Bybit cryptocurrency exchange: secure trading of perpetual contracts on the most liquid platform

Thanks to new technologies, Bybit provides the industry’s highest order execution speed, the best liquidity among derivatives exchanges and many tools to optimize trading.

Platform features

Cryptocurrency exchange order matching corederivatives Bybit operates at a speed of 100 thousand transactions per second per contract, which is 10 times higher than the market average and guarantees no congestion as volumes increase. This is achieved due to the fact that its key modules are created in efficient languagesprogramming and function as separate coroutines without interfering with each other.

Currently, the platform offers 2 types of perpetual contracts (inverse and linear), which differ in base pairs and methods for calculating profit/loss. 

It should be noted that Bybit achieved the bestliquidity among derivatives exchanges and offers the possibility of hedging. Various types of orders are available to traders: limit, market and conditional, as well as stop entri, stop loss, take profit, trailing stop and many trading functions from the chart.

Integration with TradingView, 3commas, Tiger trader, Haasonline and soon the list will replenish NinjaTrader. The trading commission of the taker is 0.075%, and for a rebate maker it is -0.025%.

Additional benefits are also:

• a comprehensive bonus system for new users, which helps traders get comfortable on the platform;
• gifts to users for their active assistance in improving the platform;
• the highest commission payments among cryptocurrency derivatives exchanges, in addition,% for second-level partners;
• multi-functional personal account of a partner with detailed reports on referrals: clicks on links, registrations, deposits, trading volume, commissions;
• various trading competitions; 
• full technical and marketing support of a personal development manager;
• 24-hour support service with a maximum of 15 seconds waiting for a response.

From December 1, 2018 on the platform300 thousand traders were registered, 15 000 of which are active daily. The average daily trading volume ranges from $ 1 billion to $ 4.5 billion, depending on market volatility.

The essence of perpetual USDT contracts

USDT contract — this is a digital contractTether currency, pegged to the dollar exchange rate, which is used both as a quotation currency and as a settlement currency. This allows traders to transfer “fiat currency equivalents” amounts between exchanges without resorting to standard currency regulation.

In fact, they allow two-way trade, thenThere are traders who can hold long and short positions with different leverage at the same time. Such a USDT contract has no expiration date and can use the pegging method to closely follow the underlying price index.

At the same time, the Tether token is the only onean asset, the presence of which is required on the balance of the wallet, and all profits and losses are realized in stablecoin, which is less prone to volatility compared to most cryptocurrencies.

This makes it possible to add additionalmargin into a position, choose its automatic replenishment (AMR) or open a long-term long position with a low leverage and a short-term speculative short position with a high leverage. In cross-margin mode, if there is a long and short position at the same time, the hedged position will never be liquidated.

Mutual Insurance

To manage risks, the Bybit team has developeda special instrument called Mutual Insurance. Traders holding positions in a perpetual contract can obtain insurance to use the premium to hedge potential losses caused by market movements. 

At the same time, the premium received from insurance will becredited to the mutual insurance fund. If during the term of the contract the insured position incurs losses, then it will receive the corresponding payment from this Fund.

In this way, you can protect both long and short positions.

Advanced security system

Due to the increased attention to the crypto industry withBy hackers and scammers, Bybit is working on security. In addition to technological threats, the platform also takes into account political and operational risks.

Protection of user funds and the exchange itselfprovides a system of hierarchically determined offline wallets and offline signatures. To ensure the safety of digital assets during their withdrawal, all records of blockchain deposits, transactions, balances on accounts of individuals and the platform are checked.

To avoid market manipulations and protect the interests of investors, the exchange limits the maximum number of operations and the maximum share of the position.

In parallel, other risk management systems are used: 

• Portfolio Margin, in which unrealized profits can be used to offset unrealized losses or as margin for opening new positions. 
• Double price mechanism. To prevent market manipulationBy major players, the exchange shares prices: the price of the last transaction for an asset on the platform and the current average indicator for the largest exchanges. Liquidations are calculated only at an average price.
• Loss processing mechanismwhich provides for the use of the remainderinsurance fund if the liquidated order is closed at a price below the level of bankruptcy. If this is not enough, then automatic shoulder reduction is activated.

Bybit serves more than 400 thousand.users in 117 countries around the world, so its derivatives-focused model is naturally insulated from the greatest political risks associated with trading crypto assets and attracting investment through ICO/IEO methods.