Is Bybit Safe? Pros and Cons, Risks, and Privacy Tips

We know it’s hard to pick a cryptocurrency exchange when you have tons of options available, especially if you are new to this game. Every exchange offers different features, KYC options, fee structure, and multiple assets.

When it comes to cryptocurrency exchanges, Bybit is quite popular both for beginners and expert traders. But is it safe to store coins worth $10,000? Or even more? 

This blog explains Bybit’s security features, user experiences, reputation, pros and cons, and some useful tips to improve your account security and reduce risks. 

What is Bybit, and How Does it Work?

Bybit is a popular cryptocurrency exchange that provides users with a range of trading products and services, including spot trading, futures, and options trading. Known for its advanced tools and high liquidity, Bybit aims to cater to both novice and professional traders.

Here’s how Bybit works:

1. To get started, you’ll need to create an account by providing basic information such as your email address and phone number.
2. After account creation, you can deposit funds via various methods like credit cards, bank transfers, or cryptocurrency transfers to start trading.
3. Bybit offers several trading options, such as spot trading, futures, and options. You can choose one based on your trading strategy and preferences.
4. Once you select a product, you can place an order using different order types, such as market orders, limit orders, and stop-loss orders.
5. Bybit provides advanced tools such as charts, indicators, and alerts to help you monitor your trades and performance effectively.
6. When you decide to cash out, you can withdraw your funds through various supported methods.

Bybit is an easy-to-use platform for all types of traders, offering different ways to trade and helpful tools to support your crypto journey.

Is Bybit Trustworthy and Reliable?

Bybit is generally considered a trustworthy cryptocurrency exchange, but like any platform, it’s important to be aware of both the positive aspects and any possible concerns.

What are the Security Features and Measures?

Bybit has implemented several security measures to protect user funds and data:

• 2 Factor Authentication: Bybit adds an extra layer of security with 2FA, requiring a second verification step, like a code sent to your phone, to access your account.
• Cold Storage: Bybit stores most funds in secure cold wallets offline, with a small portion kept in online wallets for quick trading access.
• Insurance fund: Bybit’s insurance fund helps protect users from unexpected losses during extreme market conditions by covering liquidation risks.
• Security audits: Bybit regularly conducts security audits to identify weaknesses and ensure it meets industry security standards.
• Encryption: Bybit uses encryption technology to protect your personal and financial data during transactions.

A brand new day to remind you that @Bybit_Official and @BybitAfrica have the worst customer service I have ever seen.

Bruhhhh even their system is a mess!!!

We have been begging them to cancel the order since!!

The guy after refusing to send proof of payment later came to say… pic.twitter.com/1EHw7eAxtE

— Fiona Writes & Trades 2 ✍️📊😈 (@IjewemenFortun2) August 5, 2024

What are the Reviews of Trustpilot and G2 for Bybit?

Bybit has received mixed reviews on platforms like Trustpilot and G2. Some users like its low fees, a wide range of trading options, and easy-to-use interface​​​​. However, others have faced issues with its customer support and the KYC (Know Your Customer) process, which some find slow and complicated​​. 

Bybit is a secure exchange with features like 2FA, cold storage, and an insurance fund. While it has mostly positive reviews, some users have reported issues with customer support and verification​​​​. Always research before using any platform.

What are the Pros and Cons of Using Bybit? 

Here are some pros and cons of Bybit:

Pros:

• High trading volume
• 2FA and cold storage
• User-friendly interface
• Offers spot trading, futures, and options
• Custom charts and technical indicators

Cons:

• Uncertainty about regulations 
• Several customer support delays  
• Steep learning curve for beginners
• High risk leverage trading
• Many cybersecurity risks 

Does Bybit Pose any Security Risks?

Yes, Bybit, like any other cryptocurrency exchange, has faced security risks in the past. While the platform uses strong security measures, no exchange is immune to potential breaches. Here are two notable incidents.

FTX Lawsuit (2022)

Bybit was involved in a legal dispute with the FTX bankruptcy estate, where FTX accused Bybit of withdrawing nearly $1 billion in assets just before FTX’s collapse in November 2022. Bybit allegedly used its VIP access to prioritize withdrawals during FTX’s liquidity crisis, raising concerns about its conduct and the risk to customer funds.

Phishing and Scams

Bybit has also been associated with industry-wide security concerns, such as phishing attacks targeting its users. According to a 2024 report by SlowMist, thousands of cryptocurrency users across various exchanges, including Bybit, fell victim to phishing schemes. These attacks deceive users into transferring funds or disclosing sensitive information, posing significant security risks.

These incidents highlight the importance of remaining vigilant and following best practices, like enabling two-factor authentication, to protect your crypto assets.

Is Bybit Wallet Safe?

Bybit Wallet is a custodial wallet, which means Bybit holds your private keys for you. This makes it easier to use, but it also means you don’t have full control over your funds. Even though Bybit has strong security measures like cold storage and two-factor authentication, there’s always a risk if the platform faces a security breach or legal issues.

If you prefer more control over your funds, a non-custodial wallet might be a better choice. While it requires more technical know-how, it allows you to keep your private keys and manage your funds without relying on a third party, which can be safer in the long run.

What are the Common Scams and Cyber Threats Targeting Bybit Accounts? 

Here are some common scams and threats for Bybit users:

1. Phishing Attacks

Fraudsters send emails or messages that mimic Bybit, urging users to log in through fake links. These links lead to look-alike websites designed to steal credentials.

2. Fake Bybit Apps and Websites

Scammers create convincing fake apps and websites resembling Bybit. When users enter login info, attackers capture it to access accounts.

3. SIM Swapping

Attackers trick mobile carriers into transferring your number to their device, allowing them to bypass two-factor authentication and access your account.

4. Account Takeover

Hackers use weak or previously leaked passwords to log in. Once inside, they can make unauthorized transactions or steal funds.

5. Fake Customer Support Scams

Scammers pose as Bybit support, asking for account details or login info under the guise of resolving an issue.

6. Social Engineering Attacks 

Attackers gather personal information through impersonation or friendly conversations to gain account access.

7. Malware and Keyloggers

Malicious software installed on devices can capture keystrokes or log in details, allowing unauthorized access to Bybit accounts.

How to Secure Your Bybit Account 

Securing your Bybit account is essential for protecting your cryptocurrency and personal information. Here’s how to do it:

• Use a Strong Password
• Turn On Two-Factor Authentication (2FA)
• Secure Your Email Account
• Monitor Your Account Activity
• Keep Your Phone Secure
• Protect Your Identity

What to do if your Bybit account is hacked?

If your Bybit account has been hacked, here are the immediate actions you should take:

1. Change your password immediately

Create a strong, unique password that is not used on any other platform.

2. Enable two-factor authentication (2FA)

This adds an extra layer of security to your account. You can use Google Authenticator or a similar app.

3. Deactivate your account

This will prevent the hacker from accessing your funds and making any further transactions. You can deactivate your account by contacting Bybit customer support.

4. Contact Bybit customer support

Report the hack to Bybit customer support and provide them with as much information as possible, such as the date and time of the hack, any suspicious activity you noticed, and any transactions that were made without your authorization.

5. Monitor your bank accounts and credit cards

Check and monitor your accounts closely and report any suspicious activity to your bank or credit card company.

6. Change your email password

If the hacker had access to your email account, they may be able to reset your Bybit password. Change your email password immediately to prevent this from happening.

Frequently Asked Questions 

In Conclusion 

Bybit offers strong security features, but like any platform, it’s important to stay cautious and proactive. By following safety practices, you can protect your account from potential risks. Always be aware of the security measures available to keep your crypto assets safe.