Learn how to join Bybit's VIP Program, where you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades up to $10M.

With the Bybit VIP Program, you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades, Bybit Card cashback and more. Joining the ranks of the very best traders on the platform will boost your profitability, raise your limits and offer access to VIP-only perks.

 and guides you through the steps to become a VIP trader and unlock exclusive benefits. Let's get started!

 is an exclusive club for the most esteemed traders in the crypto market. It’s designed to provide members an enhanced Bybit experience with numerous VIP-only benefits and perks. The program aims to reward avid traders who have high volumes, account equity levels and borrowing activities.

The Bybit VIP Program offers a multitude of benefits for members. These range from discounted trading fees and high limits for withdrawals and application programming interface (API) trades to priority Bybit customer support access, relationship managers and exclusive VIP events and meetups. You can find the full list of VIP exclusive benefits 

Requirements to Become a Bybit VIP Trader

You’ll need to fulfill a specific level for one of the criteria below to become a VIP trader on Bybit:

Bybit's VIP Program features six distinct tiers: 

. Each successively higher tier offers greater rewards, and also comes with more stringent qualification requirements. For instance, as a 

 trader, you’ll enjoy reduced trading fees, such as 0.03% for makers and 0.045% for takers in the spot market. To qualify for this exclusive tier, you must meet at least one of the following criteria:

Once you become a VIP trader, you must continuously meet the above criteria to maintain your Bybit VIP status and keep enjoying the benefits. 

However, this doesn't mean your account will immediately lose its VIP status and revert to standard after a single day in which you don’t meet the requirements. Bybit offers a 14-day grace during which you can continue enjoying VIP perks and benefits, even if you no longer meet the program's conditions. If the criteria are not met by the end of this period, your VIP status will automatically be revoked. However, if that occurs, you can regain your status by fulfilling the requirements for any VIP tier either during or after the grace period. When this happens, Bybit will grant you a new 14-day grace period.

How to Sign up to Become a Bybit VIP Trader

In the following section, you'll find a step-by-step guide that shows you how to join the Bybit VIP Program.

The first step to becoming a VIP trader is to open a Bybit account (if you haven't already done so). Simply 

 and fill out the form with your details. After registering, you’ll need to verify your account to enjoy the platform's full functionality.

Next, fund your Bybit account with crypto or fiat currency.

You can deposit cryptocurrencies by using the 

 menu. On the page, choose your desired coin and the blockchain where you'll be depositing the assets. To avoid any loss of funds, please always ensure that you're transferring crypto from the correct chain.

Next, copy-and-paste the wallet address displayed on the page, or scan the QR code with your smartphone's camera, and initiate the deposit from your wallet. After a few confirmations, your cryptocurrencies will be credited to your Bybit account.

To fund your Bybit account with fiat currency, click on the 

 button and select one of the available services (e.g., 

 service, choose a fiat currency, the deposit amount and one of the available payment methods. After clicking on 

, follow the instructions displayed on the next pages to initiate the transaction. Your funds will be credited to your Bybit account, with processing times varying according to your chosen service and payment method.

After you have a verified Bybit account funded with either crypto or fiat, perform eligible activity on the platform until you qualify for VIP status (see table below).

You can achieve VIP status by fulfilling a minimum level of VIP 1 in either of the following categories (

After becoming a VIP trader on Bybit, don't forget to maintain your VIP status to continue enjoying the exclusive perks and benefits.

If you have active VIP status at another crypto exchange, or your total MT5 trading volume meets Bybit's VIP criteria, you can apply for a VIP+2 upgrade. This upgrade will grant you VIP status on the platform — and instantly elevate it by two levels. (Please 

 that Bybit only considers 10% of any MT5 forex trading volume.)

 and submit your 30-day trading volume on your current exchange. Bybit’s VIP team will review your application, and a Relationship Manager will contact you if you're eligible for the VIP upgrade.

How to Get Started With a 20-Day Bybit VIP Trial

Another way to qualify for VIP status on Bybit is through a 20-day trial. Instead of fulfilling the requirements of the VIP 1 level, simply fund your account with $50,000 to enjoy the exclusive benefits of the program for 20 days with a VIP Trial Card (issued one day after your deposit). The VIP trial offer is available to users who haven't used a trial within the past two months.

To unlock the 20-day VIP trial, head to the 

 menu on Bybit and use one of the available payment methods to fund your account with $50,000 in assets.

With VIP Level-Up Tasks, you can earn generous bonuses as high as 6,000 USDT. You can claim rewards for Level-Up Tasks for five VIP levels (VIP 1, VIP 2, VIP 3, VIP 4 and VIP 5), with higher tiers offering greater bonuses upon completion.

If you're eligible, you’ll see a pop-up window with VIP Level-Up Tasks after you log into your account. To claim your rewards, complete the specified trading volume requirement within 14 days of receiving the task, and click on the 

 page. You can learn more about Bybit VIP Level-Up Tasks

Exclusive Trading Benefits Offered to Bybit VIPs

As a member of the Bybit VIP Program, you can unlock exclusive benefits to supercharge your trading experience. Among these are discounted trading fees (which can significantly boost your trading revenue), profitability and chances of winning trades.

In addition to discounted trading fees, you’ll also enjoy substantially higher API trading and withdrawal limits. While the former is restricted to 10 trades per second for non-VIP users, you can take advantage of up to 120 API trades per second as a VIP trader. Simultaneously, your daily withdrawal limit is increased from the basic 1 million USDT to as high as 12 million USDT.

 is an exclusive club that provides an enhanced service experience for the most esteemed traders. As a member, you can access a multitude of exclusive benefits and perks, such as the following:

Are you ready to supercharge your trading experience? 

Intermediate

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How to Become a Bybit VIP: Your Guide to Exclusive Benefits

LETSTOP is a drive-to-earn mobile app that monitors phone distractions while driving. Learn more about how it works in this article.

Smartphone distractions have created an unprecedented road safety crisis worldwide. 

: texting behind the wheel makes drivers six times more likely to crash than drunk driving does — yet millions of drivers still use their phones while operating vehicles.

This article explores how LETSTOP is transforming safe driving into rewarding experiences through blockchain technology. We'll examine its drive-to-earn model, reward system, tokenomics and potential as both a road safety solution and an investment opportunity.

 is a drive-to-earn mobile app that monitors phone distractions while driving. Users earn STOP tokens for phone-free driving through a gamified system that transforms daily drives into rewarding experiences.

A life-changing car accident caused by a distracted driver running a red light inspired LETSTOP co-founder Almog Nissan to reimagine road safety. Together with co-founder and CEO Dor Levy, they envisioned rewarding safe driving, rather than just punishing dangerous behavior.

The founders built a platform that combines automotive technology, cryptocurrency and AI to revolutionize road safety through rewards. This innovative approach has quickly gained traction, with over 50,000 users logging over 3 million kilometers of safe driving since the app’s launch.

Distracted driving claims thousands of lives annually, with 

, of which 9% are directly linked to phone use. LETSTOP aims to tackle this crisis as follows:

Each of these objectives works harmoniously to support LETSTOP's ultimate mission of transforming road safety into a rewarding experience that benefits both individual drivers and society.

The LETSTOP app operates through a sophisticated system that monitors and rewards safe driving through the following apps and features:

The result is a dynamic system in which better driving habits unlock greater earning potential.

The following five core features power LETSTOP's drive-to-earn ecosystem.

LETSTOP uses a dynamic 40-level system to make safe driving rewarding. As drivers earn XP through distraction-free journeys, they advance from Level 1's 2% bonus toward Level 40's 70% boost. Through this gamified approach, daily commutes become opportunities to climb the ranks while building safer driving habits.

LETSTOP Credits are the core currency of the platform, earned directly through safe driving achievements. Earning rates directly scale with user level, vehicle type and subscription tier as follows: PRO subscribers enjoy unlimited earning potential, while PLUS and LITE tiers are capped at 300 and 150 monthly credits, respectively.

In the STOP Store, users invest their earned credits into virtual cars with unique earning multipliers. From the basic model's 2% bonus to the Jazzster GN's 150% boost, each vehicle offers different strategic advantages for maximizing rewards.

Beyond vehicles, the store features mystery boxes containing rewards from 10 to 450 credits, as well as car upgrades and subscription boosts. Users can also access a voucher marketplace to redeem credits for real-world rewards through LETSTOP's partnership network.

LETSTOP's triple-boost system combines vehicle multipliers for immediate earnings acceleration, a level-progression system for sustained growth and a 5% referral program for community expansion. Premium membership unlocks enhanced benefits across three tiers, while special events create time-limited opportunities for increased rewards.

The platform's comprehensive rewards system operates across three membership tiers, each one tailored to different user needs. LETSTOP PRO (at $9.90 monthly) offers unlimited credit earning potential and exclusive benefits. The PLUS tier provides a balanced option at $4.90 monthly with a 300-credit earning cap, while the free LITE tier allows users to earn up to 150 monthly credits.

Beyond direct earnings, the rewards system incorporates partner vouchers, cryptocurrency conversion options and community features, such as leaderboards. Achievement rewards recognize milestones in users' safe driving journeys, while the upcoming cryptocurrency integration will allow users to convert their efforts into tradeable STOP tokens.

LETSTOP has shown consistent progress, with the following key milestones already achieved:

Looking ahead to 2025, LETSTOP plans to implement the following key developments:

These developments aim to strengthen LETSTOP's position as a leader in drive-to-earn while furthering its mission to enable safer roads worldwide.

STOP is an SPL token built on the Solana network. It’s designed to bridge safe driving behavior with cryptocurrency rewards. The STOP token implements an annual halving mechanism to ensure long-term value preservation, similar to Bitcoin's model, but accelerated to align with the project's growth trajectory.

STOP has a max supply of 100 million tokens, to be distributed in the following manner:

The growing adoption of LETSTOP's drive-to-earn app and its impact on road safety directly influence STOP's price trajectory. While cryptocurrency forecasts remain speculative by nature, multiple price analysis platforms project the following for STOP:

These forecasts suggest a positive long-term outlook for STOP, driven by the growing drive-to-earn sector and LETSTOP's innovative approach to road safety. However, STOP's future value will ultimately depend upon user adoption, platform development and broader market conditions.

Looking to trade LETSTOP tokens? Bybit now offers the STOP/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

STOP shows promising potential in the drive-to-earn sector, though investors should carefully weigh both its strengths and potential risks before making investment decisions.

While STOP's innovative approach to road safety and its strong initial traction distinguish it in the market, potential investors should 

 and invest no more than they can afford to lose.

As smartphone distractions continue to endanger lives on roads worldwide, LETSTOP offers an innovative path forward. Through its innovative drive-to-earn model and STOP token ecosystem, the platform transforms daily commutes into safer roads and user earnings opportunities, showing how digital innovation can effectively “drive” positive behavioral change.

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LETSTOP (STOP): Turning Daily Rides Into Profitable Journeys

FDUSD, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD.

The S&P 500 ended flat amid mixed earnings and geopolitical concerns, as investors awaited Thursday's data and Fed commentary. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.01%, with Bitcoin rising by 1.91% and Ether dropping by 0.59%, in the past 24 hours.

Today's top performer is LUMIA, which surged 16.1% following the announcement of its partnership with Cobox to bridge real-world assets and virtual ownership.

Lumia (LUMIA), founded in 2024, is a Layer 2 blockchain solution leveraging the Polygon CDK to enhance scalability, liquidity, and interoperability. It addresses challenges like data availability and cross-chain interactions by incorporating AvailDA for decentralized data and Polygon AggLayer for cross-chain functionality, enabling efficient and flexible dApp development. 

 to integrate real-world assets (RWAs) into its immersive, player-owned universe. This collaboration aims to enhance asset liquidity, trading, and gameplay experiences, bridging digital and physical realms for more tangible and vibrant virtual ownership.

Check Out the Latest Prices, Charts, and Data of 

, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD. This launch reflects growing institutional confidence in Sui, which has seen significant growth in TVL and DeFi volume. FDUSD, backed by reserves in Asian banks and US Treasury debt, offers DeFi users a reliable, US Dollar-pegged stablecoin, bridging traditional finance and cryptocurrency ecosystems.

Yesterday, the total flow into Bitcoin Spot ETFs is $146.9 million, with $0 million in GBTC and $146.9 million in non-GBTC products.

: the Spotlight Badge, which requires minting through the Spotlight Protocol and joining a Spotlight circle; the Impossible Finance Badge, which involves completing social tasks, claiming the TIDIA faucet, staking TIDIA on Impossible Finance, and then claiming the badge; and the SNGLR Badge, where users connect their wallet, follow artists, mint IP assets, tweet, and provide personal details to claim their badge. More badges are coming soon!

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FDUSD Launches as Native Stablecoin on Sui, Strengthening DeFi Ecosystem

Morpho (MORPHO) is an efficient Ethereum-based protocol revolutionizing decentralized lending with customizable peer-to-peer and pool-based solutions.

Liquidity pools have revolutionized decentralized lending and borrowing by offering a wide choice of product options and significant liquidity levels. For several years, protocols like 

 (COMP) have been lauded as true innovators that introduced a real game-changer: pool-based lending and borrowing. However, a closer look reveals that things aren’t as efficient and smooth as they may seem within the world of crypto lending. The problem is that lending pools on decentralized protocols often have mismatches between lenders and borrowers, with the former substantially outnumbering the latter. As a result, lenders earn only meager 

s, while borrowers pay exorbitant fees to access funds via these pools. Another critical problem is the lack of customizability in lending and borrowing products, with many protocols adopting a one-size-fits-all approach.

Morpho (MORPHO) is a decentralized protocol on 

 (ETH) that aims to improve the efficiency and flexibility of crypto lending and borrowing by offering a unique model that combines the elements of 

 (P2P) and pool-based matching of lenders and borrowers. To be precise, one of Morpho's essential products, Morpho Optimizers, specifically focuses on P2P matching, with pool-based lending and borrowing used as a fallback option. Morpho also offers users an excellent level of customization for creating new lending markets through its core protocol.

With its innovative lender-borrower matching mechanism and highly customizable and flexible markets, Morpho greatly improves capital allocation and transaction efficiency in the 

 (MORPHO) is an Ethereum-based decentralized lending protocol that offers a unique P2P order matching mechanism to improve the efficiency and affordability of 

 The platform also enables users to create efficient lending markets with highly customizable lending and borrowing parameters. Additionally, it offers a product, Morpho Vaults, for curated lending at varying risk levels.

, a France-based software development company founded in 2021 by Merlin Egalité and Paul Frambot. It's also supported by the nonprofit 

As its first major product, the project launched Morpho Optimizers on the Ethereum blockchain in 2022. Morpho Optimizers is designed as an add-on solution for lending pools on Aave and Compound to help match individual lenders and borrowers. The transacting parties can benefit from a more efficient lending process than with the default pool-based mode.

In January 2024, the project launched Morpho Blue, later rebranded to Morpho, a solution to help users create highly flexible lending markets with custom parameters and options. Morpho acts as the backbone of the Morpho ecosystem, and the project team has turned its focus to promoting and further developing this product. At the same time, Morpho Optimizers remains an integral part of the platform's core offering, albeit in a less prioritized state than Morpho.

The Morpho protocol consists of three main products — Morpho, Morpho Vaults (based on the underlying protocol) and the legacy Morpho Optimizers. Morpho allows users to create individual lending markets by specifying their preferred options for the following key attributes:

All these parameters are highly customizable, with minimal interference from the Morpho governance mechanism. Some parameters do have to conform to certain requirements; e.g., the IRM and LLTV must be from the list approved by the protocol's governance.

Morpho's high level of customizability is a significant departure from the typical model used on decentralized lending and borrowing platforms. On most other protocols, there are fixed parameters governing the lending and borrowing process; e.g., only certain collateral assets, lending assets or LLTV rates are allowed. In contrast, Morpho lets you customize all of these options, giving lending market creators an unmatched degree of freedom. The protocol offers the following key benefits to users, developers and market operators:

While Morpho is currently the platform's flagship product, the legacy Morpho Optimizers continues as a key offering in the platform's product line. Morpho Optimizers are add-on layers to the Aave and Compound lending pools. They can be used to facilitate a peer-to-peer match between lenders and borrowers. Since typical lending pools — including on platforms like Aave and Compound — are often heavily skewed with more lenders than borrowers, both parties end up paying excessive fees. Borrowers have to confront high costs due to the need to service the many lenders in the pool. In turn, lenders fight for the meager scraps left over from insufficient numbers of borrowers.

By using a P2P matching mechanism, Morpho Optimizers effectively takes the lender and borrower away from pool-based interaction and establishes a direct relationship between them. This allows users to borrow assets at cheaper rates, while also delivering better APYs for lenders. If either party withdraws from the direct lending relationship, both parties have the option to use the standard lending pools on Aave and Compound as a fallback.

The platform's third core product, Morpho Vaults (covered in more detail below) utilizes the underlying protocol and provides a way to lend through carefully curated market options at different risk profiles. This can suit lenders who are less proficient in using fully customized markets, but still prefer to take advantage of the lending opportunities offered by Morpho.

In order to create a custom lending market on Morpho, you need to have some technical proficiency and, preferably, knowledge of Solidity, the programming language that the protocol uses for its smart contracts. As noted earlier, developers can create a custom market by supplying five base parameters — a collateral asset, an asset offered for lending, an oracle, a preferred IRM and an LLTV. The first four of these normally require an Ethereum smart contract address to be specified. For the collateral and lending assets, these are the addresses for the tokens' contracts. The selected oracle is also usually established via a pointer to its smart contract address, although oracle-less hard-coded prices for the collateral and lent assets are acceptable. Morpho also maintains Ethereum addresses for each IRM whitelisted by the protocol's governance; developers can use these when choosing a preferred IRM.

The last value, LLTV, is a hard-coded figure that defines the threshold beyond which a loan becomes unhealthy due to its poor 

. Liquidators on Morpho are protocol actors who are incentivized to cover bad debts in return for collateral, similar to the method used on many other lending platforms. They’re allowed to liquidate up to 100% of the debt. In return, liquidators receive the debt's collateral, as well as an additional incentive for their work.

Since Morpho is an oracle-agnostic protocol without a built-in oracle, each market can have its own oracle that sources prices for the collateral and lending assets from external sources. Developers are completely free in that regard, and can even hard-code asset prices for the market if they don't wish to use a price oracle at all. Naturally, an oracle is preferred for maintaining the most up-to-date and dynamic pricing information.

The IRM used is the only base parameter with which developers are somewhat restricted in their choice, as only whitelisted IRMs are allowed for a market. As of mid-November 2024, there’s just one whitelisted IRM that market creators can specify — the 

. This model dynamically adjusts interest rates to maintain the proportion of borrowed funds to supplied funds at close to 90%.

Morpho Vaults are a tokenized vault product that offers curated lending opportunities with varying pre-programmed risk parameters. Each vault is associated with a single loan asset, and can allocate deposits across multiple Morpho markets, thereby leveraging the overall liquidity available on the Morpho protocol. Morpho Vaults suit lenders who prefer predictable risk management over the uncertainty of completely custom markets. Each lender can earn APY rates commensurate with their chosen 

There is no limit on the number of vaults you can open on Morpho. Thus, you might even allocate funds to different vaults with significantly different risk levels to diversify your exposure.

Morpho Vaults' curated nature eliminates the need for users to spend time researching and evaluating individual markets' risk levels and return opportunities, as risk exposure is actively managed by the vault.

Since the vaults are connected to the underlying protocol, and source liquidity from it, they’re dynamically rebalanced, which helps optimize yields. Thanks to their permissionless and immutable nature, the vaults are also completely transparent. Moreover, they’re noncustodial, granting users full control over their deposited assets, which can be withdrawn at any time.

A lender deposits an asset into a Morpho Vault and receives shares of the vault as confirmation of their investment. The vaults themselves are tokenized products utilizing Ethereum's 

 standard, designed to represent tokenized vaults for yield-bearing assets. Each vault may be owned by a 

 (DAO), an individual DeFi expert or some algorithm maintained by a DeFi platform. A vault can be owned by only one entity. The owner may specify additional roles/entities for managing the vault. These roles can include one curator, one guardian and multiple allocators.

The curator is a party who sets certain limits, rules and boundaries for the vault, such as specifying asset supply limitations and enabling/disabling specific markets. Curators are instrumental in maintaining appropriate risk levels for their vaults. Assets that lenders lock in a vault are supplied to the protocol's underlying markets, based on curators' whitelists. There can only be one curator for each vault.

The role of guardian is a key vault position. A guardian protects the integrity and security of the vault. Guardians can revoke any action by the vault owner (or other entities) if they consider it to be against the interests of vault lenders. Each vault can only have one guardian, typically a DAO consisting of vault depositors.

Allocators are protocol actors whose job is to rebalance the liquidity utilized by Morpho Vaults to optimize interest rates and accessible liquidity. An allocator’s job is to rebalance and optimize the total liquidity, either manually or using bots, to best meet the needs of Morpho borrowers.

Morpho Vaults' operations aren't regulated by the protocol's governance mechanism. Each vault owner is responsible for their vault's governance model. Specific roles, such as the curator and the guardian, are designed to help in establishing transparent and secure governance procedures for a vault.

What Is the Morpho Crypto Token (MORPHO)?

The platform's native cryptocurrency, MORPHO, is envisioned as a 

. Holders of MORPHO have the right to participate in decision-making on the platform's future direction, general rules, deployment of smart contracts and allocation of funds from the treasury. Although Morpho promotes lending and borrowing markets that operate with minimal interference from the protocol's governance community, there are some general guidelines and rules through which the community needs to establish certain standards, minimum requirements or whitelists. MORPHO token holders are instrumental in this process.

The original MORHPO token was launched on Ethereum in June 2022 with a supply cap of 1 billion. However, there were limitations to the original token contract that negatively affected its functionality. Specifically, the token wasn't designed to facilitate efficient on-chain voting. As a result of these limitations, the project decided to relaunch the token, now on an upgraded contract. The new reincarnation of MORPHO will offer better functional capabilities, including more efficient on-chain governance processes. 

As of the time of writing on Nov 17, 2024, the project team has yet to deploy the new token. The new MORPHO will also be a supply-capped crypto, with a maximum and total supply of 1 billion. The token's supply distribution shares are shown in the chart below.

 token before its market launch. Bybit Pre-Market Trading is an over-the-counter (OTC) trading platform that provides access to promising new cryptocurrencies before their listings on the Spot market. The key advantage of the platform is the ability to access cryptocurrencies at desirable rates before the broader crypto market affects their prices.

Bybit's carefully designed curation process ensures that only crypto assets with solid potential and fundamentals are whitelisted for Pre-Market Trading. This saves you the time required to investigate each cryptocurrency, and reduces the risk of investing in scam projects. Naturally, you’re also encouraged to 

 on crypto assets you might consider purchasing through Bybit Pre-Market Trading.

Morpho represents a unique and potentially highly effective approach to DeFi lending and borrowing. The platform's facilitation of isolated and highly customizable lending markets gives DeFi users unmatched freedom in terms of choice and variety. In addition, users who prefer the stability of curated and well-defined risk profiles can take advantage of Morpho Vaults for more predictable yields. The use of the overall underlying protocol liquidity along with entities such as allocators makes Morpho Vaults particularly effective at optimizing lending and borrowing costs.

While custom lending markets launched via the protocol are now Morpho's key focus, the legacy Morpho Optimizers also continue to offer value. P2P matching of lenders and borrowers as an add-on to the standard pool-based mechanism is a functionality many DeFi users will find helpful. Morpho Optimizers can offer lenders and borrowers active on Aave and Compound an alternative and highly effective way of conducting their operations.

With this arsenal of innovative and unique products, the Morpho protocol is quickly shaping up as a leading platform in the lending niche of the DeFi industry.

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Morpho (MORPHO): Leading Efficient, Permissionless Crypto Lending

Bybit Learn

web3

Looking for a crypto wallet to use? Read more on the differences between custodial and noncustodial crypto wallets and determine which you should use.

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As wallets continue to evolve from a simple store-of-value product to a critical infrastructure component and passport that underpins everything in web3, we examine what to look for as you explore the next iteration of the internet.

When you're investing in cryptocurrency, the right 

 is essential. Crypto wallets help to keep your assets safe by ensuring that only authorized people can access the funds. However, it can take a little time to choose the best type of wallet for you. 

Most crypto wallets can be categorized as either custodial or 

. Both styles have their own pros and cons, so the right choice really just depends on your situation. To choose the best type of wallet for your needs, explore this helpful guide.

A custodial crypto wallet is a type of crypto wallet for which a third party holds onto the private keys for the customer. The owner of the crypto can send or receive payments, but they do not manage their keys themselves.

Custodial crypto wallets are frequently used by crypto exchanges and other 

 (DeFi) companies. When you put your funds in a custodial wallet, you’re essentially outsourcing wallet management to the exchange, which becomes responsible for completing transactions, holding your keys and storing your funds securely. The upside is that you can access your funds by entering just a single key. 

If you’re looking for a great custodial crypto wallet to use, consider 

 — a web3–compatible wallet that can be created in one click, and aims to give users convenience and peace of mind without the hassle of a complex 

. Bybit is known to be trustworthy and reliable with its industry-grade security and 24/7 live customer support, so you can rest assured that your funds will be kept safe.

If you already have a Bybit account, you may wonder what the difference is between your existing Bybit account and the new Bybit Wallet. Think of your Bybit account as a platform for you to store and trade your crypto on the Bybit exchange. The Bybit Wallet, on the other hand, is a custodial crypto wallet that not only holds your assets and private key, but also gives you direct and complete service to the decentralized web of DeFi, GameFi and NFTs. It’s your operating system to web3 with on-chain behaviors and benefits all in one place.

Here are a few of the exciting things you can look forward to with Bybit Wallet: 

With so many features, Bybit Wallet aims to be the preferred gateway to the web3 ecosystem, not only for Bybit users, but for all other crypto users worldwide.

To understand how a custodial crypto wallet works, it’s essential to know how crypto wallets function. Unlike a real-world wallet, crypto wallets don't contain your actual funds. Instead, a standard wallet contains the addresses where your cryptocurrency is located, the public key that lets you set up transactions, and the private key to authorize transactions.

If you have a custodial crypto wallet, you don't keep track of the keys or the addresses yourself. Instead, you have an account with a third-party business that holds all this information for you. To access your account, you log in with a username and password, just as you would for an email address or social media account. This login then authorizes the company to perform crypto actions on your behalf.

Once you log in, you use the custodial crypto wallet company's interface to manage your funds. You can do things like see your balance, send money, or purchase more coins. What you see on the interface is not the 

 or the cryptocurrency itself, but rather an intermediary. You’re essentially telling the company what actions you want to perform on the blockchain, and then they handle the details for you.

A noncustodial crypto wallet is a crypto wallet for which the person who owns the funds in it also manages them. The user has control over their own crypto keys, and handles transactions themselves.

Like a custodial crypto wallet, a noncustodial crypto wallet is typically still a product provided by another company. However, noncustodial crypto wallets do not manage cryptocurrency for you. You’ll need to keep track of your public and private keys, and input them each time you make a transaction. Because of this requirement, noncustodial crypto wallets tend to be a little more complicated to use. Some noncustodial crypto wallet options, like 

, try to be user-friendly, while others like 

How Does a Noncustodial Crypto Wallet Work?

Noncustodial crypto wallets may sound a little simpler, since third parties aren't involved in each transaction. However, despite being theoretically straightforward, a noncustodial crypto wallet can, in reality, be fairly complicated. Noncustodial crypto wallets can work in a variety of ways, depending on the sort of wallet you have and the type of crypto you want to work with. Unlike most custodial crypto wallet services, noncustodial crypto wallets can be software or a piece of hardware.

There are different procedures in place, depending on the sort of noncustodial crypto wallet you have. However, they all follow the same basic concept: They give you a place to store your crypto funds, and you use a public key and a private key to access the funds. When you want to receive funds, you can give people your public key. In order to accept crypto assets, send funds and complete other transactions, you need to enter your private keys in your crypto wallet.

With a noncustodial crypto wallet, you’ll need to perform transactions yourself on the blockchain of the crypto you're working with. These transactions are typically reflected in real time on the chain. However, some hardware noncustodial crypto wallet options allow users to sign a transaction offline with their private key, and then upload it to the blockchain for confirmation.

Since there's sufficient variety in how noncustodial crypto wallets work, it can be helpful to take a closer look at the different types. If you decide to work with a noncustodial crypto wallet, you can use one or more of these options.

A hardware wallet is a small module that often looks similar to a USB stick. It remains turned off when you aren't using it, and doesn't have its own internet connection. When you want to make a transaction, you connect the wallet to a computer or mobile device. It then transmits your crypto keys to the blockchain to finalize the transaction. You usually need physical possession of this type of hardware wallet to manage your funds. If you lose the hardware wallet and don't have your keys memorized, your crypto funds may be lost.

A browser-based crypto wallet is usually a type of browser extension. You download it onto your computer and connect it to your preferred web browser. When you want to take part in crypto exchanges, or send your crypto assets to someone else, you open the extension and input your private key. Browser-based noncustodial crypto wallets let you retain full control over your keys, coins and passwords. Many browser-based wallets give you a seed phrase that’s linked to your crypto wallet. You can enter the seed phrase on another device to regenerate your wallet. This provides an additional measure of security in case you lose access to the device on which you originally accessed the wallet.

Mobile crypto wallets combine the flexibility of browser wallets with the portability of hardware wallets. This type of wallet is usually a mobile app. You download and install it on your phone, and it offers a variety of ways to manage and use your crypto keys. You can enter keys to sign transactions or simply store them within the wallet to retain access to your crypto assets. Like browser-based wallets, a mobile wallet typically provides you with a seed phrase. This long string of words is something you can input on another phone to restore access to your keys.

Custodial vs. Noncustodial Crypto Wallets

Now that you know the basics of custodial and noncustodial crypto wallets, it's time to take a closer look at them. Though they do have a few things in common, custodial crypto wallets tend to be vastly different from noncustodial crypto wallets. Here are some of the main similarities and differences.

This is the primary difference between a custodial and noncustodial crypto wallet. With a custodial crypto wallet, the third-party business is responsible for keeping track of your private key and using it to finalize transactions. Meanwhile, with a noncustodial crypto wallet, you’re in charge of your own key.

If you lose access to your primary method of reaching your crypto assets, it’s a lot easier to recover your funds on a custodial crypto wallet than on a noncustodial one. You can log in to your account from various devices, and if you lose your password, you can follow the steps to recover it and regain control of your wallet. Typically, the company that manages your wallet has customer service available to assist you, and if a malicious actor hacks your account, they can attempt to help you restore your crypto assets. For example, if you ever require any assistance regaining control of your Bybit Wallet, Bybit’s 24/7 live customer support will certainly come in handy and be there for you every step of the way. 

A noncustodial crypto wallet does offer some recovery options, but they’re not as widespread. Some types of hardware wallets may not offer any recovery options at all. Most browser and mobile wallets provide users with a seed phrase. However, if you lose your seed phrase, you usually have no way to recover funds. It’s also possible to fall prey to scams, such as phony websites that trick you into inputting your seed phrase so malicious actors can steal your funds.

Usually, custodial crypto wallets are less secure. To manage your crypto assets for you, their platforms retain vast amounts of highly confidential information. If someone hacks their storage, the hacker can get your private and public keys. Meanwhile, with a noncustodial crypto wallet, you're retaining the data yourself. It’s therefore much harder for malicious actors to access the information that’s stored solely on your device. If you prioritize security, it's a good idea to consider hardware wallets. However, you should still be wary, as anyone who gets hold of your password on your noncustodial crypto wallet can still access it and drain your funds. 

When a custodial crypto wallet approves a transaction for you, things are a little more complex. The platform has to use a central exchange to approve your transaction and pass on the information to the blockchain. This can result in higher transaction fees and a slight lag before the transaction is recorded. Noncustodial crypto wallets use direct transactions. They record changes to the blockchain in real time, and the lack of intermediaries means that transaction fees are often lower.

In order to function, custodial crypto wallets need to access the internet. Without connectivity, they can't communicate with the central authority and transmit your authorizations. While some noncustodial crypto wallets do use the internet to work, it's not an absolute requirement. There are plenty of hardware wallets that operate offline. You can put in your keys offline, and only need to briefly connect to the internet to update the blockchain. 

Many people use DeFi services because they want more anonymity and privacy. However, some crypto wallets are heavily regulated. Custodial crypto wallets often qualify as a financial service that must meet local standards for 

 (KYC) protocols. Meanwhile, noncustodial wallets are less standardized. Many are simple pieces of hardware that can be sold without requiring users to provide their names or financial details. This provides a more private experience for customers.

User-friendliness is a somewhat complex thing to analyze since every service is so different. Generally, custodial wallets are easier for people to use. Once you log in, you can send and receive funds with a simple click.

Meanwhile, noncustodial wallets require inputting long strings of numbers and performing other tasks. However, keep in mind that custodial wallets don’t guarantee any given service is easier to use. Every business is different, and the interfaces for some custodial crypto wallets can be very confusing. 

With Bybit, you won’t have to worry. Bybit Wallet offers a user-friendly interface to ensure that you have easy access to every feature on the Bybit platform, as well as web3 applications. The Bybit Web3 Portal even has guides and tips to help you out on your web3 journey. 

Advantages of Using Custodial Crypto Wallets

Why should you give a custodial crypto wallet a try? There are several advantages to working with these types of crypto wallets.

For many customers, the main perk of a custodial crypto wallet is that it’s fast and easy to use. Especially if you're new to working with digital assets, a custodial crypto wallet can be very reassuring. It functions just like a regular online account, and uses the standard username and password setup that most customers are already familiar with. Letting a third-party business handle your private keys also simplifies the process of buying and selling crypto. Instead of having to enter long private keys and figure out the blockchain, you can just click simple buttons that say things like 

If you've heard stories of people who bought hundreds of 

, you know how important recovery is. For most crypto owners, the idea of suddenly not being able to access their funds is a nightmare. Custodial crypto wallets provide a lot of reassurance. They hang onto your private keys for you, so you never have to worry about losing them. Instead, you just need to remember a simple account name and password. If you lose access to these details, the crypto wallet company is there to help you prove your identity and recover control of your account.

Leaving another company to handle your private keys for you can be less stressful. You don't have to worry about making mistakes, or learning the ins and outs of working with the blockchain. Since the company handles each transaction for you, you can’t accidentally send your funds to the wrong public key. And as long as you're practicing basic security standards, you don't have to worry about hacks, either. The third-party service handles security for you and may be legally required to compensate you if you are hacked.

Disadvantages of Using Custodial Crypto Wallets

Custodial vs. Noncustodial Wallets: Which Should You Use?

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