Is Bybit safe and legit? How to secure your account.

Regulatory Compliance and Licensing

1. Bybit holds licenses from multiple jurisdictions including the Dubai Virtual Assets Regulatory Authority (VARA) and the Financial Services Authority (FSA) of Saint Vincent and the Grenadines.

2. The exchange underwent a comprehensive security audit by CertiK in 2023, with no critical vulnerabilities reported in its core trading infrastructure.

3. It maintains segregated cold wallet storage for over 95% of user assets, with multi-signature access protocols enforced across all offline vaults.

4. Bybit publishes monthly proof-of-reserves reports verified by independent auditors, confirming asset-liability parity across BTC, ETH, USDT, and USDC holdings.

Account Authentication Mechanisms

1. Mandatory two-factor authentication (2FA) is enforced for logins, withdrawals, and API key management—supporting both TOTP apps and hardware security keys.

2. Device binding restricts access to previously registered devices; unrecognized logins trigger immediate email and SMS alerts.

3. Withdrawal whitelisting requires pre-approval of destination addresses, with a mandatory 24-hour confirmation window before execution.

4. Biometric login options are available on iOS and Android apps, integrating native OS-level fingerprint and face recognition systems.

Fund Protection Infrastructure

1. The Bybit Insurance Fund holds over $1.2 billion in reserve capital as of Q2 2024, designed to cover potential losses from liquidation mismatches or insolvency events.

2. All perpetual futures positions are subject to automatic deleveraging only after full exhaustion of the insurance fund—no user cross-subsidization occurs.

3. Spot trading balances are protected under the platform’s Asset Protection Program, which guarantees reimbursement for verified unauthorized withdrawals resulting from platform-side breaches.

4. Real-time anomaly detection monitors transaction velocity, IP geolocation shifts, and behavioral biometrics to freeze suspicious activity before completion.

API Security Protocols

1. API keys default to read-only permissions unless explicitly upgraded, with granular scope control for trade execution, withdrawal, and account management functions.

2. IP whitelisting restricts API access to predefined IPv4/IPv6 ranges, rejecting requests originating outside approved networks.

3. Signature-based request validation enforces HMAC-SHA256 hashing with timestamped nonces to prevent replay attacks.

4. Session timeouts terminate inactive API connections after 30 minutes, requiring re-authentication for continued use.

Common Questions and Answers

Q: Does Bybit store KYC documents on centralized servers?Bybit encrypts all identity verification files using AES-256 encryption and stores them in isolated, air-gapped environments inaccessible via public network interfaces.

Q: Can I recover my account if I lose both my 2FA device and backup codes?Account recovery requires submission of notarized identity documentation, original deposit records, and device fingerprint history—all reviewed manually by Bybit’s Trust & Safety team within 72 business hours.

Q: Are sub-accounts subject to the same security policies as main accounts?Sub-accounts inherit all parent-level security configurations including 2FA enforcement, withdrawal whitelists, and API permission templates—no independent override capability exists.

Q: How often does Bybit rotate encryption keys for cold wallet signatures?Cold wallet signing keys undergo mandatory rotation every 90 days, with cryptographic key destruction logs archived immutably on a private blockchain maintained by Bybit’s custody division.