As used by the media "cybersex" seems to include a bunch of stuff that is not "cybersex" in my thinking. Below is what I believe to the correct words and definitions.
cybersex n. (to cyber v.) - chatting online via text when the subject is sex. If Person A is getting aroused chatting to Person B, but B is not getting aroused it is possible for A to have cybersex with B without B having cybersex with A. One does not need to masturbate while chatting.
to cam - when one or more of the people chatting is appearing on a webcam, this is most properly called "camming". My preference would be that "camming" be used when the activity is not done for money or supervised by a third party.
cybershow (cyber peep show) - when the performer is paid to give a show, this is most accurately described as a cybershow.