Bybit's transaction Volume Increased By 100-Fold In 2019, Here Is Why.

Bybit is one of the best performing crypto derivatives exchanges in 2019. Bitpush interviewed Bybit CEO Ben Zhou. In the interview, Ben Zhou reveales the reasons for the development of Bybit, and predictes that the contract market in 2020 will have greater development.

Bitpush:

Last year，Bybit's transaction volume has increased by nearly 100-fold between Q1 and Q4. How did Bybit achieve this?

Ben Zhou:

We are humbled by the support we have received from our clients who believe in our platform and achieving such monumental growth in a relatively short time would not have been possible without their belief in what Bybit has to offer. 

Of course, having a solid platform was the core foundation of our growth. Our servers have remained reliable and stable since our inception, we’ve got no overloads during volatility and low latency trading; coupled with round-the-clock multilingual customer service. We are constantly looking to improve what we have to offer and we do that by listening to what our clients want. 

When we started Bybit, one of our main goals was to eradicate the conventional “cold and distant” exchange mentality. We want to create value for our traders beyond just trading, and we hope to create a community that is actively engaging and educating one another.

It all boils down to a few things that revolve around our 3 Core Values: 

• We have an amazing client base who have faith in us and trust us to always Listen

• We are a platform that goes beyond the norms of traditional exchanges cos we Care

• We have a dedicated team that never ceases wanting to innovate and Improve 

Bitpush:

In the second half of 2019 and early 2020, a number of major exchanges launched crypto contract products like futures and options. What does Bybit think? Does it mean that the contract market will become the next opportunity for the crypto industry?

Ben Zhou:

That’s definitely the direction that the majority of exchanges will be heading to. In fact, one of the main things we are excited about pushing out in the first quarter of 2020 is a Linear contract. That would be in addition to our current inverse trading contracts. The linear contracts will be settled in USDT with portfolio margin functionalities to allow full account-wide usage of the available margin and even allow users to utilize the unrealized PnL as margin for more positions.  On top of this, we will also offer the ability to hedge within the position area. So, instead of merging the long and short like what we have currently in our inverse contract, we will separate the long and short positions and allow traders to hold both concurrently.

Bitpush:

According to the data of Coingecko, the positions and trading volume of the Bybit exchange are currently in the top five, and the four contract products are among the top three in the contract products of the corresponding currency. How does Bybit maintain its competitiveness?

Ben Zhou:

When it comes to crypto trading pairs, it’s not the more the merrier. Bybit likes to focus on the core fundamental functions that traders really care about. 

Traders are looking for 3 core things:

1. Liquidity

For liquidity, the pairs need to have ample liquidity so that even during violidility their orders would have minimal slippage.

2. Execution

I cannot stress more on the importance of execution, any exchange has one primary function, that is, to match orders in a fast and flawless way. We still see many exchanges struggling to deliver proper and efficient execution especially during price movements.

3. Overall trading experience

Last but not least, is the overall trading experience, that includes the trading UI, the multiple small trading tools/order types and not forgetting, a live support system that clients can always rely on 24/7. 

Bybit was created to address the gaps in the existing offerings. While we will continue to innovate and improve, what has kept us competitive is that we focus on giving our clients the best experience possible. We will continue to do so, whilst also implementing new products and/or upgrades to existing ones or new features that a majority of our users request for. 

Bybit was never intended to be a “Jack of all trades, master of none” platform and we will remain true to our core values and will continue to do what we do. 

Bitpush:

At present, the trading volume of the entire contract market is still lower than the spot market. Is it possible that the trading volume of the contract market will exceed the spot market in 2020?

Ben Zhou:

This is very much possible, and it should be happening if the market grows. Even in traditional sectors, the derivative volume tends to be 2-3 times higher than underlying assets such as gold and oil. If we grow, and especially more so when the institutional players come into the fore, we should expect much larger volumes coming from the derivatives sector. 

Bitpush:

In Bybit's view, what new directions and trends will the contract market have in 2020?

Ben Zhou:

More innovation is surely bound to burst onto the scene! I see a steady trend of increasing demand for the option markets. Another very exciting prospect is the combination of derivatives contracts with option trading. 2020 is going to be competitive and it is quite likely that some consolidation of crypto derivatives exchanges will happen. Looking at the big picture, the market is only going to get more exciting and conducive for traders as competition increases across the industry. 

We’re also optimistic that the overall derivatives market will see an increase in daily trading volume. Hopefully even reaching up to 20-25b/day! 

Regardless, Bybit welcomes the uncertainty, challenges, and opportunities that 2020 holds for the contract market as it keeps the industry moving onwards and upwards. 

Author：Bitpush

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