What is Bybit?
Bybit is a leading cryptocurrency derivatives exchange founded in 2018 by Ben Zhou, originally headquartered in Singapore and currently registered in Dubai. Since its launch Bybit has grown into one of the top three exchanges globally by derivatives volume, competing directly with Binance in perpetual futures markets and attracting a large base of professional and semi-professional traders.
The exchange made international headlines in February 2025 when it suffered the largest hack in crypto exchange history — North Korea-linked attackers compromised a multi-sig cold wallet via a supply chain attack on Safe (a third-party multi-sig provider), resulting in the theft of approximately $1.5 billion in ETH and staked ETH derivatives. Bybit's response was swift and transparent: it covered all losses using its own reserves within 72 hours, sourcing emergency liquidity from investors and bridge loans, and continued operations without interruption. This crisis management significantly reinforced trust in the platform's financial resilience.
Post-hack, Bybit completed a comprehensive security overhaul, moved away from the compromised multi-sig vendor, implemented new cold storage architecture, and published an independent audit confirming full 1:1 backing of all user assets. As of late 2025, daily derivatives volume had recovered to near pre-hack levels, and Bybit ranked second globally by perpetual futures open interest.
Trading Products and Platform Features
Bybit is primarily a derivatives exchange that has expanded aggressively into spot and Web3 services. The core offering — perpetual and inverse futures — is where the platform is most competitive. Over 700 cryptocurrencies are available in spot markets, and the derivatives section covers hundreds of perpetual pairs across USDT-margined and inverse (coin-margined) contracts.
Product highlights:
- Spot trading: 700+ assets, standard order types, and a dedicated spot trading interface
- Perpetual futures: USDT-margined and coin-margined, up to 100x leverage on BTC, 50x on ETH and major alts
- Options: BTC and ETH European options with standardised weekly and monthly expiries
- Copy trading: follower-based copy trading with transparent trader leaderboards (similar to Bitget)
- Bybit Earn: flexible savings, locked staking, and liquidity mining
- Launchpad: early-stage token access for BIT and USDT holders
- Web3 wallet: integrated non-custodial wallet supporting multi-chain DeFi
- NFT marketplace: cross-chain NFT trading
The Bybit trading interface is widely regarded as one of the cleanest and most responsive in the derivatives space. Professional traders frequently prefer Bybit's chart layout, order entry workflow, and position management tools to those of Binance Futures. API access is robust with low-latency websocket feeds suitable for algorithmic and high-frequency strategies.
Fees and Limits
Bybit's fee schedule is highly competitive, particularly in perpetual futures where it charges 0.01% maker and 0.06% taker as standard — one of the lowest maker rates among Tier 1 derivatives platforms. Spot trading fees are 0.1% maker and 0.1% taker at the standard level, equivalent to Binance.
Full fee breakdown:
- Spot trading: 0.1% maker / 0.1% taker standard; discounts for VIP and BIT token holders
- Perpetual futures (USDT-M): 0.01% maker / 0.06% taker standard
- Options: 0.02% maker / 0.02% taker (capped at 12.5% of option premium)
- Leverage: up to 100x on BTC/USDT perpetual; up to 50x on most major alts
- Withdrawal fees: network-based pass-through (e.g., $1 for USDT-TRC20, $15-20 for BTC ERC20)
- Funding rates: variable, charged every 8 hours on perpetual positions
Withdrawal limits are tied to KYC level. Standard (email only) allows up to $20,000 equivalent per day. After identity verification (Lv.1 KYC), limits increase to $1 million per day. Lv.2 KYC (with address verification) enables higher limits for institutional-scale withdrawals.
Bybit introduced a VIP programme with eight tiers based on 30-day trading volume and asset holdings. VIP users receive fee discounts, priority customer support, and dedicated account managers at higher tiers. VIP 4 and above can access maker fee rebates in futures markets.
Security and Track Record
The February 2025 hack was the defining security event for Bybit's history. The $1.5 billion theft via a compromised Safe multi-sig wallet was caused by a sophisticated supply chain attack — attackers modified the Safe frontend code to display a legitimate transaction while actually authorising a malicious contract interaction. This class of attack, while rare, is extremely difficult to defend against without dedicated hardware verification steps.
Bybit's immediate response was exemplary. Within hours of detecting the attack, the exchange suspended affected withdrawal routes, communicated transparently with users, and began sourcing emergency funding. All user funds were replaced within 72 hours using a combination of reserves, OTC purchases, and emergency credit facilities. No user suffered a loss.
Post-hack security measures implemented by Bybit include:
- Replacement of Safe multi-sig with an in-house multi-party computation (MPC) cold wallet
- Hardware wallet verification step mandatory for all large outbound transactions
- Independent audit by Hacken confirming full 1:1 asset backing post-recovery
- Enhanced transaction signing process requiring multiple geographically separated approvals
- Bug bounty programme expanded to $50 million maximum reward
- 24/7 on-call security response team with <15 minute incident detection targets
The incident actually increased confidence in Bybit among many traders, because the exchange demonstrated both the financial strength to absorb a $1.5B loss and the operational transparency to communicate it in real time. Bybit's handling of the 2025 hack is now frequently cited as a model for crisis management in the industry.
KYC, Regions, and Restrictions
KYC on Bybit is optional for basic functionality but becomes mandatory above certain thresholds. Non-KYC users can trade with a daily withdrawal limit of $20,000 equivalent. Level 1 KYC (government ID + selfie) expands this to $1M/day. Level 2 (address proof) unlocks unlimited withdrawals. This relatively permissive KYC structure compared to Western competitors attracts users who value privacy alongside strong security.
Bybit operates across most of the world but excludes users from the United States, Canada (Ontario), UK (unregistered), Singapore (domestic residents), and several sanctioned jurisdictions. The exchange holds a VASP licence in Dubai (VARA) and has pursued additional registrations in the EU and Asia-Pacific region post-2025.
The Dubai licensing base provides a degree of regulatory credibility in the Middle East and positions Bybit well for institutional clients in the GCC region. European and UK regulatory status remains limited — users in those jurisdictions are served with appropriate risk disclosures but no formal local regulation as of early 2026.
Pros and Cons Summary
Key strengths: Ultra-low derivatives fees (0.01% maker); excellent UI/UX for professional futures traders; 700+ spot assets; up to 100x leverage; industry-leading post-hack crisis management and full fund recovery; copy trading; robust API for algorithmic strategies; Dubai VASP regulated.
Key limitations: The 2025 $1.5B hack, while fully covered, demonstrated supply chain risk in multi-sig setups; restricted in US, UK, Singapore, and Canada; lower brand recognition in Western markets vs Binance; customer support quality variable outside VIP tiers.
Bybit is an excellent choice for derivatives traders seeking low fees, high leverage, and a professional-grade trading interface — particularly those in Asia, the Middle East, and regions where Binance is restricted. Its transparent handling of the 2025 hack has reinforced its financial credibility. US, UK, and Singapore residents should look to other platforms.