Traders seem to expect BTC’s momentum could slow down a bit after the price hit over $97,000.

Positive sentiment has continued to fuel the cryptocurrency market as the expectation of further institutional adoption of 

 keeps growing. Options trading of BlackRock’s Spot Bitcoin ETF IBIT 

 with a bang, attracting almost $2 billion on the first day of trading. The hope of more spot ETF derivatives to change the market structure with additional institutional money onboarding crypto is high.

, we explored the possibility of the market being overleveraged, which could be painful if the current leverage unwinds. Data from CryptoQuant shows that the estimated leverage of the current BTC markets has reached another YTD high.

Derivatives data on Bybit shows that traders seem to expect that BTC’s momentum could slow down a bit after the price hit over $97,000, and are focusing more on downside protection.

Figure 1: Bitcoin estimated leverage ratio at 0.23. Source: CryptoQuant

BTC Options Open Interest Returns to Previous High While Perps Are Catching Up

Derivatives traders have been actively participating in BTC markets as 

 on Bybit has surged to over $3 billion, on par with the previous high on Nov 14, 2024. Although the options OI has increased, it still hasn’t surged above the previous high. At the time, BTC’s price had already jumped to over $97,000. If the OI doesn’t follow suit and break above the previous high in the coming days, this could be a sign that the market could become a bit exhausted — something for all market participants to be aware of.

Figure 2: Daily open interest for BTC options on Bybit. Source: Bybit

 have also seen increased open interest in recent days. Perpetuals have been among the most favorable products for day traders and short-term speculators. Rising open interest could indicate that more traders are looking for short-term profit, which could bring additional volatility to the market. 

Figure 3: Daily open interest for BTCUSDT Perpetuals on Bybit. Source: Bybit

Dec 27, 2024 remains the most popular expiration date for BTC Options on Bybit, with most of the open interest there. Within that expiration, $120,000 calls had the most OI, and $100,000 calls accumulated the second-largest OI. 

Figure 4: Open interest by strike for BTC Options with a Dec 27, 2024 expiration. Source: Bybit

Meanwhile, the market’s optimism that BTC will hit $100,000 by the end of the year seems to support the current price momentum. Shorter-dated options could show that traders are also looking for downside protection. The Bybit 

 page shows that BTC Options with a Nov 29, 2024 expiration have a strong 24-hour inflow to $90,000 puts. This could indicate that some traders are also anticipating some degree of price correction by the end of the month. 

Figure 5: 24-hour volume by strike for BTC Options with a Nov 29, 2024 expiration on Bybit. Source: Bybit

 for BTC Options on Bybit also indicates a possible downside protection in play among options traders. A smirk skew, or left skew, is a skew curve that’s steeper on one side (the left side) than the other. Traditionally, a smirk skew curve could mean that traders have been protecting their portfolios against a possible declining market. At the time of this writing (Nov 21, 2024), BTC Options contracts on Bybit with Nov 29, 2024 and Dec 27, 2024 expirations have both shown a smirk skew. However, this doesn’t necessarily mean traders are bearish on the price, and could just be part of the trading strategy. For example, traders could set up collars by buying out-of-the-money (OTM) puts and selling OTM calls simultaneously, so that they can profit in case BTC’s price drops, gain upside exposure and potentially offset the cost of buying the puts. 

Figure 6: Implied volatility of BTC Options with Nov 29, 2024 and Dec 27, 2024 expirations. Source: Bybit

The current BTC leverage trading may be complex, but tells a revealing narrative about market sentiment. The divergence between high leverage and increased hedging activities also reminds us that market dynamics are rarely straightforward, and adopting a 

 seems increasingly important in this diverse market.

: Investing in cryptocurrencies and their derivatives involves substantial risk of loss, and isn’t suitable for every investor. This article provides facts for educational purposes only, and does not represent any financial advice. Prior to making any investment decisions, please ensure you fully understand the risks involved and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

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Learn From Smart Money: BTC’s Leverage Remains High as Traders Hedge Against Downside Risks

Welcome to Market Chatter, your guide to on-the-ground conversations among Bybit communities in different regions.

We want to take advantage of Bybit’s global network and our regional partners to share market colors based on what our traders and users have been chatting about — and what draws their attention. This week, we look into BTC.

There’s certainly a lot of hype in the crypto community as the 

 reached over $90,000 for the first time. As the bullish sentiment in the market can be seen across the board, our desk shows that the BTC derivatives markets could already be overleveraged at this point without significant changes in the fundamentals.

Crypto has become a major issue during the recent U.S. elections, and president-elect Donald Trump’s campaign has made big promises about crypto, including setting up a 

. Although BTC has the potential to become a treasury asset held by central banks, corporations and institutions, some traders believe that we’re still far away from turning that possibility into a reality. The recent price actions suggest that the market could be moving away from fundamentals and showing a bit 

 has already reached the “Extreme Greed” zone, indicating an increased risk of irrational behavior in the market.

The Crypto Fear & Greed Index has entered the “Extreme Greed” zone. Source: Bybit

, Michael Novogratz, the head of digital investment firm Galaxy Digital, said the odds of a Bitcoin strategic reserve under the Trump administration are low, mostly because the Republicans don’t have majority control in the Senate, which could create friction in the legislative procedure. However, as a result of the 2024 U.S. elections, after January 20, 2024 there will be a Republican majority in the U.S. Senate and, most likely, in the House of Representatives as well.

Some traders have also highlighted that it could be dangerous for retail investors without much crypto experience to enter the market now, as it could be painful if the current leverage unwinds. That’s why we recommend investors

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Market Chatter: Are We Overleveraged?

While some believe that the BTC bull run may last at least until year-end, some ETH derivatives traders may have a different idea.

The positive sentiment around BTC has resonated throughout the border cryptocurrency market as the price of the leading crypto reached another ATH. ETH also benefited from the bullish sentiment as it handily surpassed $3,000, the highest level since August 2024.

, we noted that some options traders on Bybit have been using $2,700 and $3,600 calls with a year-end expiration for this run. Now, the $2,700 calls have already turned significant profit at the current price level.

While some believe that the BTC bull run may last at least until year-end, some ETH derivatives traders may have a different idea. In this edition of Learn From Smart Money, we’ll follow up on the latest ETH derivatives trading data on Bybit and try to unlock the reasoning behind these traders’ strategies.

Renewed Interest in ETH — But Not Overhyped

As of Monday, Nov 11, 2024, the latest bull run has pumped ETH's YTD gains to about 35% (from the 12% previously mentioned). And yet, it's still behind most of the other major cryptos, such as BTC (83%), SOL (86%) and TON (123%). However, it's clear that the public's interest in ETH has rebounded. Google Trends indicates that the term "ETH" has gained interest in its search engine. 

It's considered a good sign that the general interest in a specific crypto asset has increased. What's more encouraging, however, is that interest in ETH remains relatively low compared to previous cycles — which means that the market is still far from being at an irrational level or 

Figure 1: Google search interest in ETH for the past five years. Source: Google Trends

ETH's ETF capital flows may also support the same stance. Data from CoinGlass for the period from Nov 6–8, 2024 shows ETH Spot ETF net inflows of $217.9K, the biggest total since August. Since Spot ETF issuers directly hold the crypto, the capital flow of ETH Spot crypto ETFs is highly correlated with the price, and last week's net inflow aligns with the price actions, just as in August.

Figure 2: Total capital of ETH Spot ETF flows. Source: CoinGlass

Increasing Open Interest From ETH Options and Perpetuals

The strong interest in ETH has also been observed on Bybit, especially in derivatives trading. Bybit's 

 has reached a new monthly high as of Nov 11, 2024, while open interest

 has been hovering near its monthly high.

Open interest is important as data because it tracks the number of active market participants and — to some extent — can reflect the level of willingness of derivatives traders. Besides, a higher level of open interest can also indicate higher liquidity in the market, as liquidity is one of the most important parts of trading. It helps traders enter and exit a trade at the desired price with minimal 

Learn more about the difference between open interest and trade volume 

Figure 3: Open interest and volume of ETH Options on Bybit. Source: Bybit

Figure 4: Open interest and volume of ETHUSDT Perpetuals on Bybit. Source: Bybit

Although macro data suggests that overall interest in ETH has been increasing, the number of holders with short positions on ETH Perpetuals has also slowly been growing. 

Figure 5 (below) shows the daily long/short ratio of ETHUSDT Perpetuals on Bybit. The number of holders with net short position has been increasing since Nov 7, 2024, and has stabilized at around 23% (of the net long account number). 

While not alarming, a continuation of the increase in the net short account number could mean a turnaround of the bullish momentum. Thus, ETH Perp traders should closely monitor the development of this data.

Figure 5: Long/short ratio of ETHUSDT Perpetuals on Bybit. Source: Bybit

Some Options Traders Are More Bullish, Some Maybe Less

Options have been gaining popularity among ETH derivatives traders largely because of their composability and flexibility when it comes to strategy execution. Contracts with a year-end expiration remain ETH speculators' favorite tenor, as contracts with a Dec 27, 2024 expiration have the highest open interest on Bybit.

Figure 6: Open interest of ETH options with a Dec 27, 2024 expiration. Source: Bybit

At the time of this writing (Nov 11, 2024), $3,100 and $3,200 calls — which are already 

 (ITM) — are still sitting with most of the open interest. (“ITM call options" means that the underlying asset's market price is higher than the call option's strike price.) On the other hand, $4,200 calls — which are still out-of-the-money (OTM) — have also received noticeable OI. 

If a trader is bullish on the price of a specific asset within a certain time period, they’ll likely use OTM calls with a specific expiration to speculate on that asset. In ETH's case, ETH bulls are expected to take profit from the $3,100 and $3,200 calls and rotate to calls with higher strike prices to maximize the opportunity. We’ve already seen some of these rotations toward $4,200 calls.

However, if there's no significant open interest increase in ETH calls with higher strike prices in the coming days, it could be a sign that options traders believe that the momentum of the ETH rally may need a break.

Figure 7: Open interest of ETH call options with a Dec 27, 2024 expiration by strike. Source: Bybit

Let’s move on to the puts with year-end expiration. The $2,000 strike price remains the most popular choice among ETH options traders. With the current market momentum, the chance of ETH dropping to $2,000 by the end of the year is unlikely. However, having those puts could be part of a downside protection strategy, such as a 

Learn more about options strategies in the 

Figure 8: Open interest of ETH put options with a Dec 27, 2024 expiration by strike. Source: Bybit

While the crypto market is currently in a state of euphoria, certain macro events should be on the watchlist, including the upcoming U.S. economic data and U.S. Fed Chair Powell's speech after the FOMC meeting. With these developments, the crypto market is expected to get more clarity on the pacing of future rate cuts. 

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Learn From Smart Money: Derivatives Data shows Divided Views on ETH as ETF Recorded Strong Inflows

Data shows that derivatives traders on Bybit have been setting up for short-term market volatility, while things could be relatively stable toward year-end.

 hit a fresh all-time high as traders and investors braced for the outcome of the U.S. elections and the upcoming interest rate decision from the Fed. As our 

 highlighted, the rising odds for a Republican presidency have increased volatility in Treasuries and equities, suggesting significant market implications depending upon election outcomes. Data shows that derivatives traders on Bybit have been setting up for short-term market volatility, while things could be relatively stable toward year-end.

 derivatives traders have been focusing on the upcoming macro events, and the U.S. elections are front and center, dominating news headlines globally. Despite the price of BTC remaining in its multi-month range, data shows that traders have been keen to bet on BTC's potential price movement after the U.S. elections. 

 page indicates that most of the open interest in BTC options was has been on contracts with a Nov 8, 2024 expiration.

Figure 1: Open interest by expiration of BTC options on Bybit. Source: Bybit

Figure 2: Open interest by strike of BTC call options with Nov 8, 2024 expiration on Bybit. Source: Bybit

Among the calls, the $75,000 strike price seems the most popular choice, while $73,000 and $71,000 have also seen notable open interest. This could mean that some traders are betting on the price of BTC soaring above $70,000 or potentially hitting $73,000 right after the U.S. elections.

The picture seems clearer when looking at the puts. With the same expirations, most of the open interest has focused on puts with a $68,000 strike, and puts with a $62,000 strike have also received plenty of attention.

So, how can we interpret this overall? At the time of this writing (Nov 5, 2024), BTC has been trading around $68,700 on Bybit. Calls at a $73,000 strike with a Nov 8, 2024 expiration may be considered aggressive, while $68,000 puts with the same expiration could be considered reasonable downside protection for the election trade. 

Figure 3: Open interest by strike of BTC put options on Bybit. Source: Bybit

It's worth noting that the implied volatility (vols) of short-dated BTC options has been rising rapidly to over 89% (even realized vols went over 40%), which many consider relatively high. Vols is one of the key components when it comes to pricing options contracts. In a nutshell, the higher the vols, the higher the price of the options contracts, and vice versa. Since the vols of short-dated BTC options have surged to a relatively high level, traders may need to pay a premium if they want to use these options contracts to speculate on BTC prices, which may limit the upside.

Figure 4: Implied volatility of BTC options with Nov 8, 2024 and Nov 29, 2024 expirations on Bybit. Source: Bybit

Figure 5: Historical volatility of BTC options on Bybit. Source: Bybit

BTC options trading data on Bybit shows that most open interest on BTC calls with a Nov 29, 2024 expiration has been at a strike price of $75,000 (see Figure 6, below). It seems traders aren’t expecting an imminent bull run by the end of the month. However, since the market is filled with uncertainties, market participants could change their setups anytime.

Figure 6: Open interest by strike of BTC call options with Nov 29, 2024 expiration on Bybit. Source: Bybit

Short-term volatility is almost inevitable in the crypto market amid a series of macro events. Traders are expected to actively make trades shortly after the U.S. presidential election results are confirmed. Also, the market could reassert the pacing of the rate-cut cycle from the Fed’s interest rate decision and the press conference afterward. All these events could cause volatility in the crypto market, especially for BTC. That's why trading derivatives can offer leverage and, at the same time, downside protection — and that's exactly what traders need during a volatile market. Follow Bybit 360 and Bybit Options for more insights.

Disclaimer: Investing in cryptocurrencies and their derivatives involves substantial risk of loss, and isn’t suitable for every investor. This article provides facts for educational purposes only, and does not represent any financial advice. Prior to making any investment decisions, please ensure you fully understand the risks involved and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

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Learn From Smart Money: BTC Reaches a Fresh ATH Amid Macro Events, but What’s Next?

BTC and SOL have snapped 60% YTD gains so far, any chance for ETH playing a catch-up?

The sentiment of the broader cryptocurrency market has turned positive as the price of BTC cleared its March 2024 highs. With the current momentum, BTC could be paving the way for reaching a new all-time high. So far, BTC and SOL have snapped 60% YTD gains. However, ETH only gained about 12% in the same period. 

, we emphasized that ETH may need a break before another attempt to push higher. Since the article was published, the price of 

 contract has retracted from around $2,600 to nearly $2,300 before rebounding.

This edition of Learn From Smart Money will continue to dig into the derivatives trading data on Bybit to explore the possibility of ETH catching up to its peers by the end of the year.

Crypto market sentiment has improved noticeably as recent BTC price actions have renewed traders' interest in the asset class. The 

Figure 1: Crypto Fear & Greed Index and the global crypto market cap. Source: Bybit

Derivatives traders' interest in ETH has increased in addition to that for other major tokens, especially in the options market. Figure 2 (below) indicates the open interest and trade volume for ETH options on Bybit, as open interest reached a fresh monthly high (highlighted in the red circle). This could indicate that traders are more willing to use options contracts to speculate on the price of ETH, potentially reinforcing the current momentum or hedging their existing positions using options.

Figure 2: Open interest and volume of ETH options on Bybit. Source: Bybit

Strong momentum has also been seen in the ETH perpetual contracts market, as open interest reached the highest level in almost a month. Although perpetuals, futures and options contracts are widely used by professional traders and institutions, there are some key differences between the three. (Please read the article entitled 

 on Bybit Learn for more information. Also, check out 

 to learn more about trade volume and open interest in derivatives trading, and why these are essential.) 

Figure 3: Open interest and volume of ETHUSDT Perpetuals on Bybit. Source: Bybit

As we dive into ETH options trading data, it’s evident that the ETH options market has gotten more attention, and options traders are setting up for a year-end trade as contracts with a Dec 27, 2024 expiration have the highest open interest. This could mean that traders have been betting on the potential price actions of ETH, and these movements could be realized by the end of the year. It's also worth noting that contracts with a Nov 1, 2024 expiration received the second-highest open interest on Bybit, implying that some traders are also making short-term speculations with options.

Figure 4: Open interest by expiration of ETH options on Bybit. Source: Bybit

Exploring how options traders pick their contract strike prices could provide another clue. According to Bybit's 

 page, among all the ETH calls with a Dec 27, 2024 expiration, most of the open interest has been on contracts with strike prices at $2,700 and $3,600, as shown in Figures 5 and 6 below. 

Figure 5: Open interest by expiration of ETH options on Bybit. Source: Bybit

Figure 6: Open interest by expiration of ETH options on Bybit. Source: Bybit

The implications could be twofold: On the one hand, some traders seem more conservative by just picking $2,700 calls with a year-end expiration. At the time of this writing (Oct 31, 2024), ETH has been trading at around $2,600. In other words, there's a good chance that these calls could eventually turn 

On the other hand, some traders seem more optimistic by selecting $3,600 strike price calls with the same expiration date. If these calls became ITM, it could mean a potential 35% upside on the spot (or even higher with leverage using derivatives).

Figure 7: Open interest by strike of ETH options with a Dec 27, 2024 expiration on Bybit. Source: Bybit

Now, let's look at the puts. Most of the open interest among the year-end expiration ETH options contracts was on puts with a $2,000 strike price. While many may consider $2,000 to be one of the key psychological levels for ETH, the likelihood of reaching that level by the end of the year seems relatively low. This could in fact be part of the hedging strategy from options traders. Visit the 

While the market is embracing upcoming macro events, such as the upcoming elections and job reports in the U.S., and the upcoming Fed meeting in early November, market volatility could soon increase. From an 

 perspective, it seems that the current level is relatively low, since implied volatility is one of the key elements in options pricing. In simple terms, the higher the implied volatility, the higher the prices of the options contracts. In ETH's case, the current levels may be considered favorable because implied volatility is expected to go higher for ETH options.

Figure 8: Historical volatility of ETH options on Bybit. Source: Bybit

Options trading is highly systematic. That's one of the reasons professional traders and institutions have been using options as a major vehicle to trade both crypto and traditional assets. By observing the options trading data, users can see how professionals have been setting up their trades, and learn about their logic and rationale. Follow 

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Learn From Smart Money: The Case for ETH Playing Catch-Up

 ends, we want to take advantage of Bybit’s global network and our regional partners to share all the market colors based on what our traders and users have been chatting about — and what draws their attention. This week, we look into meme coins.

Meme coins have been dominating the broader crypto market, as speculators look for their next favorite meme tokens. Our intelligence shows that new Southeast Asian users have shown strong interest in recent new listings from Bybit, which focus heavily on meme coins. On the other hand, existing users in the region have kept showing strong interest in meme coin trading, as more traders have been on-ramping to stablecoins via 

When you look at the market cap of some of the hottest meme coins, it’s not hard to imagine how popular they are in the market. For example, 

 ($GOAT), one of the hottest AI-related meme coins, used just 10 days to grow its market cap from $110 million to $850 million and rank among the top 100 market cap crypto on 

, has also drawn attention from the community, reaching a market cap of nearly $100 million after a16z partner Marc Andreessen 

Reports show that some meme coin investments can potentially provide significant returns. However, overall meme coin trading can be highly volatile, and we recommend everyone 

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Market Chatter: Memes Rule

Derivatives trading data shows that traders can expect the rally of ETH to pause here before another attempt to break higher.

 over the weekend and gained about 2% on the back of thin liquidity. While speculators may be betting on a price breakthrough for ETH, derivatives trading data shows that traders can expect the rally of the second-largest market cap crypto to pause here before another attempt to break higher. This article will dive into the trading data of ETH derivatives on Bybit, and provide some trade ideas for 

Open Interest in ETH Derivatives at High Levels

ETH has received much attention, as the weekend rally may have caught some traders by surprise. Derivatives traders have been showing interest in betting the price movement of ETH with 

 contracts even before the weekend rally. Data from Bybit shows that 

Figure 1: ETHUSDT Perpetual open interest on Bybit. Source: Bybit

Figure 2: ETH options open interest on Bybit. Source: Bybit

, open interest is an important indicator because it tracks the number of active market participants and, to some extent, reflects the level of willingness of these professional traders to make trades at a specific time.

Despite traders' increasing interest in speculating on the price of ETH, the perpetual long/short ratio may indicate a rather neutral stance with a downside bias. 

When we look at the past performance of the ETHUSDT perpetual daily long/short ratio, especially in early October and mid-October 2024 (highlighted in Figure 3 below), there were two clear spikes in the long/short ratio during the highlighted periods, indicating a higher percentage of long accounts over short accounts.

Figure 3: ETHUSDT perpetual daily long/short ratio on Bybit. Source: Bybit

Now, look at the price of the ETHUSDT Perpetual contract on Bybit (shown in Figure 4 below). When the long/short ratio shows a confirmed uptrend, the price seems to follow suit shortly after. However, the recent daily long/short ratio has been relatively flat and has yet to produce any trends. This may indicate that the upside momentum has been slowing down, and the rally may need a break.

Figure 4: ETHUSDT Perpetual daily chart. Sources: Bybit; TradingView

Technical indicators also support this assumption. After the price hits the upper band of the 

, which technicians consider an overbought signal, the daily 

 line has been moving toward the signal line and potentially moving under it (highlighted in the circle), which also suggests the rally may need a break.

Although there may be a short-term downside bias from the perpetuals data and the technical perspective, some of the options trading data may be able to give a different view. Data from Bybit shows that most ETH options traders have a month-end setup, with most open interest focused on contracts with an October 25, 2024 expiration. Among calls, most of the open interest has focused on the $2,800 strike, and the $2,000 strike has been the most popular among puts.

Figure 5: ETH options open interest by expiration on Bybit. Source: Bybit

Figure 6: ETH call options open interest by strike on Bybit. Source: Bybit

Figure 7: ETH put options open interest by strike on Bybit. Source: Bybit

At the time of this writing (Oct 23, 2024), ETH has been changing hands at around $2,500. When looking at the ETHUSDT daily chart, it’s hard not to notice that $2,800 has been the recent resistance level for ETH. Given that the U.S. elections are less than two weeks away and momentum seems to remain strong in equity, the possibility of a breakout from that resistance level can’t be completely ruled out.

Besides, the max pain of ETH options may also support the case of a short-term correction, rather than a trend reversal. Data from CoinGlass shows that the October 25, 2024 max pain for ETH options remains at $2,600. 

Figure 8: Max pain for ETH options. Source: CoinGlass

In options trading, “max pain” refers to a specific strike price at which most options contract holders (calls and puts) would have the most significant financial loss when the contract expires. It’s the point where option owners (buyers) feel the most pain, while option sellers enjoy the maximum profit. In the traditional finance (TradFi) world, max pain has been an essential piece of information for options traders to adjust their positions and strategy strategically. The same theory also applies to crypto options trading.

The max pain theory suggests that the price of the underlying asset, ETH in this case, has a tendency to move toward the max pain point when options contracts expire. A $2,600 max pain point for ETH is slightly higher than its current price. In other words, derivatives traders seem to expect a capped downside risk for ETH at the current level, while there could be a chance to retest the recent resistance.

Derivatives trading, especially options, can be highly sophisticated and involve complicated strategies. By studying different derivatives trading data, market participants may be able to get a glimpse of what professional traders are thinking about. However, each piece of data provides only one piece of information. Seeing the bigger picture often requires assessing other data in parallel. 

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Learn From Smart Money: ETH’s Rally May Need a Break, but Upside Risk Remains Intact

Copy trading is a revolutionary approach to investing that allows beginners to navigate the complex world of cryptocurrency without needing extensive market knowledge

 is a revolutionary approach to investing that allows beginners to navigate the complex world of cryptocurrency without needing extensive market knowledge. By utilizing this innovative strategy, users can follow and replicate the trades of seasoned investors, effectively leveraging their expertise to enhance their own investment outcomes.

For those who may lack the time or expertise to analyze market trends and make informed decisions, copy trading presents an ideal solution. It simplifies the investment process, allowing users to engage in the crypto market with confidence and ease.

With Bybit’s copy trading, users can seamlessly mirror the strategies of successful traders, making it easier than ever to participate in crypto investing. This automated trading for beginners not only saves time, but also opens the door to the potential benefits of trading without the steep learning curve typically associated with the financial markets.

Copy trading is designed to be straightforward, making it accessible for beginners. Following is a closer look at the copy trading process on the Bybit platform, highlighting the simple steps to begin crypto copy trading.

The first step in the copy trading journey is to select a trader whose strategies align with your investment goals. Bybit offers a variety of experienced traders, each with different trading styles, risk levels and performance histories. You can easily browse their profiles, examine their past performance and compare various metrics to make an informed choice.

Once you’ve chosen a trader to copy, the next step is to set up the copy trading feature. Bybit allows you to automatically replicate the selected trader’s trades in real time. This means that every time your chosen trader makes a move — whether it’s buying or selling a cryptocurrency — your account will mirror those trades proportionally. This automation simplifies the trading process, ensuring you stay aligned with the strategies of those you admire without needing to constantly monitor the market.

After you’ve activated copy trading, it’s crucial to keep an eye on your investment performance. Bybit provides user-friendly tools and dashboards that allow you to track how your investments are performing in real time. You can assess returns, analyze trends and evaluate whether your selected trader’s strategies are meeting your expectations. If necessary, you can make adjustments — whether switching to another trader to copy, or modifying your investment amount — in order to optimize your portfolio.

One of the standout features of Bybit is its intuitive interface. Designed with beginners in mind, the platform simplifies the copy trading process to just a few clicks. Whether you’re selecting a trader, setting up automatic replication or monitoring your investments, everything is streamlined for ease of use. This ensures that regardless of experience level, anyone can start copy trading confidently and efficiently.

Different Types of Copy Traders to Follow on Bybit

Bybit provides users with the opportunity to follow a wide range of experienced traders, each offering a unique approach to the cryptocurrency market. Here’s a breakdown of the different types of traders you can choose to copy, along with their respective strategies.

These traders embrace high-risk crypto trading strategies, often employing leverage to amplify their potential gains. They make aggressive trades aimed at capitalizing on market volatility, seeking quick profits in a rapidly changing environment. While this approach can lead to substantial rewards, it also comes with significant risks, making it suitable for users who are comfortable navigating the ups and downs of the market. If you’re looking for fast returns and are willing to accept higher risk, following these traders could align with your investment goals.

In contrast, long-term, low-risk traders prioritize stability and gradual growth. They adopt a conservative approach, making trades that are carefully calculated to minimize risk while aiming for consistent returns over time. This strategy is ideal for investors who prefer a steady investment path and are looking for a long-term crypto investment. By following these conservative copy traders, you can build a portfolio that focuses on sustainability rather than short-term gains.

Trend-following traders utilize market analysis to identify and capitalize on prevailing market trends. They adopt a strategy of going 

 ones, effectively adjusting their positions based on market conditions. This approach is particularly effective in fluctuating markets, allowing traders to ride the waves of price movements. If you’re interested in understanding crypto trends and want to follow traders who leverage these insights, trend-following traders could be a great fit.

Algorithmic and automated traders employ sophisticated algorithms and trading bots to execute their trades. This data-driven approach minimizes emotional decision-making, allowing for more precise and timely trade execution. By using these automated systems, traders can capitalize on market opportunities quickly and efficiently. If you prefer a hands-off approach and value automated crypto trading, following these traders can provide a streamlined investment experience. Look for your master traders 

Copy trading on Bybit offers a wealth of advantages, making it an attractive option for beginners and experienced investors alike. Following are some of the key benefits that highlight why this approach can be a game changer in the world of cryptocurrency trading.

One of the most significant benefits of copy trading is the ability to leverage the expertise of experienced traders. Bybit’s copy trading tool allows you to benefit from the strategies and insights of seasoned investors without the need to make complex decisions yourself. This means you can enjoy the potential rewards of trading while relying on the expertise of others — an excellent avenue for anyone who’s either new to the market or lacks the time to research and analyze trades.

Automated crypto trading is a key feature of Bybit’s copy trading. Once you’ve selected a trader to copy, the system automatically replicates that trader’s investments in real time. This automation allows users to invest passively, saving precious time while still actively participating in the market. Whether you’re juggling a busy schedule or simply prefer a more hands-off approach, copy trading lets you engage with cryptocurrency without the constant need for monitoring.

Bybit prioritizes user safety and control through its robust 

 features. The platform includes tools such as stop-loss orders and position limits, enabling users to effectively manage their risk while copying trades. These features help protect your investments, allowing for a more secure trading experience. By implementing these risk management strategies, you can feel more confident in your decisions, knowing that you have measures in place to mitigate potential losses.

Diversification is a cornerstone of successful investing, and Bybit makes it easy to spread your risk across various strategies. As a matter of fact, you can follow multiple traders simultaneously, allowing you to diversify your portfolio and reduce exposure to any single trader’s performance. This approach not only enhances your potential for returns, but also helps safeguard your investments against market fluctuations. By diversifying your strategies, you can create a balanced portfolio that aligns with your risk tolerance and financial goals.

Getting Started: How to Start Copy Trading

 at the bottom of the card of the Master Trader whom you want to follow. 

: Followers can copy up to 10 Master Traders simultaneously.

You can click on the Master Trader's card to access the portfolio page and view more comprehensive trading performance data. For more information, please visit this 

: Create your Copy Trades by setting your 

 to configure additional trade settings for copying.

: For a more detailed explanation of each 

: Once the Parameter Settings are confirmed, please check the 

In this window, you can also view the Master Trader’s performance and profit-sharing ratio. The profit-sharing ratio varies according to each 

. For example, if the profit-sharing ratio is 10%, it means that Followers will need to share 10% of their earned profitswith that Master Trader.

Tips for Maximizing Your Success With Copy Trading

To make the most of your copy trading experience with Bybit, consider these essential tips that can help you maximize your profits and minimize risks.

Before you decide to copy a trader, it’s crucial for you to conduct thorough research. Review each trader’s historical performance, win rate and risk level. Look for patterns in their trading strategies and assess how they’ve managed different market conditions. By analyzing trader performance, you can better make informed decisions that align with your investment goals and risk tolerance. This step is vital to ensure that you’re selecting a trader whose approach resonates with your financial strategy.

Effective risk management is key in any trading strategy, and copy trading is no exception. Always set 

 limits to protect your investments from significant downturns. 

Diversification is a powerful strategy for reducing risk exposure. Consider following multiple traders who employ different trading strategies. This approach not only spreads your risk across various assets but also allows you to benefit from a range of market insights and techniques. By diversifying your investments, you can create a more balanced portfolio that’s less vulnerable to the performance of any single trader.

While copy trading is automated, it’s still important to periodically check your portfolio. Regularly monitor the performance of the traders you’re following and evaluate whether their strategies continue to align with your investment objectives. If a trader's performance declines or if market conditions change, be ready to make adjustments. This proactive approach ensures that you stay on track to meet your financial goals.

Don’t overlook the value of promotions offered by Bybit, such as the 

. This promotion provides protection for up to 100 USDT in losses, serving as a safety net for new users just starting with copy trading. Leveraging such promotions can enhance your trading experience and provide additional peace of mind as you navigate the market.

2. How do I choose the right trader to copy?

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