ByBit Futures Trading Explained
When it comes to futures trading, there are plenty of things to be considered. Although trading futures is relatively simple, there are variables that tend to make these trades more complex. For instance, the platform you choose to use can play a major role in how these trades unfold, how and when the fees are assessed, and more. Nevertheless, with so many platforms to choose from, it can be difficult to choose which platform to work with. Either way, Bybit is one well-known platform that many people use to trade futures. The following is a list of the pros and cons of doing so.
ByBit Futures Pros and Cons
For those who are unfamiliar with the platform, Bybit is a crypto exchange platform that was founded by industry experts seeking to create a premium-quality customer experience within the trading realm. In an attempt to make trading simpler and more accessible to all, the platform was created to be a one-stop-shop for everything crypto-related. Therefore, Bybit may be an incredible platform to trade futures. Here’s a look at some of the pros and cons of using Bybit:
👍 Pros:
• High liquidity: One of the top benefits of trading futures on Bybit is that it is a highly liquid-able platform. Therefore, users do not have to worry about extended delays in terms of receiving payouts for their futures trades.
• Low fees: Another benefit of using Bybit to trade futures is that the platform has low trading fees as well as low fees in general. Therefore, when it is time to make trades, you will not have to be concerned with excessive fees, which can lower the profit margin.
• Lots of tradable contracts: Additionally, Bybit offers lots of tradable contracts to users.
• 24/7 customer support: Another excellent benefit is that Bybit offers 24/7 customer support. This means you will not have to worry about receiving assistance no matter the day or time.
• Ease of Use: Bybit is also incredibly easy to use. This is primarily because the platform was created by industry experts who wanted to make the investment realm more accessible.
• Referral and affiliate program: Lastly, Bybit has an amazing referral and affiliate program that can be quite lucrative for those who choose to take advantage.
👎 Cons:
• No KYC: One major disadvantage of using Bybit is that there is no KYC. Therefore, the platform is not the most secure and could potentially become a hotbed for scamming and other fraudulent activities.
• Withdrawal limitations: Another negative aspect of using Bybit is that there are withdrawal limitations. In particular, the Bybit maximum withdrawal limit is 500 BTC per day. Therefore, those who wish to withdraw more money must schedule multiple payments for multiple days in advance.
ByBit Futures Fees
When it comes to Bybit futures fees, there are some things to be aware of. For instance, although the platform is heralded for its low fees, it is by no means a fee-free platform. Moreover, it does not assess withdrawal fees. However, the platform does charge 0.1% trading fees on most things, and there are no debit card purchase fees.
ByBit Fees ReviewByBit Futures Fees vs Competitors
| Fee | ByBit | Binance | Kraken | Crypto.com |
|---|---|---|---|---|
| Max Maker | 0.01% | 0.02% | 0.02% | 0.05% |
| Max Taker | 0.06% | 0.04% | 0.05% | 0.07% |
| Min Maker | 0% | 0% | 0% | 0% |
| Min Taker | 0.03% | 0% | 0% | 0.015% |
ByBit Futures Tradable Contracts
The following is the total number of ByBit contracts and list all types of ByBit contracts.
Binance vs Futures s Competitors - Tradable Markets
| ByBit | Binance | Kraken | Crypto.com | |
|---|---|---|---|---|
| Tradable markets | 114 | 200 | 28 | 63 |
ByBit Futures Liquidity
In terms of liquidity, Bybit is considered highly impressive when compared to most other platforms. The level of liquidity matters because this tells users how capable the platform is of cashing out futures and other financial products at any given time. Here is how it measures up to other platforms such as Binance, Kraken, and Crypto.com:
Bybit: $16,960,326,536
Binance: $75,681,815,101
Kraken: $109,609,475
Crypto.com: $2,281,997,247
Therefore, although the platform is relatively new, it still holds its own against many of the top competitors.
ByBit Futures Leverage
When it comes to isolated margins, there are plenty of things to take note of. First of all, virtually every kind of trading and investment includes two aspects: profit & loss, as well as risk management. However, the leverage is the most prominent and important factor of the two. This is because leverage is created to adjust the margin rate used for position. Moreover, as far as Bybit is concerned, the leverage functions as a way to adjust the initial margin rate used for your position.
Moreover, one interesting aspect of Bybit futures leverage is that the margin can be seen as collateral. In other words, it can be taken to represent the amount of risk a trader is willing to take on any given investment. Nevertheless, it’s important to note that the higher the leverage is, the less the margin needs to be used. Additionally, traders can open a larger-sized position and boost their profits from the increased position, using the same amount of margin. Also, the position liquidation price is more prone to the entry price. Moreover, since there is no room for loss, this means that the position can be liquidated more simply.
Another thing to be aware of when dealing with margins is that the lower the leverage, the more the margin is used. Therefore, the position size that any given trader could open might be relatively limited, With the same amount of margin. However, traders may not procure the gain from a substantial position size. Nonetheless, the liquidation price of the position will be further away from the entry price. This means the position will not be easily liquidated due to the fact that there is an increased possibility of loss.
In terms of max leverage, users can take advantage of 100x leverage on Bitcoin and 50x leverage on other currencies.
How to Trade Bitcoin Futures on ByBIt
If you are interested in trading Bitcoin Futures on Bybit, here are the steps you should take
Register and create a Bybit account.
Deposit money into your account for your trades.
Click on ‘derivatives.’
Click on ‘USDT Perpetual.’
Check the top left-hand side of the page to find the currencies available for trades.
Select ‘Bitcoin.’
Decide if you want to long or short the coin.
Choose your leverage.
Set your limit for ‘order price.’
Add your order quantity.
Choose ‘take profit’ and ‘stop loss’ values.
Click on ‘buy long’ or ‘sell short.’
FAQ
Are trading fees assessed on every futures trade?
Yes, you will be expected to pay trading fees on every single futures trade. Although their trading fees are relatively low, you will still be accessed fees for every transaction.
What are ByVotes?
Also known as derivatives, ByVotes make it possible for Bybit users to vote for their favorite projects. The projects with the most votes are then listed on the Derivatives trading platform. From there, users who vote for the winning project divide the campaign rewards. These rewards are composed of the first two weeks of trading fees from when the winning project was first listed.
In how many languages does Bybit offer customer support?
Bybit offers customer support in 20 languages. The languages are as follows:
● English
● Arabic
● Chinese
● Hindi
● Indonesian
● Malay
● Persian
● Urdu
● Bengali
● Thai
● Vietnamese
● Russian
● Korean
● Japanese
● Spanish
● Portuguese (Portugal, Brazil)
● Italian
● French
● German
● Turkish
How long do withdrawals take on the Bybit platform?
Withdrawals typically take between 30 minutes to an hour once the process has been initiated.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.