Bybit USDT Perpetual Trading Experience Report

TokenInsight conducted a test toward the latest released USDT perpetual on Bybit. Such a contract is available for trading at https://www.bybit.com/trade/usdt/BTCUSDT.

Bybit draws our attention as it ranking in #5 cross whole market by volume with just five trading pairs. During the test, we noticed several advantages of the Bybit.

• Bybit applies a dual price mechanism.
• Bybit obfuscates the non-ERC-20 USDT deposit address to avoid the loss by careless (i.e., deposit ERC-20 USDT into Tron address).
• The brand new trading UI of Bybit can be easily customized by drag and drop. The instant position reversing is also available.
• Traders can open a new position or withdraw cash from unsettled profit on USDT perpetual.
• Data shows USDT perpetual has a basic order book depth around $1.5 million, and up to $2.1 million. The available order book depth is above $5 million.
• The data also shows Bybit trading volume is authenticated without wash trading.

USDT Perpetual

There are two kinds of cryptocurrency perpetual, namely token-based perpetual and USDT perpetual. Token-based perpetual use tokens (BTC, ETH, etc.) as the unit for margin, profit, and loss calculations. Due to the volatility of token prices, the token-based perpetual has a high holding risk. Where USDT perpetual, also known as stable coin contracts, are calculated by quotes (such as USDT). Compared with the token-based perpetual, USDT perpetual is more intuitive, and the profit and loss curve is linear. Thus, we advise the entry-level investor to trade USDT perpetual, but not token-based perpetual.

About Bybit

Bybit is the second large solo derivative (which means the exchange with only derivatives available) by volume. The USDT perpetual is a new trading pair listed on Bybit since early 2020.

Trading Experience

Deposit

To help investors participate in USDT perpetual, Bybit added a USDT deposit function. As we all know, USDT is issued on three public chains (Ethereum, OMNI, and Tron). To prevent investors from carelessly and accidentally losing assets due to the wrong type of deposit, Bybit obfuscates the USDT recharge address except for the ERC-20 standard; such a way is rare.

User Interface (UI)

The Bybit trading interface can be easily customized by dragging and dropping to meet the needs of different users. Bybit provides 124 optional chart indicators. Users can combine various indicators with customized trading interfaces according to their trading system. The new pre-calculation module enables traders to know the expecting profit or potential loss before they open a position. Bybit also launched an instant position reversing button. At the same time, Bybit USDT perpetual allows a two-way position opening function.

Mobile App

All functions of the Bybit website UI are available on mobile App and run smoothly. In particular, the Bybit mobile App uses vibration mode for feedback when the user performs critical operations ( opening, and closing positions, etc.).

Liquidity

Order Book

We collected basic (25 depth) and further (200 depth) order book for USDT perpetual from Bybit WebSocket API on April 12, 2020. Data shows USDT perpetual has a basic order book depth around $1.5 million, and up to $2.1 million. The further order book depth is above $5 million, which can meet the needs of ordinary investors and quantitative trading teams.

Wash Trading Analysis

We collected the first 1000 transactions that occurred after 2:40 pm on April 7, 2020 in the Bybit USDT perpetual, and used to analyze the wash trading volume. The distribution graphic obeys the power law. There is no apparent wash trading behavior on the Bybit USDT perpetual.

Outlook

2019 is the “first-year” of the derivatives era, and 2020 may be the year of the significant development of the industry. Official information shows that Bybit will further develop this year through the following aspects.

USDT perpetual

Bybit plans to launch more USDT perpetual trading pairs in the future. Traders can use USDT as a deposit for a variety of contracts.

Education

Bybit will focus on cryptocurrency investor education in 20Q3 and 20Q4.

Futures

Bybit will launch futures contracts with quarterly, semi-annual, and full-year delivery, and cooperate with its tradable apps to list App Stores in various countries.

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