Last updated on January 23rd, 2024 at 09:00 am
More people join cryptocurrency trading, increasing the need for reliable exchanges. Many exchanges exist, each with pros and cons. Bybit exchange stands out for unique features. In this Learn Bybit tutorial, we’ll explain what is Bybit learn how it works, also how to use it for crypto trading. Bybit, launched in March 2018. It allows margin trading of Bitcoin, Ethereum, EOS, Litecoin, and Ripple’s XRP. It now serves 1.2 million traders. Bybit excels with its user-friendly interface, designed for both beginners and experienced traders. Let’s go for a deep dive and learn Bybit exchange.
Table of Contents
Learn bybit account and trade?
Let’s learn Bybit account setup process:-
You can create a Bybit account in two ways. Use email or mobile number for signup. Pick desktop or mobile for registration.
Note: Some countries can’t join Bybit, check the list of Bybit learn friendly nations.
Signing Up on PC/Desktop:
- Click the Sign Up button on Bybit’s homepage.
2. Choose Email or Mobile signup and enter required details.
3. Agree to Terms, Privacy Policy, and pass reCAPTCHA.
Enter verification code from email or mobile.
Signing Up on Mobile:
- Download the Bybit App from App Store or Play Store.
- Tap Assets, then Sign Up.
- Pick Email or Mobile and fill details.
- The Referral Code is optional.
- Say “No” if your country’s not restricted.
- Complete reCAPTCHA and enter verification code from email or mobile.
Starting to learn bybit Trading After Signup:
- Once registered, fund your account with crypto.
- Deposit from an external wallet or buy on Bybit.
- Options include One-Click Buy, P2P, and Fiat Deposit.
- Explore Bybit products and start trading on Spot or Derivatives platforms.
How To Trade Options on Bybit ?
Bybit provides various options contracts. Bybit offers European options, meaning you can use them only on their expiration day. These contracts are cash-settled, so you won’t physically receive the underlying asset.
To start trading options on Bybit, follow these steps. First, go to the “Derivatives” tab and select “USDC Options” to access the options trading page. You’ll see calls on the left and puts on the right, along with their strike prices.
Next, you need to transfer funds to your Bybit account. KYC might not be required for small amounts, but check your location’s regulations. You can use any wallet to deposit money into your Bybit account.
Then, add the funds to your derivatives account. Click on “Assets” and select “Transfer” to move money from your “Spot” account to the “USDC Derivatives” account. The transferred funds will appear on the “USDC Options” page.
Now, let’s buy a call. Choose a contract with an expiration date and strike price. When you select the call, the trading screen will open. To buy a put, the process is similar, but with a different strike price. If the put becomes unprofitable, you only lose the premium.
Remember, Bybit offers European-style options, so you can exercise them only on the expiry date. To cancel a call or put position before expiry, go to the “Active Order” section and select “Cancel.”
Bybit provides European options contracts that are cash-settled.Learn bybit , Follow these steps to start trading: access the options trading page, transfer money, add funds to your derivatives account, buy calls or puts, and remember you can cancel your positions before expiry.
ORDER TYPES ON BYBIT
Let’s learn bybit order types on bybit, there are three order types, :
1. Market orders, also called market-taking orders, execute instantly, ideal for fast markets.
2. Limit orders, or market-making orders, rest on the order book, adding liquidity, best for less urgent situations.
3. Conditional orders let you set specific conditions, including:
– Close on trigger: Ensures stop-loss executes when the price hits the order point.
– Post-only order: Cancels limit orders if not executed immediately, giving traders a rebate.
– Reduce-only order: Prevents unintentional sell orders, ensuring you don’t sell your position when the price returns to your take-profit point.
Tools like Dual Price Mechanism, Auto Margin Replenishment, and Stop Loss help prevent liquidation. The Mark Price derives from the Spot price, representing the global price with inputs from various sources.
How To Do Bybit Demo Trading ?
Once you open your main account on Bybit, go to Derivatives, choose Demo Trade. A window pops up, welcoming you to the Unified Trading Account. It’s in three parts. The first tells about demo assets and asset types. Bybit Demo Trading offers a practice platform mimicking real markets. Sign up to get a Unified Trading Account (UTA). The UTA lets you trade Bybit’s products easily.
It includes demo assets like 50,000 USDT, 50,000 USDC, 1 BTC, and 1 ETH. Recharge when balance falls below $10,000. You can recharge as many times as you want. Bybit Demo Trading matches the actual UTA products: Spot, Spot Margin, USDT, USDC Perpetuals, and USDC Options. The interface resembles Bybit’s main platform for easy navigation. The “Demo Trading” mode is clearly labeled. Join demo trading competitions to gain trading skills and become a Bybit Master Trader. Bybit Demo Trading’s simulated UTA focuses on risk management. It triggers a virtual margin call and liquidation, helping you learn risk management for real trading.
How To Complete KYC on Bybit?
If you want to remove transaction limits, verify your identity. Bybit may ask for KYC verification, which is necessary to use their platform. Follow these steps:
1. Just move to “Account & Security” section above top right corner.
2. Click on “Account Information” and then “Verify Now” under “Identity Verification”.
3. Find Level 1 Verification and click “Verify Now”.
4. Submit your ID document.
5. Complete facial recognition.
6. Ensure clear documents with readable names and birthdate. Bybit accepts various formats.
Once you have Level 1 verification, you can proceed to Level 2, which requires proof of address with documents like utility bills or bank statements. Bybit’s “insurance fund” safeguards traders in case of liquidation below their bankruptcy price. The fund replenishes from liquidated traders’ initial margins. The difference between liquidation and bankruptcy price contributes to or withdraws from the fund.
HOW TO START USING BYBIT ?
Creating an account with Bybit is simple. Visit www.bybit.com and click ‘sign up.’ Enter your email and create a password. Verify your email . Your account is ready! Bybit may offer new user rewards.
To deposit funds, open your Bybit account. Click ‘Assets’ to see supported cryptocurrencies (currently 20). Choose the one you want and get the deposit address. Make sure to select the right chain. Input the address and chain into your wallet/exchange. Wait for your deposit.
Placing an order is easy:
1. Pick your order type.
2. Set leverage, order size, limit price, and order position (long or short).
3. Set ‘Take Profit’ and ‘Stop Loss.’
4. Review and confirm your order.
View your order’s progress in the info tab.
To close your position, click the bottom right buttons.
For withdrawals, add your withdrawal address to your Bybit account. Then:
1. Choose the blockchain mainnet (e.g., ERC20, OMNI, TRC20).
2. Enter the receiving wallet address.
3. Input the withdrawal amount.
4. Click ‘submit.’
Conclusion
Bybit margin trading stands out as a top choice. Its user-friendly interface offers advanced tools for professional traders. However, beginners might find it complex, but support articles explain complex ideas. Caution is necessary; potential profits can lead to neglecting potential losses. To decide, explore Bybit’s features, assess risk tolerance, and plan your trading strategy. Options trading hedges asset price speculation. Unlike futures, it doesn’t force you to buy at the strike price. It’s ideal for beginners aiming to avoid extreme volatility. Losses are limited, except with leverage, but unfamiliarity with crypto’s volatility poses risks. Always research before trading financial instruments.
Bybit ranks among the world’s largest crypto platforms, with 2 million traders and $4 billion daily trading volumes. It offers spot and derivative trading, risk management tools, insurance funds, a mobile app, and uninterrupted servers. Whether new or experienced, Bybit caters to all crypto traders. Options trading serves as a strategic hedge to speculate on asset prices. Its key advantage over other derivatives, like futures, lies in not obligating you to buy at the strike price. This makes options appealing to novice traders aiming to avoid extreme price fluctuations. Although losses are usually limited to the premium, those unfamiliar with crypto market volatility should proceed with caution. As always, it’s important to conduct thorough research before venturing into financial trading.
