Bybit Trading Bot Review

As one of the leading exchanges, Bybit is notable for its variety of crypto bots, which are tools that help streamline your trading experience. My Bybit trading bot review will help anyone wondering which one they should pick for their strategy, especially with many great options to consider.

If you have some experience in using automation tools on other highly reputable platforms like Binance, you may have some idea of what to expect. However, if this is all completely new to you, that’s absolutely fine. After all, Bybit's bots are designed to accommodate all kinds of traders regardless of their experience. So, what makes Bybit trading bots special? Let's find out.

What Is a Bybit Trading Bot

Before starting this Bybit trading bot review, I want to explain briefly what it is for those who may not know much about how it works.

A trading bot on Bybit is a program that can automate the buying and selling of assets on the platform. When configured properly, the tool can streamline a user’s trading process, potentially increasing their gains and decreasing their losses.

Not only that, but the exchange's automation tool is also handy for monitoring crypto’s volatile market movements,^[1] as it can work 24/7 in the background after it’s set up. This way, you can stay ahead of the curve whenever there are potentially promising crypto opportunities without having to keep yourself around the clock.

For some traders, especially those who are busy with their daily grind, using bots is considered good practice. Some well-known trading strategies that rely on wild market fluctuations, like arbitrage, significantly benefit from AI’s assistance^[2] and may not work as well without one.

The low entry to using a trading bot on Bybit is another reason this tool is popular. Some options are tailor-made for beginners, while others are better for experienced users. Both types of traders don’t need to be tech whizzes to set their first robots, either. These AI-powered tools will do the heavy lifting in just a few clicks, provided that it’s configured correctly.

Overall, there are many good reasons to use a Bybit bot, especially since you don’t need to pay extra costs. All you need is to pay the regular trading fees, top up enough balance in your funding account, and have a little bit of knowledge to start creating your first bot.

📚 Related: Bybit Review

Bybit Trading Bot Review: PROS

Now, let's continue this Bybit trading bot review by discussing the positives that attracted many users to the platform.

Trading Bot Variety

The variety of trading bots on Bybit can accommodate all sorts of styles, risk tolerance, and financial goals, whether you are new or experienced. If you are a beginner, you can use the auto-invest feature or set up DCA and spot grid bots to optimize your strategy.

If you’re more experienced, especially with perpetual futures, you have tools like futures grid, futures martingale, or futures combo bot at your disposal. Each comes with its parameters and best use cases, with the futures grid strategy considered as the entry point.

Below is a short breakdown of the bot types on Bybit and their best use cases.

Table: Bybit trading bots and their use cases

Later on, I will do a deep dive, covering different bot types and what strategies they could be ideal for.

Smart Trading Parameters

On top of accommodating different investment goals and styles, Bybit trading bots are also popular for their flexibility. They come with several parameters, which you can fine-tune to specific strategies.

If you choose to follow the suggestions, the configurations will be automatically filled, and you can immediately proceed with your trade or change some details.

If you want to fine-tune your strategy according to personal styles and needs, manually set each of the bot’s smart customizations. Below are some notable ones to adjust based on your trading strategy:

• The Dollar-Cost Averaging (DCA) Bot automates consistent cryptocurrency purchases over time, helping reduce the impact of market volatility. Key parameters include investment amount per purchase, frequency of purchases, and an optional total investment cap, making it ideal for long-term strategies.
• The Spot and Futures Grid Bots automate trades within predefined price bounds, making them effective in volatile markets. Some configurations include the price range, number of grids, investment amount, and take profit (TP) and stop loss (SL) thresholds. These can be adjusted dynamically to adapt to market changes.

• The Futures Combo Bot manages diversified futures portfolios, allowing traders to allocate weights to contracts, set uniform leverage, and enable auto-rebalancing based on time intervals or proportion thresholds. Additionally, stop loss and take profit settings ensure orders are terminated within predefined limits.
• The Futures Martingale Bot uses the Martingale strategy to increase positions after losses for recovery and profit. Important parameters include Price Increase/Decrease triggers, Position Multipliers (1x–2x), Max Addition per Round, Profit Target, and leverage up to 50x. It requires close monitoring due to its high-risk nature.

These customizable bot settings allow traders to tailor their strategies to specific market conditions. By understanding and adjusting them, users can optimize their approach and manage risks effectively.

Aurora AI Integration

Like other platforms, Bybit's trading bots use artificial intelligence to process large amounts of data to give useful insights and recommendations.

Aurora AI offers a range of powerful features, such as deep analysis of market trends, insights into overall market sentiment, and prediction modeling.

It analyzes data from news and other market indicators to spot patterns in price movements. Many user Bybit trading bot reviews appreciate the real-time reporting feature as it helps adjust strategies in a timely and informed manner.

But what sets this AI tool apart is its ability to customize suggestions based on risk level and preferences. Whether you're aiming for steady, lower-risk returns or are willing to take bigger risks for higher potential rewards, Bybit trading bots can be useful. Aurora AI will help generate up to 18 sets of recommendations that you can use as settings for your tool.

Custom Trading Bots

Bybit stands out for its flexibility, allowing users to create custom bots or connect third-party tech stacks easily. This feature is perfect for traders of all levels, enabling them to automate their strategies. Many users combine the platform's built-in tools with custom ones to optimize their strategy, ensuring they can take advantage of market opportunities efficiently.

In addition to custom bot integration, Bybit provides advanced charting, social trading, and API integration.

Charting helps users analyze real-time market trends. Meanwhile, social trading enables users to follow and replicate successful profiles, making it easier for beginners to learn and grow their strategies. On the other hand, API integration streamlines automation, making it easy to integrate custom solutions into the platform.

A key enhancement to Bybit's platform is the introduction of V5 API, which unifies spot, derivatives, and options products under one interface, simplifying management. Traders can now execute and manage orders across multiple product types without switching between APIs. This unified structure enhances user experience by reducing confusion and streamlining tasks.

The V5 API also improves capital efficiency through unified accounts, allowing you to share funds across different contract types. This customizability helps offset profits and losses between positions. Additionally, users can borrow multiple assets as collateral, further optimizing their market approach and capital management.

Bybit’s V5 API also introduces the Portfolio Margin mode, which allows for combined margins between various contract types like inverse perpetuals, USDT perpetuals, USDC perpetuals, futures, and options.

Thanks to this new feature, users can enjoy greater flexibility and risk management, allowing them to leverage their entire portfolio for margin trading.

The improved API structure, with clearer path definitions for market data, order management, and position management, further enhances usability, making it easier to navigate and execute trades efficiently.

📚 Read More: Margin Trading

Top-Notch Security

Bybit's strong commitment to cryptocurrency security is frequently highlighted in user reviews, ensuring a safe experience.

The platform uses advanced measures, including multi-signature systems, Trusted Execution Environments (TEE), and Threshold Signature Schemes (TSS) to protect user funds stored securely in cold wallets. Regular Proof of Reserves audits provide transparency, reinforcing trust in the exchange.

To further enhance user protection, Bybit requires all users to pass Level 1 KYC verification before accessing trading bots, ensuring compliance with anti-money laundering regulations. The platform encrypts user data both in transit and at rest, with strict access controls to safeguard personal information.

Meanwhile, real-time monitoring detects suspicious activity, triggering additional authentication for withdrawals when needed.

While Bybit's bots are regularly updated for security, third-party solutions should be carefully vetted. The Bug Bounty Program, in partnership with HackerOne, allows external researchers to identify vulnerabilities, strengthening the platform's safety.

The exchange also offers two-factor authentication, hardware authentication, and real-time activity notifications to further prevent unauthorized access. These security measures make Bybit a trustworthy platform for bot trading.

Loss Cover Voucher

Trading is a highly risky venture; you win some, and you lose some. This is a consequence that many traders embrace, and in most exchanges, the story ends there, but not on Bybit. The platform has Loss Cover voucher rewards that can be used to offset some of the losses you may incur during the process.

The good news is that the Loss Cover voucher can be used for various trading bots, such as DCA, Futures Grid, and Spot Grid. Keep in mind that you can only apply it after the bot you’re using has been terminated.

Not only that, but you also need to have enough initial funds in your Funding Account to run the automation. The voucher only acts as a safety net to cover some of the losses you may experience during the operation.

Furthermore, claiming the Loss Cover vouchers is easy. Simply go to the Rewards Hub to claim them. You can find information on what the bonus is intended for on the page as well. Once you click [Use], you will be redirected to the creation page, where you can create your bot as usual.

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Bybit Trading Bot Review: CONS

No technology or platform is perfect, and the trading bots on Bybit are no exception. So, let's continue my Bybit trading bot review by discussing a few of the drawbacks worth considering.

Can’t Be Used Outside the Platform

As convenient and feature-extensive these bots are, they can only be used on the internal platform. This might be a disadvantage for those who don't want to just stick to one platform and spend their time setting up other tools from scratch on other exchanges.

Thankfully, the exchange enables convenience and flexibility when it comes to setting up a custom third-party bot on its platform. Many external providers support Bybit, thanks to its reputation as one of the biggest crypto exchanges.

Most of the time, setting up custom solutions can be done in just a few clicks as long as you have the API key of the bot you want to set up.

That being said, even without additional trading bots to accompany your journey, the built-in tools are often more than enough to assist your strategies and help you reach your investment goals.

Slow Customer Service

Some user Bybit trading bot reviews reported slow customer service when they encountered issues with setting up or running their tools.

However, the exchange's support team can be contacted via phone or live chat, offering assistance in multiple languages, including English, Chinese, and Russian. While response times may vary, the platform has made efforts to ensure that users can find help in their preferred language for a more personalized experience.

Additionally, Bybit provides a thriving community across platforms like Discord, Twitter, and Facebook, where users can seek advice, share experiences, and access community-curated resources.

For self-help, the platform offers an extensive knowledge base filled with guides, FAQs, and troubleshooting tips. This allows users to find answers to common questions or issues without waiting for direct support, making it a valuable resource for both new and experienced traders.

Types of Trading Bots on Bybit

Now that you know the pros and cons of trading bots on Bybit, you might wonder how to choose the best option. The exchange offers five types of solutions to choose from, each with its own strengths to consider. That being said, here’s a brief explanation of what each automation tool does and some suggestions on its best use cases.

Spot Grid Bot

A spot grid bot lets you set the price bounds to automatically buy and sell an asset. It’s most suitable for traders who want more disciplined and controlled strategies with minimum emotional decision-making.

This bot works best in highly volatile markets, helping you buy at a reasonable cost and potentially profit when prices rise. Since it runs 24/7, you won’t miss out on potential opportunities with the assets you hold (HODL) or plan to buy.

However, compared to other grid-bot options, you might have to pay higher fees for this strategy as you’re trading in a spot market.

📚 Read More: Crypto Slang Terms

Dollar-Cost Averaging (DCA) Bot

This is a popular trading bot for Bybit newcomers. A DCA bot is a program that buys a predetermined amount of assets at regular intervals regardless of the current market prices. It is best suited for those who trade during the bear market and are unconcerned about short-term market volatility.

If you want to hoard specific assets long-term and gradually build consistent gains over time, the DCA strategy is for you. After all, the success of this automation relies on averaging asset purchases at their highest and lowest prices in the spot market.

This bot enables flexibility for traders who want to buy a fixed amount of a specific cryptocurrency at consistent intervals rather than buying it in one go. Using this, you can set how frequently buy orders will be executed, how much you want to invest, and the types of assets to buy according to your risk tolerance and strategy.

However, while it’s hard to gauge the average in the market, purchasing a large amount of crypto in one go over buying in increments might be more beneficial in some scenarios. Regardless, if you’re looking to lower your cost in the long run without trying to buy an asset at its lowest price, the DCA bot might be suitable for you.

Futures Grid Bot

If you’ve read some user Bybit trading bot reviews, you might have heard of this type of tool, as it’s often recommended alongside spot grid strategies, but for those looking to enter the futures market. As you’re using leverage in a derivative, the fees incurred can be lower compared to spot trading.

Similar to the spot grid bot, this AI tool is designed to capitalize on market fluctuations. The main difference is that you can configure the automation in three ways: long, short, and neutral. These modes accommodate different ranges of markets, whether they’re sideways, ranging, down-trending, or up-trending.

📚 Read More: How to Short Crypto

Here’s a breakdown of what each mode does:

• Short: The bot will sell an asset and then repurchase it at a much lower price, which works best when the crypto's price is at a low point. This strategy is ideal for benefiting in a market with a down trend. 
• Neutral: This mode starts with no initial position and is best for ranging and sideways markets. The buy or sell order will be executed depending on the grid fluctuations. 
• Long: The bot instantly buys the asset you’ve selected and begins trading it right away. This option is ideal when the crypto's price is high and can help you take advantage of an upward-trending market.

In general, this AI tool could be a good fit if you’re looking to trade futures, navigate different market trends, and boost potential gains with leverage. Many user Bybit trading bot reviews also consider it a beginner-friendly option for futures trading.

Furthermore, you can mitigate liquidation risks by fine-tuning the take profit/stop loss parameters. This way, the bot will be able to sell or buy assets at a specific cap instead of waiting for the prices to keep going higher or lower.

Futures Martingale Bot

Another variation often recommended in user Bybit trading bot reviews, specifically for perpetual contracts, is the Futures Martingale bot. It is named after the Martingale strategy, which originates from a betting system. In this scenario, the tool will trade perpetual contracts by multiplying the stakes if losses occur to rebound and earn profit.

This bot can be used for short and long positions, so you can benefit from price reversal. It will automatically adjust your position based on trends, making it suitable for sideways or volatile markets.

If the price of your asset drops when it’s predicted to rise, the bot will double its position using the multiplier you’ve set when it reaches a lower bound. Later, when the performance goes back up, it will sell the crypto at a much higher bound to break even and earn some profit.

The bottom line is that the Futures Martingale bot is recommended for those experienced in trading because it needs to be carefully monitored to prevent liquidation risks.

Futures Combo Bot

The next tool you may have seen in user Bybit trading bot reviews is the futures combo, which is a recent addition. With this, traders can manage multiple futures contracts in one portfolio. Not only that, it can rebalance your asset positions to maintain various contracts’ preset allocation ratios regardless of market volatility.

This bot allows the configuration of two to ten futures contracts with their own distinct parameters. You can adjust contract selections, leverage, position directions, and fine-tune the rebalancing settings.

Additionally, use AI-powered optimizations to potentially enhance your portfolio performance with personalized suggestions.

Overall, this bot is the most suitable for the more experienced traders who have a diverse portfolio and want to keep things simple.

📚 Read Next: Best Crypto Trading Bots

Bybit Trading Fees

As I've briefly mentioned in the earlier part of my Bybit trading bot review, you don’t need to pay extra to use the tools. However, there are still fees incurred every time you use the platform’s services.

Trading fees are the charges you pay when you make a transaction on a marketplace exchange. Each transaction may have its own fee structure, which can change quickly. In general, cryptocurrency trading fees include different kinds of costs.

Fortunately, the exchange offers some of the lowest fees in the market, which is frequently noted in user Bybit trading bot reviews. It’s one of the many reasons why Bybit is popular among top-rated platforms, on par with giants like Binance.

Here is a non-exhaustive list of the platform's trading fees, focusing on VIP 0 to Supreme VIP tiers:

Table: Bybit trading fees

As visible, the platform’s maker and taker’s fees range between 0.1% - 0.03% for VIP 0 to Supreme VIP, and the rate can go lower if your status is higher. The badge is obtained after you pass the Know Your Customer verification process. By default, every user starts at VIP 0.

To level up, you just have to keep using the trading bot service. You will unlock the next level when your asset balance and 30-day average borrowing amount or 30-day trading volume reach certain milestones.

How to Use the Bybit Trading Bot

While the idea of setting up a trading bot might seem daunting to some, the process on Bybit is designed to be beginner-friendly and easy to follow.

How to Sign Up on Bybit

Before starting, let’s sign up by following these steps:

And that's it! Afterward, complete your KYC verification, and your account is good to go.

How to Set up a Bybit Trading Bot

Once your account is verified, you can deposit some funds into your account and start setting up your first Bybit trading bot. Here are the steps:

📚 Read More: How to Use Bybit Trading Bots

Conclusions

Time to sum up this Bybit trading bot review. My main takeaway is that Bybit offers a nice selection of trading bots for free. Plus, it really shines in making them as easy to use as possible with its AI integration. However, although the positives of Bybit trading bots far outweigh the negatives, make sure to do your part to ensure all risks are kept to a minimum.

After all, understanding what goes into choosing automation tools will help you see which features work best for different scenarios. This can potentially help you take your strategies to the next level and make your routine far more efficient in the long run.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Daryani M., Jazayeriy H.: SPA Bot: 'Smart Price-Action Trading Bot for Cryptocurrency Market';

2. Kostal K., Okasova K.: 'Using Machine Learning for Predicting Arbitrage Occurrences in Cryptocurrency Exchanges'.