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The Ultimate Bybit Tutorial for Crypto Derivative Trading

Anyone keeping an eye on the crypto market will likely have heard of Bybit. Specifically, Bibit comes as interest in trading derivatives, crypto futures and leveraged crypto trading is soaring. Although these techniques can sound tricky at first, they provide a very real value seeing as they provide more flexibility. With our complete Bybit tutorial, it will soon become clear exactly how crypto derivative trading works.

Complete Bybit tutorial to crypto derivative trading

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The past few months have seen much turbulence in the cryptocurrency market. Although the market is up substantially, it has nonetheless fluctuated. After briefly hitting a new 2019 high of roughly $13,000, the price of Bitcoin has since subsided. 

Many are undoubtedly waiting for the next crypto bull run, but the crypto markets can be fickle. This is where Bybit comes in. Through leveraged trading, and trading derivates such as placing short orders, traders can benefit even when the market is crashing or stable.

Any Bybit tutorial worth the name will also lead with the fact that Bybit supports trading Bitcoin, Ethereum, EOS and Ripple. These four major cryptocurrencies can be traded as derivates and with leverage, either as long holdings or short holdings. As such, traders can make money even when the crypto market is going down. 

Ledger Nano S - The secure hardware wallet

“Start Trading” on Bybit

Once a user has registered with Bybit, the process is fairly straight forward. Firstly, users want to click the prominent “Start Trading” button on the start page on Bybit. This will bring them into the main exchange dashboard on the Bybit trading site.

Furthermore, this dashboard is fully customizable. As such, power users can readily reorganize the main exchange dashboard view to their liking. However, those who are fairly new to crypto derivatives trading will likely be just fine with the default setup provided by Bybit. This setup, which is provided “out of the box” when a user creates their Bybit account, holds various key information that will make sense of Bybit’s trading functions.

What’s more, users can claim various bonuses from registering on Bybit, as well as through depositing funds to the site. Before a user is able to trade, that person needs to deposit some funds to the site – just like any crypto exchange.

Bybit has support for Bitcoin, Ethereum, EOS and Ripple

At the time of writing, Bybit features support for Bitcoin, Ethereum, EOS and Ripple. As such, the major cryptocurrencies are already supported by the site. This is fairly unique, seeing as Bybit has all four of these cryptocurrencies on the same exchange.

The wallet subsection of Bybit works the same as any other crypto exchange. However, this Bybit tutorial would naturally not be complete without a rundown of the differences between Bybit and a standard crypto exchange.

Specifically, the main difference lies in that Bybit features derivatives trading

Ledger Nano S - The secure hardware wallet
. Due to this, users will see a slider to the top left of the main trading view. This is a leverage slider, which extends from 1x up to 100x. 

Derivatives trading for cryptocurrencies is riskier, but could be more rewarding

Moreover, users will likely notice that the liquidation price on the site differs from a traditional crypto exchange. Consequently, users may see their crypto short or long position be liquidated if an asset goes too far in either direction.

On Bybit, traditional crypto trading is replaced by “longing” and “shorting”. Longing is essentially how users regulatory purchase cryptos – in order to hold them and hope that the price increases. Shorting, on the other hand, can be seen as the opposite to this.

As such, users can decide whether or not the believe the crypto market will rise or fall. Longing is betting that the market will rise, and shorting is betting that the market will fall. Moreover, the leverage can be seen as “how certain” a user is that the market will fall or rise. As such, the rewards increases – but also the risk. 

Crypto leverage trading can allow traders to outperform the market 

Leverage trading essentially means that traders can outperform the relevant market. For example, longing Bitcoin with 10x leverage means that for every one percent the price of Bitcoin increases, the user will receive a 10% increase. However, it is worth noting that the opposite is also true. As such, leverage trading means that crypto traders can earn more – but the risk is also substantially higher.

Furthermore, no Bybit tutorial would be complete without a mention of the customer service. The customer service is readily available, and can be accessed in the bottom-right corner of the main trading view on the website. 

What’s more, Bybit’s management can also be reached directly on Twitter. As such, this further raises the stakes for Bybit to keep providing top-notch customer service on its site. The website also has a number of different technical and historical data that can be easily accessed – for example previous orders, or filled orders, or the recent trades done on the market.

Most of the the elements on the Bybit website are fairly self-explanatory. However, a Bybit tutorial should stress the potential to make money on the crypto market even if the crypto market is going down, using short orders. Nonetheless, shorting any asset, especially using leverage, is always a risky endeavor. As such, this should preferably only be done by those who are familiar with shorting.