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What Is Bybit and How to Use It?

Written by ramazan

A comprehensive guide to Bybit, a comparatively new crypto exchange that offers multiple trading options with a user-friendly interface. Read more!

Bybit is a cryptocurrency exchange and trading platform headquartered in the British Virgin Islands, specializing in derivatives products. Through derivatives, users have the right to buy or sell supported cryptocurrencies for specific prices in the future. In addition, users can open long and short positions and leverage their position through derivatives without owning the underlying asset. Using derivatives is a great way to capitalize on volatile crypto price swings, either in bullish or bearish conditions.

You may check out our guide on leverage in crypto trading!

Ben Zhou founded Bybit in 2018 with an aim of forming a team of investment banking and fintech professionals.

The platform provides access to the following products:

Leverage is available on the platform for users looking to boost their potential gains if the price goes in the right direction. However, users will be able to exert less leverage as the value of their contracts go up.

It is also possible to engage in spot trading through Bybit, with dozens of pairs to choose from. Popular supported assets include BTC, ETH, LINK, USDT, USDC, LUNA, SOL, DOGE, etc. In addition, traders can also explore “subcategories” such as DeFi, NFT, metaverse, GameFi, and more.
Traders seeking more exposure and risk can experiment with margin trading and use up to 100x leverage. However, keep in mind that leverage comes with severe risks, and while it can incur much bigger profits, it can also increase steep losses if trades are unsuccessful.

To save yourself from losses, check out our guide on cross vs isolated margin!

Bybit recently introduced support for non-fungible tokens, enabling exposure to various supported collections. Users can buy and sell these NFTs for Ether, USDT, or BIT tokens. The platform currently supports five collections: Monster Galaxy, Mobland, ONBD, Tap Fantasy, and 3space Art.

Although Bybit was initially founded in Singapore in March 2018, the company has set up its headquarters in the British Virgin Islands. It is registered as Bybit Fintech Limited. There is no official crypto regulation today in the British Virgin Islands, allowing companies to set up headquarters without worrying about too much paperwork or red tape.

Bybit also has offices across Hong Kong and Taiwan, as its primary focus is on the Asian crypto market. However, the company eyes a strong European expansion and they may set up more offices in that part of the world.

Even though Bybit appears to be on a global expansion mission, the platform is not accessible to people living in the United States. It is a well-known fact the US is not too crypto-friendly, and every state has its own regulations and requirements. However, nothing prevents companies like Bybit from operating in the country. That makes the team’s decision not to offer services in the US rather remarkable. It appears the decision was made to avoid any regulatory conflicts or issues.
American traders are locked out of the platform through geo-restrictions. Users can bypass this blockade through a VPN, although they should do so at their own risk. Moreover, Bybit reserves the right to terminate accounts of any Americans using its services through a VPN or other means of masking their original geographical location.

One reason why many people flock to Bybit is that the exchange does not require identity verification. Users do not need to submit an ID scan or proof of residence when creating an account. Traditionally, financial service providers need to verify the identity of all users regardless of how active they are on the platform. However, Bybit takes a different approach on that front.

Users who are fine with withdrawing up to 2 BTC per day can use the platform without verifying their identity. Everyone else will have to go through a KYC process, which will raise their limits to 50 BTC or 100 BTC, depending on how much information they submit. Keep in mind these limits apply to daily withdrawals and not lifetime withdrawals.
Users going through the KYC process will be asked to submit a passport or ID scan and complete a facial recognition screening. To achieve Level 2 verification, a proof of address is required.

In addition, any Bybit user not going through the Know-Your-Customer verification process may receive a KYC verification request if the exchange deems it necessary.

Important Note: Although the exchange advertises that it doesn’t require KYC verification process for withdrawals of up to 2 BTC per day, several Bybit customers from different parts of the world flocked to a post on Reddit calling it a false claim. In response, Bybit shared its list of Service Restricted Countries and its Terms of Services that dictates the exchange reserves the right to implement KYC requirement on an account if a violation of its rules is detected. Therefore, it is advised to do your own research.

The guidelines above apply to individuals and businesses alike. However, business users only have Level-1 verificaton – rather than two levels for individuals – which will raise their daily withdrawal limit to 100 BTC. Documents required for this process include:

  • Certificate of Incorporation
  • Constitution of Association
  • Register of members and directors
  • Passport or ID and proof of residency of the ultimate beneficial owner representing 25% interest (or more) in the company
  • Information of one director (passport/ID and proof of address)
  • Information of the account operator or trader (passport/ID and proof of address)

Business can use Bybit without completing a KYC procedure, but will be limited to withdrawing a maximum of 2 BTC per day.

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