What is Bybit?

Bybit is a centralized cryptocurrency exchange that has grown to become one of the world’s largest by daily trading volume. It offers leveraged trading on various cryptocurrency pairs and has gained popularity for its user-friendly interface, advanced trading tools and competitive fees.

Bybit's founding and early development

Ben Zhou, a former executive at forex broker XM, founded Bybit in 2018. The company was initially headquartered in Singapore before moving to Dubai in 2023. Bybit is registered in the British Virgin Islands as Bybit Fintech Limited.

By 2019, Bybit claims to have processed 10% of the global bitcoin trading volume. In the following year, the exchange surpassed BitMEX in market share. In 2022, Bybit implemented real-time proof-of-reserves to enhance transparency for its customers.

In 2023, Bybit surpassed 20 million users globally. The firm also partnered with Mastercard to launch the exclusive Bybit Card, marking its entry into mainstream financial services. Bybit regularly ranks among the top derivatives exchanges in terms of trading volume, second only to Binance in terms of daily trading volume for several months in 2024.

Zhou attributes some of the company’s growth to the collapse of FTX and its ability to provide a new home for the fallen exchange’s former users.

What services does Bybit offer?

Bybit provides a comprehensive suite of trading options and tools to meet the needs of both amateur and professional traders. These services include spot trading, derivatives trading, and options trading. The platform allows users to trade with leverage up to 100x on various cryptocurrency pairs and offers perpetual contracts. The exchange also features Bybit Earn, a hub for financial products, including staking, mining, and other DeFi services. 

For those looking for more advanced trading strategies, Bybit supports API integration, enabling automated trading. Bybit also supports automated copy trading, where users can set certain parameters and copy the moves of other successful traders on the platform.

What’s required for a Bybit account?

To open a Bybit account, users must follow several steps. First, they need to register by providing an email address or phone number and creating a password. Next, they must complete a Know Your Customer (KYC) process, which involves submitting personal identification documents (e.g., passport, driver's license) and proof of address (e.g., utility bill, bank statement), depending on the jurisdiction.

Finally, to start trading, users need to deposit funds by either transferring cryptocurrencies to the Bybit wallet or purchasing crypto with fiat if their location and local currency are supported.

What fees does Bybit charge?

Like other crypto exchanges, Bybit has a tiered schedule of trading fees, with varying VIP levels that receive discounted fees based on their asset balance or previous 30-day trading volume. For spot trading, this ranges from a maker fee of 0.1% and taker fee of 0.1%, down to the most discounted rates of 0.015% for taker and 0.005% for maker. 

Bybit also charges a funding fee for derivatives traders, a variable fee exchanged between long and short positions every eight hours, depending on the funding rate. This rate can be positive or negative based on market conditions. There is also a fixed fee for cryptocurrency withdrawals, which varies by the type of cryptocurrency. Opening an account is free.

Regulatory landscape

Operating in the highly regulated financial industry, Bybit has made efforts to comply with international regulations on Anti-Money Laundering (AML) and Know Your Customer (KYC). However, the company has faced issues with various regulators worldwide, causing it to pull out of the Canadian and UK markets in 2023.