The crypto derivatives market is growing rapidly, and in the last couple of months, it has gone past the size of the spot market.
And, driving this change in the market are the newly-launched crypto derivatives exchange platforms with their unique contracts and higher leverage offerings.
This article will review two such platforms, Binance, ranked no.1 in the list of top cryptocurrency derivatives exchanges based on trading volume. The other one is Bybit- which has surprised everyone with its growth and is currently ranked fourth.
So, let’s start the review and check which platform is better and safe to use.
Bybit vs. Binance: A Comprehensive Comparison
|Supported Coins: 10||Supported Coins: 236|
|Take Fees: 0.075%||Take Fees: 0.10%|
|Maker Fees: 0.025%||Maker Fees: 0.10%|
|Withdrawal Fees: 0.0005 BTC||Withdrawal Fees: 0.0005 BTC|
|Supported Deposit Methods:
|Supported Deposit Methods:
Wire, Credit Card, and Crypto
|Joining Bonus: Available||Joining Bonus: N/A|
Introduction: Bybit vs. Binance
Bybit is a crypto-derivative exchange platform that was founded in March 2018 and is based in Singapore. It is one of the fastest-growing crypto derivatives platforms in the market, with over 1.2 million registered users.
It offers trading in only perpetual futures contracts and allows taking a leveraged position of up to 100X.
Binance is a leading cryptocurrency exchange in the market, and its Futures platform was launched in 2019. It is known for its stable trading platform, liquidity, unique products, and supporting the development of the cryptosphere.
It offers a wide variety of trading products in the derivatives segment that includes perpetual futures contracts, vanilla options, leveraged tokens, etc. And it offers leverage of up to 125X.
Supported Futures Contracts and Leverage offered
Bybit offers trading in 10 different perpetual futures contracts: BTC/USD, ETH/USD, XRP/USD, EOS/USD, BTC/USDT, BCH/USDT, LTC/USDT, XRP/USDT, ETH/USDT, and EOS/USDT.
Bybit is one of the few platforms to offer futures trading with XRP and EOS contracts. It allows taking a leveraged position of up to 100X on BTC/USD inverse perpetual contracts and up to 50X on the rest of the futures contracts.
Binance has a wide range of product offerings in the futures market with over 1100 markets. The product list includes:
- USDT-M Futures: These are similar to traditional standard futures, margined and settled with USDT. The default leverage level is 20X, and the maximum leverage offered is up to 125X.
- COIN-M Perpetual Futures: The COIN-margined perpetual futures are the alternative way to gain exposure in cryptocurrency without owning it. You are offered maximum leverage of up to 125X.
- Binance Vanilla Options: These are European-style option contracts offered on Bitcoin, and the settlement currency is USDT. The leverage level depends on the strike price and expiry of the contract.
Binance Leveraged Token: It is a type of derivatives product that lets you take leveraged exposure to the underlying asset (tokens). Like other leveraged products, the leveraged tokens can also be traded on the spot market and represent a perpetual contract basket.
The price of the leverage token moves along with the price changes in the perpetual contract market. The leverage level differs from the changes in the underlying prices, which usually range between 1.25X to 4X.
Winner: Binance is way ahead with its offers, and experienced traders will benefit a lot. Whereas, Bybit, with fewer offerings, has kept things simple and easier for beginners to start.
Bybit vs. Binance Trading Fee
Bybit follows a maker-fee and taker-fee pricing model. The taker’s fee is 0.075% for market takers, and market makers are offered a maker’s rebate of 0.025%, applicable on both inverse perpetual and USDT contracts.
Binance is primarily known for its competitive trading fee and has a flat trading fee structure for both makers and takers.
The trading fee is based on 30-day trading volume, and the first level (VIP 0) having a trading volume of less than 50BTC charges you 0.1%. When you pay through the BNB token, you are offered a 25% discount on the trading fee.
Winner: In this Bybit vs. Binance fees comparison, Bybit stands ahead.
Deposit & Withdrawal Fees
On Bybit, the deposits can be made through wallet transfer or direct purchase using fiat currency.
There is no deposit fee (except for the fiat-to-crypto conversion).
On Binance, too, there is no deposit fee, but for withdrawals, users need to pay a flat fee that covers the costs of moving cryptocurrencies out from Binance wallet. The withdrawal fee is dependent on the network fee to process a transaction.
The minimum withdrawal limit varies from coin to coin. For example, the minimum limit for withdrawing Bitcoin is 0.001 BTC, and the withdrawing cost is 0.0005BTC.
Winner: Both platforms have more or less have same withdrawal limit and costs.
Bybit vs. Binance Trading Platform
Bybit has an innovative and smart trading platform with a 99.99% system functionality rate and can process 100k transactions per second. This allows it to manage volume surges effectively.
Other features include a state-of-the-art mark and index pricing mechanism that helps avoid unfair liquidation, powerful system APIs that refresh market data at every 20ms frequency, and liquidity depth that enables trades to be executed instantly with minimal price impact, ability to integrate best trading bot services using API keys, etc.
Furthermore, the platform has an intuitive and responsive interface and allows for multiple order-entry types (market, limit, and advanced).
Binance’s derivatives marketplace also has a simple platform interface, similar to its spot trading interface. Despite the wide range of product offerings, the platform is well laid out and can easily switch to different product segments.
Being the top exchange, Binance has unmatched liquidity depth in the market. And, the platform can process over 1.4 million transactions per second (it’s spot and futures combined), thus letting instant order execution with no delay.
Winner: Both exchanges have strong platform architecture.
Account Opening Process
Now, coming to ease of access. Bybit is a non-KYC exchange and has a simple and easy user registration process that can be completed within minutes.
You can open your trading account by using your email-id and password. To fund your trading account, you use the feature wallet transfer or buy BTC, ETH, or USDT using fiat currency.
To trade in the futures segment in Binance, you need to register with the Binance Futures platform separately. Binance is also a non-KYC exchange that allows quick registration using email-id.
Depending on the contract type (USDT-M Futures or COIN-M Futures) you want to trade, you need to deposit funds in the account accordingly. You can either transfer funds or directly buy cryptocurrencies using a credit card.
Winner: Both exchanges have simple account opening and funding processes.
Bybit vs. Binance Security
Security is a significant factor to look at in an exchange before opening an account. Bybit has a robust security management framework in place, two-factor authentication to prevent unauthorized sign-in, and cold-wallet systems for funds security.
The exchange keeps over 90% of users’ funds in an HD cold wallet system with a multisig address mechanism to eliminate fraud chances.
Although Binance had a minor security issue in 2019, the platform is known for its multi-tier security architecture, and two-factor authentication enables it to provide a secure trading environment.
It uses a combination of hot wallets and cold wallets, with most of the funds stored in the cold wallets to secure users’ funds. However, it is advised, users avoid keeping funds in the exchange wallet; rather, they should keep it in Trust Wallet (Binance’s wallet), which is a much secure option.
Winner: Both exchange platforms offer a safe trading experience, but users should always follow the best practices for ensuring the fund’s safety.
Bybit has a 24/7 multilingual customer support team to get your queries answered and issues solved instantly. You can reach them via the live chat feature on the platform. Also, you can write directly at email@example.com mentioning the issue faced or contact @BybitTradinChat at Telegram.
Binance has a virtual chatbot to direct you to the solutions to commonly faced issues. For complex issues, you raise a support ticket via an online form on the website. The responses are sent to the email, and the team is very responsive.
Winner: Bybit live chat feature and multilingual support team give it an edge.
bybit vs. binance: Which is Better and Safer to Use?
In this Bybit vs. Binance Futures review, both the platforms have come out to be good platform futures trading. They both offer flexibility and safety to users. It entirely depends on your trading preference, which exchanges to select.
For instance, with its wide range of product offerings, Binance is suitable for users looking to trade in multiple derivative instruments like perpetual futures contracts or options contracts. Both experienced and professional traders will find good use of Binance Futures.
On the contrary, Bybit has largely focused on building a customer-centric platform. It has successfully eliminated the platform’s noise with fewer offerings, helping traders make informed trade decisions.
Bybit has the advantage of lower trading fees and rich customer support, which makes it suitable for both beginners and professional traders in the derivatives segment.
Therefore, whatever platform you choose will provide the best trading experience.
- 1 Bybit vs. Binance: A Comprehensive Comparison
- 1.1 Introduction: Bybit vs. Binance
- 1.2 Supported Futures Contracts and Leverage offered
- 1.3 Bybit vs. Binance Trading Fee
- 1.4 Deposit & Withdrawal Fees
- 1.5 Bybit vs. Binance Trading Platform
- 1.6 Account Opening Process
- 1.7 Bybit vs. Binance Security
- 1.8 Customer Support