Is Bybit Safe? A Security Review
Exchange safety is a layered question. We look at proof-of-reserves, custody practices, regulatory standing, account security and incident history to give a clear answer.
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Proof of reserves
Bybit publishes monthly Merkle-tree proof-of-reserves reports allowing users to independently verify that their balances are backed. This is industry-standard practice post-2022.
Custody
The majority of customer funds are held in cold storage with multi-signature schemes. A small operational balance is kept in hot wallets to support withdrawals.
Regulation
Bybit operates under multiple international licenses and has expanded its regulated footprint significantly, including under MiCA in the EU and through partnerships in the UAE.
Account security
Hardware-key 2FA, withdrawal address whitelisting, anti-phishing codes and granular sub-account permissions are all supported. Use them.
Bottom line
Bybit's operational security is in line with the top regulated venues. As always with any exchange, long-term holdings should be self-custodied, exchanges are trading venues, not vaults.
Frequently asked questions
Has Bybit ever been hacked?
Bybit has weathered industry-wide incidents and disclosed and remediated issues publicly. Its track record on customer fund safety remains strong.
Does Bybit have insurance?
Bybit maintains an insurance fund for derivatives auto-deleveraging and broader operational reserves.
Is Bybit regulated?
Yes, under multiple international frameworks. Specific licensing varies by jurisdiction.
Should I keep crypto on Bybit?
Working balances are fine; long-term holdings should be in self-custody on hardware wallets.