ByBit USA Review
ByBit is a crypto derivatives trading platform headquartered in Dubai (formerly Singapore until January 2023). The company began operations in 2018 and is one of the fast-expanding crypto platforms in the world. Its platform supports derivatives and spot crypto trading and provides users with advanced trading tools. With over 500 employees, the company's vision is to be "a crypto ark of the world."
Despite its accessibility and increasing popularity worldwide, ByBit's services are restricted in the United States. Other excluded jurisdictions include the UK, Singapore, Mainland China, Canada, North Korea, and Iran. However, the platform is available to more than two million users worldwide, including in countries like Australia, Cyprus, and France.
ByBit has attracted mixed reviews, and there is some uncertainty regarding its legality and safety, particularly among crypto traders in the US. We researched if it's safe and legal to use ByBit USA to clarify the issue.
ByBit - General Information
ByBit is an intuitive trading exchange initially registered in the British Virgin Islands. It allows crypto traders to engage in spot, derivatives, and margins trading, offering over 189 cryptocurrencies on a secure and transparent platform.
Derivatives trading options on ByBit include Inverse Perpetual, Inverse Futures, and USDT Perpetual. Users also get to enjoy:
Fast transaction execution.
Asset security.
Testnet versions for demo trading.
Easy-to-use gateway for fiat deposits.
NFT’s marketplace.
ByBit serves more than two million registered users, making it one of the biggest crypto derivatives exchange platforms. With over 10 billion USD worth of transactions per day, the platform boasts high liquidity. Users can trade up to 100 cryptocurrency pairs, including XRP/BTC, BTC/USDT, LTC/USDT, EOS/USDT, and XRP/USDT.
Trading fees are pretty competitive; users are charged 0.05% of each transaction in maker-taker fees and above 0.2% in spot trading fees. Also, there are no charges on deposits. But, traders will be charged a small fee on withdrawals.
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💰 Account currency:
Cryptocurrencies
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🚀 Minimum deposit:
From USD 1
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⚖️ Leverage:
Up to 1:100
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💱 Spread:
From USD 1
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🔧 Instruments:
BTC/USD, ETH/USD, XRP/USD, EOS/USD, and BTC/USDT, USDT pairs — ETH/USDT, LINK/USDT, LTC/USDT, XTZ/USDT
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💹 Margin Call / Stop Out:
No
ByBit Pros and Cons
👍 Pros
•100x leveraged trading on cryptocurrencies.
•Easy-to-use platform with advanced trading tools, including trading bots.
•Fast transaction speeds of (100000+) transactions per second.
•Top-level security features and measures are in place to ensure asset protection.
•Generous affiliate program
👎 Cons
•Not available to crypto traders in the US
•Lacks strict ID verification and KYC policy
Is ByBit Legal in the US?
The ByBit trading exchange is blocked to users in the United states. The platform requires traders to confirm that they do not reside in the US before signing up. ByBit is illegal in the US because it does not yet comply with the regulatory laws of financial regulatory bodies like the Security and Exchange Commission (SEC).
The company cites the ambiguity regarding US crypto laws and policies and the fear of litigation as reasons for its decision to deny US users access to its trading platform.
Can I Trade Crypto Derivatives in the US?
US traders can trade SEC-approved cryptocurrency futures and options on Chicago Mercantile Exchange (CME) and Cboe Global Markets. Products available on CME include Bitcoin Futures and options, Micro Bitcoin futures, Ether Futures, and Micro Ether futures.
Cboe Global Markets recently acquired ErisX, a crypto derivatives exchange. The acquisition means US traders can legally trade Crypto Derivatives and Futures using the Cboe platform. Cboe offers bounded futures contracts for Bitcoin and Ethereum.
CME and Cboe offer crypto derivatives trading services, but traders should be aware of some contrasts between their contracts:
Both platforms settle bitcoin futures contracts in USD. Cboe contracts are priced off in a single auction, while CME contracts are priced based on the CME Bitcoin Reference Rate (BRR).
CME lists monthly contracts in March, June, September and December, while Cboe lists contracts for three serial months from March.
CME places price limits (circuit breakers) on futures contracts, while Cboe applies trading halts based on certain conditions.
Can You Use ByBit in the US?
ByBit is not available to US citizens. The platform automatically denies US traders access using an IP address detection and banning system. The ban also extends to US citizens who live abroad. Yet, some traders have figured out a way to bypass this restriction- ByBit VPN. Using ByBit VPN to mask their actual locations allows them to gain unauthorised access to the exchange. This act is illegal and extremely risky as any account discovered to have gained access from the US will permanently have all its assets frozen. We do not recommend breaking the law, and users consider this option at their own risk.
Best ByBit USA Alternatives
ByBit USA is not officially available to US residents. So, traders will have to consider using other trading platforms. Exchanges that offer similar services as ByBit and are authorised and regulated in the US are preferred. Here are two of the best trading platforms we recommend as ByBit USA alternatives:
Coinbase Pro - Best For Crypto Spot
Coinbase Global Inc, founded in 2012, developed Coinbase Pro, an ideal trading platform for crypto traders with advanced skills. The exchange provides a legal and secure way to trade digital assets in the US. Although it does not have a demo account feature, the exchange provides advanced charting and analysis tools.
Coinbase Pro provides access to more than 250 cryptocurrencies, including BTC, ETH, LTC, XRP, IOTA, NEO, EOS, XMR, FIL, and many more. Also, the exchange supports fiat currencies like USD, EUR, and GBP. Maker and taker fees are higher on Coinbase Pro; the platform takes 0.5% of transactions as maker-taker fees. However, there are no charges for withdrawals.
Coinbase Pro is ideal for spot trading as it packs multiple options, including stop and limit orders and many coin options.
The security features, including 2FA, are among the best in the industry. Traders' assets are stored in cold storage to prevent hacking or theft, and the FDIC insures USD amounts.
Interactive Brokers - Best For SEC Regulated Crypto Futures
Interactive Brokers is one of the oldest and biggest US-based brokerage firms globally. The broker's operations are SEC-regulated, and it has a good track record of safety and asset security. Users can trade Bitcoin and Ethereum futures and CME Group futures. Other tradable securities include options, ETFs, Metals and Mutual funds. Other perks of trading on the platform include low commissions from 0.12% -to 0.18%, no added spreads, and zero custody fees.
Top 5 ByBit Reviews
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Comment
The Bybit designed for every level of crypto traders. the simple user interface has been helpful. I only have one concern but I cannot say it is an issue at the moment. This has to do with when i reached out with the customer care to inquire if i can trade futures. The response that i can trade a range of USDC-settled contracts including both USDC Perpetual and USDC Futures Contracts came, but when it did i was off my screen and attending to other things. Can't say if the slow response is due to network or other external issues. I don't know if it is too early to conclude that the customer service is slow.
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Comment
Guys, it is normal to see trading as a game of chance. Nonetheless, iif you can learn how to use analyze financial markets using tools like line charts, indicators, and other trading tools, you will minimize the rate at which you lose out on profitable trades when you trade with real money. When you register on a platform like Bybit, get familiar with the various trading tools available and how to use them. There are also useful tools you can use to see what will happen if a trade goes your way or against you. Just like the one tool I use daily before I open a trade position which is the pre order calculator. I use this tool to calculate and know the possible profit and loss and ROI if I open trade with any strategy I created
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Comment
At first I doubted whether to work with Bybit. The conditions here are favorable, but I was still afraid to work with the company I knew nothing about. But I decided to try with small amounts and realized that the broker works well. The money was withdrawn quickly and the fee was minimal, so I stopped being afraid. I’ve been a grateful client of this company for six months now!
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Comment
I was looking for a reliable exchange and paid attention to Bybit, which has long been on the market and has a good reputation. My friend, who has been trading on Bybit for many years, also recommended this company. Now, after a few years I consider myself a more experienced trader and I am sure that I chose the right one. I am pleased with Bybit’s work, although the income is not too high, but stable. Withdrawals are very fast, but everything depends on the chosen payment system.
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Comment
I have never had any problems with this company. I will even say that this is the best thing that I have seen in the last year. They try to please everyone. I can only praise.
FAQ
Can US investors trade crypto derivatives outside the US on ByBit?
No. Regardless of geographical location, US citizens are prohibited from trading on ByBit. Although some US traders use ByBit VPN to gain access to the platform, we do not recommend it.
How safe is futures trading?
Futures trading can potentially rake in huge profits for traders. But as is the case with other forms of crypto-based investments, trading futures contracts can be precarious. Some consider it even riskier than equity trading because of its high leverage.
Is ByBit regulated in any part of the world?
ByBit’s services are available to users in most parts of the world (except the US, Canada, Singapore, Cuba, Mainland China and a few other countries) but are not regulated.
Is ByBit safe?
Although the exchange is non-regulated, it has employed adequate security measures. ByBit stores clients' funds in cold storage and manually reviews withdrawal requests to prevent theft.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!