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 compare 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.
Bybit vs. Binance 2022: Head To Head Comparison
|📖 AML & KYC||Yes||No|
|💰 Supported Coins||199||237|
|🚀 Maximum Leverage||20X||20X|
|⚖️ Taker Fees (Futures Market)||0.04%||0.075%|
|⚖️ Maker Fees (Futures Market)||0.02%||-0.025%|
|🔧 Withdrawal Fees||Yes, varies blockchain to blockchain||Yes, varies blockchain to blockchain|
|➡️ Deposit Fees||0||0|
|📱 Mobile App||Yes||Yes|
|📝 Demo Account||Yes||Yes|
|💳 Spot Trading||Yes||Yes|
|📈 Futures & Margin Trading||Yes||Yes|
|🎁 Joining Bonus||N/A||Up to $4450 Bonus|
So, let’s start the review of ByBit exchange vs Binance Futures and know-how do they differ, and let you choose which trading platform is better and safe to use.
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.
Bybit vs Binance: Supported Assets
Both Bybit and Binance support all the major cryptocurrencies like BTC, ETH, LTC, and XRP, and they also have a catalog of other smaller or less known tokens and coins with good potential to give traders more options.
Binance has one of the most extensive coin offerings as it currently supports over 500 digital assets that include its own BNB native token. The exchange allows traders to form hundreds of trading pairs. However, it is worth noting that the exchange supports fewer assets for their Binance.US platform (around 65).
Although there is no clear information on the number of assets on the Bybit platform, the exchange support over 50 cryptos, which is still a good number as it allows traders to form over 100 different trading pairs.
Winner: Binance wins here as it supports more digital assets than Bybit and most other leading crypto exchanges out there.
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 Fees 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 fewer 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.
Bybit vs Binance: Deposit Fees & Withdrawal Fees
On Bybit, the deposits can be made through wallet transfer or direct purchase using fiat currency.
However, for fiat deposits, you have to use the Bybit Fiat Gateway which provides the service through third-party services like Banxa, MoonPay, XanPool, Simplex, E-check, and Capital. There is no deposit fee on Bybit, but you might have to pay for the fiat-to-crypto conversion depending on the third-party service you are using.
On Binance, too, there is no deposit fee, but users need to pay a flat fee for withdrawals that covers the costs of moving cryptocurrencies out from the Binance wallet. The withdrawal fees are dependent on the network fee to process a transaction.
Binance supports more deposit methods than Bybit. Traders can add funds to their accounts through wire, bank transfer, debit/credit cards, and other third-party services that support crypto deposits. That said, the actual methods available to you will depend on your country.
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, liquidity depth that enables trades to be executed instantly with minimal price impact, the ability to integrate the 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 multisign 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 more 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. Moreover, Binance has a good presence across all social media platforms, including some highly active telegram communities that can be very helpful and resourceful when having difficulties.
If contacting customer support is not a viable option for you, both exchanges have a knowledge base and help center with a lot of helpful materials. Their detailed articles and well-answered FAQs should provide more information on what you need to know about crypto and also help answer any queries you have.
Winner: Bybit live chat feature and multilingual support team give it an edge.
Is Bybit safe?
Bybit is a trustworthy crypto exchange that uses advanced security protocols to keep user accounts and their platform secure.
Security has always been a top priority for the exchange, and some of its main security features include mandatory 2FA for withdrawals and changing security settings, and SSL encryption.
Additionally, the exchange stores close to 100% of their assets in offline multi-signature cold wallets. The offline storage means that the assets are always out of reach for hackers if the platform is hacked.
Unlike other trading platforms, Bybit also reviews most withdrawal requests manually to eliminate the risk of unauthorized withdrawal. Also, they are constantly monitoring their platform to ensure any suspicious activities are spotted before they pose any security threat.
Is Bybit a good exchange?
Overall, Bybit is an excellent exchange for all crypto traders. Whether you are a beginner trader just learning how to trade or a more experienced one, the crypto exchange should work for you.
It is easy enough to use for beginners, but it still offers some advanced functionalities and products like crypto derivatives and margin trading to cater to professional traders.
Another element that makes Bybit a suitable exchange is that it offers competitive trading fees. The market takers and makers on their spot market pay 0.1% trading fees. Market makers on their derivatives exchange will not pay any fees and instead get a 0.025% market rebate, while market takers only pay 0.075%.
Are Bybit and Binance the same?
The two are different companies with different product offerings. Bybit focuses more on crypto derivatives, and they will allow traders to open leveraged positions on various contracts such as inverse futures, USD perpetual and inverse perpetual contracts.
Binance is a more general crypto exchange that offers almost all the tradable products you can get in a crypto exchange, from a spot market with deep liquidity to a robust crypto derivatives market. The exchange is also one of the largest globally, given its average daily trading volume and the number of users.
Binance is also available in the USA through their Binance.US platform, but US residents cannot use Bybit as the exchange is not licensed to operate in the market.
Therefore, although the two are some of the largest and most reputable exchanges globally, they are distinct crypto trading platforms.
Have Bybit and Binance ever been hacked?
There have been many hacking incidences in the crypto market over the years. Although most platforms keep improving their security features by adding more advanced systems and protocols, hacking is still a significant threat to both Bybit and Binance.
That said, Bybit has never been hacked in the few years it has been operational. The company uses some of the most advanced security protocols in the market and does regular audits to prevent hacking. Moreover, most of the assets are stored offline, meaning there is zero likelihood of user funds getting stolen even if it was hacked.
Binance was hacked in May 2019, and some user assets were stolen from the platform. However, the company compensated all the traders that lost money from the hack. Also, their US partner platform Binance.US has never been hacked. There has not been any other security incidence on the platform since the 2019 hack.
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, and 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.
The main difference between Bybit and Binance is that 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. Whereas Binance requires a mandatory KYC which is not preferred by many.
Therefore, whatever platform you choose will provide the best trading experience.