The cryptocurrency market has grown from an extremely new and illiquid market to an asset class with over $2 trillion in value. Markets are open for trading 24 hours a day, 7 days a week, and getting involved is fairly straightforward. But first, you’ll need to find an exchange.
Cryptocurrency exchanges are marketplaces that allow you to buy and sell cryptocurrencies at market prices. Exchanges aggregate orders in order to provide ways to buy and sell at any time. Using exchanges involves costs, depending on the frequency with which you trade and the type of asset traded. We’ll take you through everything you need to know about Bybit trading fees, so that you can trade with a clear idea of your costs.
What Are Trading Fees?
Trading fees are the transaction costs you’re charged when you place any order on a marketplace exchange. Each type of transaction may have its own cost structure, which may be subject to change on short notice. In general, cryptocurrency trading fees include several types of costs.
Exchanges mainly generate commissions from the volumes traded. However, fees apply not only to trades, but to deposits and withdrawals, funding fees, margin and leverage costs, and even through bid-ask spread costs. Exchange fees usually vary from 0.1% to 1% or more per trade. But they varied from one exchange to another. Ultimately, it all boils down to the type of trading contracts and the exchange policies.
WWhat Are Makers and Takers?
Marketplaces match buy and sell orders in order books. The maker and taker system is a method of classifying those orders to determine trading fees. A maker and taker are charged different fees according to whether they’re adding to the order book or taking away from it.
The term “maker” refers to a market maker, who provides liquidity to the market. For example, a maker increases the market depth of an order book, often by placing limit orders that don’t get matched right away. These orders give other traders the opportunity to trade against them. Market makers pay lower fees than takers, and in some cases may get rebates. For example, a market maker on Bybit will earn 0.025% in rebate when trading perpetual contracts. While no charges are applied to you as a maker when spot trading on Bybit.
In contrast, “takers” remove liquidity from the market. They place market orders to immediately take liquidity off the order books. When you place an order that’s immediately filled, you’re a taker — so you pay a fee. Hence, a derivatives trader on Bybit will have to pay 0.075% taker fees and 0.10% taker fees for spot trading respectively.
Let’s take a look at how fees affect your trading on Bybit.
How Do Bybit Trading Fees Work?
Bybit has a cost-effective fee structure that’s friendly to traders.
Bybit Taker and Maker Fees
Bybit differentiates between maker and taker fees by how quickly an order gets filled. Market Orders, which buy or sell at the best price in the market, execute immediately and are taker orders.
On the contrary, Limit Orders are placed at a pre-specified price, and they execute when the market price is the same as, or better than, the limit. Limit Orders can be classified as maker or taker orders, depending on when they get filled.
- Taker Fee: Order Value × Taker Fee Rate
- Maker Fee: Order Value × Maker Fee Rate
| Maker’s Rebate | Taker Fee | |
| All Spot Trading Pairs | 0% | 0.1% |
| Derivatives Contracts | −0.025% | 0.075% |
The order value depends on the contract quantity and price. Its calculation also depends on whether you’re trading spot, a linear contract, a perpetual contract or an inverse contract, which we’ll explain below.
Calculating Bybit Spot Trading Fees
Formula:
Trading Fee = Filled Order Quantity x Trading Fee Rate
For example, if the current price of BTC is $40,000, traders can buy or sell 0.5 BTC with 20,000 USDT.
- Trader A buys 0.5 BTC using a Market Order with USDT.
- Trader B buys 20,000 USDT using a Limit Order with BTC.
- Taker fee for trader A = 0.5 × 0.1% = 0.0005 BTC
- Maker fee for trader B = 0 USDT
After the order is filled:
Trader A buys 0.5 BTC with a Market Order, so Trader A pays a taker’s fee of 0.0005 BTC. Therefore, Trader A will receive 0.4995 BTC.
Trader B buys 20,000 USDT with a Limit Order, and no trading fee is required. Therefore, Trader B will receive 20,000 USDT.
Take note:
– The trading fee unit charged is based on the purchased cryptocurrency.
– There is no trading fee for unfilled parts of orders and canceled orders.
Bybit Derivatives Trading Maker & Taker Fee
Inverse Contract
| Maker’s Rebate | Taker Fee | |
| All Inverse Perpetual Contracts | -0.025% | 0.075% |
| All Inverse Futures Contracts | -0.025% | 0.075% |
USDT Contract
| Maker’s Rebate | Taker Fee | |
| All USDT Perpetual contracts | -0.025% | 0.075% |
Calculating Bybit Derivatives Trading Fees
Formula
Trading Fee = Order Value × Trading Fee Rate
Order Value = Quantity / Executed Price
For example, Trader A buys 10,000 BTCUSD contracts using a Market Order. Trader B sells 10,000 BTCUSD contracts using a Limit Order. If the execution price is $40,000:
- Taker fee for trader A = 10,000/40,000 × 0.075% = 0.0001875 BTC
- Maker fee for trader B = 10,000/40,000 × −0.025% = -0.0000625 BTC
Upon execution, Trader A will pay a taker’s fee of 0.0001875 BTC. Trader B will receive a maker’s rebate of 0.0000625 BTC.
Bybit Deposit and Withdrawal Fees
As of Sept. 2021, there are no deposit fees when trading crypto on Bybit. However, there is a charge of withdrawal fees depending on the cryptocurrencies you’re withdrawing.
These withdrawal fees refer to the miner or network fees, which are different for each cryptocurrency. The fees are shown in the following table:
| BTC | ETH | XRP | EOS | USDT (ERC20) | USDT (TRC20) | DOGE | DOT | LTC | XLM | |
| Withdrawal Fee | 0.0005 | 0.005 | 0.25 | 0.1 | 10 | 1 | 5 | 0.1 | 0.001 | 0.02 |
No minimum deposit is required, though there are minimum withdrawal amounts.
| BTC | ETH | XRP | EOS | USDT (ERC20) | USDT (TRC20) | DOGE | DOT | LTC | XLM | |
| Withdrawal Amount | 0.001 | 0.02 | 20 | 0.20 | 20 | 10 | 25 | 1.50 | 0.10 | 8 |
Leverage Fees
Leverage is the act of financing assets using borrowed capital. It’s an investment strategy used to magnify returns on capital. Effectively, investors also use leverage to multiply their buying power in the market with the goal of increasing returns.
Bybit offers up to 100× leverage and requires putting up initial margin and maintenance margin.
Leverage magnifies your trading fees as well. If you use 2× leverage, your trading fees would increase by 2×. For example, if you’re paying 0.075% on the value of 10 BTC at 2× leverage, you would pay 0.075% on the value of 20 BTC rather than 10 BTC.
Bybit Funding Fees
Funding fees ensure that the last traded price is anchored to the global spot price, similar to incurring interest in spot margin trading. Bybit provides certain rules for funding fees, which are as follows:
- If the funding rate is positive, long position holders pay short position holders. If the funding rate is negative, short position holders pay long position holders.
- Traders can only pay or receive funding fees every 8 hours if they hold a position at 16:00 UTC, 00:00 UTC and 08:00 UTC.
In the above screenshot, long position holders need to pay a 0.01% funding rate to short position holders in around 8 hours’ time.
Funding fees are calculated as follows with Bybit:
Funding Fee = Position Value × Funding Rate
Position Value = Quantity of Contract / Mark Price
For example, a trader holds a long position of 10,000 BTCUSD contracts and the mark price is set at $8,000 with the current funding rate at 0.0408% (0.000408). In this case,
Position Value = 10,000/8,000 = 1.25 BTC
Funding Fee = 1.25 BTC × 0.000408 = 0.00051 BTC
Because the funding rate turns out to be positive, long position holders have to pay short position holders when using Bybit.
Bybit Fees vs. Other Exchanges
Bybit trading fees are calculated based on simple percentage formulas. The calculations mainly differ depending on the type of product traded, and whether the trader is a maker or taker. While other exchanges decide their trading fees based on their status, which depends on the volume traded.
Bybit fees are very affordable versus other exchanges. For example, BitMEX offers a maker rebate of 0.01% vs. Bybit’s 0.025% rebate. Moreover, spot trading fees are 0.10% for takers and free for makers, compared to industry averages of 0.215% and 0.162%.
How to Get Started
Bybit offers a diverse and extensive range of knowledge bases including tutorial videos, blogs, and how-to guides to help users get started on the platform. Here’s a quick overview of how to begin trading on Bybit.
Bybit KYC Verification
Bybit offers a Know Your Customer (KYC) verification process to offer greater security and safe access to additional features.
This process is done over several stages, consisting of different verification mechanisms. Official documentation required includes as such the identification cards, bank statements, residency proofs and utility bills to unlock different withdrawal limits. Ultimately, the more information you provide for the verification process, the higher the withdrawal limit you’ll get.
The following table explains the levels of KYC verification at Bybit.
| Level 0 | Level 1 | Level 2 | |
| User Action | Sign up | Upload ID Card/Passport + Facial Scan | Proof of Residency |
| System Check | – | Document authenticity and facial recognition check | Bank statement, or any document with the user’s legal name and address on it |
| Withdrawal Limit | up to 2 BTC | up to 50 BTC | up to 100 BTC |
Here are the steps for implementing KYC:
- Sign up or login to your account on Bybit.
- Click on your Avatar
Log in to your account and click on Account & Security, and then click on Verify Now. This will kick-start the process for Level 1 KYC.
- Provide mandatory information to verify Level 1
- Select the country that has issued your ID card/passport.
- Upload a scanned copy of the ID document.
- Provide facial recognition via computer.
Your level of KYC verification determines the maximum withdrawal limits. You can start at a withdrawal limit of 2 BTC and go up to 100 BTC per day.
The Bottom Line
Bybit has a smart, intuitive trading platform that provides reliable and easy ways to buy, sell, trade and earn cryptocurrencies. Getting started on Bybit is simple after completing a short KYC process. The website and app are user-friendly, and they allow trading at any time.
As with any exchange, it’s important to understand the cost structures before beginning. Bybit uses a simplified maker/taker model to calculate trading fees that are affordable, and that add liquidity to the order books. No deposit fees are charged, and withdrawal fees are minimal. Both spot and derivatives trading fees are based on transparent and easy-to-calculate formulas. Our rates are competitive and generally lower than industry averages. Once you understand the fee structure, you can feel confident placing trades on Bybit.
