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Catalin
Published On: May 3, 2024
0 min

Everything You Need to Know About Bybit Paper Trading

The crypto market is very volatile. Any trader who wishes to be successful in this crypto market must have the appropriate tools and tactics at their disposal. If you're new to crypto and want to trade Bitcoin or altcoins, you'll need to start with a practice account before moving on to the real thing.

Bybit-Demo-Account

This is where the Bybit testnet comes in. You can practice trading methods here without having to risk any real money. However, how good is the demo account for Bybit? Let’s find out in this article.

Key Takeaways

  1. Bybit helps traders become better: Bybit helps traders practice their trading skills.
  2. It’s easy to create a Bybit paper trading account: You just need an email or phone number.
  3. Bybit gives access to all key operations: Key operations like risk management, portfolio monitoring, and transitioning to live trading.

Introduction to Bybit Paper Trading

Bybit Paper Trading gives new or experienced traders the opportunity to practice crypto trading without risking real money in a simulated trading environment that looks like actual market conditions. This practical functionality comes in the shape of a virtual Unified Trading Account (UTA), which customers can create when they register with Bybit. Through the Bybit UTA, an all-in-one account mode, you can trade all of Bybit's main products with a single click.

You can quickly become accustomed to using Bybit’s platform because the Bybit Paper Trading interface is comparable to Bybit’s main trading interface. Despite their similarities, the “Demo Trading” mode is easily distinguishable on the UI, so you don’t need to worry about confusing it with the main trading platform.

bybit demo trading image

What is Bybit Paper Trading?

In the Bybit paper trading platform, the demo assets are divided into 50,000 USDT, 50,000 USDC, 1 BTC, and 1 ETH. Once your wallet amount drops below $10,000, you can recharge the simulated UTA by clicking on Request Demo Funds. You can always replenish your balance as frequently as you’d like, so you can keep practicing trading until you feel comfortable enough to start trading with real money.

bybit assets image

Key Operations in Paper Trading

Bybit paper trading allows users to practice crypto trading without having to use actual money to perform crucial transactions. Some key operations in paper trading include virtual fund allocation, trading, portfolio monitoring, risk managementlearning resources, and transition to live trading.

Placing Orders and Adjusting Leverage

On the trading interface, select the trading pair for cryptocurrencies that you wish to use. For instance, ETH/USD or BTC/USD. Then select the kind of order you wish to place. Bybit normally provides market orders, limit orders, conditional orders, and others.

After that, put in the amount of cryptocurrency you wish to purchase or sell, as well as any other details like the order type and price (for limit orders).

Make sure you confirm the specifics of your order. Once confirmed, your order will be carried out based on the specifications you have provided.

bybit trading widget

Managing Position Risk and Closing Positions

Use risk management features such as position sizing and stop-loss orders to close positions and manage position risks in paper trading or even real trading.

Make use of technical analysis and real-time data to continuously monitor positions so that prompt judgments can be made.

You can close positions with trailing stop-loss orders to preserve profits, market orders for immediate execution, or limit orders to specify particular price levels.

 

How to Start with Bybit Paper Trading

Using Bybit to embark on your cryptocurrency journey is simple. You must register for a Bybit account. A Bybit account can be created any of these two ways. One, using your email address or two, using your phone number.

Visit the Bybit website and click the "Sign Up" button in the upper-right corner of the Bybit homepage to get started. Next, select whether you want to register by email or mobile device, then enter the required information in each case. If you have a referral code, fill it, if not, you can leave it empty. 

This is where the two methods of signing up differ: The reCAPTCHA verification code will be emailed to your email address if you opt to register by email. If not, it will appear on your phone as a text message. After entering the code, you will be able to access the Bybit platform.

bybit create account page

Setting Up Your Paper Trading Account

Once you’ve opened your main account with Bybit, you can easily get access to the paper trading platform. You can access this platform by going to ‘Derivatives’ and selecting ‘Demo Trade’ from the drop-down list on the homepage.

how to get to bybit demo trading

You will see a pop-up window introducing yourself to the Unified Trading Account. There are three sections to the pop-up. The quantity of demo assets that are available in your account and the kinds of assets that you can trade are disclosed in this initial section. To continue, read the Unified Trading Account User Guide and click Next. 

A brief explanation of the Initial Margin (IM) rate and Maintenance Margin (MM) rate is included in the second section. After selecting View Liquidation Rules, select Next.

The third section enumerates the three main trading modalities that UTA facilitates: leveraged tokens, margin trading, and spot trading. To get started, click Start Trading. 

The Demo Trading platform will take you there; it’s prominently displayed at the top left. Start by using the available options to practice trading. When you’re ready to go from demo trading to live trading, just click on Start Live Trading.

Benefits of Using Bybit for Paper Trading

  • Simulates real market conditions for effective practice.
  • Allows free replenishment of demo funds to sustain trading practice.
  • Provides access to a variety of trading products and leverage options.
  • Supports continuous learning with comprehensive educational resources.
  • Offers seamless transition to live trading for a smooth user experience.

Choosing the Right Crypto Platform: Why Altrady Tops Bybit

While Bybit may offer competitive features, Altrady stands out for its holistic approach, placing the needs and success of traders at the forefront. From its user-friendly interface to its powerful analytics tools, Altrady empowers traders of all levels to navigate the complexities of the crypto market with confidence and efficiency, making it the top choice for those seeking a comprehensive trading experience

Conclusion

Bybit Demo Trading provides a risk-free, secure environment for you to fine-tune your trading skills and build confidence without having to worry about losing money, regardless of your level of experience in the cryptocurrency world. After you feel confident enough when paper trading on the Bybit Testnet, you can open a real account and begin real trading cryptocurrencies immediately.

References

https://www.coinbureau.com/guides/how-to-sign-up-for-bybit/

https://www.coinbureau.com/guides/bybit-trading-guide/

https://www.btcc.com/en-US/hashtag/paper-trading-bybit

https://coincub.com/exchanges/bybit-review/

https://bitcoinist.com/bybit-demo-account-how-to-register-trade-risk-free/

https://coincodecap.com/bybit-margin-trading

https://learn.bybit.com/bybit-guide/how-to-use-bybit-demo-trading/

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Catalin

Catalin is the co-founder of Altrady. With a background in Marketing, Business Development & Software Development. With more than 15 years of experience working in Startups or large corporations. 

@cboruga
@catalinboruga5270

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