ByBit Review And Top Alternatives: Is ByBit Legal?

ByBit is an easy-to-navigate crypto platform recommended for new and experienced traders to analyze market data and gain more profits. Read this ByBit review to explore their services:

ByBit company has a crypto trading platform used in trading crypto spots and derivatives (futures and options) using bots and advanced strategies.

There also is social trading where traders can copy and emulate trades of others to make money at some cost. Multiple bot types are available on ByBit for use with different trading strategies.

The exchange also now offers web3 services with a decentralized crypto wallet in which traders and holders can securely store their cryptocurrencies without fear of loss since they control private keys.

ByBit Cryptocurrency Platform: Is ByBit Safe

It also provides access to the web3 world of NFTs, NFT marketplace, DeFi marketplace and exchanges, crypto staking, IDOs (Initial Decentralized Offers) projects, decentralized games, and other decentralized web3 products.

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ByBit as a Company

ByBit now has over 5 million customers around the world and on it, users can buy and sell as well as actively trade 100+ cryptocurrencies on spot and derivatives markets.

ByBit is highly rated among its customers, although it has a very low 1.9/5 score from 764 TrustPilot.com ratings. 61% of customers here give it a score of 1 star and only 26% a 5-star rating. However, the app is rated at 4.6/5 out of 10 million+ downloads from Google Play, which is impressive.

Our Ratings: 4.6/5 with impressive wins on fees which are lower than average in the market and security, having not been breached. It is also feature-rich and, unlike most crypto exchanges, customers can use the ByBit debit card to spend crypto right in their wallet or withdraw at a supported ATM store.

Founded: 1994
Headquarters and Locations: Dubai, UAE. Other offices in Hong Kong and Taiwan.
Employees: 2-10
Revenue: $34.4 million

ByBit Products and Services

This section explains different services and types:

ByBit Crypto Trading Bot Analysis

Unlike most crypto trading bot providers that do not offer a direct crypto marketplace and instead provide bots that connect to external exchanges using APIs, ByBit has a marketplace on which the crypto trading bots trade.

Types of Crypto Bots on ByBit

#1) Futures Grid Bot and Futures Martingale Bot: A Futures bot employs a grid trading strategy on perpetual futures contracts markets on ByBit. With this bot, traders take advantage of price fluctuations when the bot places a series of buy and sell orders. It is most useful during volatile markets.

The Martingale bot utilizes the Martingale strategy to automatically place a trade when the market price shifts by a percentage. It does so to recover any losses made and make profits when the market moves favorably.

#2) Spot Grid: This bot utilizes a trading strategy on the ByBit spot market. The bot places orders above and below a price level to implement a series of buys and sell orders as the price gradually falls and rises. Traders thus use the bot to take advantage of price fluctuations within a defined price range.

#3) DCA Bot: The type of bot regularly invests a preset fixed amount of money into a given crypto asset. By purchasing small amounts at favorable prices, it aims to lower the average acquisition price compared to a lump-sum purchase. The ByBit DCA bot can manage up to 5 coin types per bot at a go.

Other Products and Services

• Crypto conversion with fiat at Mastercard supporting ATMs using the ByBit debit card. You can make a deposit using international and local methods.
• Spend crypto at Mastercard-supporting merchant stores with ByBit debit cards and earn redeemable loyalty rewards.
• Stake crypto with a ByBit debit card.
• One-click crypto purchases and sales: Buy and sell crypto instantly using fiat (nearly 100 fiats) and using international and local payment methods. These methods include debit and credit cards, bank transfers, and Internet payment methods such as Apple Pay, Google Pay, etc.
• P2P crypto buying and selling, including with fiat on the ByBit p2p marketplace using local and international payment methods.
• Withdrawal from local and international methods.
• Auto investment. Schedule regular purchases to invest in crypto slowly over the long term. Select the crypto to buy, the funding account, and the frequency.
• Trading Terminal: Spot trade crypto using semi-auto and manual methods besides bots.
• Margin trading. Up to 100x and 50x on certain cryptocurrencies.
• OTC trading
• Copy trading
• VIP program, institutional services that can be used by banks, introducing brokers, trading groups, and other companies offering trading services to their clients; TAX API.
• MT4 integration. It also offers API.

ByBit Exchange Review

ByBit spot exchange can be used over the web app, and on mobile phones via a dedicated app. The spot trading platform supports advanced charting and a few advanced trading orders, in addition to manual trading orders. The exchange operates a cold storage solution for storing customer cryptos.

The best of it the ByBit crypto exchange is that customers can deposit assets in 20+ fiat money and trade 100+ cryptocurrencies. Besides, the exchange supports margin trading up to 100x for some cryptos on the spot and futures market. It also offers translation into 4 languages, including Korean and Russian.

ByBit Copy Trading Review

Traders used this feature to view leading crypto traders on ByBit (by their ROI, drawdown, weekly trades, and AUM) and to thus follow them and copy their trading strategies at a cost. Copying their trades means using the strategy used by the trader to trade crypto. Users can register to provide signals or strategies to be copied and earn money from it.

How to Create a Bot at ByBit

Step #1: Create an account or sign up. You will need to verify your email and provide contact information, and indeed other verification information needed by ByBit.

Step #2: Deposit funds into your account.

Step #3: Create a bot. From the trading bot menu, select the type of bot to create.

Choose the crypto pair to trade, and configure grid parameters that depend upon the bot type (for instance, for grid bot, you need to choose upper and lower limits, number of grids, and targeted grid profit percentage). ByBit can also auto-fill the information based on the market conditions if you choose the Auto Fill option.

Step #4: Start the bot by clicking/tapping the Create or Start button. You need to monitor the bot performance from the dashboards, including profits generated and trades they place.

Withdrawal Process

Withdrawing crypto from ByBit is done from the Dashboard’s Assets section. Choose Crypto or Fiat. If withdrawing crypto, choose the Spot or Funding option from the drop-down menu depending on where the funds are located in your account (when using the website).

Choose the Withdrawal option. To get started, select the on-chain withdrawal option on the Withdrawal page and add a withdrawal address to your account. For fiat withdrawal, you might consider first selling the crypto to fiat on the same exchange. For the fiat option, choose the method and enter the amount.

You might also need to transfer the funds first to any of the Spot or Funding account sections if the funds are located in another account section, using the Transfer Now option. For Derivatives, transfer the funds to the Spot account using the Transfer option in the Derivatives account.

From the Withdraw option, select the Chain type, click or tap on the Wallet Address select the receiving crypto wallet address, enter the amount or use the All option, and submit. You can also transfer from ByBit to another crypto exchange, and ByBit also supports fiat withdrawals to bank accounts.

The ByBit debit card can withdraw crypto directly from Master Card ATMs. The P2P marketplace also allows to sale of crypto to cash (fiat) and traders can withdraw the fiat directly to linked local deposit/withdrawal methods and international ones that include SEPA, Advcash, Zen, Bank Transfer, FPS, Quickpay, etc. The OTC works the same.

Crypto takes from an instant to about 30 minutes to withdraw. Fiat depends on the method, with some being instant. For fiat, it will show the estimated withdrawal time against the methods available on the withdrawal page.

ByBit Security:

• Security-wise, the exchange has never been hacked.
• It supports 2FA authentication.
• Stores user crypto on cold storage. Private keys are stored in cold storage.
• Multi-signature, Trusted Execution Environment, and Threshhold Signature Schemes are employed to safeguard user funds in addition to cold storage.
• Regular Proof of Reserve audits whose results are published publicly.
• Data encryption in storage and transit.
• Real-time monitoring is used to flag risks for all activities in risk control.
• Runs a bug bounty program to make it possible to uncover any hack and breach risks and threats before they happen to the public.
• ByBit also operates Mutual Insurance which compensates customers in an unfair negative balance protection scheme.

ByBit, however, terminated operations in the U.K. in 2021 following FCA’s ban on derivatives sales in 2020 and the lack of a regulator license in the region. It also relocated to Dubai following licensing issues in Singapore.

There also are negative reviews relating to funds safety at ByBit

ByBit Customer Support

Despite providing 24/7 customer support, ByBit’s customer support is not one of the best and has attracted a lot of complaints and negative ratings from clients. Some customers complain of delays and no response at all from the team but the response is fulfilling for most.

ByBit actively provides support on the phone via a publicly available number, via the help center, via email, and on Twitter and Reddit. There also is a dedicated chat on the website powered by Zendesk. Customers can also opt to send feedback using a form on the website and earn a variety of merch.

Pros and Cons

Pros:

• The P2P market has no transaction fees.
• Local payment methods for trading crypto.
• Decentralized wallets and web3 products.
• VIP program with fee reduction opportunities. Also provides institutional services for extra benefits.
• No fee for using ByBit bots. However, traders buy fees for all trading orders executed using bots.
• Insurance fund covers trades that go below zero before they can be closed out. The insurance covers the positions not closed in the negative balance protection instance.
• Cross margin where the trader’s balance in any crypto wallet can be utilized for trading before a liquidation is forced.

Cons:

• Fee is paid per order executed with the bot and therefore can be high for high-volume traders.
• Multiple negative reviews range on several issues such as slow dispute resolution, etc.

ByBit Trading and Withdrawal Fees

Bots to trade are free. Deposit is also free as are internal transfers including on-chain crypto transaction fees. However, transaction fees on-chain and with fiat third parties may accrue from third parties, e.g. Visa. Make and taker fee is also zero on the P2P transactions.

However, a trading fee is paid on each trade done with the bot. On-chain withdrawal transactions also attract fees depending on the coins and chains in question.

The following table summarizes the trading fees on ByBit based on VIP levels.

• Fiat-crypto pairs also pay a separate fee depending on the VIP level, It varies between 0.2%/0.15% taker/maker fee for non-VIPs at the lowest level to 0.015%/0.005% taker/maker fee for the highest VIP level known as Super VIP Pro 5.
• The withdrawal limits also depend on the VIP level and account verification status. The daily limit is between 2 million USDT to 12 million USDT for fully verified customers depending on their VIP level. It is capped at 20,000 USDT for non-verified customers at all levels.

Other Fees: Liquidation fee of 2% on spot margin trading, crypto loan. 0.2% liquidation fee is charged on Options. A funding fee (paid either by short or long position holders) which depends on the funding rate also is charged on perpetual contracts. The rate varies every hour depending on market conditions.

Best ByBit Alternatives

ByBit vs Binance

Both crypto exchanges have spot and futures markets. Each supports a variety of trading bots, automatically buying crypto with fiat and using local payment methods, crypto staking, institutional products, and APIs.

They both offer P2P marketplaces that support fiat and multiple local payment methods, leveraged trading, portfolio management, and decentralized wallets and web3 products (such as games, NFTs, and marketplaces),

ByBit offers lower trading fees than Binance. It also offers slightly better investment programs than Binance. ByBit also wins in terms of support for crypto trading bots, copy trading, and maximum leverage on futures and crypto spot trading.

Binance has more features and investment and trading crypto assets, plus it wins in terms of client base, public ratings, and the educational resources provided to customers.

Suggested Read =>> Best Binance Trading Bots

Coinbase

Coinbase and ByBit both offer institutional products, spots and futures trading, leverage trading, crypto staking, charting, portfolio management, NFTs, decentralized wallets, OTC, etc.

Coinbase, compared to ByBit, is regulated to operate in the United States and scores a higher rating. However, ByBit wins in terms of lower crypto trading fees at -0.025% maker and 0.075% taker fee compared to Coinbase’s 1% on Retail and 0.5% on Coinbase Pro.

ByBit is also a clear winner with its P2P marketplace that not only supports local fiat transactions but also local payment methods. You also get more varied ways to deposit crypto with local methods and to buy crypto with fiat (or in deed withdraw crypto to fiat) at ByBit than at Coinbase.

ByBit is available for use in more countries (160+) compared to Coinbase’s 40+. ByBit also offers higher leverage ratios and better bot trading for retail traders compared to Coinbase.

Coinbase supports fewer cryptocurrencies (180+) than ByBit (300+). However, it is regarded as more secure for traders in the United States, is strongly regulated e.g. by the FCA, FinCEN, and ASIC, and has a higher rating compared to ByBit.

Binance

Binance is a strong contender for a better crypto exchange than ByBit given its high popularity among users, high liquidity, larger client base, more diverse investment options, and support for more cryptocurrencies (376+).

However, ByBit is better at charging lower fees with its crypto trading bot offerings.

Kraken

Kraken is licensed in the United States, unlike ByBit. Both exchanges have compelling crypto trading features to support trader’s journeys but Kraken is more suitable for beginner to intermediate users while ByBit addresses itself to beginner to advanced users.

Kraken is available in 190+ countries compared to ByBit’s 160. Both exchanges are available on mobile apps with the option for web-based interfaces.

And while Kraken supports about 7 fiat currencies, you get 20+ at ByBit, which also performs better in terms of the diversity of local payment methods supported by which users can deposit and withdraw funds. ByBit also has a stronger P2P marketplace which isn’t available on Kraken.

However, both platforms support bank transfers and a variety of credit and debit card payments. They also support 50x trading margins for crypto futures, but ByBit goes to 100x on spot margins where Kraken’s capped at 5x.

Both Kraken and ByBit also support interest-earning investments, but ByBit supports additional ones (beyond staking and crypto savings accounts) including liquidity mining, DeFi mining, and Dual Asset Investment Strategy.

Kraken, however, supports the mining of SHA 256 and other proof of work coins, unlike ByBit. It also wins to stake since it has very low minimums, and high returns of up to 20%, and coins can be un-staked at any time.

Bitfinex

A seasoned crypto exchange, Bitfinex supports 180+ cryptos, better platform compatibility with support for MT4 and MT5 trading platforms, BitGo cold storage, and AlgoTrader support. These make Bitfinex superior to ByBit.

However, the trading leverage of up to 1:10 which is more conservative compared to ByBit’s. Bitfinex has a history of hacking beaches, does not support futures trading, and does not implement copy trading features, all of which make ByBit superior.

Bitfinex charges 0.2% to 0.55% taker fee and 0.1% to 0.0% maker fee, which makes ByBit more affordable fee-wise.

Frequently Asked Questions

Conclusion

ByBit offers competitive fees, features, and free crypto trading bots, which makes it a favorite to most cryptocurrency exchanges that support bot trading. Even when trading fees are paid on bot trades, those fees are lesser than the average fees charged by a majority of cryptocurrency exchanges.

Besides, bot traders on the platform can leverage programming skills to create compelling trading bots at an advanced level. Those without these skills can start with templates and copy the trading strategies/rules of other traders. Crypto trading bots on the exchange can trade futures as well. It is also possible to expand the pool of accessible trading bots by utilizing ByBit with MT4, which it integrates.

Bitfinex also offers additional investment products, including DeFi staking, DeFi liquidity mining, IDO investments, and a trading terminal on which manual to semi-auto trades can be placed. We recommend ByBit for beginner to advanced traders interested in trading crypto with bots.