The most important advantages
Before we get into the advantages, let’s take a quick look at the exact derivatives. Derivatives are financial instruments – also known as contracts – whose value is based on an underlying asset. You do not own the original. Instead, you hold a contract to buy or sell that asset at a specified price in the future. In this case, that asset is a cryptocurrency. Bybit is a cryptocurrency derivatives exchange, which means it is a place where those contracts are bought and sold.
Up to 100x leverage on cryptocurrencies
You can trade cryptocurrencies on Bybit with a leverage of up to 100x. This means that you can trade a position of $10,000 from an investment of $100. Experienced traders can make high profits from leveraged trading as it increases the potential trading rewards. But it also increases the risks.
Users can buy or sell on 15 available currencies (bet the price will go up or down, respectively). Bybit offers a range of advanced trading options.
Technology and gadgets distinguish it from others
Bybit says it can handle 100,000 transactions per second, which is much faster than its competitors. It does everything possible to avoid any server downtime, which is a problem a number of exchanges face whenever a change in the market pushes too many people to trade simultaneously.
Their charting tools are popular among traders because they have a lot of additional functions and features. You can also download data in different formats.
Risk-free test environment
Bybit has a testnet where new traders can test strategies and learn how to use the site without using real money. If you are new to dealing with derivatives, this is a way to get used to these advanced – and sometimes complex – tools.
Since leveraged trading can be very risky, it makes sense to gain confidence in a testing environment before risking your hard-earned money. If you decide to trade for real, start on a small scale and make sure you understand how to minimize risk.
Bybit has an impressive array of resources, news, and insights for traders of all levels. For example, Bybit Learn explains how to use technical tools and understand chart patterns. It informs users about Decentralized Finance (DeFi) and has a detailed analysis of individual coins. Additionally, Bybit hosts social media classes twice a week.
This is a good thing, because futures and margins are advanced financial instruments and you will need to have a good understanding of them before using them.