Bybit cryptocurrency derivatives
What is Bybit?
The big advantage of the exchange is that, in addition to trading opportunities on the exchange, there is also the opportunity to receive additional income from affiliate and referral programs, as well as receive a bonus for performing simple actions.The exchange focuses on the international market, offering users from different countries to choose the desired language version of the official website.
While there are many similarities between the exchanges, there are some distinguishing features that Bybit has included that can make them attractive:
- A variety of data analysis tools are provided to access data such as moving averages, moving average indicators, and monthly price range. It also includes funding data, specific index prices, volatility rolling chart, daily realized BTC volatility, market analysis and breaking news.
- Full access to a wide range of trading functions is given, including cross and isolated margin trading. Bybit offers 100X leverage that is not adjustable when used in a cross-margin option.
Bybit crypto derivatives trading is transparent and has no hidden fees.
Bybit maintains an insurance fund to deal with gaps in contract settlement. In terms of personal account security, Bybit offers 2FA authentication provided by the Google Authenticator app.Bybit cryptocurrency derivatives trading platform prides itself on providing multilingual online support to its clients and is committed to providing a transparent and efficient trading experience.The Bybit crypto derivatives trading platform boasts a state-of-the-art matching engine with a capacity of 100,000 TPS. While many of its competitors suffered from recurring congestion issues, this high-performance matching engine keeps Bybit ahead of the competition.Bybit provides a lot of support, which is unusual for margin exchanges.
What are crypto derivatives?
The global financial markets are one of the most lucrative industries on the planet. While some disagree, it's hard not to see how financial markets are evolving thanks to tools to raise capital, secure low prices, and get loans out of thin air. Derivatives trading is one such exciting concept. Unlike spot trading, derivatives trading is more flexible and more manageable as its value is determined by the underlying asset. And in cryptocurrency derivatives markets, leverage is often used.Bybit derivatives trading is well established among experienced traders.
Derivatives are products that determine the value of assets.
The main purpose of derivatives trading is to speculate on the future price of the underlying asset, which allows traders to record profits based on the price difference. And this applies to a variety of assets, including commodities, currencies, and cryptocurrencies.
Derivatives trading is an exchange of contracts that obliges two parties (buyers and sellers) to sell or acquire an asset at a specified date in the future.
What are the benefits for trading crypto derivatives?
- Volatility Protection: Cryptocurrencies are volatile and derivatives are ideal for reducing this long-term price volatility by signing a contract that is set directly to the underlying price.
- Offers Diversification: Because derivatives trading takes into account the prices of the underlying assets in advance, they help investors minimize portfolio risk. In addition, the derivatives market is useful for generating market movement signals.
- Higher leverage : Trading in derivatives requires the trader to invest a small fraction of the total trade (10% or even lower). An investor can use leverage to increase their profits without investing a significant amount up front.
- Low Commissions: Trading in derivatives is cost effective, with lower commissions or execution fees.
Bybit crypto derivatives in Kenya can be purchased in minutes. Trading crypto derivatives offers several growth opportunities for the savvy trader. The trick is to come up with a specific strategy before you start working with cryptocurrency derivatives. Before making the first trade, a trader should analyze and understand the possible risks that are associated with trading derivatives.Bybit cryptocurrency derivatives trading is a good investment for the future.
How does cryptocurrency derivatives trading work?
To capitalize on a sudden change in the price of an underlying asset, a trader can buy a cryptocurrency at a low price and sell it later at a higher price. However, this strategy is very risky - as well as all other attempts to speculate on the price of the underlying asset.
Since the future price of the crypt is unknown to anyone, all trading participants take on a certain risk. For almost all crypto derivatives, the same principle applies: if on the day of execution of the contract the asset rate fell, then the seller gets the profit, and the buyer remains at a loss. If the digital coin goes up in price, then the buyer remains the winner. However, depending on the type of contract chosen, the nuances of earnings will also differ.
How to Trade Bybit Derivatives in Kenya?
Bybit derivatives in Kenya provide good returns for investors. Here is the step-by-step process that a crypto trader should follow:
- Compare the features offered by different exchanges. Remember, reputation is also important.
- Open an account and fund it using fiat or cryptocurrency transfers.
- Concentrate on cryptocurrency derivatives that you are interested in trading.
In simple terms, the trader must develop a specific plan before trading. Due to the fact that some exchanges provide more profitable commissions, it makes sense to use them to increase profitability. Bybit cryptocurrency derivatives in Kenya are available to buy and trade now.
How do I open a demo account?
Bybit invites its users to try the testnet in order to find out the platform without using real money. The testnet is useful for those who are just starting to work in this area and for those who want to try working with leverage. The procedure for creating an account on Bybit testnet is almost the same as for on the main site of the exchange:
- go to the site.
- choose the registration method.
- press the button "register".
- go to the mail (if the registration method via e-mail was previously chosen) and copy the verification. code.
- we register it in the appropriate field on the site and registration is complete.
Bybit derivatives trading platform provides 24/7 live chat support that sets it apart from many competitors.
Bybit derivatives list
The most common products on exchanges are:
- Perpetual USDT.
- Inverse futures.
- Inverse Perpetual.
Inverse contracts use BTC / ETH / EOS / XRP as the base currency. To calculate margin, profit and loss, traders need to provide confirmation of the US dollar as the quoted currency, and then use either BTC or ETH as the base currency. When intending to carry out transactions under the BTCUSD contract, the trader must use BTC as the base currency. When dealing with ETHUSD contracts, the trader must hold the ETH currency. Despite the fact that inverse perpetual contracts are quoted in US dollars, all profit and loss calculations are made in the base currency (BTC, etc.). This feature, based on the value of each contract in the amount of US $ 1, is specifically designed so that traders can, taking into account the ability to conclude transactions at a minimum price of US $ 1.
Perpetual contract in USDT is a line contract. For a line contract, the margin is used in USDT currency. While an inverse contract implies that a trader planning to carry out transactions under a contract in BTC / ETH / XRP / EOS needs to use the base cryptocurrency as a margin for a transaction under the corresponding contract. Unlike the inverse perpetual contract, the perpetual contract in USDT includes the following:
- The calculation of margins and unrealized gains and losses on a USDT perpetual contract is more straightforward than an inverse perpetual contract. When a transaction is executed on 1 BTC and the price moves by 100 USDT, the trader's profit / loss will be 100 USDT. On the USDT contract chart, the unrealized profit / loss will be presented as a linear curve.
- Inverse perpetual contracts are traded based on the underlying cryptocurrency. In this case, the trader needs to hold the more volatile currency BTC / ETH / XRP / EOS as margin. It follows that even if a trader decides not to enter into transactions, the very fact of holding a cryptocurrency already carries risks. But for perpetual contracts in USDT, on the other hand, stablecoin is used as margin and therefore there is no need for a trader to hedge the position in order to avoid the risk of holding the cryptocurrency.
A futures contract is an agreement to buy or sell a specific underlying asset at a predetermined price at a specific time in the future. For Bybit Inverse Futures, the contract value is calculated in dollar terms and calculated in BTC.
On the other hand, futures contracts have a predetermined settlement date and all positions must be settled no later than a certain date. In addition, the lack of a funding mechanism is also the main difference between them. For all other functions and capabilities, both trading pairs have very similar characteristics.
How is derivatives trading different from spot trading?
Both Spot and Derivative are forms of trading that allow investors to register profits.
When it comes to cryptocurrencies, spot trading is the most basic type of investment. This essentially entails buying a cryptocurrency and holding it until its value increases, or using it to buy other digital currencies that may rise in value. The advantage of spot trading is that you can physically own a certain amount. cryptography in your crypto wallet.
Trading in derivatives is a little different from the previous type of trading. Here, when trading a product, you will not actually have to buy or sell it. However, the contract value is intended to follow the price of the crypto. Of course, there are much more complexities in trading contracts, but the fundamental idea is lies in the fact that you need to bet on the fact that the price of such an asset is either rising or falling. Whether there will be a profit or not will depend only on the forecast that will be formed.
The benefits include:
- Derivatives are easy to sell short. This single factor is extremely important for active traders. In short, a trader makes money when the price of an asset falls.
- You do not need to physically own a certain amount of crypto in your crypto wallet in order to enter a derivatives market. Derivatives are created in the form of contracts that allow speculation on the price of a cryptocurrency without owning the cryptocurrency itself. This means that the contract can be cheaper than the price of the asset.
- Cryptocurrency derivatives provide the highest liquidity.
Bybit cryptocurrency derivatives FAQ
Do reverse perpetual and reverse futures use the same BTC insurance fund?
Yes, both trading pairs have the same insurance fund.
Do reverse futures support hedging positions?
Yes, but only within the same futures settlement date. In addition, traders should ensure that the following settings are applied:
1. Switch to "Hedge Mode".
2. Enter both long and short sell positions.
3. Select "Cross Margin" mode for long and short positions.
Is Bybit's fiat deposit feature handled?
No. Bybit does not directly process fiat currency deposits. All fiat deposits are 100% processed by our Fiat Gateway partners.
Will there be any transaction fees if I buy cryptocurrency through Fiat Gateway?
Most service providers charge transaction fees for cryptocurrency purchases. Please check the official website of the respective service provider for the actual payment.
When will I receive my purchased cryptocurrency?
Cryptocurrency is usually deposited into your Bybit account between 2 and 30 minutes after purchase. However, this may take longer, depending on the conditions of the blockchain network and the service level of the particular service provider. For new users, cryptocurrency deposits can take up to one day.