Bybit: Paper Trading Simplified

Practicing is a crucial aspect of crypto trading. As a result, many people underestimate the importance of first understanding how to practice paper trading before walking into an exchange, depositing their hard-earned money, and starting to day trade crypto right away.

Paper trading (or Simulated Trading) is a simple technique to learn how to trade virtual currency under optimal conditions. It allows you to develop trading techniques and hone your instincts, removing any concern you may have about performing a real-world transaction on an exchange.

What is Paper Trading?

Ever traded crypto using real money before? If you haven’t, then I would normally advise you to start off by doing some paper trading. 

What you may ask is ‘paper trading’ exactly and why should I use it. Bybit testnet offers a platform that will allow you to trade any crypto without the need of making any crypto deposits but it’s like paper trading except on the real blockchain.

This can have many advantages such as allowing you to test out various strategies before going live with a trade or seeing if an economic event will affect your chosen cryptocurrency without actually risking any funds.

Trading crypto is undoubtedly one of the most profitable options currently available on the market, yet many investors fear the possibility of losing their investment as a result of not being fully aware of the factors in trading. That’s why it’s advisable to carry out paper trading when getting started with different strategies and indicators before you move on to real-money trades.

The Bybit testnet provides users with the ability to simulate trading using both the platform’s indicators and those which can be found FREELY online.

What Does Bybit Paper Trading Look Like?

Bybit testnet is much more different than live trading. The platform created the testnet because, for all traders who are developing their trading strategies, bots can be used as a testing environment instead of spamming a Live Platform with a 1 USD trade value. Also, it allows inexperienced traders to load virtual coins into a testnet account and practice using the platform interface and placing orders.

However, its testnet allows you to see the Bybit Live platform’s interface and functionalities in a similar fashion. Almost! You’ll see that the instruments, logo, and interface are all basically similar. With reference to Testnet prices, margins, PNL, and ROE calculations are usually reported appropriately. 

Bybit’s Paper Trading:

Bybit’s Paper Trading figures and prices

Bybit’s Live Trading:

Bybit’s Live Trading figures and prices

On the Bybit testnet, for example, the price of Bitcoin is currently at $20, 500.50, whereas the price on a live account is $20,509. So it only differed by roughly $9 at this time.

Alternative Exchanges other than Bybit

Paper Trading (Simulated) in Phemex is a great platform that allows people from all over the world to trade digital currencies in a secure and easy-to-use environment. Its efficiency is quite high and different trading techniques can be used here in a safe manner.

  • Phemex also has a free simulator or paper trading platform
  • Phemex’s leverage trading is done against the US dollar except for Bitcoin (which is done against Bitcoin). I trade a lot of the other ones but not Bitcoin. And I like leveraged trading because when you make money, you don’t have to worry about that going up or down in value like you know that money is safe until you’re back in a trade.
  • Phemex is an all-in-one package. It has spot trading (no leverage) and contract trading (with leverage). It also has staking so you can make passive income with it.

Here’s a 3-minute video showing you the major differences between Bybit and Phemex:

Both networks have distinctive properties, and it is your choice to decide which one works best for you. Just make sure to pick a simulator that has features that are almost identical to genuine trading. Because transitioning between platforms will be difficult when you’re starting afresh and honing your entry and exit plan.

Learn how to use the simulated trading tools and start practicing for at least 3 to 4 months before you start trading in real and live trading.

How To Get Started with Paper Trading on Bybit

Users who want to demo trade without making a deposit can do so on Bybit’s testnet. It works as a platform virtual account for practicing crypto trading with fictitious money based on the current Bitcoin spot price. 

Users can sign up for a Bybit demo account by going to and clicking ‘Register’ in the top right corner. All you need is a phone number and an email address. You’ll need to get testnet Bitcoin coins from a faucet before you can make a trade.

If you’re eager to get started practicing how to trade in a simulator, feel free to click the button below.

Is Bybit Safe to Practice on?

Because many crypto traders are unfamiliar with Bybit, it’s natural to wonder if it’s safe.

Yes, Bybit is a legitimate company. Bybit has never been hacked, and they take a lot of effort to guarantee that its platform is as secure as possible.

For example, they have a policy that only allows three withdrawals each day of cryptocurrencies. This keeps a hacker from obtaining access to an account and draining it immediately. By limiting withdrawals to a few times each day, a person with a compromised account has time to lock it down and prevent withdrawals. Bitmex has a similar service, although withdrawals are limited to once per day.

Bybit proves to be a safe paper trading platform with bank-like protection and operating standards in place to protect users’ assets. Based on my research, the Bybit exchange has never been hacked. The safety measures in place include offline cold wallet storage, multi-signature withdrawals, and two-factor authentication.

So, it’s safe to say that Bybit has strong security against hackers and can assure you of safe trading.

How to Fund your Bybit Testnet Account

The Bybit testnet is for people who wish to try out the platform before committing to a full subscription. You can create a demo account to see how orders are processed. Follow these steps on how to fund your sim account:

  1. Contact support and ask them to give you “testcoins”.
  2. Sign up for Real Bybit (link below)
  3. Then, you go to support chat on the lower right screen 
  4. Type in “testcoins”
  5. Submit support ticket requesting testcoins
  6. Make sure that the email for your REAL ACCOUNT and the SIM ACCOUNT is the same

Introduction to Bybit Leveraged Trading (if you’re done practicing in a simulator!)

Let’s say you’ve done some intensive research about how trading crypto works in Bybit. Then, it’s safe to say that you can step up your game by trading in leverage. Leveraged trading is when you utilize borrowed money to fund your trading. When you don’t have enough money to acquire a certain amount of cryptocurrencies, for example, leverage can be a useful tool.

paper trading with Bybit

Keep in mind that leverage trading has both pros and cons. With a small investment, you can make a lot of money if everything goes well. However, if the deal goes against you, you could lose more money than you put in.

As a result, most beginner traders are recommended to begin with low leverage and progressively increase it as they acquire expertise. Having the right day trading crypto tools and resources would also take a big part in succeeding in your day trading montage

Ready to begin? Click the button below!


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