Bybit is one of the topmost crypto exchanges in the world. This Bybit tutorial is for the people who are interested in using the exchange. As there are several aspects to know about the platform before it is used.
This exchange is known to be one of the best platforms for trading crypto assets and is popular among the crypto traders. Therefore, if you are also interested in using this exchange. And trading crypto then this tutorial will help you know about details such as how to trade on Bybit and more.
Here are some of the major details to know about if you intend on using Bybit for trading crypto.
Bybit Tutorial – How to Trade Bitcoin
Trading Bitcoin isn’t merely buying and selling the digital asset. It also includes several other aspects that are mentioned below.
Various Order Types
If you are looking to trade the flagship crypto asset. Then you need to know about different order types that include market and limit orders.
- People who open a market order are market takers and opt for the best available price in the orderbook. The order is then executed without delay.
- People who open a limit order are market makers in which case your order. It will stay in the orderbook until the price reaches the price level of the limit order.
- Conditional order is another type of order. Which you can opt for if you want to go long when the price drops to a specific level
Other aspects that you need to look at while trading BTC include:
- Choosing leverage
- Funding fee
- Limit summary
- Market summary
- Perpetual futures contracts
Entering a Bybit Trade
Another aspect this Bybit tutorial addresses is how you can enter a trade if you opt to use the Bybit exchange. Here are the steps you need to follow to enter a trading position with leverage.
- You first need to choose an order type from any of the three mentioned above, namely, market order, limit order or conditional order.
- Then you can choose stop-loss and take profit. Which will enter the order book as conditional orders and automatically be triggered if the price hits a certain level.
- You can then view your open trading position.
- You can then also choose to close your trading position, by either opting for market orders or limit orders.
Leverage Trading
If you are learning how to use Bybit to trade cryptocurrencies then you also need to know about leverage trading.
The term “leverage” has been mentioned above as well. It is one of the most popular forms of crypto trading. And comes with high rewards as well as high risks. This type of trading allows the traders to borrow funds from the brokers, which is called leverage. The borrowed amount enables the traders to open bigger trading positions. Which may not be possible if the traders use money from their limited funds. While the bigger trading positions offer the possibility of getting big rewards they can also suffer from big losses.
Therefore, leverage trading should not be opted for by the traders. If they lack relevant information about this type of trading.
Liquidation Price
Liquidation price is one of the most essential aspects to know about, which is why it is mentioned in this Bybit tutorial. As a trader if you opt for leverage trading you need to know about liquidation price as well.
As mentioned above, leverage trading offers high rewards and high risks. For instance, as a trader if you make use of 10x leverage on Bybit and open a position of $1,000 you will get 10 times profits if the price of Bitcoin increases.
However, if the price declines by 10% you will reach the liquidation price. Bybit offers one of the highest leverages in the market, which is up to 100x, in which case if the price of the digital asset drop 1% you will reach the liquidation price. If you trade Bitcoin and its price reaches the liquidation price your position can get liquidated, which means you will lose your initial margin along with the money you use to open the position.
Therefore, if you want to learn how to trade on Bybit then you need to know that liquidation can be prevented if you set up a stop loss.
Final Takeaways!
A Bybit tutorial that addresses some of the major aspects of the major cryptocurrency exchange can be extremely helpful for people who are new to the crypto space and intend on using the platform. The details mentioned above can help you understand how you can trade Bitcoin and other digital assets with minimum inconveniences and difficulty.
Hi, I am Adam Smith, Admin Of TechSketcher, Creative blogger and Digital Marketer.