What is Bybit? A complete and simple guide for everyone

The world of cryptocurrency can feel like a fast-moving, complicated place. You hear about Bitcoin, Ethereum, and hundreds of other digital currencies. But where do people actually buy, sell, and trade them? The answer is on a cryptocurrency exchange. And one of the biggest and most popular names you will hear is Bybit.

If you’ve ever found yourself asking, “what is bybit?”, you are in the right place. This guide will explain everything you need to know, in simple, easy-to-understand terms. We will skip the confusing jargon. We will explain things step-by-step. By the end of this article, you will have a very clear understanding of what Bybit is, what it does, and whether it might be the right platform for you.

What exactly is Bybit?

In the simplest terms, Bybit is a giant online marketplace for cryptocurrencies. Think of it like a digital version of the New York Stock Exchange, but instead of trading stocks like Apple or Google, you trade digital assets like Bitcoin (BTC), Ethereum (ETH), and many others.

It was founded in 2018 by Ben Zhou and is now one of the top-tier exchanges in the world, trusted by millions of users.

At first, Bybit became famous for one specific thing: derivatives trading. That sounds complex, but it just means people were betting on the future price of a cryptocurrency without actually having to own the coin itself. It was very popular with professional traders.

However, Bybit has grown a lot since then. It realized that many people just want to buy and hold the actual coins. So, it launched its Spot Market. This is the part of the exchange that is perfect for beginners. “Spot” trading is exactly what it sounds like: you buy a coin “on the spot” and you own it. It’s yours. It sits in your digital wallet on the exchange, and you can hold it, sell it later, or send it somewhere else.

Today, Bybit is a complete, all-in-one platform. You can buy crypto with regular money (like dollars or euros), trade it, earn interest on it, and even spend it with a special debit card. It’s a full ecosystem for your digital assets.

Is Bybit the right platform for you?

One of the best things about Bybit is that it’s designed to serve two very different groups of people at the same time:

• For Beginners: If you are new to crypto, you can stick to the “Spot” market. The interface is clean and simple. You can buy Bitcoin or other major coins with your credit card or a bank transfer, and then just hold them. Bybit also has a “Bybit Learn” section full of easy articles and guides to help you understand the basics.
• For Advanced Traders: This is where Bybit truly shines. It offers one of the most powerful and fastest trading engines in the world. Professionals love it for its deep “liquidity” (meaning it’s easy to buy and sell large amounts) and its wide range of advanced tools, like derivatives and leverage.

So, whether you are just dipping your toe into crypto or you’re a seasoned pro, Bybit has the tools you need. As a global company, it also offers services in many different languages and has a 24/7 customer support team ready to help.

What can you do on Bybit? A deep dive

Let’s break down the main features of Bybit. Don’t worry, we’ll keep it simple.

Spot trading (The basics)

This is the most straightforward part of Bybit. As we mentioned, “Spot” trading is the simple act of buying or selling a cryptocurrency right now at its current market price.

Think of it like exchanging currency at the airport. You give them dollars, they give you euros. On Bybit, you might give them dollars (USD) and they give you Bitcoin (BTC). Or you might trade your Bitcoin (BTC) for Ethereum (ETH).

When you buy on Spot, you own the actual asset. It’s yours to hold for as long as you want. This is the recommended starting point for all new crypto investors.

Derivatives trading (The advanced stuff)

This is what made Bybit famous. Derivatives are financial contracts that get their value from an underlying asset (like Bitcoin). Instead of buying Bitcoin, you buy a contract that is *linked* to the price of Bitcoin.

The most common type on Bybit is a Perpetual Contract. This lets you bet on whether the price of a coin will go up (this is called going “long”) or go down (this is called going “short”).

Derivatives trading often involves leverage. Leverage means you borrow funds from the exchange to make a much bigger bet. For example, with 10x leverage, you can use $100 to control a $1,000 position.

IMPORTANT TIP: Leverage is a high-risk tool. It can amplify your profits, but it can also amplify your losses just as quickly. If the market moves against you, you can lose your initial money very fast. This is strictly for advanced users who understand the risks.

Bybit Earn (Making your crypto work)

What if you don’t want to trade actively? What if you just want to buy some crypto and hold it? Bybit has a great feature for this called Bybit Earn.

Think of it like a high-yield savings account for your crypto. Instead of letting your coins just sit there, you can “stake” them or put them into savings plans to earn interest. The interest is paid out in the same crypto. It’s a popular way to grow your holdings passively, without the stress of active trading.

NFT marketplace

You’ve probably heard of NFTs, or Non-Fungible Tokens. These are unique digital collectibles, like digital art or profile pictures. Bybit has its own marketplace where you can browse, buy, and sell NFTs from various artists and creators.

Bybit Card

In some regions, Bybit offers a crypto debit card (a Mastercard). This card is linked to your Bybit account. It allows you to spend your cryptocurrency in the real world, at any store or website that accepts Mastercard. The card automatically converts your crypto to regular money (like EUR or USD) at the moment of purchase. It’s a powerful tool for bridging the gap between digital and traditional finance.

Launchpad and Launchpool

These are features for people who want to get in on the “next big thing.”

• Launchpad: This gives you a chance to buy brand-new crypto tokens *before* they are listed on the main exchange, often at a very low price.
• Launchpool: This lets you stake your existing crypto to “farm” or earn tokens from new projects for free.

A simple guide to starting with Bybit

Getting started is simple. Here is a step-by-step walkthrough.

Step 1: Registration and referral codes

First, you need to create an account. You can sign up using your email address or phone number.

A very important tip: During sign-up, you will see a field for a “Referral Code”. You should always use one! Using a code gives you access to special welcome bonuses, such as trading fee discounts or bonus funds to start trading with.

Here are the best codes to use, depending on your location:

• For Global Users (Outside the European Union): Use code BYBIT31. This gives you access to the best global promotions and welcome rewards, which can be up to $30,000 in bonuses.
• For Users in the European Union (EU): Use code BYBIT3K. This code is specifically for users on the Bybit EU platform, ensuring you get the correct, compliant bonuses available for your region.

Using the correct Bybit Referral Code is the best way to start your journey with extra benefits.

Step 2: Security (KYC and 2FA)

After signing up, you must secure your account.

• KYC (Know Your Customer): Like all legitimate financial institutions, Bybit requires you to verify your identity. This is a legal requirement to prevent fraud and money laundering. You will usually need to upload a photo of your ID (like a driver’s license or passport) and take a selfie. It’s a quick process.
• 2FA (Two-Factor Authentication): This is not optional, you must do this. 2FA adds a second layer of security to your account. Instead of just a password, you’ll also need a special one-time code, usually from an app on your phone like Google Authenticator. This means even if someone steals your password, they can’t log in to your account.

Step 3: Funding your account

Now you need to put money into your account. You have two main options:

• Deposit Crypto: If you already own crypto on another exchange or in a private wallet, you can send it directly to your Bybit wallet.
• Buy with Fiat (Regular Money): This is the easiest way for beginners. Bybit has a “Buy Crypto” section where you can use your credit card, debit card, or a bank transfer to buy popular coins like Bitcoin or Ethereum directly.

Step 4: Making your first trade

Once you have funds, go to the “Spot” market. Find the pair you want to trade (e.g., BTC/USD). This just means you are trading USD for BTC.

You will see a “Buy” button. You can choose a “Market Order” (which buys at the best current price) or a “Limit Order” (where you set the exact price you want to buy at). For beginners, a Market Order is the simplest.

Enter the amount you want to buy, click the button, and that’s it! You are now a crypto owner.

How much does Bybit cost? (Understanding fees)

Bybit makes money by charging small fees on trades. The good news is that its fees are very low and competitive.

You will often hear the terms “Maker” and “Taker”.

• A Taker is someone who “takes” an existing price from the order book (like using a Market Order).
• A Maker is someone who “makes” a new order by setting a specific price (like a Limit Order) that doesn’t get filled immediately. Makers add liquidity to the market, so they often pay a lower fee (or even get a small rebate).

Here is a simplified example of fees for the Spot market:

Fees can get even lower if you trade large volumes or hold Bybit’s own token (MNT). Bybit is also transparent about “withdrawal” fees (the cost to send your crypto out of the exchange), which vary by coin.

Is Bybit safe?

This is the most important question. When it comes to money, security is everything.

Bybit is considered one of the more secure exchanges in the industry. It takes security very seriously.

How Bybit protects your funds

• Proof of Reserves (PoR): This is a big one. Bybit publicly proves that it holds all of its customers’ funds 1-to-1. This means the money you deposit is actually there and isn’t being used for other things. They show cryptographic proof that they have the assets they claim to have.
• Cold Storage: The vast majority of customer funds are kept in “cold storage.” This means the crypto is stored on hardware that is not connected to the internet. This makes it impossible for hackers to steal. Only a small amount is kept in a “hot wallet” for daily withdrawals.
• Security Fund: Bybit maintains a large insurance fund to protect users in the event of a major hack or system failure.

How you must protect your account

Bybit can have the best security in the world, but it can’t protect you if you give your password away.

• Use 2FA: We’ll say it again. Use Google Authenticator.
• Strong Password: Use a long, unique password that you don’t use anywhere else.
• Beware of Phishing: Never click links in emails claiming to be from Bybit. Always type `bybit.com` directly into your browser. Scammers are very good at making fake emails and websites that look real.

This leads us back to the question: what is bybit in terms of security? It’s a platform that provides professional-grade security, but it requires you to be a responsible user.

Bybit Global vs. Bybit EU

You may have noticed we mention two versions of Bybit (and two referral codes). Why?

The answer is regulation.

The European Union has new, comprehensive rules for crypto called MiCA (Markets in Crypto-Assets). To comply with these rules, Bybit launched a special, dedicated platform for its users in the EU, often operated from the Netherlands.

• Bybit Global (Bybit.com): This is the main, international platform. It serves most of the world and typically offers the widest range of products and services.
• Bybit EU: This is the platform for users residing in the European Union. It is 100% compliant with EU regulations. This means it might have some differences in available products (for example, certain high-leverage derivatives or complex “Earn” products might be restricted), but it offers a very secure and fully regulated environment.

Tip: You don’t usually have to worry about choosing. When you sign up, Bybit will detect your location and guide you to the correct platform. This is why it’s important to use the right referral code: BYBIT31 for Global, BYBIT3K for EU.

Bybit: The good and the bad (Pros and Cons)

No platform is perfect. Let’s summarize what we’ve learned in a simple table.

Pros (The good parts)

Cons (The things to watch out for)

Overall, the answer to “what is bybit” seems to be that it’s a very strong, versatile, and trustworthy platform. The pros, for most users, far outweigh the cons.

Final thoughts on “what is bybit”

So, what is bybit?

It is a top-tier cryptocurrency exchange. It’s a secure place to buy your first Bitcoin. It’s a powerful platform for professional traders. It’s a digital bank where you can earn interest on your assets. It’s a bridge to the future of finance, with tools like the Bybit Card.

It has grown from a niche derivatives platform into a full-service crypto powerhouse that builds trust through transparency with its Proof of Reserves.

If you are looking for a reliable, feature-rich, and secure exchange to start or continue your crypto journey, Bybit is one of the best choices available today.

Just remember to start slow, stick to the Spot market if you’re a beginner, and always use our referral codes—BYBIT31 for Global or BYBIT3K for EU—to get your welcome bonuses.

Your questions answered (FAQ)