How to Deposit and Withdraw on Bybit
Naturally, in order to trade on Bybit, you’ll first have to deposit funds. Select the “Assets” tab on the top navigation bar and you will see all of the available perpetual contracts listed neatly. Bybit is a crypto-based platform; hence you can only deposit cryptocurrencies.
Here you can also track all the important metrics for measuring the performance of your positions, including Unrealized P&L, Available Margin, and Position Margin. On the right side, you’ll also see options to deposit and withdraw funds.
By clicking the Deposit button, you’ll be presented with a box containing your Bitcoin (BTC) deposit address as well as its corresponding QR code.
The withdrawal process is also fairly simple. For your own safety, withdrawals require your account to be verified and have 2FA turned on.
How to Trade on Bybit
Bybit is basically a crypto futures platform, and the exchange allows its users to place both long and short positions. Place a long order if you think the price will rise, or place a short order if you think the price will tumble.
Additionally, there are some advanced order types: Limit, Market, and Conditional.
Limit Order
With a limit order, you can set the price at which your order will be executed. Let’s say Bitcoin is currently trading at $9,800 and you want to long it, but you feel the price is too high. You can set a limit order to buy Bitcoin at $9,700, and when the market drops to that price, your order will be filled.
Market Order
This is the simplest order type. You select an amount of Bitcoin (for example) that you wish to buy or sell and then hit the Long or Short button, respectively. The order will be executed at the best available price of Bitcoin on the order book.
Conditional Order
Conditional orders are best suited to more experienced traders. When you set a conditional order, you have to enter a trigger price along with the limit price. The trigger is the price at which your order will enter the order book. So, when the trigger price is reached, only then will the order be delivered to the market (whether it’s limit or market).
Bybit Margin Trading: How to Set Leverage
Before you enter the position quantity, you’ll have to select a margin level. Once you do this, your position will be re-calculated and you’ll be ready to go. Bybit allows a margin level of up to 100x. This means that you can trade each $1 for $100; however, as the margin increases, your position’s stop-loss tightens.
Opening and Closing a Position
As you can see, opening a position on Bybit is fairly straightforward. After you’ve chosen an order type, all you have to do is enter your desired metrics. Once you’ve done so, you’ll open your position by clicking on the “Buy/Long” or “Sell/Short” button, depending on whether you want to long or short the cryptocurrency at hand.
After you’ve done so, you will see your position appear in a designated space where you can monitor its performance.
Here you can check important performance metrics and activate Auto Margin Replenishment (AMR), which you can read more about below. Your position can be closed in a few ways. First, you can always close the position at the spot price. However, you can also set an order that’s opposite to your current one.
Isolated Margin and Auto Margin Replenishment
Margin trading is gaining popularity in the cryptocurrency space, and more and more exchanges seem to be offering it. Before we dive into Bybit’s offerings, it’s important to understand that margin trading contains significant risks. While it can accelerate your profits, it can also seriously damage your capital.
You have two options when it comes to margin trading on Bybit: Isolated Margin and Auto Margin Replenishment.
Isolated Margin
This is the default margin mode, and if you haven’t touched it, it’s what’s activated on your account. In this mode, your position’s margin is completely isolated from your account balance. The exchange won’t extract any additional margin from your available balance. This is recommended for less-experienced traders who wish to minimize their risk and limit their losses.
Auto Margin Replenishment (AMR)
This mode automatically adds margin to existing open positions in order to avoid liquidation. Once you enable AMR, if the margin level on your position is about to reach the maintenance margin level, Bybit will replenish the margin from your available balance. It’s perhaps best to use this option with care in light of the volatility of the cryptocurrency market.
What Are the Fees on Bybit?
Bybit charges two types of fees depending on whether one qualifies as a market maker or a market taker.
Market Makers: The fee here is 0.025% of your trade. To qualify as a market maker, your order must be placed on the order book waiting to be filled. This is the case when you decide to place a limit order.
Market Takers: The fee here is 0.075%. When you are a market taker, your order is filled immediately without being placed on the order book. That applies when you decide to place a market order.
On top of the above, there is a funding fee, which is exchanged between buyers and sellers, and calculated every 8 hours: at 00:00 UTC, 08:00 UTC and 16:00 UTC.
Bybit Security: Is Bybit Safe?
In its short life, Bybit has proven to be a secure platform to trade on. Bybit maintains an insurance-like fund to deal with shortfalls in contract settlements.
Besides, Bybit has mutual insurance, which is a risk management tool for the BTC/USD pair.
As for personal account security, Bybit offers 2FA authentication provided by the Google Authenticator app.
Source: https://cryptopotato.com/
