In recent months, the surge in crypto prices to record high levels and share of crypto derivatives trading crossing over 50% of the total trading volume has completely changed the market dynamics.
With all the changes happening, new-age crypto exchange platforms have played a crucial role in driving the market changes. Gauging by their market performance and technological features, they are much superior compared to the traditional crypto exchanges.
So, does it make traditional crypto exchanges like Kraken less efficient in this market?
Therefore to check out, we will compare Bybit, a new-age crypto derivatives exchange, and Kraken- one of the oldest crypto exchanges dealing in both the spot and futures market.
So, let’s dive in.
Bybit vs. Kraken: Comprehensive Review
Introduction: Bybit vs Kraken
Bybit was founded in March 2018 and is currently the fastest growing crypto derivatives exchange in the market, with a total user base of over 1.2 million.
Currently, Bybit is ranked fourth in the list of top crypto derivatives exchanges based on trading volume. It only trades in perpetual future contracts with up to 100x leverage.
Kraken is one of the oldest cryptocurrency exchanges in the market, established in 2011 in the US. The exchange offers access to more than 50 coins and trading in over 250 trading pairs.
The platform supports trading in both spot and futures markets and is known for its high liquidity and robust security measures.
Bybit vs. Kraken Futures Contracts & Derivatives
We will only focus on the futures offerings of both platforms.
Bybit offers trading in 10 perpetual futures contracts that include BTC/USD, ETH/USD, XRP/USD, EOS/USD, BTC/USDT, BCH/USDT, LTC/USDT, ETH/USDT, XRP/USD, EOS/USDT.
The platform offers up to 100X leverage on BTC/USD inverse perpetual contracts and up to 50X on the remaining inverse perpetual contracts.
Whereas Kraken offers trading in only five inverse perpetual contracts, including XBT/USD, ETH/USD, LTC/USD, BCH/USD, and XRP/USD.
The exchange platform allows taking leverage positions of up to 50X in futures trading.
Winner: Bybit offers trading in more number of futures contracts with greater leverage.
Bybit vs. Kraken Fees
Bybit classifies traders as market takers or market makers. 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.
Kraken’s fee is based on 30-day volume. In Level 1 (trading volume of up to $100,000), the maker fee is 0.02%, and the taker fee is 0.05%. The trading fee tends to decrease with an increase in trading volume.
Winner: In this Bybit vs. Kraken fee comparison, Bybit is more affordable.
Account opening process
Ease of access is the most important factor in choosing a crypto exchange platform, especially when dealing with futures trading.
Signing up with Bybit is quite easy, and because it is a non-KYC exchange platform, the registration can be completed within minutes. Thus, helping you to maintain privacy.
You can activate your trading account by using just an email-id and password. Also, the platform offers wallet transfer and a fiat-to-crypto purchase option to add funds to start trading.
Whereas Kraken doesn’t offer trading in the futures segment with an unverified account. You need to complete the identity verification to access the futures segment and enable bank transfer functionality.
Winner: Bybit has an easier account opening process and helps to maintain the privacy of crypto traders.
Bybit’s smart trading platform can process 100K transactions per second, which allows it to manage the surge in transactions during the period of heightened volatility.
The platform’s dual price mechanism helps avoid unfair liquidation; high liquidity enables trades to be executed instantly with a minimal price impact. And, powerful APIs enables market data are updated every 20ms.
Other platform features include an advanced, intuitive user-interface trading platform, advanced order system that allows you to set take-profit directly and stop-loss (TP/SL) entry orders, etc.
You can also integrate bot trading services like 3Commas into the platform using API Keys.
Kraken, too is known for its flexible and intuitive user interface trading platform. One of the biggest advantages is, you can make seamless transfers between Kraken Spot and the Futures market. The platform is simple and beginner-friendly.
However, there is very little technical information available about the platform on the website. Therefore, it isn’t easy to gauge the technical superiority of the platform.
Winner: The Bybit vs. Kraken futures trading platform comparison, Bybit scores ahead due to its technical superiority.
Security is at the forefront of all crypto exchanges. Bybit has a robust security management architecture in place to ensure the safety and security of the platform.
It uses an SSL certificate to encrypt the website data and an HD cold wallet system that ensures the complete safety of funds. And, the multi-sig address mechanism eliminates any chances of fraud during the transfer process.
Kraken also deploys state-of-the-art security mechanisms to ensure platform security and the safety of funds. It uses 2FA to prevent unauthorized sign-in and Global Settings Lock that blocks IP addresses that are not associated with your account.
Regarding coin security, 95% of the funds are kept offline, air-gapped, and geographically distributed cold storage systems.
Winner: Both platforms follow a top-notch security mechanism.
Bybit has a multi-lingual customer support system to get your queries answered instantly through the platform’s live chat feature. Separately, you can also write directly at email@example.com mentioning the issue faced.
Kraken offers a live chat feature with its customer support team, or you can also service requests at the support page of the website.
Winner: Bybit multilingual customer support team gives it an edge.
Conclusion: Bybit vs Kraken
If you are a serious trader and want to maximize your earnings through futures trading, then Bybit is the recommended platform for you. In terms of trading options, platform interface, trading fees, and most importantly- leverage, Bybit has a clear advantage over Kraken.
Over the years, Bybit has made many improvements in the platform and has simplified crypto derivatives trading. In fact, Bybit is a few platforms to offer a futures contract on EOS and XRP.
Speaking about Kraken, it is also a good platform and is a beginner-friendly platform. If you want to dabble in both the Spot and Futures market, then you can consider Kraken, but lower leverage and fewer contracts are negative for traders.
I hope this review has cleared your confusion regarding both the platform functionality. Do share your thoughts.