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The cryptocurrency market has rapidly grown into a thriving asset class worth over $2 trillion, with 24/7 trading available. But before diving in, you need to find a reputable cryptocurrency exchange.
These exchanges act as marketplaces for buying and selling cryptocurrencies at market prices. While they involve fees, we'll guide you through everything you need to know about Bybit trading fees so you can confidently and clearly trade your costs.
What is Trading Fees?
The cryptocurrency market has grown significantly in value, with trading available 24/7. To participate, one must find a cryptocurrency exchange where one can buy and sell cryptocurrencies at market prices, albeit with associated fees. Bybit is one such exchange, and we will guide their trading fees to help traders understand the costs involved.
Understanding Makers and Takers
Marketplaces use the maker-and-taker system, classifying buy and sell orders in order books. A market maker, known as a "maker," provides liquidity to the market by placing limited orders that increase the market depth of the order book. In contrast, a "taker" removes liquidity from the market by placing market orders that immediately take liquidity off the order book. Makers pay lower fees and may even receive rebates, while takers pay fees when their orders are immediately filled. Maker fees are 0,01% and taker fees are 0,06%.
Working of Bybit Trading Fees
Bybit's trading fees are structured to incentivize liquidity providers and to make trading affordable for all levels of traders. You can choose to be a maker or taker when placing an order, with fees charged accordingly. Makers are rewarded for adding liquidity to the market with lower fees and potential rebates of up to 0.015%. Conversely, Takers are charged higher fees for removing liquidity from the market with market orders. Bybit offers a fair and transparent fee structure that ensures trading remains accessible to everyone.
Funding rates
The funding rates are another fee that the trader needs to pay whenever a contract or position is open. This is a dynamic rate that can change over the course of time, depending on how many traders are longing or shorting that specific contract. Funding rates are implemented to incentivise the trader to open a position in favour of the balance of the markets. When the majority of traders of a specific contract is long, the funding rate is positive and therefore every 8 hours the long positions will pay a fee to the short positions and vice versa.
Getting Started with Bybit Trading
To begin trading on Bybit, first, create a free account and complete the KYC verification process. Deposit funds using supported cryptocurrencies, then start trading with the intuitive platform. When placing orders, choose to be a maker or taker to determine trading fees. Keep an eye on the Market Maker Incentive Program for fee rebates. Bybit offers a user-friendly interface, competitive fees, and 24/7 trading, making it an excellent choice for those starting their cryptocurrency trading journey.
Conclusion
Ready to start trading and earning with your cryptocurrencies? Start now with Bybit. With an intuitive platform, user-friendly website and app, and a simplified maker/taker fee model, Bybit makes it easy to get started.
Plus, you can save even more on your trades with incentives like trading rebates, VIP discounts, and the chance to win prizes through the Bybit Rewards Hub.
So, what are you waiting for? Sign up for a free account, complete the KYC process, and start trading on Bybit today!
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.