This is a new feature that was recently added to Bybit (https://www.bybit.com/invite?ref=knMkN) which basically allows traders to exchange their current pyshical crypto holdings in the spot market.
Essentially, traders currently have four different cryptocurrencies that they are allowed to trade. Asset Exchange will allow traders to take advantage of quick price changes in the market to exchange one coin for another.
Bybit (https://www.bybit.com/invite?ref=knMkN) Asset Swap
Asset Swap Feature at Bybit (https://www.bybit.com/invite?ref=knMkN) (Converting BTC)
When they are conducting a Asset Swap, they are not doing so directly with Bybit (https://www.bybit.com/invite?ref=knMkN) or with the other traders on an "order book". Their order is essentially getting routed out to other spot crypto exchanges to be executed.
This will ensure fairness as they will be getting the best market price that Bybit (https://www.bybit.com/invite?ref=knMkN) can garner. There are limits that apply to the Asset Swap feature which you can find on their websit.
Bybit (https://www.bybit.com/invite?ref=knMkN) Trading Platform
One of the most important things for the margin trader is to have an effective trading platform with advanced technology. This is especially true when you are trading with a great degree of leverage.
So, how does Bybit (https://www.bybit.com/invite?ref=knMkN) stack up?
The trading platform seems to be relatively well laid out and intuitive. At the top you can toggle between your wallets, and account management. You can also switch between the BTC and ETH futures markets.
Looking at the standard interface, you have the chart and market depth on the left (you can toggle between). Then in the middle you have the order book and the last trades. On the right you have the order forms as well as the contract details.
Bybit (https://www.bybit.com/invite?ref=knMkN) User Interface
User Interface of the Bybit (https://www.bybit.com/invite?ref=knMkN) Trading Platform
Scrolling down from the main interface you have other important trading information. This includes things such as the current market activity and your assets.
Something that we really liked about their interface is that it is customizable and modular. You can detach some of the modules, resize them, and move them around such that they are in your chosen position.
For Night Owls 🦉: Bybit (https://www.bybit.com/invite?ref=knMkN) also offers a night mode that makes reading everything much easier in a dark environment. This can be accessed at the bottom right of the exchange page, next to the languages.
For those seasoned traders among you, you will have noticed that Bybit (https://www.bybit.com/invite?ref=knMkN) uses tradingview charting technology. This third-party charting package is well known in the industry for having the most functionality and features.
With tradingview charts, the budding technical analysts among you can easily lay your studies and follow the important trendlines. It is also in use on a number of other platforms so it is relatively easy for you to adapt if you do move somewhere else.
Top Tip 💯: You can switch out the Tradingview price charts for the market liquidity charts. These are helpful for the trader to determine market sentiment (bullish / bearish)
You will also notice that in your current position / order bar, you have the "ADL ranking" indicator. This will show you where you currently are positioned for potential deleveraging in the case that the ADL is triggered. As mentioned above, this is done to manage risk.
Something that Bybit (https://www.bybit.com/invite?ref=knMkN) appears to be quite proud of is their order matching engine. They claim that this trading engine is able to execute a total of 100,000 transactions per second per contract. So for every new asset they will add, their matching engine will have a dedicated 100,000 transactions per second for that asset only.
Why does this matter?
Well, faster order execution means that there the risk of slippage and trading errors is greatly reduced. Moreover, with an asset that moves as quickly as bitcoin it is really important to be able to match both sides of the order book almost instantaneously.
Bybit (https://www.bybit.com/invite?ref=knMkN) appears to have pretty advanced order functionality on the platform. This is great as it allows you to not only customise your entry levels but it also allows you to manage your risk on the exit levels.
Bybit (https://www.bybit.com/invite?ref=knMkN) Order Form
Bybit (https://www.bybit.com/invite?ref=knMkN) Order Functionality
When you are placing your order, you will see the following order form. At the top of the form you can switch between the order types. Below that you adjust the leverage, price and quantity. There is also information on the contract specifics.
There are three order types that you can place on the Bybit (https://www.bybit.com/invite?ref=knMkN) platform. These are outlined below:
Market Order: This is an order that is placed at the prevailing market price. It will place the order at the "bid" if it is a sell or at the "ask" if it is a buy.
Limit Order: This is an order that is placed at a chosen level that may be away from the market. The order is open for the order life which we cover below.
Conditional Order: This is an order that will become either a market or limit order once certain price levels are reached. When placing the trade, you will define the trigger price along with the direction, quantity, and leverage.
Stop Losses 🛑: When trading with leverage, stop losses are essential. There are 3 different ways in which you can set up a stop-loss at Bybit (https://www.bybit.com/invite?ref=knMkN). These are covered in detail on this page
As mentioned, with the Limit order and the Conditional limit order, the order will have a certain order life. This is for how long the order will remain open until it is "killed". There are three order life options at Bybit (https://www.bybit.com/invite?ref=knMkN):
Good-Till-Cancelled (GTC): This is an order that will remain open until you decide to close it.
Immediate-or-Cancel (IOC):: This order is designed to be filled immediately and at the best price. If there are any portions that are unfilled then this portion will be cancelled. This means that this order type allows for partial order execution.
Fill or Kill (FOK): This order is designed to be filled at the best price in entirety or not at all. This is quite similar to the IOC order except that it does not allow the execution of any partial orders.
On top of all these orders, you also have some optionality around how these orders are executed. For example, with your Limit and Conditional orders you can set them as a "Post Only". This will ensure that when the order it will be done as a "market maker" and you will receive the maker fee.
On top of this, you have the option of making your limit order a "Reduce Only" order. This basically means that the order will only execute if it was going to reduce your position. If the order were to increase the position, it would be amended down or cancelled.
You also have a similar order parameter on the Conditional order. This is called "Close on Trigger" and it can be used in conjunction with your conditional stop losses. It will ensure your stops reduce your position and don't increase it.
One more handy tool that you may want to check out is their position calculator. You may have seen similar tools at other exchanges like BitMEX et al.
Bybit (https://www.bybit.com/invite?ref=knMkN) Position Calculator
Position Calculator at Bybit (https://www.bybit.com/invite?ref=knMkN)
This let's you calculate your your Profit / Loss and ROE on target levels. It can also be used to determine your liquidation levels.
Inverse vs. USDT Contract
Before you can trade on Bybit (https://www.bybit.com/invite?ref=knMkN) you have to understand a very important distinction between the two types of perpetual contracts they have on offer. They differ according to what margin is used.
For the USDT contract, the underlying margin used is Tether. You can think of this as analogous to a contract that has USD as a base currency (given that Tether is a stablecoin). So, the dollar value of your collateral will remain the same.
However, when it comes to the inverse contract, the underlying cryptocurrency itself is used as margin. So, if you are trading BTC/ETH/EOS/XRP as the base currency then your margin will be in this as well. So for example, for ETHUSD contracts you will have ETH as the margin.
The inverse contract is slightly more risky than the USDT contract. This is because not only do you have exposure to the actual market but you will also have exposure through your underlying collateral. So, keeping with our example, if you are long Ethereum and the price falls not only will your position deteriorate but you will also see the USD value of your collateral falling.
If you are going to be trading anything other than Bitcoin then it will have to be an inverse perpetual. You will also have to make sure that you have the coin in question before you can actually trade it.
It is also important to note that although the margin required is in the coin in question, it is still quoted in USD. Each inverse perpetual contract is 1 USD in value. This is a pretty neat feature as it allows you to trade contracts as little as 1 USD. This is in contrast to the USDT contract that is written on 1 BTC.
Isolated & Cross Margin
Something else that you may notice when you are trading BTCUSDT on the Bybit (https://www.bybit.com/invite?ref=knMkN) platform is that you have two options around how the margin is apportioned in the account. These are isolated and cross margin.
When you select Isolated margin, the margin that you have on the trade is applicable to only that position. It does not take into account the equity levels and positions PnL that you have on other orders for the same trading pair. So, even if you are in profit on some other trade, it has no bearing on whether you are likely to get liquidated (and vice versa).
However, when you have selected to cross margin it means that all available balances will be combined in order to prevent a liquidation. So, if you have other positions that are open for the corresponding trading pair then these will be included in a calculation of margin levels before liquidation occurs.
Note ✍️: When you select to cross margin, you cannot manually select the margin level. The initial margin is set in accordance with the maximum leverage limit for said pair. So, if you are trading BTCUSDT, this would be 100x or 0.1% initial margin.
Which is better?
Honestly, we would suggest that you rather use Isolated Margin. Not only does it allow you to adjust the margin but it also means that you have full control of your risk on a particular position. If you are trading the inverse perpetual swaps then the isolated margin is set by default.
Market Analytics Data
Something else that we found pretty neat was their market data section and particularly their advanced data section. This contained some really handy graphs and charts that could help inform your trading.
You can also pull up some of these charts and download the data. This could either be as an image, vector file or as a csv. Here you can see an example of us doing that with the rolling volatility chart.
Bybit (https://www.bybit.com/invite?ref=knMkN) Analytics Data
Some of the Charts For Bybit (https://www.bybit.com/invite?ref=knMkN) Data
Here is a list of the data that you are able to download as well as what it means:
Price Moving Averages: This has the price of Bitcoin along with the a number of moving average indicators of different time frames.
Monthly Price Range Takes a look at monthly highs and lows in the price. It allows you to observe the range the asset traded in.
Rolling Volatility The realised volatililty over the past 30 days compared to the average for the period. Gives you a sense of how much the price swinged in a give period.
BTC Daily Realised Volatility Looking at what the realised volatility was like over a certain period of time
There is also a host of other data that you can examine in these tabs. That includes information on the specific index price, funding data and the insurance fund. You should also note the weights that are used to calculate the spot price.
For those traders that would like to try the platform out in demo mode, they can make use of the Bybit (https://www.bybit.com/invite?ref=knMkN) testnet. Demo accounts are a great way to get a sense of how the orders work before depositing funds.
You can access their testnet on testnet.Bybit (https://www.bybit.com/invite?ref=knMkN).com. In order to fund your account you will have to get coins from the testnet faucet. They have outlined exactly how this is done in this handy guide.
We must admit that we were quite surprised at the amount of work that was required in order to access these testnet funds. When you unlock these funds, you are only getting minor amounts of Bitcoin as the faucet has a release rate of 0.01BTC per hour.
Other platforms such as IQ Option provide demo funds the moment that you open the account. These come with no strings attached and give you a realistic balance to trade with ($10,000).
Bybit (https://www.bybit.com/invite?ref=knMkN) Mobile Apps
For those traders that are on the go, you will no doubt want to keep track of your open positions. This is why Bybit (https://www.bybit.com/invite?ref=knMkN) has developed their mobile applications. It's available in iOS and Android and appears to be quite functional.
In fact, it has most of the same functionality of the desktop version. You have advanced charting and order management all easily accessible through the navigation pain. You can also set a whole host of price levels to be sent as push notifications.
You also have those advanced order forms that you see on the main exchange. This is not something that we have seen at other exchanges and brokers. Most of the time the order functionality is stripped down - so top marks here.
Bybit (https://www.bybit.com/invite?ref=knMkN) App
Bybit (https://www.bybit.com/invite?ref=knMkN) Mobile App Screenshots
The app is listed in both the iTunes store as well as Google Play. There are over 10,000 Android installs although we can't see the iOS installs. The reviews in the iTunes store appear to be quite positive where they are slightly more polarized in the Play Store.
So, should you consider the Bybit (https://www.bybit.com/invite?ref=knMkN) App?
Well, it is no doubt quite functional but we always prefer to use web and PC based trading. This is because you can never really replicate the effectiveness of PC trading on a mobile device. You can't easily study charts and monitor numerous markets at the same time. You should ideally only be using it at times when you are away from your desk and need to monitor your positions.
Bybit (https://www.bybit.com/invite?ref=knMkN) Customer Support
Given that Bybit (https://www.bybit.com/invite?ref=knMkN) is a new exchange, there is not that much in the way of previous trader experience with their customer support. However, we did try reach out to their customer support lines to get an idea of typical response times.
In terms of support options, you have a zendesk live chat function that is available on their platform. This is available 24/7 and is offered in all the languages that they have translated their website into.
Bybit (https://www.bybit.com/invite?ref=knMkN) Live Chat Zendesk
Zendesk Live chat function
You can also reach out to them via email on [email protected]
(https://www.bybit.com/invite?ref=knMkN).com for customer support or [email protected]
(https://www.bybit.com/invite?ref=knMkN).com if your query is more technical in nature. Unfortunately, there is no phone support or direct telephone line into the exchange.
We tested out the live chat function and we were able to get a support agent almost immediately. Email support took a bit longer but was similarly helpful.
Social Channels 📱: If you are struggling to get a response through these channels then you can always reach out on their social media. They have a Telegram Channel for more direct questions. You can always Tweet them a ticket number if you prefer.
Of course, if your question is more routine in nature and not specific to your account then you can always make use of their extensive help section. This includes their FAQ resources as well as other helpful guides that could help your trading.
Those developers among you will be happy to know that Bybit (https://www.bybit.com/invite?ref=knMkN) has a pretty robust API. This will allow you to code algorithms and bots in order to manage the trading programmatically.
You can get all of the technical documents about how to interact with the API from their GitHub. If you would like to make use of the API then you will have to generate an API key. This can be done in the "API management" section of the exchange.
Bybit (https://www.bybit.com/invite?ref=knMkN) API Key
Generating the Bybit (https://www.bybit.com/invite?ref=knMkN) API Key
Here, you can generate a new key that will be used to access the API. You will also have to decide what permissions you want to give the API (read, write or withdraw). Read allows you to monitor prices, write allows you to place trades and withdraw will allow your bot to process a withdrawal (not advisable).
You may also want to bind the API to your IP address. This will prevent anyone from placing trades in your account should your API key be compromised. Either way, you will want be very careful when dealing with your API key.
For example, we would advise against the use of third-party trading bots. Many of this have questionable returns and when they have access to your API keys they can manipulate markets to their own advantage.
Bybit (https://www.bybit.com/invite?ref=knMkN) Reward's Hub
These are actually some pretty neat sweeteners that Bybit (https://www.bybit.com/invite?ref=knMkN) has thrown into the mix.
Essentially, there is a number of opportunities for new users to earn some free BTC to trade with. For example, if your first deposit on the platform is over 0.05BTC then you will get an added $5. If it is over 0.5BTC then they will throw you $50. If you deposit more than 1BTC in total you will get an additional $20.
Bybit (https://www.bybit.com/invite?ref=knMkN) Rewards
Get Your Bybit (https://www.bybit.com/invite?ref=knMkN) Rewards!
There is also opportunity for you to do simple tasks to earn a little more BTC. For example, if you merely register and join their social media channels then you will earn $5. Simply use their Take Profit and Stop Loss orders and you bag another $5. Trade for more than 10 days and you earn another $5. Heck, even taking a short customer survey can get you $5.
These additional funds could be a great way for you to augment your account balance. Also, if you were already planning on joining Bybit (https://www.bybit.com/invite?ref=knMkN) and trading there, these can be viewed as free trading funds.
Of course, there are "house rules" that come with this bonus. For example, you cannot withdraw these funds and they can only be used as margin in your account. Moreover, when you withdraw these profits you forfeit your bonus.
T&Cs 📜: We encourage you to read their bonus terms and conditions for more information. and to avoid any confusion
Bybit (https://www.bybit.com/invite?ref=knMkN) Referral / Affiliate Program
If you have been using Bybit (https://www.bybit.com/invite?ref=knMkN) and have been relatively impressed with the product then you can always refer others to the platform.
There are two ways in which you can do this. Perhaps the easiest to start is through the referral program. For each referred user you send which deposits 0.2BTC with Bybit (https://www.bybit.com/invite?ref=knMkN), you will get a $10 trading bonus.
If you want to take part in the referral program then you will need to get your code. You can either do this as a unique code that your referrals will use on signup or you can give them your referral link. You can share this link online or on your social media channels.
Bybit (https://www.bybit.com/invite?ref=knMkN) Referral Link
Getting Your Bybit (https://www.bybit.com/invite?ref=knMkN) Referral Link
This can be relatively attractive if you can refer friends making a small amount of one time deposits but if you are looking to refer many more traders who usually do large trading volumes then you are perhaps better suited to signup for the Bybit (https://www.bybit.com/invite?ref=knMkN) affiliate program.
This will reward you with a percentage of trading profits that are generated by your traders. This is set at up to 30% of the trading commission that your referrals generate. This is more than the 20% commission that they give at BitMEX.
Moreover, this affiliate structure has different tiers to it. Not only will you get 30% of the commissions that your direct referral generates but you will also get 10% on their affiliate commissions.
Note ✍️: You have to apply to be an affiliate at Bybit (https://www.bybit.com/invite?ref=knMkN). This is in order to verify that you will be promoting their services in a legitimate way. You can register for this here.
You cannot take part in both the referral program and the affiliate program so you have to choose wisely amoung the two.
One more thing that we found really quite interesting about the Bybit (https://www.bybit.com/invite?ref=knMkN) exchange is their trading competitions. These are held on an ad-hoc basis and they allow traders to go head to head.
A number of these have already been held this year but some of the most exciting that we have seen is their "are you a master" trading competition. This ran from April to May and Bybit (https://www.bybit.com/invite?ref=knMkN) was giving away up to $6,200 in BTC to their traders.
Local Competitions 🌎: To targt those traders who speak a specific language or are in a specific region, Bybit (https://www.bybit.com/invite?ref=knMkN) has local competitions. They have recently run the Korea & Japan competition
Another really interesting competition that was run in August of 2019 was their EOS global trading competition. This involved several teams battling it out for up to $60k in prizes. Team captains were chosen and they could build a team of between 10 - 200 members.
Of course, Bybit (https://www.bybit.com/invite?ref=knMkN) is not just holding these competitions to be charitable. These competitions encourage trading volume on their platform which gets them fees. So you should take that into account when funding to trade on these.
Areas for Improvement
While we were generally impressed with Bybit (https://www.bybit.com/invite?ref=knMkN), there are a few things that we think warrant improvement and deserve mention.
Firstly, and perhaps most importantly, they have a limited offer when it comes to cryptocurrency assets. While they plan do plan to release more assets in the coming months, currently you can only trade 4 crypto assets. This could make it difficult for them to compete with the larger crypto exchanges which are starting to offer leveraged trading.
We also think it would be more beneficial to the trader if they were slightly more generous with their testnet funds. The faucet funds that are released are too small to get a proper sense of the trading parameters.
Lastly, although their futures instruments are some of the best in the industry, they still don't offer any option type contracts. This means that they cannot accommodate traders who would like to trade these type of derivative instruments. Perhaps this is something that they could eventually release.
We have found Bybit (https://www.bybit.com/invite?ref=knMkN) to be user friendly exchange with strong technology, reasonable fees and a relatively intuitive user interface. We are also glad to see that they have also developed an insurance fund to manage market risk.
They are well positioned to offer an alternative to the status quo in the crypto derivatives market. In fact, the order book liquidity on Bybit (https://www.bybit.com/invite?ref=knMkN) has recently exceeded that of Deribit.
While there were things that we thought warranted improvement, these are relatively easy to implement. The exchange is still new and there is no doubt many improvements are in their pipeline.
So, should you use Bybit (https://www.bybit.com/invite?ref=knMkN)?
We encourage you to do your own research but on the face of it, Bybit (https://www.bybit.com/invite?ref=knMkN) appears to be an attractive exchange that ticks most of our boxes.