Bybit

Bybit stands as the world's second-largest cryptocurrency derivatives exchange by trading volume, serving over 60 million users globally with a comprehensive suite of spot and derivatives trading products. Founded in 2018 by Ben Zhou and headquartered in Dubai, the platform has rapidly evolved into a major force in the cryptocurrency ecosystem through its focus on high-performance trading infrastructure and innovative financial products.

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Note on fees: Bybit employs a tiered maker/taker schedule where VIP users can achieve significantly reduced rates, with makers earning rebates up to -0.025% and takers paying as low as 0.02%. Derivatives fees are generally lower than spot trading, reflecting the platform's specialization in leveraged products.

Following its Austrian MiCA license acquisition in May 2025, Bybit has established European headquarters in Vienna, positioning itself as a fully compliant derivatives-focused platform for the European Economic Area. The exchange's commitment to regulatory adherence and technological innovation has enabled it to maintain market leadership despite significant challenges, including a record-breaking security incident and evolving regulatory landscapes.

Company History & Development

Bybit's journey began in 2018 when entrepreneur Ben Zhou founded the exchange with a vision to create the world's most advanced derivatives trading platform. Initially based in Singapore, the company quickly distinguished itself through its focus on perpetual contracts and futures trading, areas where traditional cryptocurrency exchanges often struggled to deliver institutional-grade performance and reliability.

The exchange's early years were marked by aggressive expansion and product development. By 2020, Bybit had established itself as a major player in the derivatives market, attracting professional traders and institutions with its low-latency trading engine and competitive fee structures. The platform's emphasis on user experience and customer support helped build a loyal user base that exceeded 10 million registered accounts by 2021.

A pivotal moment came in 2022 when Bybit relocated its global headquarters from Singapore to Dubai, seeking a more crypto-friendly regulatory environment. This strategic move coincided with the company's expansion into spot trading markets, broadening its appeal beyond derivatives specialists to encompass the full spectrum of cryptocurrency trading activities.

The year 2024 brought both opportunities and challenges. While Bybit achieved significant milestones in user growth, reaching over 50 million registered users worldwide, it also faced increasing regulatory scrutiny across multiple jurisdictions. The company responded by implementing comprehensive compliance programs and actively pursuing regulatory licenses in key markets.

February 2025 marked the most challenging period in Bybit's history when the exchange suffered the largest cryptocurrency theft on record. North Korean state-sponsored hackers from the Lazarus Group exploited a vulnerability in the Safe{Wallet} infrastructure that Bybit used for multi-signature transactions, stealing approximately $1.4-1.5 billion in Ethereum tokens. The attack, which manipulated the signing interface during a routine transfer from cold storage to hot wallets, demonstrated sophisticated social engineering combined with supply chain compromise techniques.

Despite the unprecedented scale of the breach, Bybit's response proved its operational resilience. CEO Ben Zhou immediately disclosed the incident, processed over 350,000 withdrawal requests within 10 hours, and secured emergency liquidity from partners including Bitget and Binance. The company's $20+ billion in total assets ensured complete solvency, preventing panic and maintaining user confidence throughout the crisis.

The most significant regulatory milestone came in May 2025 when Bybit obtained its MiCA (Markets in Crypto-Assets) license from Austria's Financial Market Authority (FMA). This authorization, secured under commercial number 636180i, enables Bybit to operate as a regulated crypto asset service provider (CASP) across all 29 European Economic Area member states. The license represents a major strategic victory, positioning Bybit among the first global exchanges to achieve full MiCA compliance and opening access to nearly 500 million European users under harmonized regulatory frameworks.

Business Model & Core Services

Bybit operates a comprehensive cryptocurrency trading ecosystem built around three primary revenue streams: trading fee generation, premium service subscriptions, and financial product offerings. The platform's core business model centers on providing high-performance trading infrastructure that attracts both retail and institutional users across spot and derivatives markets.

The derivatives trading segment remains Bybit's primary strength and revenue driver. The platform offers perpetual contracts, quarterly and bi-quarterly futures, and options across over 300 trading pairs. These products provide leverage up to 100x on select pairs, enabling sophisticated trading strategies while generating substantial fee income through the maker-taker model. Funding rates and settlement fees from futures products create additional revenue streams that scale with platform activity.

Spot trading services complement the derivatives offerings, providing access to over 500 cryptocurrencies across numerous trading pairs. The platform's integration of fiat on-ramps supports over 65 currencies, including EUR, USD, and regional alternatives, facilitating easy conversion between traditional and digital assets. This comprehensive coverage eliminates friction for European users while expanding the potential customer base.

Beyond core trading, Bybit has developed an extensive ecosystem of value-added services. The Launchpool platform enables users to stake tokens for rewards, while the copy trading feature allows beginners to replicate strategies of experienced traders. Additional revenue streams include NFT marketplace activities, crypto lending services, and institutional custody solutions for professional clients.

The platform's institutional offerings include dedicated account management, OTC trading desks, and API solutions for algorithmic trading. These services command premium fees while attracting high-volume clients who generate significant trading activity. Bybit's robust API infrastructure supports both retail automated trading and professional quantitative strategies, making it attractive to a broad spectrum of sophisticated users.

Regulatory Compliance & Trust

Bybit's regulatory journey reached a decisive milestone with its Austrian MiCA license acquisition in May 2025, establishing the exchange as one of the first major platforms to achieve full European compliance under the harmonized regulatory framework. The license from Austria's Financial Market Authority (FMA) provides passporting rights across 29 EEA countries, representing a significant competitive advantage in the post-MiCA landscape.

The path to regulatory compliance involved substantial operational changes. Previously operating under national registrations in various jurisdictions, Bybit invested heavily in compliance infrastructure, legal frameworks, and operational procedures to meet MiCA's stringent requirements. The company established its European headquarters in Vienna with over 100 dedicated staff members, demonstrating genuine commitment to regional market development rather than mere regulatory arbitrage.

However, the company's regulatory record includes notable challenges. In 2024, Dutch authorities fined Bybit €2.25 million for operating without proper registration under Anti-Money Laundering and Anti-Terrorist Financing Act requirements. The exchange was also temporarily removed from France's AMF blacklist in February 2025, only to face renewed scrutiny that resulted in cessation of services to French residents by January 2025.

Despite these setbacks, Bybit's proactive approach to compliance has yielded positive results. The MiCA license specifically authorizes custody and administration of crypto-assets, exchange services for fiat and crypto-assets, placement services, and transfer services. This comprehensive authorization enables Bybit to operate across the full spectrum of cryptocurrency services within the European regulatory framework.

The exchange maintains robust KYC/AML procedures aligned with international standards, requiring identity verification for all users and implementing sophisticated transaction monitoring systems. These measures, while potentially limiting accessibility compared to unregulated alternatives, provide users with enhanced legal protections and recourse mechanisms through European regulatory authorities.

Economics & Value Proposition

Bybit's fee structure reflects its position as a derivatives-focused platform, with competitive rates that become increasingly attractive for high-volume users. Standard spot trading fees of 0.1% for both makers and takers place the exchange in the mid-range of industry pricing, though the VIP tier system can reduce costs significantly for active traders.

The derivatives market reveals Bybit's true competitive positioning. Taker fees of 0.06% and maker fees of 0.01% for perpetual contracts represent some of the most competitive rates in the industry, often beating specialized derivatives platforms. The maker rebate system can even result in negative fees for liquidity providers, effectively paying traders to contribute to market depth.

Bybit's VIP program creates substantial value for institutional and high-volume retail traders. The highest tiers can achieve maker fees as low as 0.005% for spot trading and receive rebates up to -0.025% for derivatives making. These rates compete favorably with institutional-focused platforms while maintaining accessibility for smaller traders through the base fee structure.

The platform's approach to deposit and withdrawal costs enhances its value proposition for European users. Cryptocurrency deposits incur no fees, while fiat deposits through SEPA transfers are processed without charges. Withdrawal fees remain dynamic based on network conditions, ensuring users pay fair market rates rather than inflated fixed charges common on other platforms.

Additional cost considerations include funding rates for perpetual positions, which fluctuate based on market conditions but typically remain competitive with industry standards. The platform's transparent fee schedule and regular updates ensure users can accurately calculate trading costs, supporting informed decision-making for both casual and professional trading strategies.

Technology & User Experience

Bybit's technology infrastructure emphasizes performance and reliability, utilizing a proprietary trading engine capable of processing over 100,000 transactions per second with sub-millisecond latency. This technical capability proves crucial during high-volatility periods when many competing platforms experience degraded performance or outages.

The platform's user interface strikes a balance between comprehensive functionality and accessibility. The web-based trading interface incorporates advanced charting tools powered by TradingView, supporting over 100 technical indicators and drawing tools. Multiple layout options accommodate different trading styles, from simple spot purchases to complex multi-leg derivatives strategies.

Mobile applications for iOS and Android maintain feature parity with the web platform, enabling full trading functionality from mobile devices. The apps include push notifications for price alerts, position updates, and margin calls, ensuring traders remain informed regardless of their location. Offline functionality allows users to monitor positions and market data even with limited connectivity.

API access represents a key differentiator for Bybit, offering both REST and WebSocket interfaces with comprehensive documentation and multiple programming language examples. The API supports real-time market data, order management, and account information, enabling sophisticated algorithmic trading strategies. Rate limiting policies balance system protection with user needs, allowing up to 120 requests per minute for most endpoints.

Customer support operates 24/7 through multiple channels including live chat, email, and community forums. Response times typically range from minutes for urgent trading issues to hours for general inquiries. The platform maintains extensive help documentation and video tutorials covering both basic and advanced trading concepts.

Scalping-Friendliness (Commissions, Leverage & Slippage)

Bybit's infrastructure and fee structure make it particularly attractive for scalping strategies, with several features specifically benefiting high-frequency traders. The platform's low-latency trading engine and competitive maker fees create favorable conditions for rapid-fire trading approaches that capitalize on small price movements.

Based on user reviews and trading community feedback, Bybit's commission structure proves cost-effective for scalpers, especially those who can maintain maker status. The potential for negative maker fees on derivatives means that successful liquidity providers can actually generate rebates while trading, offsetting other costs associated with high-frequency strategies.

Leverage availability up to 100x on select perpetual contracts enables significant position sizing with minimal capital requirements, though this amplifies both profit potential and risk exposure. The platform's margin system supports cross-margin and isolated margin modes, allowing scalpers to fine-tune their risk management approaches based on market conditions and trading strategies.

Slippage characteristics vary by market and time of day, with major pairs like BTC/USDT and ETH/USDT typically offering tight spreads and minimal slippage for positions up to moderate institutional sizes. User reports indicate that order execution quality remains consistent during normal market conditions, though extreme volatility periods can impact fill quality as with any exchange.

The platform's advanced order types, including time-in-force options and conditional orders, support sophisticated scalping strategies. Take-profit and stop-loss orders can be set simultaneously, while trailing stops enable dynamic risk management as positions move favorably. These tools prove essential for scalpers who require precise execution and automated risk controls.

Derivatives Trading & Fees

Bybit's derivatives offerings represent the platform's core competitive advantage, featuring an extensive suite of products across perpetual contracts, quarterly futures, and options. The exchange supports over 300 derivatives pairs with leverage up to 100x, providing traders with comprehensive exposure to cryptocurrency price movements without requiring direct asset ownership.

Perpetual contract fees operate on a maker-taker model with rates starting at 0.01% for makers and 0.06% for takers. VIP users can achieve significantly better terms, with top-tier traders receiving maker rebates up to -0.025% and taker fees as low as 0.02%. These rates consistently rank among the most competitive in the derivatives market, often undercutting specialized institutional platforms.

Futures contracts follow similar fee structures but include additional settlement fees of 0.05% for positions held to expiration. However, USDT and USDC futures avoid settlement fees entirely, making them attractive for traders planning to hold positions through delivery. The platform's variety of expiration dates accommodates different trading horizons and risk management approaches.

Options trading, while more limited in scope, offers additional strategic flexibility with premium-based fees that vary by strike price and expiration. The platform supports both call and put options on major cryptocurrencies, enabling sophisticated hedging and income generation strategies beyond simple directional trading.

Funding rates for perpetual contracts update every eight hours and typically range from -0.01% to +0.01%, though extreme market conditions can push rates beyond these boundaries. The transparent funding rate mechanism helps anchor perpetual prices to underlying spot markets while creating opportunities for traders to profit from rate differentials.

Margin requirements vary by instrument and volatility, with the platform employing dynamic initial margin calculations that adjust based on market conditions. Cross-margin and isolated margin modes provide flexibility in capital allocation, while the insurance fund protects against adverse liquidations that could impact other users' positions.

Security & Risk Management

The February 2025 security incident represents both Bybit's greatest challenge and its demonstration of operational resilience. The $1.4-1.5 billion theft by North Korea's Lazarus Group, while unprecedented in scale, revealed the platform's robust backup systems and crisis management capabilities rather than fundamental security weaknesses in Bybit's own infrastructure.

The attack exploited vulnerabilities in Safe{Wallet}, a third-party multi-signature service that Bybit used for cold storage management. Forensic investigations by Sygnia and Verichains confirmed that malicious JavaScript code injected into Safe{Wallet}'s infrastructure specifically targeted Bybit's signing processes, demonstrating sophisticated supply chain compromise techniques rather than direct platform vulnerabilities.

Bybit's response to the crisis demonstrated exceptional operational competence. The exchange processed over 350,000 withdrawal requests within 10 hours, secured emergency liquidity from industry partners, and maintained complete transparency throughout the incident. The platform's total assets of over $20 billion ensured full solvency, preventing cascading failures that might have occurred with less capitalized exchanges.

Current security measures include segregation of user funds between hot and cold storage, with the majority of assets maintained offline in air-gapped systems. The exchange employs enterprise-grade multi-signature protocols, hardware security modules for key management, and comprehensive monitoring systems for unusual activity detection. Two-factor authentication, withdrawal whitelisting, and IP address restrictions provide additional user-level protection.

The platform maintains comprehensive insurance coverage, though specific details remain confidential for security reasons. Regular security audits by third-party firms ensure ongoing vulnerability assessment, while a bug bounty program encourages responsible disclosure of potential issues by security researchers.

Despite the significant security incident, Bybit's handling of the crisis and subsequent security enhancements demonstrate institutional-grade risk management capabilities. The exchange's ability to maintain operations, process withdrawals, and retain user confidence during the largest crypto theft in history speaks to robust operational procedures and adequate capitalization.

Market Position & Suitability

Bybit's positioning as a derivatives-focused platform with comprehensive European regulatory compliance creates distinct advantages for specific user segments while potentially limiting appeal for others. The exchange excels in serving active traders, professional investors, and institutions requiring sophisticated trading tools within a regulated framework.

Professional and Institutional Traders represent Bybit's primary target market, benefiting from the platform's advanced derivatives offerings, competitive fee structures, and institutional-grade API access. The combination of high leverage, comprehensive order types, and deep liquidity across major pairs makes Bybit particularly attractive for quantitative trading strategies and professional risk management approaches.

Active EUR Traders find significant value in Bybit's MiCA licensing and European operations, providing regulatory certainty and local market access that many global competitors lack. The platform's support for SEPA transfers, multiple European currencies, and Vienna-based customer service creates operational advantages for European users navigating the post-MiCA regulatory landscape.

Algorithmic Traders benefit from Bybit's robust API infrastructure, low-latency execution, and comprehensive market data feeds. The platform's support for high-frequency trading strategies and automated order management appeals to developers and quantitative traders seeking reliable programmatic access to cryptocurrency markets.

Conservative Retail Investors may find Bybit less suitable due to its derivatives focus and the recent security incident. While the platform offers spot trading and maintains strong regulatory standing, users primarily interested in simple buy-and-hold strategies might prefer exchanges with stronger emphasis on long-term custody and consumer-focused interfaces.

The exchange's recovery from the February 2025 security incident demonstrates operational resilience but may concern risk-averse users. However, the transparent handling of the crisis, maintenance of full solvency, and successful regulatory licensing suggest that Bybit has emerged stronger from the challenge.

Bybit's competitive positioning benefits from its early MiCA compliance, comprehensive derivatives offerings, and proven ability to handle operational stress. The platform's focus on professional trading tools and institutional-grade infrastructure appeals to sophisticated users while the regulatory compliance opens opportunities in previously restricted European markets.

Conclusion

Bybit's transformation from a derivatives-focused startup to a comprehensively regulated European cryptocurrency exchange demonstrates remarkable adaptability and strategic foresight in an rapidly evolving industry. The platform's achievement of Austrian MiCA licensing positions it advantageously for the post-regulatory European market, while its robust derivatives offerings continue to attract professional traders and institutions globally.

The February 2025 security incident, while representing the largest cryptocurrency theft in history, ultimately showcased Bybit's operational resilience and crisis management capabilities. The exchange's ability to maintain operations, process hundreds of thousands of withdrawal requests, and retain user confidence during this unprecedented challenge speaks to institutional-grade operational procedures and adequate capitalization that distinguish it from less established competitors.

Key strengths include highly competitive derivatives fees, comprehensive European regulatory compliance, advanced API infrastructure, and proven operational stability under extreme stress. The platform's focus on professional trading tools and institutional services creates sustainable competitive advantages in an increasingly regulated and sophisticated market environment.

Areas for potential improvement include expanding educational resources for retail users, further diversifying beyond derivatives trading, and continuing to strengthen security partnerships following the supply chain compromise that enabled the February attack. However, the platform's proactive regulatory approach and demonstrated crisis management suggest strong positioning for long-term success.

For sophisticated traders, European users seeking regulatory compliance, and institutions requiring advanced derivatives capabilities, Bybit offers compelling value propositions that few competitors can match. The combination of competitive pricing, regulatory standing, and operational resilience makes it a standout choice for professional cryptocurrency trading within the European Economic Area and beyond.