In recent months, the surge in crypto prices to record high levels and the 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
|📖 AML & KYC||Yes||No|
|💰 Supported Coins||28||237|
|🚀 Maximum Leverage||20X||20X|
|⚖️ Taker Fees (Futures Market)||0.05%||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 $2000 Bonus|
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.
Bybit vs Kraken 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 enable market data to be updated every 20ms.
Other platform features include an advanced, intuitive user-interface trading platform, an 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 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 firstname.lastname@example.org 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’s multilingual customer support team gives it an edge.
- Is Bybit a good trading platform?
Bybit is one of the best places to trade crypto, and the fact that more than 5 million traders are already registered on the platform is a good indication of this. Moreover, the exchange has excellent liquidity thanks to daily trading volume that is currently averaging over $10 billion.
The crypto exchange is also a good platform for experienced traders looking for a platform that offers advanced tools to allow them to execute complex trading strategies. However, it still caters to the less experienced traders by offering an intuitive interface with multiple order types like market, stop-loss, take profit and limit orders for easy order execution.
Additionally, the platform charges relatively lower trading fees for their spot and derivatives markets. Traders on their spot market will pay just 0.1% per transaction, while those on the derivatives market get a 0.025% maker rebate and pay just 0.075% in taker fees.
And to crown all this up, the exchange is highly secure and has excellent customer support, which are key things that define a good crypto exchange.
- Is Kraken a good crypto exchange for beginners?
Kraken is an excellent platform for both new and experienced crypto traders. The crypto trading platform offers a simple and intuitive platform that is easy to figure out even for absolute newbies.
Traders just starting will also appreciate their highly helpful user guides. These guides make it easier to figure out their systems and help improve crypto knowledge for these novice traders.
Also, the exchange offers new traders access to a wide array of digital assets without overwhelming them with too many assets to choose from like other top exchanges. The platform has around 125 coins and tokens which are more than enough for novice traders.
The signup process is also not complicated for beginners as you only need to provide basic information like your email and create a password, which only takes a few minutes
- Is Kraken better than Binance?
Binance is one of the largest crypto exchanges in the world, given the daily trading volume that is currently averaging over $20 billion. Kraken is a more straightforward platform to use and one of the few registered to operate in the US market.
Therefore, when it comes to deciding which one is better between these two, it will largely depend on your preferences and what you are looking for in a crypto exchange.
If you are looking for a platform that offers a wide variety of products, low fees, and a smooth trading experience, Binance is the better of the two. However, if you prefer a regulated and highly secure platform that has never been hacked, Kraken is the better choice.
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.