How To trade Bitcoin Derivatives on Bybit

Updated: 7 April, 2022 seen 38

Bybit is one of the fastest-growing cryptocurrency exchanges, with more than 2 million registered users. You can buy and sell crypto instantly, or trade popular coins across different contract types as you’d like.

I first heard about ByBit a couple of months ago while was looking for some YouTube videos on crypto day-trading, where most of the crypto traders were mentioning ByBit. As I was already used to trading crypto options and bitcoin futures with Deribit I didn't even consider switching platforms. 

This article contains my referral URL to ByBit, if you will decided to click on the link, open an account with ByBit, I will earn a small commission at no cost to you

But as I kept blowing my small bitcoin account on Deribit, as I was using 50x times margin, which is fixed, I kind of liked the feature I saw on ByBit, configurable leverage. As I wanted to keep trading Bitcoin futures but with smaller leverage, I decided to give it a try ByBit.

First things first - unlike Deribit, ByBit seems more cluttered, with too many tabs, too many choices, too many names, but this should be just a minor problem I guess, but if there is a reason I love Deribit, because of its simplicity. ByBit doesn't seem simple at the first sight.

Trading Derivatives on Bybit
Trading Derivatives on Bybit

As my interest is only in Bitcoin future trading - straight went to the Derivatives tab, selected BTC USDT pair, which also seems a nice feature unlike Deribit which offers crypto settled contracts only (it seems Deribit added USDT trading pair just recently)

I decided to start small, bought Bitcoin worth 10 EUR at Coinbase Pro, and deposited it on my ByBit derivates account. Ready to trade.

Before trading, I configured leverage to 3x only (as I'm just testing it out) and set up my indicators (EMA's)

Next, I noticed my about 10 USD worth of Bitcoin is not enough to trade BTC USDT pair (not sure, maybe because of the leverage I scaled down to 3 or because of the minimum tick size, which is 0.001 BTC, so I switched to BTC USD pair where I was able to enter my first trade.

After some 30 minutes, I already started to better understand how the platform works, placed a few trades, made a loss, took a profit.. all the rest is a learning curve.

Open Bybit account (affiliate link)