Bybit Pre-Market Trading: Granting Early Access to Crypto Gems
The crypto space is rapidly evolving each day, and enthusiasts are constantly on the lookout for innovative avenues to gain an edge. Among these, pre-market trading stands out as a significant opportunity, especially for those looking to access potential crypto gems before they hit the mainstream market. In this article, we’ll explore Pre-Market Trading, Bybit's latest offering, and offer a comprehensive guide on how it operates, the advantages it brings to traders and the potential risks involved.
Key Takeaways:
Bybit Pre-Market Trading is a specialized over-the-counter (OTC) platform that allows users early access to trade new cryptocurrencies at desired prices before they’re listed on the main Spot market.
If you’re looking to dive into Bybit Pre-Market Trading, be well prepared with sufficient funds and the ability to finalize your transactions within the allotted time frame.
Wormhole (W) is the first listing on Bybit Pre-Market Trading. Get started with trading Wormhole tokens on Bybit today!
What Is Bybit Pre-Market Trading?
Bybit Pre-Market Trading is a specialized over-the-counter (OTC) platform that allows users early access to trade new cryptocurrencies at desired prices before they’re listed on the main Spot market. It facilitates the process for both buyers and sellers to set and agree on prices for trades in advance. Users looking to dive into Bybit Pre-Market Trading need to be well prepared, with sufficient funds and the ability to finalize their transactions within the allotted time frame. Not adhering to these commitments in a timely manner could result in the loss of the collateral you've committed to the trade.
How Does Bybit Pre-Market Trading Work?
Bybit Pre-Market Trading functions through a straightforward yet effective process. Participants have the flexibility to either buy or sell a specific cryptocurrency before its official market release. This setup allows traders to assume either of two roles: Makers, who establish orders at predetermined rates, or Takers, who fulfill existing orders on the platform.
In order to ensure the integrity of these transactions, both buyers and sellers are required to secure their trades with collateral on Bybit, which acts as a safeguard for the timely execution of trades. This deposited security is refunded following the successful completion of a trade, with all transactions conducted in USDT.
Pre-Market Trading is accessible exclusively to individuals who use a Bybit Unified Trading Account (UTA).
Let’s dive deeper into the mechanics. Participants in Pre-Market Trading can be categorized as either buyers or sellers, each one with specific obligations.
Buyers
If you wish to place a buy order, you first need to pay a transaction fee, in addition to the payment for the order, based on the order’s value. Upon a successful match with a seller, you’ll await the delivery of tokens at the designated settlement time. If the seller fails to meet this delivery deadline, you’ll be compensated with a portion of the seller's collateral, in addition to the return of your initial payment.
Sellers
If you want to place a sell order, you’ll incur a transaction fee and must also provide a collateral amount (determined by the pledge rate) for your order. Following a match with a buyer, you’re expected to deliver the tokens at the agreed-upon settlement time. It's crucial that you ensure these tokens are readily available in your UTA by the deadline. This means that you may need to deposit tokens from an external wallet, or acquire them on the Bybit Spot market once they’re listed (before settlement time). After you’ve successfully delivered the tokens, you’ll receive your payment in your UTA.
It's important to note that tokens held in accounts other than your UTA, or acquired via pre-market trades, are ineligible for fulfillment. Sellers who fail to deliver the full token amount by the deadline face forfeiture of their entire collateral for the specific pre-market order.
In addition, keep in mind that only orders yet to be matched can be canceled. Once an order matches a counterparty, cancellation is no longer an option. Moreover, any orders that remain unfilled by the end of the pre-market trading period are automatically canceled.
Benefits of Using Bybit Pre-Market Trading
Participating in Bybit Pre-Market Trading comes with several benefits. First, it grants traders early access to promising cryptocurrencies, often at a more favorable price as compared to their potential future value on the open market. This early access can lead to significant returns on investment as the market recognizes the value of these new tokens.
Furthermore, Bybit’s stringent selection process for pre-market tokens ensures that only projects with solid fundamentals and growth potential are presented to traders, reducing the time and research traders need to invest in scouting promising investments.
Risks of Using Bybit Pre-Market Trading
Bybit Pre-Market Trading isn’t devoid of risks. The primary risk involves the inherent volatility and uncertainty of investing in new cryptocurrencies. Projects can fail to live up to their potential, resulting in losses. Additionally, fixed pre-market prices may not always reflect the true market value of a token post-listing, and can lead to potential market corrections that have an impact on initial investments.
In addition, sellers are particularly exposed to the risk of losing their collateral should they fail to completely and punctually fulfill their token delivery obligations.
On the flip side, buyers are safeguarded to some extent. For example, in instances where a seller falls short in delivering the tokens (either partially, or fails to meet the deadline), the buyer is entitled to compensation along with reimbursement. Conversely, if the seller meets their obligations and delivers the tokens within the agreed-upon time frame, the buyer receives the tokens for which they’ve paid.
How to Get Started With Bybit Pre-Market Trading
Getting started with Bybit Pre-Market Trading is straightforward. You first need to create a Bybit account. If you don’t already have one, you can follow our detailed sign-up guide.
Bybit Pre-Market Trading will be kick-starting its first listing with Wormhole (W), a pioneering cross-chain messaging platform.
Wormhole is set to redefine the way blockchain networks communicate by facilitating the seamless transmission of information across different chains. Leveraging a diverse set of verification techniques to confirm the authenticity of messages, Wormhole provides developers with a versatile tool box tailored to the specific needs of each transaction. As blockchain technology evolves, Wormhole's array of verification methods is expected to expand, integrating cutting-edge solutions to ensure secure and efficient cross-chain communication.
How to Create a Pre-Market Order
Step 1: After logging into your Bybit account, simply hover your cursor over the Trade tab and click on Pre-Market Trading.
Step 2: If you’re a Maker, select the coin you wish to trade, click on Create Order and select Buy or Sell.
A pop-up window will appear. Enter your Price and Order Quantity, and then click on Confirm.
You’ll see an order page with your order details and fees incurred. Confirm by clicking on Buy or Sell to proceed with your pre-market order.
If you’re a Taker, you may browse through the available pending orders under the Buy or Sell tabs. After you choose one that matches your trading expectations, click on the corresponding Sell or Buy tab to confirm your order. Please note that you must take the order in full — that is, you must fulfill the price and quantity specified in the Maker’s order entirely. Partial completion is not allowed.
How to Cancel a Pre-Market Order
Please note that only incomplete orders can be canceled. Orders pending delivery cannot be canceled. If you have an incomplete order that you want to cancel, go to Active Orders and click on Cancel in the corresponding Action column of the order.
If you’re intending to do bulk cancellations, simply click on Cancel All to cancel all active orders.
How to View Active and Past Pre-Market Orders
Looking to view your active and past pre-market orders? Click on Order History and use the Coin, Direction and Status drop-down lists to sort and view your past orders. Alternatively, you can also toggle between Buy, Sell and Filled to filter your search.
This is also where you can view the settlement time for your respective pre-market orders. If you’re a seller, please prepare the tokens required in your UTA before the end of the settlement period in order to ensure successful delivery.
How to Fulfill a Pre-Market Order
As a buyer, once your order is matched you only need to wait until the settlement time for your tokens to be delivered to you.
As a seller, in order to fulfill a pre-market order you need to prepare the token in your UTA by the settlement time to complete the delivery. To do so, follow these two steps to make a deposit:
Step 1: Deposit the required tokens to your Bybit account. Check the deposit chain and the address in order to ensure that you don’t lose your assets. Alternatively, you can also purchase the coins required on the Bybit Spot market once they’re listed.
Step 2: Transfer the amount to your UTA within the settlement period in order to ensure successful delivery.
Should You Use Bybit Pre-Market Trading?
Whether Bybit Pre-Market Trading is suitable for an individual trader depends upon their risk tolerance, investment strategy and interest in exploring new cryptocurrency projects. For those willing to navigate the risks for the potential of high rewards, Bybit Pre-Market Trading offers a unique opportunity. However, it's crucial to approach these opportunities with caution and informed decision-making.
The Bottom Line
Bybit Pre-Market Trading presents an exciting opportunity for cryptocurrency traders to gain early access to potential crypto gems. While it offers the prospect of significant returns, it's also accompanied by risks that are inherent to investing in new and unproven tokens. As always, thorough research and a calculated approach are paramount in navigating the pre-market landscape effectively.
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