Learning to trade on Bybit

Cryptocurrency exchange Bybit offers traditional spot trading in cryptocurrencies. But specializes in trading cryptocurrency derivatives, futures, with leverage. Cryptocurrency derivatives appeared recently, but quickly became one of the most attractive tools for making money on the bybit.com.

 

Futures trading is developing faster than spot crypto trading for the following reasons:

• Futures are a more flexible financial instrument than crypto itself;
• Crypto-futures is one of the ways to hedge, that is, to protect assets from price declines;
• futures and an effective way to diversify capital;
• Through futures trading, you can earn not only when the price of an asset goes up, but also when it goes down.

If the user does not have crypto-trading skills, it is not a safe idea to start trading digital asset derivatives. It is more risky than spot crypto trading. But if a trader has been trading crypto with steady profits, then trading digital asset derivatives is a logical extension of a trader’s career. The principle of trading different types of assets is similar, so there will be no difficulties when switching to derivatives. Moreover, for an experienced crypto trader, derivatives trading can be easier and more profitable than spot crypto trading.

List of Knowledge

If there is no experience in crypto-trading, a user who has decided to master derivatives trading on ByBit will need to learn the following information.

What are cryptocurrencies?

In this context, there is no need to delve into the technicalities of blockchain and types of mining. The main thing is to understand what digital assets are in terms of earning opportunities. And what the crypto market is all about. You can start with this Articles. It contains a list of resources with explanations. These sources are not only needed at the beginning of digital asset trading, they will need to be monitored regularly in the future as well.

How to make money from crypto-assets?

Until recently, there were only two ways to make money from crypto:

• Long-term “buy-and-forget” investing, where the user buys a coin and waits for its value to rise to the investor’s desired value;
• spot trading of digital assets on a cryptocurrency exchange.

Now there are many more types of earnings in the crypto industry. For example, NFT tokens, a new way for artists to make money. Gaining popularity Steaking PoS cryptocurrencies, pharming and lending. So you don’t have to limit yourself to spot trading or derivatives trading. Especially since many new ways of making money are less risky and require less effort to master.

How to trade cryptoassets?

Before you start trading futures, you should first learn how to work with cryptoassets on spot platforms. Information that sets the right direction for learning how to work in the crypto market is contained in this available at. From it the novice user will learn:

• How to choose a coin or token;
• what strategies there are;
• What is technical and fundamental analysis and so on.

Trading any assets will not be profitable without practice. Theoretical knowledge must be tested on practical trading. As a minimum, you need to achieve profit in demo mode, which is available on all major crypto-assets exchanges. About exchanges in the above articles also tells this.

What is cryptocurrency futures trading?

Bybit exchange trades perpetual futures, inverse perpetual contracts, perpetual contracts USDT. But what are cryptocurrency futures? This article discusses this, as well as futures trading, types of futures, and the benefits and risks of this type of trading. This is basic information from which you can begin to move towards understanding what crypto derivatives are and how to profit from them.

Registration on the Bybit exchange

Once you understand what futures are and decide to work with crypto derivatives, you can register on Bybit platform. After registration the user gets access to Bybit training materials and an opportunity to learn and test strategies in demo mode. Even if the user has serious spot trading experience, learning and working in demo mode is a must before starting to trade futures. Real trading on crypto exchange is possible after account verification and deposit.