Bybit Exchange Background
Bybit was founded in March 2018 and is headquartered in Dubai. It is a cryptocurrency exchange offering spot and derivatives trading services, operating in 160 countries/regions and serving over 10 million registered users worldwide.
According to CoinMarketCap, a leading data tracking website in the cryptocurrency industry, Bybit ranks second in derivative trading volume, just behind Binance, making it one of the most popular exchanges for contract trading.
Founder of Bybit: Ben Zhou
Ben Zhou is the founder and current CEO of Bybit. Before founding Bybit, he had extensive experience in the foreign exchange industry, serving as the Managing Director of XM’s China operations.
In 2016, Ben Zhou was introduced to blockchain and cryptocurrency. After delving deeper into the industry, he became fascinated by the immense potential of the blockchain world and started creating content on YouTube.
In an interview, Ben Zhou stated, “The way the cryptocurrency market operates is vastly different from traditional finance. It is young, inefficient, but full of energy and potential.”
In early 2018, drawing on his experience in foreign exchange, Ben Zhou and his team officially launched Bybit.
Is Bybit Safe?
Since its establishment in 2018, Bybit has not experienced any significant negative news regarding hacker attacks or asset theft. It is one of the few exchanges that have survived market downturns and the FTX collapse, thus proving its security over time.
Asset Storage and Management
Bybit stores the majority of user assets in cold wallets offline, using advanced multi-signature technology, Trusted Execution Environment (TEE), and Threshold Signature Scheme (TSS) mechanisms to ensure the security of funds.
Additionally, users will receive immediate notifications during login and any related actions, and if suspicious activity is detected, users can prevent access from suspicious devices.
Reserve Proof
Bybit commits to keeping user assets fully backed with a 1:1 reserve ratio, and provides on-chain data for transparency. Users can check the reserve data on Bybit’s reserve page. Currently, the data shows that major cryptocurrencies have a reserve ratio of 100% or higher.
Key Features of Bybit
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Spot Trading Spot trading allows users to buy or sell cryptocurrencies using fiat currencies (e.g., USD) or stablecoins (e.g., USDT). Transactions can be made instantly by placing a limit or market order in the spot trading interface.
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Flash Swap Flash Swap is a quick way to exchange cryptocurrencies between two pairs, such as converting Bitcoin (BTC) to USDT, Ethereum, or other cryptocurrencies. It offers low fees and quick transactions but with a wider spread compared to regular spot trading.
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Financial Products Bybit offers various financial services, including savings to earn interest, liquidity mining, LaunchPool, dual currency investments, and ByVotes. Some of the most popular options include:
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Bybit Savings: Similar to bank deposits, Bybit offers flexible and fixed-term savings options with various cryptocurrencies, including BTC, ETH, and USDT, with interest rates ranging from 1.5% to 99%. Users can earn interest by depositing their cryptocurrencies into the platform.
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Liquidity Mining: This involves providing liquidity in exchange for a share of the platform’s transaction fee revenue and additional cryptocurrency rewards. It is a medium-risk strategy and is not capital-protected.
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ByVotes: A periodic event hosted by Bybit where users can participate in promotional campaigns, earning free airdrops, such as 30–50 USDT worth of tokens, which is highly recommended.
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Derivatives Trading Bybit is well known for its strong derivatives trading features, offering more than 200 trading pairs. Its simple and easy-to-understand interface makes it a popular choice for users looking for contract trading.
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Perpetual Contracts: Similar to traditional futures contracts, but with no expiry date, allowing high-risk strategies using leverage.
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Inverse Perpetual Contracts: These contracts are similar to perpetual contracts but use cryptocurrencies (not stablecoins) for collateral, making them “crypto-denominated contracts.”
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Inverse Settlement Contracts: These contracts are cryptocurrency-based, with a fixed expiration date, unlike perpetual contracts, which are open-ended.
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Quantitative Trading Robots Bybit offers several trading robots, such as the spot grid robot, regular investment robot, and contract grid robot. These robots allow users to set parameters and have them execute trades automatically 24/7, making it ideal for beginners in crypto trading.
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Spot Grid Robot: Executes buy low, sell high strategies automatically within a predefined price range.
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Regular Investment Robot: Automates regular periodic investments.
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Contract Grid Robot: Executes contract trades with leverage, allowing users to profit from both rising and falling markets.
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Copy Trading Copy Trading allows users to copy the trading strategies of top investors automatically. It is a passive way to earn profits, akin to handing your funds over to a professional fund manager for investment.
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LaunchPad Bybit LaunchPad is an Initial Exchange Offering (IEO) platform, allowing users to participate in token offerings before they hit the market, similar to an Initial Public Offering (IPO) in traditional finance. Through LaunchPad, users can purchase tokens at a lower price than their market value, gaining early investment opportunities in new projects.
