In this review, we will look at the BYDFi cryptocurrency derivatives exchange and see what it offers its customers. In particular, its trading platform, fees, and security, among a number of other important features, will be examined alongside a step-by-step tutorial on how to create an account and make a deposit.
“BUIDL” is an intentional misspelling of the word “build,” used within the cryptocurrency community as a rallying call urging members to contribute toward the advancement of blockchain technology by developing new projects or improving upon those that already exist.
The exchange offers services to a global customer base. So far, BYDFi is licensed to operate as a Money Services Business (MSB), in North America. [US FinCEN MSB Registration No. – 31000215482431; Canada FINTRAC MSB Registration No. – M22636235.]
Why do traders use BYDFi exchange?
The cryptocurrency space is becoming increasingly diverse, with an equally diverse community of investors. For an exchange to serve a global clientele, it will need to fulfill several preconditions, including offering secure products and services, being compliant, supporting several in-demand assets, providing an intuitive interface, and being cost-effective.
Below are some of the reasons why BYDFi is increasingly becoming popular and attracting more professional derivatives contract traders.
- Coin and token support – there are more than 400 different crypto assets and more than 600 trading pairs on the BYDFi platform categorized into spot, and derivatives markets, thus catering to the various needs of the different crypto traders;
- Copy trading – new or inexperienced traders are able to copy the trades of their more experienced counterparts, which enables them to learn as they earn and share their trading journeys with the community;
- Demo trading – it is possible to trade in the BYDFi platform using demo funds, or what is popularly referred to as paper trading. Demo trading is essential for testing out trading strategies and helping new users familiarize themselves with the interface;
- Diverse product support – unlike most other cryptocurrency exchanges, BYDFi offers a great selection of trading products, including spot, leveraged pairs, and perpetual with up to 150x leverage;
- Mobile and Desktop app support – the BYDFi platform can be accessed on various devices, including mobile (available for Android and iOS) and desktop PCs. The mobile apps enable users to trade or keep up with the markets while on the move;
- Highly regulated – BYDFi aims to provide its services to users worldwide while adhering to all applicable laws and regulations. At the moment, the platform is regulated as an MSB by the United States, and Canadian agencies. Adherence to regulations provides assuage to users that their assets and personal information are handled appropriately;
- User-friendly interface – BYDFi offers an intuitive user interface that makes it easy to navigate for beginners and experts alike, which contributes to a positive user experience.
BYDFi exchange’s key features
BYDFi is a trading platform that enables its users to take advantage of the following key features and products;
- Spot trading;
- Perpetual trading;
- Copy trading;
- Paper trading;
- Crypto brokerage.
With crypto brokerage, BYDFi leverages strategic partners Coinify, Transak, Banxa, Mercuryo, and PaxFul exchange as fiat onramps. BYDFi does not support buying or selling cryptocurrencies, but it allows deposits and withdrawals in supported digital assets.
1. Spot trading
BYDFi allows traders to interact with peers within the spot market, where trades are settled immediately. In this section, users can buy or sell cryptocurrencies using either market or limit orders.
There are three versions of the spot interface that allow users to execute their trades, and they are:
- Direct conversions are the simplest way to buy and sell crypto on BYDFi through instant swaps and avoid the order book. Users can make conversions in a single click;
- Classic spot market – here, the trader gets access to basic trading tools such as charting software, various order types, and the order book;
- Advanced spot market – this section offers all the available tools within the spot market on top of what is available within the classic interface, including, market depth and a more optimized interface for technical analysis.
2. Perpetual Futures Trading
Perpetual futures are contracts between buyers and sellers of a particular asset that represents their interests and the conditions in which payment is to be settled at an unspecified future date. These contracts are tradable on open markets, with speculators taking positions based on their future price projections.
BYDFi offers four kinds of derivatives based on cryptocurrencies, and they are:
- Lite contracts – ideal for a beginner futures trader looking to experiment and learn how to trade with derivatives. This section also holds the paper trading feature;
- USDT-M contracts – the exchange supports perpetual futures that are settled in USDT, currently the largest stablecoin by market cap;
- COIN-M contracts – these contracts are settled in the underlying cryptocurrency on which the contract is based, such as BTC-M, or ETH-M contracts are settled in Bitcoin and Ethereum, respectively;
- Leveraged tokens – these are contracts with levered positions in a particular asset. For instance, BTC3L/USDT or the BTC3S/USDT pairs are contracts representing 3-times leveled positions in Bitcoin against USD Tether for long and short positions, respectively. Traders can either use margin trading to open a leverage position or buy/sell the same asset using a leverage token. The benefit of using the latter is that they attract lower fees.
3. Copy Trading
This feature enables beginning or inexperienced traders to duplicate positions opened by their more experienced counterparts on the platform, allowing them to start making profitable trades from the onset. It is increasingly gaining popularity across the cryptocurrency space, with more and more crypto exchanges choosing to enable it.
Copy trading also benefits the experts, who receive a 8% – 10% kickback from users copying their trades. They not only get paid, but they get a channel for sharing their expertise and potentially receiving helpful feedback from other traders.
On the other hand, the copiers benefit from the experience of their expert counterparts and get to learn as they earn.
The copy trading feature can be accessed through the top navigation. Tap on the [Copy trading] tab, then scroll down to choose a trader whose strategies you want to duplicate based on their performance metrics highlighted above.
4. Paper trading
With paper trading, traders can test their strategies risk-free with demo funds to see how their ideas would have performed in a simulated market. Not a preserve for beginners or new traders, demo trading is essential to every astute investor.
BYDFi allows users to test their strategies using Lite Futures Contracts. To access this feature, navigate to the Lite Contracts page by hovering the mouse cursor over the [Derivatives] tab and then selecting [Lite Contracts].
In the Lite Contracts page, locate the [Assets] tab on the right-hand bottom side of the page. Click on the [Live] button to reveal a drop-down selection from which you should choose [Demo].
Once activated, your demo account will be credited with 100,000 USDT tokens of demo funds which can be used to open new positions but cannot be withdrawn. If you run out of funds, close all your open positions, then tap on the [Add funds] button to replenish your demo wallet.
BYDFi Fees & Funding
Trading fees on the BYDFi platform are as follows:
- Spot trading – here, fees are determined according to the popular Maker/Taker fee model, and the fee varies between 0.1% and 0.3% for both makers and takers;
- Makers are traders who bring liquidity into the marketplace while takers take away liquidity. Essentially, if you open a pending position that goes into the order book, you are a maker. However, if you open a market position that is executed immediately by matching an existing order, you are a taker.
- Convert – here, the fee ranges between 0.1%–0.15%;
- Lite Contracts – fees range from 0.075% to 0.05%;
- Perpetual Contracts (USDT-M & COIN-M) – transaction fee rates are calculated based on the maker/taker fee model, and they are currently charged at the rate of 0.02% and 0.06%, respectively;
- Leveraged Tokens – transaction fee rate is charged 0.2%.
How to get Started with BYDFi Exchange (step-by-step)
This tutorial will outline how to create an account on BYDFi, make your first deposit, and withdraw. Let’s go through each event step-by-step.
How to create a BYDFi Account
Step 1 – Visit BYDFi Website
Navigate to the home page of BYDFi at https://www.bydfi.com. Click on the [Get Started] button in the top right-hand corner.
Alternatively, you can use the email sign-up form on the center portion of the page. Input the email address you want to use to sign up, then click on the [Get Started] button.
Step 2 – Verify Email or Phone Number.
On the next page, you will be presented with two options: to sign up with an email address or phone number. Pick an option from the top selection panel as shown below with (1).
If you choose email, provide your email address, and below that, click on the [Send] button to start the verification process. BYDFi will send a six-digit verification code to your address. Retrieve and input it in this field.
Then create a log in password and mark the terms and conditions checkbox to confirm that you do agree with usage policies as outlined by the exchange.
Once done, click on the orange [Get Started] button.
The process is similar if you opt for phone registration instead of email. BYDFi will send an SMS message with the verification code to your phone, which you will input in the verification form field, then create a password and accept usage terms.
Congratulations, you have successfully created your BYDFi trading account. Ensure you verify your account for added security assurance, but at this point, you can deposit your assets and begin trading.
How to deposit funds to BYDFi
Step 1 – Login to BYDFi
Access your BYDFi account and navigate to the Deposits page. To do that, once you have accessed your account, hover over the [Assets] link on the top right side of the main navigation, then select [Deposit] from the drop-down menu.
Step 2 – Select Asset and Network
Next, select which cryptocurrency you wish to deposit from the Coin drop-down menu. Click on the down arrow within the Coin section to display the supported options.
Under the Network section, select the appropriate network matching the blockchain on which your assets are hosted. Ensure to pick the correct network, otherwise, you risk losing your cryptocurrency.
Each network has a slightly different wallet address which will be displayed in the Address field. Copy it and paste it into the receiving address section of the platform you are using to deposit the funds. Alternatively, if you are sending from a phone, there is the option to scan the QR code provided.
Depending on the network, the transaction could take a few seconds to several hours for the assets to arrive in your account.
How to withdraw from BYDFi
Navigate to the crypto withdrawal page by hovering over the [Assets] link and then selecting [Withdraw] from the drop-down menu.
Next, pick the asset you want to withdraw from the Coin selection panel, choose the appropriate network and a receiving wallet address, then provide an amount and the fund password. The fund password is set up in the [Settings] section, and if this is your first time making a withdrawal, BYDFi will prompt you to create it before proceeding.
Once done, click the [Withdraw] button to confirm the transaction details. An important consideration is to ensure that the Network selection is correct to avoid losing your assets.
Is BYDFi Safe?
BYDFi is a safe cryptocurrency derivatives exchange to use, and so far, since its launch in 2020, it has not reported any security incidents to the public. Here are some of the security measures it has employed to protect users’ funds and the private information it collects.
- Accounts are secured in at least two ways: password and 2-factor authenticator (2FA). For added security, BYDFi enables KYC, which identifies the country of origin and helps prevent unauthorized access from foreign countries.
- BYDFi is a custodial platform, and users are able to deposit and hold their cryptocurrencies within their accounts for short or extended periods. To ensure their safety, the exchange stores these assets in offline cold storage solutions with multiple signature access restrictions.
- Additionally, account withdrawals are protected using fund passwords with the option also to implement wallet address whitelisting.
- BYDFi employs Amazon’s Web Services (AWS) to store and run system infrastructure. AWS is one of the most widely used cloud storage solutions with commendable security credentials;
- The exchange platform is protected using SSL encryption to ensure that data transmission is secure and the website runs on Cloudflare servers to prevent DDoS (Denial of Service) attacks;
- Sensitive data such as personally identifiable information (PPI) is encrypted and processed by a 512-bit encrypted hash (SHA512). ) In comparison, Bitcoin uses the 256-bit encryption standard.)
- BYDFi exchange is also highly compliant with financial regulations as it holds a dual Money Service Business (MSB) license issued by the FinCEN agency in the US, and FINTRAC in Canada.
BYDFi Pros and Cons
- It’s accessible globally in most jurisdictions;
- Ideal for beginning crypto traders with the simple-to-use interface and copy trading feature;
- Offers a paper trading feature to test out trading strategies;
- Available on both mobile devices (iOS and Android) and desktops (Mac and PC);
- The exchange supports hundreds of crypto assets and markets;
- There is a trading product for everyone from newbies to experts;
- Easy sign-up process;
- The platform is highly secure;
- Responsive customer support.
- Only offers trading services;
- Lacks means to withdraw fiat currencies.
BYDFi Customer Support
Users can reach out to the BYDFi team or research further on what the platform offers on the following platforms.
- Website: https://www.bydfi.com/en-US
- Blog: https://medium.com/@BYDFi
- YouTube: https://www.youtube.com/@BYDFiOfficial
- LinkedIn: https://www.linkedin.com/company/bydfi
- Facebook: https://www.facebook.com/BYDFiOfficial
- Telegram: https://t.me/BYDFiEnglish
- Discord chat: https://discord.gg/VJjYhsWegV
- Twitter: https://twitter.com/BYDFi
- Instagram: https://www.instagram.com/bydfi_official/
- Help Center: https://support.bydfi.com/hc/en-us
BYDFi offers a lot for the typical cryptocurrency trader, enough to carve itself a niche in the already crowded marketplace. Features such as paper and copy trading are not commonplace and therefore are good to have within a trading platform.
So far, the exchange has managed to attract decent liquidity, and given its relatively short history in the market, it does show potential. There is a possibility that if it keeps on innovating and ‘BUIDL-ing,’ it could become a serious contender for one of the leading global cryptocurrency exchanges.
Risk Disclosure and Disclaimer: The information provided in this review should not be regarded as investment advice. Cryptocurrency assets experience high market volatility, and therefore buying, selling, and trading them exposes you to significant financial risks.
Frequently Asked Questions on the BYDFi Exchange
What is BYDFi?
BYDFi is a cryptocurrency derivatives exchange based in Singapore but accessible globally. The exchange was first named BitYard when it launched in April 2020 but later rebranded to BYDFi, a name that stands for “BUIDL Your Dream Finance.”
What does BYDFi offer?
The exchange offers several products and services related to trading cryptocurrencies, including spot, derivatives, copy, and paper trading. With derivatives, users can access leverage tokens and perpetual and inverse perpetual futures.
Is BYDFi safe?
BYDFi maintains high security and safety standards for its systems and customer assets by providing tools to secure accounts and storing crypto assets in cold offline storage with multi-signature access, DDoS website protection, and 512-bit encryption for sensitive data, among other measures.
Is BYDFi available in the United States?
Yes, BYDFi can be accessed from some states in the United States due to its adherence provisions set out by the FinCEN agency to regulate Money Service Businesses (MSB), a license held by the exchange.
How much is the minimum deposit on BYDFi?
On BYDFi, users are allowed to deposit as little as 10 USDT or an equivalent of $10 in fiat.
How to withdraw funds from BYDFi?
BYDFi does not provide for withdrawals in fiat currency, but if you wish to withdraw crypto, head on over to the assets page, in the withdrawal section and pick an asset to withdraw. Next, choose the appropriate network and provide the receiving address, then execute the transfer.