This is going to be a completely painless, very easy tutorial of how to use Bybit leverage Exchange Tutorial and trade.
If you're completely new to the prep platform, even if you've treated before but on a different platform, I'm going to run you through absolutely everything. So the first thing you want to do is go to your name on the top right and down to my assets and just make sure that you have some bitcoin deposited into your Bible account. The way to do this is by going to the my assets tab. Click on the deposit button. You know how to send bitcoin already and once you're there you can send any amount of bitcoin you like. You may need to add two factor on the authentication to your account first a, but if you haven't done that already, you are making a massive mistake and you should add that right now.
So now that you've got some bitcoin in your account, go back to the top left here, click on the trade button and this is my trading dashboard. Yours is going to look a little bit different, but I have organized things to move in and to be in place where what I need as a priority is right at the top and what I don't need as a priority. For example, the recent trades tab is right at the bottom. I will never need to read that. So I'm going to be running through with you guys what each of these boxes are and how you can set orders and different kinds of orders so that you can be trading on Bible extremely easily. This is actually one of the easiest, if not the easiest leverage trading exchange that I've ever used. Um, and especially compared to Bet Max if you've come from that, uh, some of these things here might actually be a very, very pleasant surprise to you.
So to start off, I've got my chart on the left side here and this is just a regular chart of bitcoin. It's the same chart of bitcoin that I'm using in, uh, various different analysis pieces, exactly the same thing. It's even using trading view if I'm not mistaken. Uh, but on the whole it's completely unnecessary and I never ever use it. If I'm doing my analysis, I'm using the chart on trading view and that's it. So this is irrelevant to me. Down on the right here we've got the contract details. It's telling you the last price that bitcoin is trading at. This is the price of by bit. So what by bit, uh, users are trading bitcoin out below that we've got the Mark Price. So this is the price that other exchanges are trading bitcoin out. The reason that they give you both prices along with the index price is that on by bid we're trading on a leverage exchange.
Now if regular crypto trading is trading on cocaine compared to the stock market, for example, then trading on leverage exchange is trading on crack cocaine. So it doesn't matter if you're trading on bitmax cracking bit for next by bit, you name it, any leverage exchange is going to be a higher risk environment than trading regular crypto for example, on Coinbase pro. So it's telling you the difference between what other exchanges are trading on and what by Ben is trading on just in case there is a massive discrepancy at the moment, the discrepancy is within a dollar. It's really, really good. Uh, in fact, this is about as good as it ever gets and it's not going to be a problem in this kind of environment, but now it's $4. It's $5. And this is where some of the problems can maybe start to begin. The big problems come when you get a difference of perhaps 1% or God forbid, five or 10%.
And that's why you'll be thankful that you have the different prices there is telling you the volume, the open interest, contract value predicted rate. You don't need to know any of the things here, all of the contract details that buy bit lists for you on not relevant to your trading market activity. Again, irrelevant to your trading. It's just telling you what's happened over the past few hours. Uh, in terms of percentage moves and the current prices, you don't need that. The help tab obviously not needed. Asset overview. This is again telling you how much of each asset you hold, which is the same thing that I showed you in the my assets area going up. Now we have the positions tab this you are going to use and I'm going to show you how to use that very shortly. Now the only two that I haven't covered yet are the order book and the trading panel itself.
This is where most of your attention will be, but very quickly the order book is showing you for example, to the downside what people are trying to buy. Bitcoin and I take note that the real price of bitcoin on by bed is $10,048 the Mark Price is $10,037 this is showing you that people on buy bit are willing to buy Bitcoin at $10,035 and the order value going down to this level is three point $8 million. So that is a, you would need to sell three point $8 million worth of Bitcoin to go down to this price. That's what this is telling you. This is the order book. You don't really need to worry about this either. The only time this can be useful as if you very quickly want to enter a position you can without paying market fees because the fees are very high. You can actually click on the price.
So for example, if I want to enter at 10,037 I can just click on that and you can see it's already filled that number in on the order price. So that moves us on to this tab. Now let's say the price of bitcoins at $10,000 let's say I want to buy Bitcoin at $9,500 I want to buy bitcoin when bitcoin goes down to $9,500 I want to use 10 times leverage as well. So leverage is essentially what you multiply your trading balance with. So for example, I'm now down to three. You can see that it told me the position that rich has changed. I'm going to move this back up to 10 and essentially what this means is that whatever money I put into this trade, I want by bit to multiply that by 10 that means if my profit on a normal day, if bitcoin goes, let's say, let's use the example of 9,000 to make it simple.
The smart way you should try to start Bitcoin trading with small amount of money
If bitcoin, if I buy bitcoin at 9,000 and then bitcoin goes to 9,900 that means on a normal trade, I would have made exactly 10% profit. Bitcoin would go from 9,000 to 9,900 that's a 10% move, which means I have a 10% profit with 10 times leverage. That multiplies my gain by 10 times. So if I got a 10% gain, I would have had a 100% gain after leverage is applied. And, and of course a 100% gain is a two times return. So that's why leverage trading is so lucrative. It is very, very useful. So, and of course by the way, the link to buy bet is in a, is down below, uh, so that you can join and get a trading bonus. When you do sign up, this is where the average trading becomes very lucrative because the same move can make you way more money.
So let's say I want to use 10 times with average on this trade and I want to treat with 25% of my account balance. This is automatically going to calculate what quantity of Bitcoin I can buy with 25% of my balance when I'm using 10 times the average replay, the video and re listen to that. If that didn't make sense. Now down below it's telling me what my available balance is. This is roughly a 0.09 BTC and it's also telling me what the order value is. So that means what the value of $2,000 is in bitcoin right now. Or rather at the point of Ah, the order price. So for example, if I change it to 10,000, you can see that the order value, uh, goes down a little bit. But if it's at 9,000 obviously, uh, that means it will net me a little bit more bitcoin.
Uh, and that is how I can be a setting my audit there. So I can, from here I can just set what level I want to buy bitcoin at, how much bitcoin I want to buy, what leverage I want to use, click on buy long. And the next important bit of information that I have right now in my order details tab is the estimated liquidation price. So the estimated liquidation price telling me roughly and usually with a pretty good degree of accuracy where my position will be liquidated if bitcoin goes in the wrong direction. That means if bitcoin goes down to $9,000 and I want to buy at that level, if it goes down by a further 10% or in this case roughly 9% because my leverage is 10 times, that would multiply my loss to the point where my loss is a 100% loss.
Now you notice this actually isn't a 10% move to the downside because that would be exactly 8,100 the reason we're seeing a slightly higher numbers because by bed is making a margin here. If you get liquidated by bit is making a lot of money. It's the same for every other leverage exchange and this is why liquidations are so expensive. The way to avoid this is by using a stop loss to use a stop loss. You check the stock loss button here and you can see that for example, I want my position to open at $9,000 but if it goes down to 8,750 I've had enough of this position and I want to leave that position, I don't want to trade it anymore. We can see over that the cost of the position is 0.0224 BTC. It says the same thing over here as well. Telling me the cost of my position, so that's how much of my bitcoins are being used to contribute to this position with 10 times that reach.
So you can see the audit cost a 0.0224 to me and that means the value is 0.2 to a in terms of just what the trade is worth after leverage is applied. This is now telling me that if bitcoin goes down to 8,750, my position will close and the expected loss I would have on the trading balance that I'm putting in is 0.006 BTC. So if you do that calculation very quickly, this means I'd go from 0.0224 take away 0.006 and my uh, what would be left in the trade is 0.16 sorry, 0.016 for BTC. Then do the math yourself and you can see that's what's left after the position is closed. It essentially means that my loss has been multiplied by 10 times, but I stopped the loss from going significantly lower, potentially down to liquidation, at which point I lose all or what I put into the trade, which in this case would mean I lose 25% of my trading balance in by bit.
I would lose all of that money. If it goes down to liquidation, the stop loss prevents that. So now I can click on confirm. I would not recommend, okay, I'm getting an order submission fail here. I'm not too sure why that's happening. Ah, let's adjust the number to 8,900 and a yeah, I don't know why that happened. Probably just an error in the system there and now you can see that I've got my active audit here for buying bitcoin at $9,000 so that means if bitcoin is going down to $9,000 it's going to by bit is going to buy a $2,000 for me at worth of Bitcoin. It's telling me what my stop loss is. So at 8,900 that position would be closed. And if I decided I wanted to set the take profit, this can all automate the orders. So this is really, really good on an exchange like bitmax doing this is actually much more complicated.
And so with the same order, I can choose my stop loss. Let's say I actually want it to be 8,800 and I also want to take profit. So if bitcoin goes down to 9,000 and then it suddenly shoots up, which is exactly what I want because I'm buying Bitcoin, let's say bitcoin suddenly shoots up to 9,500 I want to close say I want the, the position, uh, I want my stop loss to be 50% of my order. Or in fact, let's just, uh, let's not complicate it. And sorry, I want my loss to be 50% but let's not complicate it. Let's just go for 8,800. And in this case, I want to close the position 9,500. I could say that I actually, I just want to close the entire position. When it hits 50% profit and it automatically fills what that is bitmax or any other leverage exchange I've used, it doesn't have this feature and it blows my mind.
It is so useful. So I can just click very easily. Okay. I want the position to close only when it hits one 50% profit. I've already got that number filled in so I don't have to do the math myself. Um, I go for 50%, which is roughly 9,500. I've got my stop loss set. It's telling me what my potential loss would be at this point and I can just click on confirm there and again, I'm getting this issue, I don't know why this is happening. Uh, let's, let's lower this to 9,500 and put in 8,900 again, uh, and go for that. Okay. And it's sent. So I must've been putting in the numbers incorrectly there and we've got the price of $9,000. My take profit and stop loss is set. It's telling me what my order type is, which means limit, uh, and, and that's everything I need to know.
All of that is automated. Now this means if bitcoin goes down to $9,000, it's gonna open a long position for me worth $2,000. It's going to take out $200 out of my account balance. If bitcoin goes down to 8,900, it's going to close the position out before I get a bigger loss. However, if bitcoin goes up to 9,400, it's going to close the entire position, uh, at about a 50% profit. So that's pretty good. These are games that you can't get anywhere else in any trading, even if you're flipping shit coins because you're, you're playing a very bad odds if you're trading shit coins. Whereas with regular trading, doing regular analysis, uh, the odds are much more in your favor and when you apply leverage to your trades, the percentage gains you can make are much higher. Obviously. The caveat is that the losses are potentially much higher as well, but that's where managing the risk comes in.
Now I'm going to cancel that order and show you what a market order is. We're nearly done here. It's again, very, very simple. A market audit is very simply. I don't have patients to wait for bitcoin right now. So what I want to do is I want to buy a, I want to buy a 25% of my accounts balance worth of Bitcoin at 10 times leverage. Uh, I just want to go longer right now. The exact same applies if you've got a short, in fact, I'm going to show you the short side. Now it's exactly the same. Just click on sell short. It's going to tell me that the order price, it's going to short bitcoin at the market rate. So whatever the first price that by bit can short for me is that it's going to short right there. I want to stop loss so that if the position goes, I can't do a stop loss here.
Sorry, my bad. Yes I can. I was just lagging. I want it to be so that if, if my loss goes to 50% I automatically want it to close, click confirm and after a few seconds my order will show it in my positions and I'm already short on Bitcoin with $2,200 worth of bitcoin going short, essentially betting that it will go down over here. I can see my unrealized profit and loss. So when you hover over it, uh, sorry, let's just read this. So with the mouse moved away, it's the unrealized profit and loss with the traded or this is actually the price that buy bit is trading at a, when you have a w, when you're not hovering over it, my bad, when you are hovering over it, it's showing you the Mark Price. And these are technicalities that on the on the broad scale you don't actually need to know about.
But if you're trading on an intense day trading, you need to know about this. So I'd actually recommend that you read up on it a just so that you can understand this fully because this part about hovering over it is very important. If you day trade constantly, I'm talking if you're trading a hundred times a day or something like that, or even 10 times a day, if you're trading 10 times a day, you need to know this maybe, maybe closer to 50 times a day, but if you're only trading say once a week or two or three times a day at a at minimum, you don't need to know about hovering over it. It's telling me how much of my balance is being used in this trade. $222 it's telling me what my liquidation point is. It's also telling me what my stop loss has placed that all of that working like an absolute beauty.
Now let's say I'm at a 1% profit and I'm ready to close out the position. Now I can either close out the position by going back to the limit tab and then choosing exactly what price I want the position to close that. So in this case, I would choose 9,996 my order quantity has already filled in by long confirm. And once the price goes down to this level, it's already in my active orders right now. Once the price goes down to this level, if it goes down to this level, which it looks like it will, because we're actually there right now, my order has been filled and my position closed and I've booked a profit right there on video. A Nice little profit there. Bitcoin has dumped just a little bit. And if we zoom into a shorter term time frame, we can actually see that move to the downside happening there.
So I've shown you how to, if you're impatient, you just want to get into a position very quickly. You can use market orders, conditional orders, these are stop-losses. If you want to set stop losses manually, you don't really need to do it though. Uh, and in this case, because of that, I'm not going to show you that because I've already shown you how to do stop losses simply by clicking on this and setting your stock loss, right when you set the order. If you do want to use this tab, it's exactly the same as bitmax. When you use, when you use either stop limit or stock market orders that does everything a about trading on [inaudible], it is really simple. Uh, it's, it looks a lot like buying ounce in terms of its color scheme and the way it's laid out and, and various different things like that. So to a lot of crypto traders, nothing here is going to be foreign. The only thing that you need to know about is the leverage slider. Making sure that you're choosing the right numbers, making sure that you understand how much of your account balance is going into the trade. And then also with that, you know what leverage you've chosen. And then if you want to use a stop loss or various different things like that, how to do all of that.