Since the end of last year, a new competitor of Deribit and Bitmex has appeared in the crypto exchange environment and after several months of existence, they overcame these established players in some examined disciplines. 

Its name is Bybit and is represented as a crypto-derivative exchange for individual and institutional traders fighting the issues of market manipulation created by other exchanges. Simply, we are here for everyone who already has enough of liquidated positions by Bitmex.s

Bybit promotion
Get 10$ for trading just for registration and retweeting a post. 
Register and get 10$

About the company

You will be no exception if you hear about this exchange for the first time, it operates from December 1, 2018, so we need to check the team behind it first.

The company is called Bybit Finance Limited and is registered in the British Virgin Islands since August 2018. However, this does not diminish its credibility, since the record of companies operating a cryptocurrency exchange in countries with tax advantages is no longer an exception.  

Their headquarters are located in Singapore and Shanghai, where about 100 to 200 employees work with the company owner Ben Zhou, who has hired the entire Morgan Stanley department to manage his risk management. It is important to note that this large team is funded solely by the owner and private investors’ money.In fact, Bybit has not been crowned by the ICO. 

Ben Zhou himself has been the general manager of China XM Financial Services for the past 7 years, a Forex retail platform that has 1,100 employees registered by LinkedIn. Therefore, it can be assumed that he knows how to manage a company with a larger number of employees in this sector and, overall, I would rank Bybit as a transparent company with an experienced team. 

In order to show that Bybit really wants to be open to its users, Bybit has made its offices available to the public, which can come at any time by appointment. In the link, you can see how one of the traders used this option.

Trading on Bybit

Ben Zhou is aware that if he wants to attract new traders to his exchange, he must not stay behind with any functionality or perhaps a security measure that today’s traders are used to. In the interface, there is the possibility to customize the main dashboard at will, simply entering a leverage position together with the cross leverage and they work hard on the feature when you can move positions right in the chart. To record user data, they do not require any KYC so as Bitmex do not, but in the future, they are willing to subdue to any legislative regulation. 

In terms of fees, they set the same maker/taker fee ratio as the competition did(-0.025% / 0.075%) and withdrawals are made manually from multi-signature cold wallets 3 times a day with a zero fee except the blockchain fee itself. 

Moreover, compared to their competitors, open trades can be set to a “Trailing Stop” order and if your position goes to a liquidation price, their “dual-price mechanism” first compares the price to other exchanges if the price was not market manipulated before liquidating your position. A more detailed explanation can be found on the Bybit website, where everything is described in detail. In the end, there is also a gradual creation of the “insurance fund” for liquidated orders and the “auto-deleveraging system”

ETH, XRP and EOS derivatives can also be traded on the exchange, but the exchange requires collateral with these currencies. In other words, users are forced to keep these cryptocurrencies in addition to Bitcoin on the exchange to be able to trade all the derivatives against them. This is not the case for competitors in the same industry. The other downside is that you can’t add a chart to your watchlist in Tradingview, but that should be added until the end of this summer.

You can enter SL/PT and pair it with a created order on Bybit

They leave the competition behind…

Bybit’s answer to eternally overloaded Bitmex is its new “Order Matching Engine”that can handle up to 100,000 transactionsin a second, which is 10 times more than anyone in the industry.This will prevent any congestion and unregistered orders in the system. In the future, they are also planning to integrate fiat and thus to jump ahead of their competitors again. 

They want to fight in a very unconventional way against any further whale manipulation by creating a subpage on their website where they will stream any bigger limit orders and suspicious behavior on their exchange.

Another problem that cryptocurrency exchanges often face is either unprofessional or very slow support. In this regard, Bybit offers 24/7 customer support and, in our experience, we have never waited more than a minute for a response during the work week. Unfortunately, at the weekend it was only possible to leave an offline message and wait for someone to return to our query.  

100,000 operations per second versus 500 operations on Bitmex or 5000 on Deribit.  
24/7 online chat. 

What about the liquidity?

That’s the right question. Bybit cannot compete with Bitmex in traded volume or in the number of active traders. Liquidity is provided by market-making bots. This system averages the current exchange rate of these 3 exchanges (GDAX, Kraken, Bitstamp) equally and creates BIDs and ASKs around this averageto ensure that your counterparty is found and filled in.

However, during the analysis, I came across a few minor flaws that surprised me. For example, the fact that active orders cannot be edited and new ones have to be created instead or that the % ROI of the currently open position is not updated as it should be. Another inconvenience for the trader I encountered with during the analysis were the inconsistently high funding rates that could be as high as 0.13% for every 8 hours. However, this should be resolved with the increasing number of traders on the platform, as the difference between longs and shorts should not be so extreme.

In this figure, we can see that even if the orders are large on both BID and ASK, the last real traded volume is desperately small. Thus, in practice, most of the limit orders will be bought by a bot with the most current price adjustment from other exchanges. In the end, if you are not “whale”, you should not be disadvantaged at all. 

Bonuses for new users

Bybit’s management attracts new traders for its platform with a registration bonus. Start following Bybit on twitter and retweet the post they have pinned on their channel and get your first $10 that you can use to trade on the exchange.

Another $50 is offered to users who send at least 0.2 BTC to the exchange. Overall, you can earn up to $60, which you can start to interest immediately, but can’t be withdrawn from the exchange.

Generous affiliate program

In addition, Bybit offers a very sophisticated affiliate program. It will reward you with 30% of the fees of each recommended user and 10% of each user who recommends your friend. Really nice alternation from 10% offered by Deribit or Bitmex. Of course, there is an approval procedure and if you do not have the potential to bring new players, it is hard to get into the program.

Affiliate reward system

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