Step By Step Guide On Bybit Future Trading
Step By Step Guide On Bybit Future Trading
03.06.2021 published by Freecoins24
5 min read
Bybit is a cryptocurrency futures trading platform. Mostly known as crypto derivate market which enhanced the traditional trading system through its features, leverage system and welcoming user interface. It was launched in March 2018 and is headquartered in Singapore. It has offices in Hong Kong and Taiwan. Bybit operates at global level and most of theusers arefrom North America, Europe, Russia, Japan, South Korea, and Southeast Asia. Currently,Bybit counts more than 1,200,000 users. According to the Bybit about page, Bybit team endeavours to provide a professional, smart, intuitive and innovative trading experience to better servethe customers in a timely manner. Thus, committed on creating a fair, transparent and efficient trading environment for Bybit users.
What is Future Trading?
Future trading is the most known traditional trading system regulated by the Forex exchange market. It is basically hosted for commodities’ future price speculation purposes. However, cryptocurrencies traders seem to have the same interest of making profit on futures market as with commodities futures trading.Then, it really matters to have an overview onwhat is future trade and how it works in crypto market. By the way, Crypto market is very volatile than traditional commodities markets.
Future trading involves two parties. Both parties agrees upon a contract, which includes the speculative pricesof an asset and the settlement or the expiry date.Clearly, a future contract can be taken as an agreement between two people on buying or sellinga digital currency on a predetermineddateand at predetermined price. This is not too far from Foreign exchanges market trading system.However, on a perpetual future contract, the bidders agree on an infinite expiry dateuntil the asset cross or hit the call prices. The main interest in a perpetual contract is the sentiment of making profit. Therefore, there come risk and funds management. For it really matter, for both people, to know the average of the slots profit and the fees until the contract isconcluded. The makers might not have any of the asset whilst speculating on its future prices. In addition,cryptocurrency futures traders have all markets instruments that makes it possible to put a strict and structured order.Inreferring to Bybit review on cryptocurrencies perpetual contracttrading, “the mechanism that helps perpetual contracts keep as close to the spot price as possible is funding. Traders are paying each other based on their open positions at certain hours. The difference between the perpetual contract price and the spot price decides who pays and who gets paid. Thus, when the funding rate is positive, traders who have long positions pay shorts, and when the funding rate is negative, shorts pay longs”.Actually, future trading is easier and suitable to all beginners in crypto trading. it doesn’t follow the spot market rules where individual is required to have the given asset orliquidity before putting order. Anyone can access cryptocurrencies future trading market with less possible means. More, from traditional to the current future trading system, leverage, asset and risk management are very cores in future trading but the more leverage one may get on, the more is the risk of loss and profit. In that vain, a future traders, should always consider the market (sell and buy) density before any bills.This review is not about putting future trading as the most convenient way of trading cryptocurrencies but showing how profitable it might be alongside the risks.
Why Bybit Exchange ?
Bybit exchange is translated in global standards languages and then creating a welcoming environment for all users. As many as other exchanges like BitMex, Deribit, Binance and others which are trying to render future trading more easier, Bybit acts like a real dealer with its unique trading features and users’ support protocol. On Bybit exchange, you can leverage up your trades to 100%. Clearly, Bybit can cover your position up to 100%. Consequently, users should consider the market depth and others strategy before upholding on 100 x take price. Because, the higher is the leverage, the more is the profit or loss. As for Bybit team, satisfying users’ needs while providing the latest trading functionalities are the focus. As reported by the team, , “Our innovative, highly advanced, user-friendly platform has been designed from the ground-up using best-in-class infrastructure to provide our users with the industry’s safest, fastest, fairest and most transparent trading experience.”
In furthering, Bybit’stakeprofit and stop loss featureare awesome. It offers an overlook on market depth and each contract is executed with minimal price impact. For more, cross and isolated marging are the most significant updates in the future trading on Bybit. User can moderate and manage their trade efficiently whilst on short or on long trade with no hurdle. Added to that, Bybit users receive “strategy alerts and can adjust their(s) orders with one click.”
How to do Future Trade on Bybit
- Sign Up
It’s very easy to sign up to Bibyt exchange. However as other exchanges, still some requirements which suits any types of trader. Thus, to register on byit, one may follow these steps :
- Go to Bybit exchange, from here, you will have $10 bonus on your fist deposit and increase your chance to win $500 more.
- Two options : email registration or Mobile registration
- Choose the most suitable option and click on Sign Up
- Proceed to data verification using the received mail or sms notification ( depends on the option)
- Enable further security levels (sms or google authentication system) to protect your account
- For more confidentiality while using Bybit, it is highly suggested to go through Bybit’skyc verification protocol. That is not different from others. Actually, there is no need to complete kyc before using the platform. However, it will strengthen your resilience as being bybit user.
These countries are not allowed to use Bybit exchange due to the state’s regulation: Afghanistan, Central African Republic, Congo, Côte d’Ivoire, Cuba, Eritrea, Guinea-Bissau, Iran, Iraq, North Korea, Liberia, Libya, Panama, Rwanda, Somalia, South Sudan, Sudan, Ukraine Crimea, Yemen, Zimbabwe.
- Deposit on bybit
Currently, the deposit of bitcoin, usd tether, ethereum,Eos andXrpare accepted on Bybit.You will have to generate and copy the target-deposit coin address first in your Bybit wallet. Then, you can request the withdrawal of that coin from yourprivate wallet or other exchanges like Binance where your coins (btc) are stored.
Deposit on Bybit account will not take time to be confirmed, the broadcasting requires only 1 miner confirmation for the transaction to be completed. That makes Bybit a trustful platform. To shorten this process, Bybit offers Fiat Gateway. Then you can buy Crypto with Fiat Currencies. This is only accessible on Bybit desktop or web version.
- Withdrawal on Bybit
Withdrawal on Bybit is quite understandable and easy to grasp. Here, you have to add the correspondingwithdrawal wallet addressand proceed with 2-factorverification. That iseasy to do. However, Bybit sets up a daily withdrawal limit per user. For instance, you can only withdraw 0.002-10 bitcoin once. From 0.02-200ethereum, 20-100,000Ripple and from 0.2-10,000 eos. You should mark that, this withdrawal is handled proceed by Bybit team three times a day (0800, 1600, 2400 UTC) and the cut-off time is 30 minutes.
- Short and Long trade
It needs to understand how future trade work first before embarking with any short or long trade (ref:what is future trade).
BTC/USD short trade
Importantly, Bybit traders can hold many long and short positions of one USDT contract same time. Nevertheless, these will resume in one trade with adjusted settings. Then, it matters to understand how your orders would work once combined.
BTC/USD long trade
- Bybit trading fees
For examplewhen you open a 10x leveraged 2 BTC position at 45,000 USDT. Meaning, your order values 10×45,000 (90,000 USDT).Then you will you will receive 90,000/100×0.025 ( 22,5 USD) fee rebate on limit orders and will pay 90,000/100×0.075 (65.5 USD) on a market order.
However, “The fundingrate is a mechanism to ensure that the perpetual futures contract price stays near the index price. All crypto derivative exchanges use a fundingrate on perpetual contracts. The fundingrate is set by the market and varies over time. When the market is bullish, the Longs will tend to pay Shorts”. You can read more about bybit future contract’s rules here.
- Bybit’s Insurance Fund
Bybit insurance funds is set up to moderate the contract settlement. This is enhanced to protect users’ trades from liquidation. For instance, Bybit will make use of those funds when your contract is crossing the liquidation price or the stop loss position when you are on long trade. According to Bybit,It is used to cover for such situations before they are taken over by the auto-deleveraging mechanism.And onlythe difference between the price at which the trader is liquidated and the bankruptcy price is taken from the insurance fund.
Bybit’s reward Hub
Bybit reward hub displays all formof Bybit’scouponsor other form of Bonusesthat new and old users can earn by following some steps. However, these Bonuses or are very restricted on uses by Bybit.
Referring to Bybit’s reward policies, bonuses can be used as margin. They can also be used to cover trading losses and to offset trading fees prior to user’s own capital. Bonuses cannot be withdrawn, while profits from trading with bonuses can be withdrawn. Concisely, Bybit coupons can be used to offset transaction fee and coupons will be deducted to cover fees prior to user’s own capital.
Multi-account registration to farm Bybit rewards or any other abusive or fraudulent behaviors will result in immediate termination of all associated accounts.
Disclaimer: This review on Bybit exchange is to be used for reference purposes only. No such information provided on Bybit constitutes an advice or a recommendation that suit anyinvestment or trading strategy. May consider cryptocurrencies as a very volatile market.
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