The future of currency is digital, and there's no better time to jump in than right now.

But starting your cryptocurrency journey, the sheer number of trading platforms available is very overwhelming - each promising they're better than the next!

A flurry of features to consider, such as trading fees, customer support, security, reliability, all set each platform apart from each other, but which one is best for you? 

One of the biggest up-and-coming crypto exchanges, and the one we're discussing today, is ByBit

ByBit is a cryptocurrency derivatives exchange that emphasizes on leverage trading. What a mouthful! Let's break down just exactly what this means:

What is a derivatives exchange?

As an example, let's take a look at our friend Bob.

Bob buys a classic car at an auction because he thinks he can sell it for more money at next year's auction. I say that Bob is an idiot and the car is going to lose value, while you say Bob is smart and the car is going to gain value. So you and I make a $50 bet on whether Bob will make money or not.

We write this bet down on a piece of paper and shake on it.

  • Bob bought an asset. He directly invested in the car by buying it.
  • You and I invested in a derivative (the piece of paper with our bet on it). That piece of paper is either worth $50 or will cost $50 in one year's time. It's a derivative because even though neither of us invested in the underlying asset (the classic car), the value of the paper is based on what happens to the price of the classic car.

To make this example relevant to us, the underlying asset (the classic car) can be substituted with your cryptocurrency of choice, and Bob will be ByBit!

What is leverage trading?

Simply put, leverage trading is a technique that allows you to increase your trading profits by taking on more risk.

For example, let's say I am confident that Bitcoin will go up 10% today, but I can only raise $1000 to invest. I could just invest the $1000 and call it a day, or I could leverage my investment by buying on margin. That means the broker lets me buy $10,000 shares worth, charging me a small fee for the privilege. If the stock goes up 10%, I make $1000. But if it goes down 20%, I lose $2000, more money than I started with.

What is ByBit?

These two terms above are very important in understanding what ByBit brings to the table.

ByBit is a cryptocurrency derivatives exchange that emphasizes on leverage trading. This platform gives traders the ability to trade perpetual cryptocurrency contracts with up to 100x leverage.

Based in Singapore, Bybit supports traders from all over the world, including Europe, Russia, Japan, South Korea, North America, and Africa. This platform was founded by an experienced team of professionals from the Forex industry, investment banking, and early crypto-adopters community.

ByBit Features

As mentioned before, the fact that ByBit allows its users to participate in leveraged trading, sets it apart from other traditional crypto-trading platforms. 

Let's quickly run through the specifications:

  • Allows the purchase & selling of the following cryptocurrencies: BTC, ETH, LTC, XRP, BCH, LINK, XTZ
  • Up to 100x leverage
  • Anonymous trading, requires no verification
  • Dedicated 24/7 customer support

ByBit Mobile App

It's important to always be on top of your crypto-game, even when on the move!

ByBit provides a sleek mobile app, with a responsive user-friendly interface, packed with highly intuitive features. The app includes all the run-of-the-mill trading features, allowing you to easily and quickly buy and sell, monitor market changes and check your balance.

 bybit mobile app

Superfast trading speeds

BitMEX, another popular cryptocurrency exchange platform, is infamous for its poor server upkeep and trades overloading the system - which has caused traders to lose large amounts of money.

ByBit on the other hand, prides itself in its trading speeds and uptimes, allowing 100,000 transactions per minute and extremely minimal server downtimes.

Take-Profit & Stop Loss Orders

In an attempt to maintain risk management, Bybit allows traders to set take profit/loss orders on their mobile app. These profit/loss orders can be easily adjusted by dragging the limit orders on the chart.

This feature is surprisingly rare among leverage trading platforms, as it reduces risk and gives customers safety of mind.

Stay alert with price notifications

Helping you to stay on top of the market, the mobile app allows you to stipulate prices you want to be notified for, leading you to be the first to know about any buying or selling opportunities.

Desktop Interface

For keen cryptocurrency traders, the platform's charting interface is a huge consideration. Although it might be a bit overwhelming at the start, this charting interface is advanced and packed with analytical features - so the learning curve is well worth it.

Running through the interface, let's start at the top:

The top bar acts as an anchor, being static and allowing you to easily return back to the "Trade" window to check your assets. This bar also grants you access to ByBit's blog & "Learn", allowing you to further your knowledge about the platform and crypto as a whole. These pages also contain a number of useful guides and FAQ's, which can prove very valuable to new users.

Moving down to the centerpiece of the interface, ByBit's chart proves to be extremely informative, as well as being eye-candy for any stat-nerds. The chart is smooth and clean, allowing you to easily pinch in and out to enlarge or zoom out to cover a wider area.

The chart can be sorted into different timeframes, allowing you to monitor market movements down to even the last minute. The chart also provides you with tools to draw trend lines, index the chart, and chart patterns to perfectly time a trade

The charting interface on ByBit is truly exceptional if you're a well-informed trader - the information and analytics provided by these charts are invaluable.

How do I deposit into ByBit?

ByBit allows customers to deposit government backed currency (also known as "fiat") in exchange for cryptocurrency. The procedure is simple and can be done on the mobile app, as well as on their website.

ByBit's Trading Fees

A necessary evil, trading fees are a fundamental part of trading. Every cryptocurrency exchange has a trading fee attatched when customers purchase, sell or exchange cryptocurrencies.

Whenever you are using a cryptocurrency exchange, you will act as a maker or a taker. It pays (quite literally) to know the difference between the two. Makers increase the depth of the order book and provide liquidity. Takers take liquidity off the order book.

In layman's terms, the order book is the list of all open orders that are currently available on an exchange for a specific trading pair. An open order is essentially another investor saying they are willing to buy or sell an asset at a specific price.

If you are acting as a taker, you ByBit charged you 0.0075% of the exchange, while on the other hand - makers earn a 0.0.25% rebate from ByBit.

Compared to other crypto-exchanges, ByBit's trading fees are quite competitive.

ByBit also does not charge customers for simply depositing crypto to the exchange, although there is a minimum Bitcoin network fee that is charged when withdrawing from ByBit, which comes in at around 0.0005 BTC.

Is ByBit Secure?

ByBit has a multitude of security features to help protect users' funds and information on the website. They have never fallen victim to any serious cyber attacks or theft of funds, due to the following strict security measures they take:

Wallet Cold Storage

Built on the cold wallet system, ByBit stores all digital assets of members offline. These include clients' funds, which are stored in an offline hardware wallet. This is very bad news for potential hackers, because it means that in the rare event of a system compromise, they would still not have access to the required information to be able to steal funds.

Two Factor Authentication

The second big security measure, is Two Factor Authentication. This method of security has become very prevalent in the past few years, as more and more companies allow users to secure their accounts with a second layer of security. This extra layer is optional on ByBit, but it is strongly recommended for all traders.

ByBit Pro's and Cons

Pros:

  • ByBit's robust 100,000 Transactions Per Minute Engine
  • Affordable exchange fees
  • Very useful customer support team
  • FAQ's cover a large amount of beginner topics
  • Sleek, informative interface

Cons:

  • Relatively new exchange platform.

Conclusion

In conclusion ByBit provides an exciting look at the future of cryptocurrency exchanges. This platform uses powerful technology to ensure the smoothest and most secure trading process. Although risky, the 100x leverage margin can net you big money if you play your cards right.

ByBit's anonymity is also alluring, your funds are completely decentralized and not connected to any identity. Their awesome customer support team work around the clock to answer any questions or queries you might have.

Sign up for free on ByBit's website.

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