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The cryptocurrency space is a digital wild terrain, understandably, for its many puzzles, such as hacks, theft, fraud, security breaches, etc. While it remains a goldmine for those who know how to navigate the cold waters, it remains a concern for many security-wise, especially the newbies. In this piece, we’re diving headfirst into the question on every crypto enthusiast’s mind: Is Bybit exchange legit or a scam? Get ready for a stockpile of insights, anecdotes, and much crypto wisdom.
Bybit exchange Overview
If you have been exploring cryptocurrency trading, you’ve likely heard the name floating around. Bybit is a cryptocurrency derivatives exchange focusing on Bitcoin and Ethereum perpetual contracts. Consider the derivatives as contracts that enable you to buy, hold, or sell cryptocurrencies at designated prices at a later time. They are instruments that sometimes serve as a buffer against the very volatile nature of cryptocurrencies. Bybit was founded in 2018, and since then, it has quickly gained popularity, boasting a robust user base and an attractive interface.
Ben Zhou, who worked as the general manager of XM, a forex brokerage firm for Greater China, formed Bybit after teaming up with other industry experts and professionals who worked with well-known, established brands like Tencent, Morgan Stanley, and Alibaba. Today, the Bybit platform boasts over 3 million users and traders. It has a straightforward design that attracts a swarm of investors and traders.
However, the platform does not have approval from the Financial Conduct Authority (FCA). It is a decentralized platform not regulated by any government. It has its headquarters in Singapore but doesn’t even operate within the local economy. These and some others raise concern by many people towards the platform’s legitimacy. Bybit also shares data of its users with different third parties located within and beyond the European Economic Area.
With all that said, is there a possibility of scams lurking in the shadows of the platform? To give us a proper insight into this, let us consider the pros and cons of the platform.
Bybit exchange Pros and Cons
These are the potential advantages and disadvantages of the Bybit exchange.
Pros
On the very bright side, Bybit exchange has a very user-friendly interface. Its platform is intuitive, making it essential for beginners and experienced traders. Also, the platform allows traders to use leverage to amplify their trading positions. With this, you can borrow capital to increase your capital base for trading in your wallet to enhance your profits. Although, it also implies that your loss can be compounded if the trade doesn’t go in your direction. Bybit creates a balance within the system such that when the value of the contracts you hold increases, the leverage you can access decreases.
Furthermore, Bybit operates on a 24/7 basis. You can trade any time of the day, any day of the week, to capitalize on market volatility. Again, Bybit claims to take security seriously, implementing measures such as cold storage of funds, DDoS protection, and more. However, as with any crypto exchange, there remains a risk. Bybit also offers competitive fees. Those minor differentials in fees across various platforms make a difference for active traders. So it is worth considering if you are one. Bybit also offers unique trades of swap futures, making them among the very few platforms that do this. There are various types of orders that a trader can also pick from, increasing the flexibility of trades.
Cons
On the flip side, Bybit focuses on limited coins. Their primary storage coins are Bitcoin (BTC), Ethereum (ETH), Ripples (XRP), US Dollar Tether (USDT), and EOS (EOS). By implication, assets can only be stored in any of these coins in your wallet. However, Bybit evaluates your total equity in BTC. This creates a barrier to traders interested in trading many other coins that are left out. In addition, Bybit continues to face scrutiny in various jurisdictions due to regulatory concerns. Some countries have even banned its services, which could be a red flag.
As mentioned earlier, leverage risks can go awry if you lose a trade, as you will lose more than you would if you didn’t take leverage. Customer support is another common pain point for Bybit users. Delays in response and resolution of issues have left some traders frustrated. Finally, Bybit does not require KYC verifications from its users. While these may appear positive for traders willing to hop on the platform and get going instantly, they raise questions about its accountability and transparency.
Bybit Deposit, Withdrawal and Fees
Bybit allows you to move assets from other exchanges into your wallet. Once transferred, you can begin trading your assets immediately. The platform also allows you to buy crypto using the fiat channel. This channel supports buying your crypto with BTC, ETH, USDT, or any of the listed 45 fiat currencies on its platform, including the US dollar (USD), Australian dollar (AUD), Canadian dollar (CAD), the Euro (EUR), and the British pound (GBP). The platform gives you a list of fiat vendors as options.
To withdraw your funds from the platform, you must enable two-factor authentication as a security pass. The platform also charges you withdrawal fees for every withdrawal transaction. This fee is fixed regardless of how much you withdraw, as the company pays a standard miner fee.
For the trading fees, bybit operates a maker-taker model. The market makers provide substantial liquidity into the market, increasing its depth. Bybit, therefore, offers such rebates instead of charging a fee. The refund for market makers is 0.25% of capital. However, for market takers who draw up liquidity from the market, Bybit charges a trading fee of 0.075% of capital.
A Glimpse into Bybit’s Reputation
To get a well-rounded view of Bybit, let us peek into the crypto community’s chatter. Reddit, Twitter, and other online forums are hotbeds of cryptocurrency discussion. They are places where traders share their experiences and concerns, providing valuable insights. Upon scouring various platforms, we find a spectrum of opinions. Some traders applaud Bybit’s ease of use, while others caution against its potential risks.
Many traders highlight the volatility of trading on Bybit exchange. The potential for high profits balances a significant risk of losing it all. The platform is also rife with praises and complaints about customer service. Some users have reported withdrawal issues, while others have praised the platform’s support. However, it is essential to note that many of the issues users face may be related to a lack of understanding of trading rather than Bybit itself. Trading cryptocurrencies is complex and requires education and caution. Also, we advise users in regions with cryptocurrency regulations to be cautious when using Bybit. Ensure you are not violating any local laws by trading on the platform.
Bybit, a Globetrotting Exchange?
Bybit’s global presence raises questions about its regulatory compliance. In various countries, cryptocurrency regulations are a complex maze of ambiguity. While some countries embrace crypto trading, others frown at the venture. So, how is Bybit faring in China, the US, and other regions?
In China, Bybit exchange, founded by Chinese entrepreneurs, initially saw a surge in popularity in the region. However, Chinese authorities have cracked down on cryptocurrency trading, causing Bybit to halt services for Chinese users. This sudden regulatory shift could give anyone [pause. Bybit is unavailable to U.S. residents due to concerns about regulatory compliance with the Commodity Futures Trading Commission (CFTC). This can deter those in the U.S. who want to use this platform.
Bybit’s approach to adhering to local regulations can be inconsistent. Users from various countries have reported mixed experiences, which may result from Bybit’s attempts to navigate shifting regulatory landscapes.
Is Bybit Exchange Legit or Scam?
In the ever-evolving world of cryptocurrency, there is no surefire way to predict which exchanges will stand the test of time. If Bybit were a bare-face scam, there would be no need to get into all these details in the first place. Bybit offers an appealing platform for cryptocurrency derivatives trading, but it has its share of concerns and controversies. Whether Bybit is legit or a scam ultimately depends on how well you understand the platform and your willingness to take calculated risks. As with any crypto investment, the golden rule is to invest what you can afford to lose.
Remember, there are no guarantees in the world of cryptocurrency. It’s a thrilling, high-stakes game, and if you choose to play, do so with your eyes wide open and your wits about you. Take your time to do your research and stay safe in the crypto-verse. Happy trading!
