Cryptocurrency derivatives exchange Bybit has been attracting a lot of support and has experienced a significant surge in its customer base as of late. While some of that surge can be attributed to the rise in popularity of cryptocurrency derivatives trading in the broad market, Bybit credits a lot of it to its customer-centric approach and high-quality business practices.
But is Bybit actually worth its salt? It was our time to find out. Read on.
About Bybit Exchange
Bybit is a cryptocurrency derivatives trading platform, headquartered in Singapore. It is registered in the British Virgin Islands (BVI) and has attracted a significant customer base globally since its market entrance in March 2018. The exchange offers services on both its mobile app and window browser. Let’s start by comparing the products offered.
Bybit offers multiple trading pairs – perpetual contracts of BTC/USD, ETH/USD, XRP/USD, EOS/USD and BTC/USDT. However, as you may have guessed, the BTC/USD perpetual swap remains the most sought after product on the platform.
Bybit performs fine in terms of products offered. Sure, some other global exchanges may have more extensive and robust product offerings, but Bybit seems to neutralize any differences with its impressive matching engine which is capable of handling up to 100,000 transactions per second. Now we may not have had an inside look at their infrastructure, but this is an extremely lucrative number for traders looking forward to active trading on the platform.
Speaking of active trading, how is the actual trading experience? What should traders expect?
User Interface and Trading Window
In a sentence – Bybit has a smooth and professional user interface that’s easy to navigate and manage. That’s honestly all there is. No bells and whistles (which some traders may justifiably desire), but yes, certainly a focus on the core trading experience. There was not much to fret upon on understanding while maneuvering their trading view, both on browser and app.
Coming to the trading window or trading view, Bybit offers a well defined and demarcated trading window with different sections like price chart for the trading currency, book order, recent orders, position, and much more.
Additionally, the exchange offers sophisticated solutions for seasoned traders to enjoy a traditional trading experience.
While the trading view for the Bybit platform could be described as similar to other top crypto exchange platforms dealing with crypto derivatives, the bells and whistles do show up in the feature set. What stands apart is the offering of useful features like ‘Take Profit’ or ‘Stop-Loss’ while placing orders. Conditional orders, in other words.
While a Stop-Loss is a standard conventional offering on all exchanges, we found the Take Profit order, which automatically closed our position after our desired amount of profit, fairly useful. Since risk management is a crucial and integral part of the trading journey, this feature should help make traders’ lives easier, in addition to reminding them to set Take Profit/Stop Loss for each of their trades.
Though Bybit doesn’t accept deposits in fiat currencies, it has recently introduced its own ‘Fiat Gateway’ through which customers can buy BTC and ETH using 20 different fiat currencies. This is an excellent move on its part since users would have previously needed to involve an entry-level exchange to trade on Bybit. As you can imagine, it’s a hassle many of us would’ve rather avoided. So, a good move here.
Trading fees are, of course, a crucial parameter to judge crypto exchanges on. Bybit, again performs well here. Takers are charged 0.075% per order and makers rebated 0.025%. What stood apart here was that Bybit is one of the only exchanges that offers makers rebate. This makes leverage trading a lucrative activity to perform on Bybit.
Yes, there are exchanges that do not charge trading fees, so on that metric alone, Bybit may not be the out-and-out winner. But to be honest, the trading charges are fair and in line with global standards.
Bybit charges 0.0005 BTC when a customer withdraws BTC from the Bybit trading platform. Even at a global level, this is lower than what most of the other crypto exchanges charge.
This is another aspect where Bybit performs stands apart, even going ahead and beating its competitors on this parameter. Bybit offers multilingual customer service deepening its reach on a global level.
There’s 24/7 availability for customer queries as well, where Bybit claims a response time of within a minute. When we put this to the test, Bybit’s claims rang true, with representatives responding within a minute of our query on a number of occasions.
Robustness & Credibility
Now credibility is hard to test during a review, of course, since it is built over time and across large groups of users, not a small pool of reviewers. This is why we decided to indulge in some investigation of Bybit’s historical performance.
On March 12, 2020, when major cryptocurrencies took a deep plunge in their value, particularly Bitcoin – which lost more than 3000 USD in value, Bybit performed efficiently compared to other top crypto exchanges.
Several crypto exchanges saw multiple issues, such as those of orders not being placed, halted transactions, and more, that undoubtedly caused a lot of inconvenience to their customers. While we may not have heavily stress-tested Bybit on that particular day, Bybit claims not to have suffered any such issue. A quick lookup online across customer forums and portals do indicate a smooth flow of transactions and trading on the same day. There was a minor report of asset display issues with a few affected users, though this seems to have been resolved very quickly.
Bybit’s claim of a highly efficient matching engine being technically efficient can, therefore, be substantiated by this incident.
All-in-all, it was easy to see that Bybit holds its own in a rather crowded exchange market, and how. What stood out to us was its performance on March 12, and the quick response times of their customer service representatives at all times. Makers will prefer this exchange as well.
Having said that, it is important to acknowledge that the list of products offered by Bybit is not exhaustive, but rather streamlined and efficient. This seems to be because Bybit “prioritises customer trading experience”. In a response to how the listing process works, the exchange said it only lists coins with “sufficient liquidity and volume” where the exchange aims to protect its users from low slippage.
In our opinion, the efficient matching engine, trade handling capacity and cheap fees makes Bybit one of the best exchanges to trade on.
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