Home > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide
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Written by Charles
Hi, I'm Charles Johns, a Finance graduate with a specialization in Financial Management from the University of Chicago. My journey through financial markets has fueled a passion for both traditional and digital assets, where I continuously explore evolving investment opportunities. As an active trader and cryptocurrency enthusiast, I strive to bridge the gap between complex financial concepts and practical, real-world applications. My goal is to empower everyone, whether seasoned investors or newcomers, with valuable insights and knowledge to confidently navigate the world of finance and crypto investing.
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Last Updated on January 25, 2025
Founded in 2018 and headquartered in Singapore, Bybit has rapidly built a reputation as a leading cryptocurrency exchange known for its robust futures trading platform.
With over 2 million users and a daily trading volume exceeding $10 billion, Bybit stands out for its low fees, high liquidity, and cutting-edge features, making it a preferred choice for many traders worldwide.
Trading futures on Bybit presents an array of possibilities for both beginners and seasoned investors.
In this tutorial, you’ll gain insights into the essential strategies for trading on Bybit, from trend following and breakout trading to more complex approaches like spread trading and pullback trading.
By the end of the article, you will understand how to navigate futures trading on Bybit effectively, maximizing your potential returns while managing risk.
Our 2025's Recommendation 5/5 |
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A solid trading strategy and risk management plan are crucial for success in Bybit futures trading. Without these, you risk making impulsive decisions that can lead to substantial losses.
Common Futures Trading Strategies:
Understanding Index Price (an average of prices from various exchanges), Fair Price (used to avoid unnecessary liquidations), and Funding Rate (periodic payments between long and short traders) is essential.
These concepts help you make informed trading decisions.
To apply a strategy on Bybit:
Tips and Best Practices:
Following these guidelines can enhance your trading performance and manage risks effectively.
Creating an account on Bybit is straightforward. You can register through their website or mobile app. Follow these steps:
After entering your details, click Sign Up. You may be prompted to enter a referral code, but this is optional. You can also use Bybit refferal code to get welcome bonus.
To enhance your account security, Bybit requires identity verification (KYC). You need to:
Bybit offers a referral program where you can earn bonuses. When you sign up using a referral code, you may receive a bonus credited to your account.
Platform | Steps |
---|---|
Website | Sign Up > Email/Phone > Confirm |
App | Assets > Sign Up > Email/Phone > Confirm |
These steps ensure your account is set up securely and you are ready to start trading futures on Bybit.
To deposit funds on Bybit, start by logging into your account.
Click on Assets located at the top menu and select Deposit. Deposit the cryptocurrency like BTC, USDC, or another coin you wish to deposit. Bybit will provide a wallet address for the chosen cryptocurrency.
On mobile: Open the Bybit app, tap on Assets at the bottom right, and select Deposit. Deposit the coin and chain type, then complete the deposit process by following the instructions.
Bybit offers fiat deposits through Credit/Debit Cards, fiat transfers, or third-party payments. Follow the prompts in the Deposit section to complete the transaction.
When withdrawing funds, go to Assets, then select Withdraw. Choose the cryptocurrency to be withdrawn. Enter the wallet address and the amount. Be aware of the withdrawal fees and minimum withdrawal limits, which vary based on the currency.
Bybit supports several payment methods:
Processing times and fees depend on the selected payment method. For cryptocurrencies, a small network fee is applicable. Fiat deposit and withdrawal fees are stated during the transaction process and vary based on the payment provider.
Here’s a quick summary of supported payment methods:
Payment Method | Deposit | Withdraw |
---|---|---|
Crypto | Yes | Yes |
Credit/Debit Card | Yes | No |
Bank Transfer | Yes | No |
Third-Party Payment | Yes | No |
Monitor your transactions to ensure they are processed correctly and within the expected time frame.
Bybit provides two main types of wallets: the Spot Wallet and the Futures Wallet. The Spot Wallet is for regular trading and holding cryptocurrencies, while the Futures Wallet is specifically for trading futures contracts.
To transfer funds to your Futures Wallet, follow these steps:
Supported currencies include popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and USDT (Tether). Always check the most up-to-date list of supported currencies on the Bybit platform.
By sticking to these instructions, you can efficiently transfer funds and start trading futures on Bybit.
Inverse Futures and Linear Futures offer different mechanisms for trading on Bybit. Understanding these differences helps you make the right choice.
Inverse Futures Contracts are denominated in the base cryptocurrency. For example, trading BTC/USD contracts means you post a margin in BTC. This is advantageous if you want to increase your BTC holdings since profits and losses are directly tied to BTC.
Linear Futures Contracts are denominated in USDT. This is preferable if you prefer stablecoins and want to minimize exposure to BTC’s volatility. Linear contracts simplify the calculation of profits and losses, as they are in a stable currency.
Feature | Inverse Futures | Linear Futures |
---|---|---|
Denomination | Base cryptocurrency (e.g., BTC) | Stablecoin (e.g., USDT) |
Margin and Settlement | In BTC or other base crypto | In USDT |
Volatility Exposure | Higher due to crypto denomination | Lower due to stablecoin denomination |
Profit Calculation | It is more complex due to BTC margin use | Simpler with USDT margin |
Choosing between inverse and linear futures on Bybit depends on your risk tolerance and profit goals. Understanding each type will help you make an informed decision.
The futures trading interface on Bybit is designed to be comprehensive yet intuitive.
The chart displays the price movements of the selected futures contract. You can customize it with various technical indicators and drawing tools to analyze market trends. Switching between different timeframes helps in understanding long-term versus short-term price actions.
The order book shows a real-time list of buy and sell orders. The green side represents buy orders, and the red represents sell orders. Understanding the order book’s depth and spread helps gauge market liquidity and potential price movements.
The order panel is where you place your trades. You can choose the type of order (market, limit, or conditional) and specify the quantity. Managing leverage is crucial; this section allows you to adjust it according to your risk appetite.
The position panel displays your current positions, including entry price, unrealized P&L, and margin. This section is vital for managing your ongoing trades and making informed decisions on holding or closing your positions.
Bybit offers various tools, such as stop-loss and take-profit orders, to manage risk. You can customize the interface by rearranging panels and changing themes to suit your trading style.
Understanding these components and how they interact is critical to effectively navigating the futures trading interface on Bybit.
When trading futures on Bybit, understanding different order types is essential.
Limit Orders: A limit order lets you specify the price you want to buy or sell. It ensures the order executes at your desired price or better, but it may not fill if the market doesn’t reach that price.
Market Orders: Market orders are executed immediately at the current market price. Use this when you want to enter or exit a position quickly, although it may incur higher costs due to slippage.
Conditional Orders: Conditional orders trigger only when specific conditions are met. These are useful for stopping losses or making a profit without continuously monitoring the market.
To place an order on Bybit:
Bybit allows you to use leverage, amplifying potential gains (or losses). Leverage means borrowing funds to trade a more prominent position than your initial margin allows. You can adjust leverage from the trading interface but manage it carefully to avoid liquidation.
Read More: What Is Crypto Arbitrage Trading?
Managing Orders and Positions:
Funding Rates and Settlement:
Bybit uses funding rates to balance long and short positions. The rate can be positive or negative and is exchanged between traders every 8 hours. Futures contracts do not expire, but these funding payments ensure price alignment with the underlying asset.
Understanding these concepts helps you trade more effectively and manage risks on Bybit.
The Bybit Order Calculator is an essential tool for futures trading, allowing you to plan your trades efficiently and efficiently.
To access the Bybit Order Calculator:
The calculator provides three main functions:
Result: The calculator will show your potential profit or loss based on the provided parameters.
Utilizing the Bybit Order Calculator helps you make informed decisions. Use it to plan your trades and manage risks effectively and carefully.
The Bybit Futures Grid Bot is a convenient feature for automated futures trading designed to help you capitalize on market volatility.
To begin, go to Bybit’s homepage. Click on the Trade option in the top menu. Select Trading Bot to reach the Bybit Trading Bot main page. Next, click the Create Now button next to the Futures Grid Bot.
When setting up your Futures Grid Bot, you will need to configure several parameters:
Here’s an example setup for different strategies:
For a volatile market:
For a stable market:
Once your parameters are set, click Create to activate the bot.
The bot automatically places long and short positions within the specified price range, helping you maximize profits across varying market conditions.
Using the Bybit Futures Grid Bot can provide more arbitrage opportunities, as the bot continuously places orders at high frequency, something virtually impossible for a human trader.
This automated system enhances your trading strategy by making swift market decisions.
For those new to Bybit futures trading, it is essential to understand the basics, such as starting strategies, fees, minimum investment requirements, and the steps to trade derivatives.
Beginners should start by creating an account on Bybit. Once registered, familiarize yourself with multi-timeframe analysis and simple moving averages, essential for recognizing market trends. Use Bybit’s educational resources and demo accounts to practice and build confidence.
Bybit charges a maker fee of -0.025% and a taker fee of 0.075%. Other costs, such as funding rates and withdrawal fees, may apply. Reviewing Bybit’s fee structure on its official website is crucial to understand all potential costs involved.
Yes, Bybit allows you to start trading with as little as $1. This makes it accessible for those who want to begin trading with minimal financial risk. However, ensuring you have enough margin for the leverage you intend to use is essential to avoid liquidation.
First, deposit funds into your Bybit account. Next, select the desired futures contract and set up your trade using the order form. Monitor your position closely and adjust your strategy as needed. Use limit, market, or conditional orders to manage your trades effectively, and consider using stop-loss orders to manage risk.
Embarking on your Bybit futures trading journey opens up a world of possibilities.
You can enhance your trading decisions by utilizing strategies like multi-time frame analysis and leveraging tools such as the 200-period simple moving average.
Begin by creating your Bybit account and making your first deposit. Depositlatform provides a user-friendly interface to help streamline the process.
To support your growth, consider exploring these resources:
Joining a community of traders can offer additional insights. Don’t hesitate to engage in forums and signal groups to stay updated on market trends.
By staying informed and practicing consistently, you can effectively develop your future trading skills on Bybit.
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Hi, I'm Charles Johns, a Finance graduate with a specialization in Financial Management from the University of Chicago. My journey through financial markets has fueled a passion for both traditional and digital assets, where I continuously explore evolving investment opportunities. As an active trader and cryptocurrency enthusiast, I strive to bridge the gap between complex financial concepts and practical, real-world applications. My goal is to empower everyone, whether seasoned investors or newcomers, with valuable insights and knowledge to confidently navigate the world of finance and crypto investing.
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