Hey! If you’ve been wanting to learn how to trade but don’t have the funds, don’t know which exchange to use, or feel lost with the trading interface, this article is for you. Today, I’m going to show you how to get started with leverage trading using a $100,000 demo account on Bybit – all with zero risk.
Why Use Demo Trading?
Demo trading allows you to practice trading strategies, understand the trading interface, and get a feel for the market without risking real money. Bybit offers an excellent demo trading feature that mirrors their real trading platform, making it perfect for beginners.
Getting Started with Bybit Demo Trading
Step 1: Create a Bybit Account
If you don’t have a Bybit account, use the link to sign up. Bybit.com requires KYC, so it might not be available everywhere. If you can’t access Bybit, consider alternatives like Blofin.
Step 2: Access Demo Trading
Once signed up, go to the derivatives section and click on “Demo Trading.” This activates the demo interface, where you’ll receive $100,000 in demo funds.
Understanding the Bybit Interface
The demo account interface looks exactly like the real trading interface. Here’s how to navigate it:
- Pairs and Chart: Select the trading pair (e.g., SOL/USDT) and view the chart. You can choose different time frames from 1 second to monthly.
- Order Types: Understand limit and market orders.
- Limit Orders: Set the price at which you want to buy or sell. The order remains pending until the market hits that price.
- Market Orders: Execute a trade immediately at the current market price.
- Order Book: Shows the buy and sell orders in the market. This helps you understand market depth and liquidity.
Placing Trades
Long and Short Positions
- Long Position: Betting that the price will go up. Buy an asset at a lower price and sell it at a higher price.
- Short Position: Betting that the price will go down. Sell an asset you don’t own and buy it back at a lower price to make a profit.
Leverage Trading
Leverage allows you to trade with more money than you have. For example, with 10x leverage on a $1,000 position, you’re trading with $10,000. This amplifies both your potential profits and losses.
Practical Example: Using the Demo Account
- Select a Pair: Choose your desired trading pair, such as SOL/USDT.
- Place a Market Order: Click on “Market,” enter the amount you want to trade, and execute the order.
- Set Stop Loss and Take Profit: Protect your trades by setting stop loss and take profit levels. This helps manage your risk and lock in profits.
Advanced Tips
- Use Indicators: Add indicators like moving averages or RSI to help with your trading decisions.
- Monitor PnL: Keep an eye on your profit and loss (PnL) to evaluate your trades.
- Learn Cross vs. Isolated Margin: Cross margin uses your entire account balance to avoid liquidation, while isolated margin limits the margin to a specific amount for each position.
Transitioning to Real Trading
Demo trading is a great start, but to truly learn, you’ll need to transition to real trading eventually. Real money trading adds the psychological pressure that you don’t experience with demo trading, helping you make better decisions under stress.
Final Thoughts
Demo trading on Bybit is an excellent way to learn leverage trading without any financial risk. Practice with the demo account until you’re comfortable with the platform and trading concepts. Once you feel ready, transition to real trading to gain the full experience.
