How to Use Bybit for Derivatives and Spot Trading? (A Beginner's Tutorial)

Account Setup and Security Configuration

1. Visit the official Bybit website and click “Sign Up” to begin registration using an email address or mobile number.

2. Complete the verification process by confirming your email or SMS code, then proceed to set a strong password and enable two-factor authentication (2FA) via Google Authenticator or SMS.

3. Navigate to the “Security Center” to review login history, bind hardware security keys, and configure withdrawal whitelists for enhanced asset protection.

4. Submit identity documents through KYC verification to unlock higher trading limits and access to derivatives products such as inverse perpetual contracts and USDT-margined futures.

Understanding Spot Trading Interface

1. After logging in, select “Spot” from the top navigation bar to enter the spot trading dashboard.

2. Choose a trading pair—such as BTC/USDT—from the market list and observe real-time order book depth, 24-hour price chart, and recent trade history.

3. Place market orders by entering the desired amount in the “Buy” or “Sell” panel; limit orders require specifying both price and quantity before submission.

4. Monitor open orders under the “Order History” tab and cancel pending trades directly from the interface if market conditions shift unexpectedly.

Navigating Derivatives Markets

1. Switch to the “Derivatives” section and choose between “USDT Perpetual”, “Inverse Perpetual”, or “USDC Futures” based on preferred settlement currency and contract type.

2. Adjust leverage settings per position using the slider—leverage ranges from 1x to 100x depending on contract size and risk tier—and confirm changes before executing any trade.

3. Use the grid trading tool to automate entries and exits across predefined price levels, especially useful during sideways market phases with tight volatility bands.

4. View position details including entry price, unrealized PnL, margin ratio, and liquidation price in real time on the “Positions” tab.

Funding and Asset Management

1. Deposit cryptocurrencies by selecting “Wallet” → “Spot Wallet” or “Derivatives Wallet”, then copying the provided deposit address for the chosen asset.

2. Transfer funds between spot and derivatives accounts using the internal transfer function—no network fees apply, and transfers settle instantly.

3. Withdraw assets by entering a verified external wallet address, specifying amount, and completing the 2FA challenge; withdrawals are subject to daily limits tied to KYC level.

4. Track all transaction records—including deposits, withdrawals, and internal transfers—in the “Transaction History” section with timestamps and status indicators.

Frequently Asked Questions

Q: Can I trade derivatives without completing KYC?A: No. Bybit mandates Level 1 KYC verification to open derivative positions, as regulatory compliance requires identity confirmation for leveraged products.

Q: What happens if my margin ratio drops below the maintenance level?A: The system triggers auto-deleveraging or initiates liquidation at the bankruptcy price, closing your position to prevent further losses beyond available margin.

Q: Is there a fee for transferring funds between spot and derivatives wallets?A: There is zero fee for internal transfers; the process occurs off-chain and completes within seconds.

Q: How do I interpret the funding rate displayed on perpetual contract pages?A: It reflects the periodic payment exchanged between long and short holders every 8 hours, calculated from the difference between mark price and index price, indicating market sentiment bias.