has over 320,000 users from 85 countries - no verification is required.
Bybit's target group is primarily focused on experienced traders who have already been trading cryptocurrencies and leverage trading for some time. Since the user interface and the range of functions are also tailored to this target audience, beginners may find it less easy to find their way around Bybit.
Margin trading with cryptocurrencies up to 1:100 leverage is possible with Bybit. Within a few months, Bybit has become an important player on the scene and a strong competitor for the crypto derivatives platform Bitmex, which has long been the leader and is increasingly coming under pressure.
This has been made possible by an aggressive marketing plan, a sponsorship partnership with top club Borussia Dortmund that has attracted a lot of media attention, and attractive ByBit bonus programmes, which we will take a closer look at in a moment.
The key data for Bybit
British Virgin Islands, Singapore
BTC, ETH, EOS, XRP, USDT
Visa, Master, Bitcoin
Is Bybit serious? The history of the exchange
When it comes to crypto exchanges, you have to pay particular attention to the seriousness of the provider. Unfortunately, this industry has repeatedly been plagued by scams and fraud. The fact that Bybit is reputable can be determined by several characteristics:
ByBit Exchange had been founded in Singapore in March 2018 by Chinese-born CEO Ben Zhou. Before founding the company, Zhou had already been active as the general manager of the forex platform XM and for some time as a crypto video blogger on YouTube.
In founding Bybit Exchange, Zhou's team took on two important issues in particular: exemplary customer service and first-class order execution to create a professional trading experience.
This is ensured by multilingual customer support (English, Japanese, Korean, Chinese) in 24/7 live chat and a scalability of up to 100,000 transactions per second (TPS).
Although the company headquarters is located in Zhou's home country of Singapore, the company was officially registered in the British Virgin Islands, which is probably primarily due to tax considerations.
In the design of the user interface, ByBit is oriented towards the industry leader Binance.
For those in a hurry: The most important features of Bybit
Bybit is a P2P exchange where crypto derivatives can be traded with a maximum leverage of 1:100. Here are the key features of ByBit explained in key words:
Bybit bonus programmes for new customers
Bybit has taken an important step towards expanding its customer base by introducing attractive bonus programmes for new customers. Several such incentives are run at any given time, and the current promotions can always be viewed at the Rewards Hub on the Bybit website.
For example, you can win $5 in account credit just by following the official Twitter channel of the crypto exchange. Further bonus rewards are available for activities such as active trading over a longer period of time, individual adaptation of trading strategies, etc.
You can also check the exact conditions and guidelines for the bonus programmes in the Rewards Hub on the website.
Bybit registration: step-by-step guide to an account
To be able to trade crypto derivatives at Bybit, you have to go through the simple registration process. You can find out exactly how to do this in our step-by-step guide.
Step 1: Open an account
The first step is to open a trading account with Bybit. To do this, click on the yellow "Signup" button in the upper right corner.
A registration form will now appear centrally on the screen. First click on the tab "Email". Now enter your email address and a secure password in the corresponding form fields. Then click on "Signup" to submit your data.
Now you have to complete a short captcha to prove that a real person is registering here. You will now receive a confirmation e-mail at your e-mail address.
Go to your inbox, open this email and copy the confirmation code it contains. Paste the code into the form field and click on "Complete Registration" - Your Bybit account is now officially opened.
Step 2: Deposit to trading account
After completing step 1, you will be redirected to the trading platform. However, before you can close your first trade, you must of course deposit funds into your trading account.
To do this, click on "Fiat Deposit" in the horizontal navigation bar at the top left. You will now be taken to the deposit menu, where you can buy Bitcoin, Ethereum or the stablecoin USDT with fiat currency (EUR, USD).
We recommend you to buy Bitcoin with the minimum deposit of 250 EUR. Make sure you have selected the currency code "EUR" and then enter the amount of 250 EUR. The corresponding equivalent value in BTC is determined using the current real-time rate. Then click on "Buy now".
You will now be shown a list of available payment processors. With both you have the possibility to deposit by credit card (VISA, Maestro). Choose a provider and click on "Buy" in the right margin to proceed with the deposit process.
You will now be redirected to the website of the regulated payment provider. Follow the instructions to complete the deposit process. You will then be redirected back to the Bybit trading platform.
Step 3: Start trading
After completing the deposit, it's time to open your first bitcoin trade. You can open a long position (buy) or a short position (sell). We assume you want to open a long position at the current market price.
First switch to the "Market" tab. Then enter the amount of US dollars you want to buy in Bitcoin.
Click on the green "Buy / Long" button to open the buy position. You can also buy or sell further BTC holdings from here at any time.
Congratulations, you have already opened your first BTC trade!
Bybit is a crypto derivatives exchange specialising in crypto futures, focusing so far on the major trading pairs. Both normal and inverse crypto derivative contracts are on offer.
Inverse Eternal Contracts
Very high leverage:
Two special features make the crypto derivatives exchange Bybit extremely interesting for experienced crypto traders with a pronounced risk awareness and risk appetite: no verification is required to trade with a maximum leverage of 1:100. This usually falls into the class of professional leverage trading.
eToro experienceA warning is necessary, however: very high leverage is also extremely risky: profits or losses are multiplied - so a bad market performance can quickly result in a high loss!
What is actually Bitcoin futures, swaps, leverage and margin trading in relation to Bybit?
Bybit offers trading in crypto CFDs and other futures contracts. The platform thus focuses on speculative trades where it is possible to profit from price rises and falls within a certain period of time.
Those who want to deposit money at Bybit can thus opt for trading with the following products:
Like CFDs, futures are forward contracts where large profits and losses are possible within a short period of time. In this extremely speculative asset, two parties commit to buy or sell a certain underlying asset at a price defined in advance.
As the name suggests, swaps are exchange derivatives in which two parties exchange receivables and liabilities. These are exchanged in different currencies. At Bybit, there are receivables consisting of Bitcoin and USD.
Leverage is related to the leverage effect where futures, CFDs and other derivatives are traded. Thanks to leverage, profits and losses of a multiple of the strike price can occur, which means that a lot of money can be won and lost even with small investments.
With a leverage of 1:100, the potential profit is a hundred times more. For leverage transactions, Bybit requires the deposit of a safety margin, precisely because these transactions are so risky.
Leverage transactions are also called margin trading. In principle, this margin is a deposit that the trader has to make in order for a leverage transaction to take place. The amount of the margin depends on the leverage and is usually calculated as a percentage. However, the amount does not cover the total amount of a position.
The additional services of Bybit
Bybit's features include:
Here is an overview in table form:
Present Value, current value of a position with -/ + sign
Target profit and stop loss function
Trade in the interface via drag-and-drop
The Bybit Exchange offers all the basic functions and features that you would also expect from a market-leading crypto exchange. Key features also include the Bybit App, available payment methods and numerous security features, which we will take a closer look at in the next sections.
The crypto exchange offers a Bybit App, which is characterised by a high level of user-friendliness and intuitive operation. A horizontal navigation bar at the bottom of the screen lets the user switch between a market overview, price charts, trading alerts and personal deposits.
The Exchange button is centrally located and takes the user directly to the order placement screen. At the top left, the trading pair can be selected and limit or market orders can be placed.
The Bybit app thus shows the full range of functions of the exchange, even the personal settings can be edited in a few seconds.
Security is the top priority when choosing a crypto exchange, unfortunately there have been repeated hacks and negative headlines in the industry due to scam schemes. Bybit is a reputable provider that uses several measures to ensure the highest level of security:
Multi-Signature and Cold-Storage-Wallets,
Insurance Fund and
two-factor authentication (2FA).
Regulation of a crypto exchange is a given with many industry giants, it demonstrates that the company's processes, compliance with AML/KYC policies and the separate management of customer deposits and operating funds are audited and reviewed by a financial regulator.
However, Bybit is not regulated as a crypto exchange, it has not applied for a licence from a regulator. For users, this is an important consideration - some traders may prefer that no user verification is required on the platform. Others may find this untrustworthy.
In the event of a dispute with the crypto exchange, this must be resolved directly - there is no dispute resolution body or supervisory authority to contact.
Brokers and financial service providers that are registered with a European financial supervisory authority offer their customers legal deposit protection as required by EU directives. The award-winning trading platform eToro, for example, offers such a deposit guarantee.
However, Bybit is registered in the British Virgin Islands and is an unregulated exchange. Therefore, there is unfortunately no legal deposit protection for users of the payment means deposited with the broker.
Bybit fees, deposit and withdrawal methods
Traders can be classified as market makers or market takers. Either a trading fee or a trading rebate is charged for all executed orders.
Market makers who demand liquidity and thus withdraw it from the order book are charged a trading fee.
Market Makers who provide liquidity and increase the market depth of the order book receive a rebate (negative trading fee) from Bybit.
The trading fee (rebate) is deducted (added) from the account balance and it does not affect the initial margin of the order.
Eternal contract (inverse)
BTC / USD
ETH / USD
XRP / USD
EOS / USD
BTC / USDT
In principle, there are two different deposit methods at Bybit: cryptocurrencies or fiat currency. Many traders will prefer to transfer existing crypto assets such as BTC or ETH directly into their corresponding exchange wallet in order to be able to trade with them.
Since October 2020, there has also been a fiat gateway through which you can deposit in EUR, USD or other fiat currencies by credit card. Unfortunately, there are small deposit fees, but this will still be the best option for beginners.
The comparison of fees between Bybit and other providers
Here is an overview of the Bybit fees compared to the competition:
Is Bybit a scam?
Some readers have written to us asking whether Bybit is a scam. We can confidently say: No. It is obvious that Bybit is serious and trustworthy, the provider enjoys an excellent reputation in the scene.
What is somewhat unusual, however, is that Bybit focuses on professional traders and has not sought regulation of its exchange. The company actively promotes itself with its founder Ben Zhou and the sponsorship of the world-class club Borussia Dortmund. The high level of security that the crypto exchange guarantees with strict measures also speaks for the seriousness of the provider.
We maintain: Bybit is not a scam, but a reputable crypto exchange.
Bybit experiences and user opinions
An important indicator of the quality of an exchange is the experience of existing users. We have looked around the internet for Bybit experiences and user opinions, and the picture is quite clear.
The provider is also very popular among users - the Bybit app has an overall rating of 4.2 out of 5 stars with 788 reviews. This is similar in the Apple App Store, with a solid 3.8 out of 5 stars from just under 300 reviews.
Only on the Trustpilot rating platform have primarily dissatisfied customers immortalised themselves with a review, currently only a rating of 3.2 stars is posted here with 23 reviews.
Although some traders would prefer somewhat lower fees, no user questions the trustworthiness or functionality of the exchange. In addition, the desire for more currency pairs is expressed.
Customer reviews of Bybit on the internet
Bybit experiences are acceptable according to the Internet. However, many negative reports also stand out.
With currently 60 reviews, the Bybit rating on Trustpilot is acceptable with an average of only 3.0 out of 5 stars. 43% of users have given the platform the highest rating and 47% find the platform unsatisfactory.
Here are a few reviews:
Eric Traubenzucker wrote on 05.02.2021:
Yahya Al-Mahbashi, who left a review on 09/02/2021, also doesn't leave a good hair on Bybit:
"I don't recommend this account. They care about fees and gave me hard time withdrawing money."
"I can't recommend this account. They care about fees and gave me a hard time withdrawing money."
RobinJ, on the other hand, had a good experience. He wrote on 20/12/2020:
"In all a good trading site. This site is the best site I could find for trading. I also like that you can deposit and withdraw with BTC, ETC, EOS, XRP and USDT. There is also an excellent testnet where you can practice trading. Also the support is definitely one of the best and friendliest I've seen. So a super site."
The opinions on Bybit are therefore different. We definitely recommend eToro as a Bybit alternative, our test winner in our Bybit test. eToro is a regulated broker that convinces with low fees and functions such as social trading.
Bybit Advantages & Disadvantages
Conclusion of our Bybit test
Bybit is a crypto exchange that is primarily aimed at professional traders with extensive trading experience. Such traders will appreciate the advantages of the platform such as trading with high 1:100 leverage without the need for user verification. High security standards offer a good trading experience.
Novice traders may find the platform less navigable; no training materials are provided as with other brokers. In addition, one should be aware of the dangers and the risk of loss in leverage trading.
Minor shortcomings are the lack of regulation and the fact that the trading platform and customer service. All in all, Bybit is a solid crypto exchange that offers user-friendly crypto trading at favourable conditions in the browser and smartphone app.
However, if you are looking for a provider that does not have all these shortcomings, you are in much better hands with eToro. It is not for nothing that this trading platform is our test winner, which receives our unqualified recommendation!
Extensive selection of cryptocurrencies
State regulation and licensing
Very beginner-friendly due to free demo account and numerous training opportunities
Bybit is a crypto-derivatives exchange established in Singapore in 2018. Traders can trade crypto derivatives on BTC, ETH, XRP, LTC, XTZ and LINK with 1:100 leverage. No user verification is required. The risk of leverage trading must be considered.
If you want to trade cryptocurrencies with high leverage, Bybit is the right place for you. Moreover, no user verification is required, which some traders may prefer. However, trading is only possible with BTC, ETH, LTC, XRP and XTZ.
Leverage trading with cryptocurrencies is highly speculative and risky. You should never invest more than you can lose. You should know your own risk tolerance. You can start with a minimum deposit of 250 USD.
The duration of a withdrawal at Bybit depends on the chosen method. A payout in cryptocurrency can be made within less than 1 hour. A payout via the fiat gateway can take several business days.
For successful trading at Bybit, one should already have experience with crypto trading. Knowledge of technical analysis of price charts is helpful. It is also important not to use too much leverage and to open well-considered trades.