How to practice trading with a demo account on Bybit

Bybit's demo account lets users practice trading with virtual funds, mastering spot, futures, and leverage strategies risk-free before going live.

Aug 08, 2025 at 01:28 am

Understanding the Purpose of a Demo Account on Bybit

A demo account on Bybit allows users to simulate real trading conditions without risking actual funds. This environment mirrors the live trading platform, offering the same interface, order types, and market data. The primary goal is to help traders become familiar with Bybit’s trading mechanics, including spot trading, futures contracts, and leverage settings, all in a risk-free environment. New traders benefit significantly from this feature, as it enables them to test strategies, understand order execution, and manage position sizing without financial consequences. The demo account uses virtual funds, typically starting with 10,000 USDT or equivalent, depending on the selected trading pair.

How to Access and Set Up a Bybit Demo Account

To begin practicing, users must first navigate to the official Bybit website. Upon landing on the homepage, locate the “Sign Up” button in the top-right corner and complete the registration process. During or after registration, look for the “Practice Account” toggle, usually found in the top navigation bar near the balance display. Clicking this activates the demo mode. No separate registration is required—your existing Bybit account supports both live and demo modes simultaneously. Switching between them is instantaneous and does not affect your live balance or open positions. Ensure your internet connection is stable and that you are using a supported browser such as Chrome or Firefox for optimal performance.

Navigating the Demo Trading Interface

Once the demo account is active, the dashboard will reflect virtual funds instead of real currency. The interface layout remains identical to the live version. Key areas include:

• The market watch panel, where you can search for trading pairs like BTC/USDT or ETH/USDT
• The order entry section, which allows market, limit, stop-limit, and conditional orders
• The position and order history tab, which logs all executed trades
• The leverage adjustment slider, essential for futures trading

To open a trade, select a contract type—linear perpetual or inverse perpetual—from the dropdown menu. Choose your desired leverage level, which can range from 1x to 100x depending on the asset. Enter the contract quantity or USDT value, then click “Buy Long” or “Sell Short”. The system will simulate entry based on current market prices. All actions are recorded in real time, allowing you to assess performance immediately.

Practicing Different Order Types and Risk Management

Mastering various order types is crucial for effective trading. In the demo environment, experiment with the following:

• Market orders: Execute instantly at the best available price. Useful for immediate entry but may suffer slippage in volatile markets.
• Limit orders: Set a specific price at which you wish to buy or sell. These only fill when the market reaches your specified level.
• Stop-limit orders: Combine a stop price and a limit price. When the stop price is hit, a limit order is triggered.
• Take-profit and stop-loss orders: Define exit points to automate profit capture and loss limitation.

To set a stop-loss, locate the “SL” field in the order panel. Input your desired price or percentage below the entry for long positions (or above for short positions). Similarly, use the “TP” field to set a take-profit level. These tools help simulate disciplined trading behavior. Adjust position size using the quantity box or percentage buttons (e.g., 25%, 50%, Max) to practice proper risk allocation per trade.

Simulating Real Market Conditions and Strategy Testing

The demo account pulls real-time price data from Bybit’s matching engine, making it ideal for backtesting strategies. To simulate realistic conditions:

• Trade during high-volatility periods such as major news releases or Bitcoin price swings
• Use technical indicators like RSI, MACD, and Bollinger Bands available on the charting tools
• Apply grid trading or scalping techniques to evaluate short-term performance
• Test hedging strategies by opening both long and short positions simultaneously in the same or different contracts

Access the charting interface by clicking on any trading pair. Customize the time frame from 1-minute candles to weekly charts. Overlay indicators by clicking the “Indicators” button and selecting from the library. Draw trendlines, Fibonacci retracements, or support/resistance zones using the drawing tools. Save chart templates for consistent analysis across sessions. Monitor how your virtual P&L fluctuates with market movements to gauge emotional responses and refine decision-making.

Transferring Knowledge to Live Trading

After consistent practice, transition planning becomes essential. Before switching to live trading:

• Ensure you have a documented trading journal recording all demo trades, including entry/exit logic and emotional state
• Achieve a consistent win rate over at least 50 simulated trades
• Understand funding rates and liquidation mechanics thoroughly
• Verify that your risk management rules are strictly followed in the demo environment

When ready, toggle back to the “Real Account” mode. Deposit funds via supported methods such as USDT, BTC, or credit card. Begin with small position sizes to maintain discipline. The skills developed in the demo account—such as order precision, leverage control, and emotional regulation—should directly transfer to live execution.

Frequently Asked Questions

Can I use the Bybit demo account without registering?

No, you must create a Bybit account to access the demo trading feature. Registration is free and requires only an email address or phone number. Once registered, the demo mode is immediately available.

Is the demo account balance reset periodically?

Yes, Bybit may reset demo balances every 30 days or upon prolonged inactivity. Users can manually reset their demo account through the settings menu if needed, restoring the initial virtual funds.

Does the demo account support all trading pairs available on Bybit?

Most major spot and futures pairs are available in the demo environment, including BTC, ETH, SOL, and selected altcoins. However, newly listed or restricted assets might not be accessible in demo mode immediately after launch.

Can I practice copy trading or use bots in the demo account?

Currently, Bybit’s demo account does not support copy trading or automated trading bots. These features are limited to live accounts with real funds. Manual trading simulation remains the core function of the demo platform.