Bybit trading is today one of the fastest, most enticing options for cryptocurrency exchange out there. Its popularity stems from its user-friendly interface and advanced trading features that allow for more options to hit the right spot when it comes to investing in cryptocurrencies.
The exchange came to life in March 2018, and today counts with over 40 million users worldwide. It has some of the lowest spot-trading fees in the market and full-time customer support. Also, Bybit is regarded as one of the safest and most reliable platforms in the world.
When it comes to leverage trading crypto, Bybit incorporates everything you need to put your position and execute trades effectively. You can choose your leverage, place orders (market, limit, conditional), use trading bots, and set stop-loss and take-profit levels. The platform’s real-time tracking and advanced charting tools help you monitor your trades and make informed decisions.
In this tutorial, we’ll cover everything you need to get started in your Bybit trading experience.
How to Create Your Bybit Account
The first step to trade on ByBit is to visit their website or download the mobile app. Then you can create an account. The platforms require a preferred email address, and make sure to pick a secure password.
After that, the platform will require ID photos and a liveness test so you can verify you are, well… you! Following this step, your account will be validated to start trading Bitcoin and other altcoins on the platform.
How to Make The Most of Your Bybit Leverage Trading
For starters, we should cover what leverage trading is and how it differs from traditional trading. Leverage trading, also known as ‘margin trading’ is a form of investment where your allocated funds are multiplied – allowing you to open a position and profit greatly if the asset’s movement goes your way.
Imagine you want to bet on your favorite team to win in their upcoming big game, the odds are great but you only have 5 bucks to save your life. That’s when I (the exchange) come in, cover you for another 5, 10, or even 100 bucks – and agree that if the bet goes your way I’ll get my money back plus interest. If you win, you will greatly multiply your initial $5.00 investment.
However, let’s say your team eventually loses, because… let’s face it – they are not very good, you best believe I won’t be losing my 5 bucks buddy. Nope, in that case, we stop the bet early and I take my 5 bucks back home, plus a couple of cents for my troubles before your team takes yet another “L”.
That is – in an overly simplified way – how leverage trading works. Exchanges are not really lending you money but rather leveraging your success with little risk involved on their part. Needless to say, this type of investment is riskier because it involves different types of fees, and your position can be closed faster before it drains too much of your account. However, leverage trading on Bybit can also be extremely profitable.
Bybit Leverage Trading
The exchange allows you to leverage Bitcoin and Ethereum investments up to 100x. In other words, a $1000 investment can be leveraged up to $100,000. In comparison, the majority of competitors only allow you to leverage up to 50x.
The platform also allows leveraging several other assets like XRP, Litecoin, Solana, Cardano, and more.
Bybit allows leverage trading on long positions (where you bet that the price goes bullish), and short positions (betting that a coin will go down). The exchange also supports both perpetual contracts and futures contracts for leverage trading.
To make the best out of your leverage trading crypto on Bybit, it’s important to study the market, and learn about technical analysis tools like the MACD, Bollinger Bands, and all that good stuff. Understand how to trade Bitcoin successfully, and also understand the platform’s different order types for leverage trading.
Bybit Trading: Different Order Types
- Market Order: Executes immediately at the best available price.
- Limit Order: Sets a specific price at which you want to buy or sell.
- Conditional Order: Triggers a market or limit order when a specified price is reached.
To make it more digestible, a Market order executes your trade right away at the best price available. Meanwhile, a Limit Order lets you specify the price you want to buy or sell at, and the trade only happens if the market hits that price. A Conditional Order sets up a trade that only triggers when certain conditions are met, combining the features of both market and limit orders.
The best type of order will depend on the type of investor you are, how much you have allocated, how risk-averse you are, etc. A market order is quicker, which could allow you to not miss any profit opportunities. However, the limit order is generally regarded as safer as you have a stipulated amount you are willing to go.
Bybit Trading Fees
In order to understand the platform’s fee structure, first it is important to know what is the difference between a market “Maker”, and a market “Taker”.
We call a “Maker Order” when you make an order that isn’t immediately matched on the platform. Let’s say you put a buy order for Bitcoin at $63,000 – in this scenario, BTC still trades above that price, meaning that your buy order is “on hold” and all it’s doing is adding liquidity to the market.
In that case, fees are generally cheaper because your order is helping the market become more liquid.
On the other hand, a “Taker Order” is an order that gets prompted immediately. In this scenario, BTC trades at $63,000 meaning that your order would be executed immediately. Given you are taking liquidity from the market, this order tends to have higher fees.
But enough talking, here is a breakdown of ByBit’s fee structure:
| Maker Fee | Taker Fee | |
| Spot Trading | 0.1% | 0.1% |
| Perpetual & Futures Contracts | 0.01% | 0.06% |
| USDC Options | 0.02% | 0.02% |
Risk Management Tips For Leverage Trading
Even though this type of investment can be extremely profitable, leverage trading also contains risks involved. In fact, this type of trading is considered to be riskier given the higher fees and the possibility of losing a lot quickly if the market turns against you.
For this reason, leverage traders need to know everything about the risk management features that ByBit offers its investors.
Stop-Loss is Your Greatest Friend
A well-positioned stop-loss can be the difference between losing just part of your balance and having to tell your wife that her scheduled end-of-the-year trip to Europe is canceled due to lack of funds.
To explain what it is, a stop-loss is a feature that automatically closes an open position at a specific price zone. For leverage trading, having a stop-loss is important because a leveraged position going against you can quickly lead to significant losses.
In fact, if you want to learn more about it, we have an excellent guide on stop-loss right here.
Diversification is Key
The saying “don’t put all your eggs in one basket” exists because if you lose the basket, you have no more eggs, right? In trading, you can apply the same principle.
Diversifying your assets not only helps you mitigate risk but also allows you to learn more about the market, as well as enhance the chance that you pick a winning trade.
Understand Your Leverage
Uncle Ben always said that – with great power comes great responsibility. Only because you can leverage your investment to 100x, it doesn’t necessarily mean that you should. High leverage can mean higher profits, but also could mean faster losses.
Practice Makes It Perfect
ByBit allows you to practice trading a platform without betting your hard-earned money. The exchange has a demo-trading feature that shows the market in real time, allowing you to practice all the strategies and techniques aforementioned in this article so you can get ready for the real thing!
Take-Profit
Why would you put a cap on your profits? After all, they say you can’t have too much of a good thing. Well – when that good thing suddenly stops becoming a good thing and then the thing that was good is now not such a good thing … before you know it that good thing is now a really…really bad thing.
Trust me… that can be a thing.
In sensical words: A take-profit order is a tool that allows you to automatically close the position at a predetermined price. This is useful because, in long positions, you don’t have to be tracking the chart all the time. Also, it prevents greed from taking over your reasoning, allowing you to capitalize on a favorable momentum, without further risks involved.
Conclusion
Bybit Trading is a solid option for anyone looking to dive into cryptocurrency trading. Its platform is really easy to use, it offers the best leverages in the market, and some of the most competitive fees out there.
In case you need to learn more about ByBit, we also have a complete guide to the platform that you can read here.
Hopefully, this guide to Bybit leverage trading has given you a good foundation to start with. Dive in, explore the features, and trade wisely. Happy trading!
