Cryptocurrency derivatives platform Bybit is now also offering spot trading. The company launched spot trading services on its trading platform, which allows users to trade in both crypto and fiat currencies.
Bybit is a platform that combines cryptocurrency derivatives and spot trading. Bybit’s team has been busy developing new products and expanding their market coverage. From The Bybit blog, Bybit Co-Founder and CEO Le Minh Xuan spoke about the launch of spot trading, and said, “We are excited to add spot trading to our platform. Since the launch of Bitcoin futures trading in December 2017, spot trading has been a hot topic in the market with many platforms offering spot trading on the spot Bitcoin price. However, spot trading is a difficult task for exchanges as it requires many resources to hedge the risks of the platform. After careful consideration, we have decided to launch spot trading on Bitcoin and other cryptocurrencies. Today, spot trading is available on
Singapore-based cryptocurrency exchange Bybit recently announced the launch of spothandel on its platform. So users will now be able to buy cryptocurrencies themselves, not just derivative contracts.
Difference between cash and derivative transactions
While most cryptocurrency traders are familiar with sprading – buying cryptocurrencies like bitcoin and then transferring them to their wallets, exchanging them for another cryptocurrency or simply selling them for a profit – derivatives trading works differently. As in traditional finance, an asset is not bought, but its future price is predicted based on price and market analysis, then a bet is made on the direction in which the price will move.
This allows users to make a profit even during a falling market, whereas someone buying real assets would have to accept losses as the assets in question fall in value. This is a distinct advantage that derivatives traders have over cash traders, and is particularly useful in the crypto industry where high volatility constantly drives asset prices up and down. It no longer matters what type of assets traders use – what matters is how accurately they predict prices.
At the same time, the wholesale trade has exploded this year as prices have soared. Despite the fact that cryptocurrency prices halved in May this year, many are still optimistic about the second half of the year. This optimism prompts many people to invest rather than act. That’s why the introduction of the wholesale spree makes sense considering that many people are now thinking about long-term investments.
The Bybit exchange itself is very popular, with a trading volume of $33 billion last week alone. With the introduction of wholesale spinning, this figure could be just the beginning, especially since the platform has announced that it will not charge producers a commission. As some may know, a manufacturing surcharge is usually applied if orders are not picked up by the buyer/seller immediately after the order is placed. This will encourage traders to take positions and wait, rather than fear losing money on commissions if demand is not strong enough.
Bybit takes a step towards expanding itsofferings
According to data published by Nomics, Bybit is one of the world’s leading derivatives exchanges. The trading volume is certainly comparable to that of other major platforms that allow traders to use futures contracts.
The platform stresses that the decision to trade on a cash basis is not due to a decline in derivatives activity, nor is it the platform’s expectation that anything similar will happen in the near future. On the contrary, it stressed that this was simply part of its long-term strategy.
Finally, many platforms strive to serve as many cryptocurrency users as possible. This allows them to become a dominant force in the market, provided their services are sufficiently profitable for traders and investors. Elements like low commissions, attractive prices, ease of use and accessibility are all details that attract investors and traders to certain platforms. The introduction of additional features – in this case, wholesale – will allow the platform not only to retain its existing customers, but also to attract new ones thanks to the quality of its service combined with these new options.
With this in mind, it makes sense for the platform to introduce spam wholesale as a simple addition to its platform, as mentioned earlier, rather than as an attempt to get into the crypto business, which is the current trend. According to the company, it aims to offer products beyond futures, and introduce spot and options trading, cloud mining, information and educational content, etc.
As for the new spot trading feature, the platform plans to introduce several trading pairs at once, which it thinks are currently in the highest demand. These include Bitcoin/Tether, Ethereum/Tether, XRP/Tether and EOS/Tether. At the same time, more and more couples will be coming soon.
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