What is Bybit? Everything You Need to Know About the Crypto Exchange

Introduction to Bybit

With over 650 cryptocurrencies available for trading and a powerful engine handling millions of transactions daily, Bybit has established itself as one of the top crypto exchanges in the global market. As cryptocurrency adoption continues to accelerate, understanding platforms like Bybit becomes increasingly valuable for both newcomers and experienced traders looking to diversify their trading options.

This comprehensive guide explores everything you need to know about Bybit, from its basic functionality and available trading types to its fee structure, security measures, and suitability for different types of traders. Whether you’re considering registering for a Bybit account or comparing exchange options, you’ll find detailed insights into what makes Bybit stand out in the competitive crypto exchange landscape. The Bybit trading interface is accessible through both web-based platforms and mobile applications. The bybit app, available on iOS and Android, offers a user-friendly experience for mobile trading, featuring quick trade execution, intuitive navigation, and seamless account management, including the verification process.

History and Development of Bybit

Bybit’s journey as a cryptocurrency exchange began in 2018, when it was founded by Ben Zhou, a former executive at forex broker XM. Initially headquartered in Singapore, Bybit was established under Bybit Fintech Limited, registered in the British Virgin Islands. The platform set out to deliver a professional and efficient trading experience, catering to both seasoned traders and those new to crypto trading.

From its inception, Bybit focused on derivatives trading, quickly gaining traction with its offering of leveraged trading on perpetual contracts. This early emphasis on advanced trading tools and high leverage—up to 100x on select pairs—helped Bybit attract a diverse user base, including both retail traders and institutional clients. The exchange’s competitive fees, structured through a tiered system based on asset balance and 30-day trading volume, further contributed to its rapid adoption.

A significant milestone in Bybit’s development came in 2019, when the platform captured over 10% of the global bitcoin trading volume. This achievement underscored Bybit’s growing influence in the crypto industry and its ability to compete with established players. By 2020, Bybit had surpassed BitMEX in market share, solidifying its reputation as a leader in derivatives trading and daily trading volume.

In response to the evolving regulatory landscape, Bybit relocated its headquarters to Dubai in 2022. This strategic move allowed the company to operate within a more favorable regulatory environment and expand its global reach. Bybit’s commitment to compliance is reflected in its adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, ensuring a secure and transparent trading environment.

Innovation has been a driving force behind Bybit’s continued growth. The introduction of Bybit Copy Trading enabled users to automatically replicate the trades of master traders, making advanced trading strategies accessible to newcomers and providing opportunities for passive income. The platform has also expanded its suite of trading options to include spot trading, futures trading, and options trading, all accessible through a user-friendly interface.

Bybit’s dedication to user security is evident in its robust security features, such as two-factor authentication, cold wallets for asset storage, and a comprehensive suite of risk management tools. The exchange’s 24/7 customer support and intuitive platform design have made it a popular choice for traders seeking both advanced functionality and ease of use.

Beyond trading, Bybit has diversified its offerings with Bybit Earn, allowing users to generate passive income through staking and other financial products. The launch of the exclusive Bybit Card has enabled users to spend their crypto holdings seamlessly, while the NFT marketplace has opened new avenues for digital asset trading and collection.

Throughout its history, Bybit has prioritized transparency, regularly publishing proof of reserves and engaging openly with its user community. As the crypto industry continues to evolve, Bybit stands out for its comprehensive suite of trading options, competitive fees, and commitment to providing an efficient and secure trading experience. Whether you are an experienced trader or just starting out, Bybit’s platform is designed to support a wide range of trading strategies and financial goals.

What is Bybit and How Does It Work?

Founded in 2018, Bybit has quickly evolved into a powerful trading platform serving a global user base exceeding 50 million. The exchange operates on a straightforward but sophisticated model that accommodates various trading preferences and experience levels.

At its core, Bybit functions as both a spot exchange and a derivatives trading platform. The spot exchange allows users to purchase cryptocurrencies directly at current market prices, similar to buying stocks on a traditional exchange. Meanwhile, the derivatives platform enables trading of contracts based on the future value of cryptocurrencies, offering opportunities for more complex trading strategies. Like many exchanges with global reach and diverse offerings, Bybit provides accessibility and a wide range of options for traders worldwide.

Getting Started with Bybit

New users can begin their Bybit journey through a structured onboarding process:

1. Registration: Create an account using an email address

2. KYC Verification: Complete identity verification to unlock full platform functionality

3. Deposit Funds: Add crypto or fiat currency to your account

4. Start Trading: Begin with spot trading or explore derivatives

Bybit's trading interface is available through both web-based platforms and mobile applications, ensuring accessibility regardless of your preferred trading environment. The exchange has built its reputation partly on its exceptional functionality and 24/7 customer support, making it particularly accessible for traders who need assistance at any time.

The Bybit Trading Engine

Behind the scenes, Bybit's trading ecosystem is powered by a sophisticated matching engine that pairs buy and sell orders with high efficiency. This technical infrastructure supports various order types from basic market orders to complex conditional orders, enabling precise execution of trading strategies.

The platform's 2025 vision emphasizes a "Listen, Care, Improve" philosophy, highlighting Bybit's commitment to enhancing trading tools, liquidity, and user-oriented features based on community feedback.

Availability and Geographic Restrictions

Bybit operates as a global cryptocurrency exchange with widespread availability across numerous countries and regions. The platform supports transactions in multiple fiat currencies, allowing users in various countries to buy cryptocurrencies with traditional money. However, like many crypto exchanges, it faces regulatory constraints that limit access in certain jurisdictions.

Key Geographic Considerations:

• Available in most countries across Asia, Europe, Africa, and parts of South America

• Not available in the United States due to regulatory requirements

• Regional pricing variations - fee structures may differ based on your location

For traders in restricted regions like the United States, alternative exchanges include:

• Binance.US (the US-specific version of Binance)

• KuCoin

• Kraken

• Coinbase

It's worth noting that even in supported regions, certain features or trading pairs may have restrictions based on local regulations. Users should verify the specific services available in their jurisdiction before committing to the platform.

Trading Types on Bybit

Bybit offers a diverse range of trading options catering to different strategies, risk appetites, and experience levels. In its derivatives markets, Bybit allows users to buy and sell contracts, enabling traders to profit from both rising and falling market movements. Understanding these options is crucial for effectively navigating the platform.

Spot Trading

Spot trading on Bybit allows direct buying and selling of cryptocurrencies at current market prices. This straightforward trading type is ideal for those looking to acquire actual cryptocurrency assets rather than derivative contracts. The exchange supports both:

• Crypto-to-crypto trading pairs (e.g., BTC/ETH)

• Fiat-to-crypto trading pairs (e.g., USDT/EUR)

Derivatives & Perpetual Contracts

Derivatives trading represents Bybit's core strength and specialization. The platform offers two main types of perpetual contracts:

• USDT-margined perpetuals: Contracts settled in USDT with no expiration date

• Coin-margined (inverse) perpetuals: Contracts where profits and losses are calculated in the underlying cryptocurrency

Perpetual contracts allow traders to hold positions indefinitely without worrying about expiration dates, making them particularly popular among crypto traders seeking longer-term positions.

Futures Trading

Unlike perpetuals, futures contracts on Bybit have specific expiration dates. A futures contract is an agreement to buy or sell an asset at a predetermined price on a specific date. These contracts allow traders to speculate on future cryptocurrency prices within a defined timeframe, offering additional opportunities for strategic trading based on market predictions. To open a leveraged position on a futures contract, traders are required to deposit an initial margin, which is the minimum amount needed to manage risk and avoid liquidation.

Leverage Trading

One of Bybit’s most powerful features is leverage trading, which allows users to amplify their position sizes by borrowing funds. The platform permits leverage of up to 100x on certain trading pairs, meaning traders can control positions worth 100 times their invested capital. Bybit’s advanced risk management tools and customizable leverage settings give users more control over their trading strategies and exposure.

Important: While leverage can significantly multiply potential profits, it equally magnifies potential losses and should be approached with caution, particularly by less experienced traders.

Bybit Fees & Comparison to Competitors

Bybit implements a competitive fee structure based on a maker/taker model within a tiered VIP system. Users can qualify for higher VIP levels and lower fees based on either their asset balance or 30-day trading volume. Bybit trading fees are structured so that as your trading volume increases, you move up the VIP tiers and benefit from progressively lower fees. The maker fee, which applies when you provide liquidity to the order book, is typically lower than the taker fee, incentivizing users to act as market makers and further reduce their trading costs.

For standard (non-VIP) users, Bybit’s base spot trading fee is 0.1%, which is on par with several major competitors. The platform updates VIP levels daily at 7AM UTC, with trading fee rates applied at the time of order placement rather than settlement.

Fee Comparison with Major Exchanges

For derivatives trading, Bybit's fee structure varies by product type. For example:

• Top 72 USDT perpetual contracts: 0.0180% taker fee

• Other USDT perpetuals: 0.0280% taker fee

• Inverse futures: 0.0180% taker fee

As shown in the comparison table, Bybit's standard trading fees are competitive with industry leaders like Binance and KuCoin, significantly lower than Coinbase, and lower than Kraken's rates.

Asset Support and Token Variety

Bybit offers an impressive selection of cryptocurrencies, making it one of the more comprehensive exchanges for traders seeking variety. With support for over 650 different cryptocurrencies, users can access both major cryptocurrencies and a wide array of altcoins.

Bybit also provides the Bybit Wallet, a custodial digital wallet that allows users to securely manage their crypto assets and access DeFi applications.

This extensive selection allows for diverse portfolio building and provides opportunities to trade emerging tokens that may not be available on more restrictive platforms.

Cryptocurrency Availability Comparison

As the comparison shows, Bybit's selection of over 650 cryptocurrencies places it near the top of the market in terms of variety, second only to KuCoin. This extensive token support significantly outpaces platforms like Coinbase and OKX, making Bybit particularly attractive for traders seeking access to a broad cryptocurrency market.

Advanced Trading Tools for Experienced Traders

Bybit offers a comprehensive suite of advanced tools that cater specifically to experienced traders looking to implement sophisticated strategies. Bybit’s platform is designed to meet the needs of professional traders by offering sophisticated trading options and high leverage. These features extend beyond basic buying and selling, enabling precise trade execution and risk management.

Smart Order Types

Beyond standard market and limit orders, Bybit supports multiple advanced order configurations:

• Conditional Orders: Execute trades only when specific market conditions are met

• Stop-Loss Orders: Automatically sell positions when prices fall to specified levels

• Take-Profit Orders: Lock in gains by selling when prices reach target levels

• Trailing Stop Orders: Dynamic stop-losses that adjust with favorable price movements

Leverage Trading

Bybit's leverage of up to 100x allows experienced traders to:

• Maximize capital efficiency by controlling larger positions

• Amplify potential returns on successful trades

• Execute sophisticated hedging strategies

Note: While powerful, leverage significantly increases risk and should only be used by traders who fully understand its implications.

Customizable Trading Interface

Experienced traders can configure their Bybit dashboard to display the most relevant information for their strategies, including:

• Technical indicators and chart tools

• Real-time order book visualization

• Trading pair watchlists

• Position management panels

Mobile Trading Capabilities

For active traders who need constant market access, Bybit's mobile app maintains most of the advanced functionality of the desktop platform while enabling on-the-go trading.

Security and Fund Protection

Bybit implements a multi-layered security architecture to protect user assets, which became even more robust following a significant security incident in 2025. In its custodial wallet system, Bybit manages and secures users’ private keys, ensuring safe access to assets and DeFi applications. Despite experiencing what was considered the largest hack in crypto history—a $1.5 billion ETH theft—Bybit demonstrated remarkable resilience by fully recovering all funds within 72 hours without halting withdrawals.

Core Security Measures

• Cold Wallet Storage: The majority of user funds are stored in offline wallets, isolated from internet-based threats

• Multi-Signature Authorization: Transactions require multiple approvals before execution

• Trusted Execution Environments (TEE): Secure computing environments that isolate sensitive operations

• Threshold Signature Schemes (TSS): Cryptographic protocols that distribute signing authority across multiple parties

User-Level Protection Tools

Bybit provides multiple self-protection features for account security:

• Two-Factor Authentication (2FA)

• Anti-phishing codes

• Withdrawal address whitelisting

• Session monitoring

• Emergency account freezing capability

Advanced Security Systems

Following the 2025 security breach, Bybit strengthened its security infrastructure with:

• Real-Time Risk Monitoring: Continuous surveillance of transaction patterns

• AI-Powered Anomaly Detection: Smart systems that flag unusual high-value transactions

• Proof of Reserves: Public verification of reserves using Merkle Tree technology

• Insurance Fund: Dedicated fund to protect derivatives traders from extreme liquidation losses

The February 2025 security breach revealed vulnerabilities in Bybit's third-party services, specifically a compromised machine used for moving tokens between wallet systems. This incident led to significant security enhancements and has been attributed to the North Korea-sponsored Lazarus Group.

Regulatory Environment and Compliance Measures

Bybit operates in the evolving regulatory landscape of cryptocurrency exchanges, facing various challenges while implementing its compliance strategies. The exchange takes a strategic approach to regulatory requirements, focusing on markets where regulations align with its business model. During the KYC process, Bybit accepts official identification documents such as a driver's license for identity verification.

Key Regulatory Considerations

• U.S. Market Exclusion: Bybit does not serve U.S. traders, avoiding the complex regulatory requirements of this jurisdiction

• Dubai Headquarters: Operating from Dubai positions Bybit within a jurisdiction developing its cryptocurrency regulatory framework

• Post-Breach Scrutiny: The 2025 security incident triggered debates about additional regulatory oversight in the digital assets space

When comparing regulatory approaches across exchanges, platforms like Coinbase emphasize "strong regulatory compliance in the US and internationally," suggesting Bybit takes a different approach to regulatory navigation.

User Friendliness for Beginners

Bybit presents a mixed picture when it comes to suitability for cryptocurrency newcomers. While the platform offers several beginner-friendly features, its advanced focus creates some challenges for those just starting their crypto journey. New users are encouraged to conduct their own research before choosing a trading platform.

Advantages for Beginners

• Intuitive Mobile App: Accessible trading on the go with a user-friendly interface

• 24/7 Customer Support: Round-the-clock assistance for questions or difficulties

• Global Accessibility: Available in numerous countries (except the U.S.)

Challenges for Newcomers

• Steep Learning Curve: Bybit's advanced features can be overwhelming for first-time traders

• Derivatives Focus: The platform's emphasis on complex trading products requires additional knowledge

• Mixed User Feedback: Some reviews mention challenges that beginners might face

For absolute beginners, platforms like Coinbase might be more suitable despite higher fees. Coinbase is described as "extremely intuitive" with educational resources that include earn-while-you-learn programs—features specifically designed for crypto newcomers.

Conclusion: Is Bybit Right for You?

Bybit stands as a powerful and feature-rich cryptocurrency exchange that offers an impressive range of trading options across more than 650 cryptocurrencies. With competitive fees, advanced trading tools, and enhanced security measures, it provides a comprehensive trading ecosystem for users worldwide—though notably excluding those in the United States.

The exchange excels particularly in derivatives trading, offering various contract types with leverage of up to 100x for those seeking amplified exposure. Its fee structure remains competitive with industry leaders like Binance and KuCoin, significantly undercutting platforms like Coinbase.

For experienced traders, Bybit offers a compelling package with its advanced order types, customizable interface, and extensive asset selection. The platform's robust security infrastructure—further strengthened following the 2025 security incident—provides reassurance for those concerned about asset protection.

However, beginners should approach Bybit with caution due to its steep learning curve and focus on complex trading products. Newcomers might benefit from starting with more intuitive platforms before graduating to Bybit's advanced features.

Ultimately, Bybit represents an excellent choice for intermediate to advanced traders seeking a powerful, globally accessible exchange with extensive cryptocurrency options and sophisticated trading tools. For those outside restricted regions and comfortable with its learning curve, Bybit delivers a high-performance trading experience backed by substantial market liquidity and comprehensive security measures.