Deribit and Bybit are the two exchanges in the crypto market that specializes only in crypto derivatives trading. In the recent surge in the trading of crypto derivatives products, both the exchanges have performed fairly well and have attracted many users.
Bybit, with over 1.2 million registered users, is ranked fourth in the list of cryptocurrency derivatives exchanges by trading volume. Whereas, Deribit, which offers derivative trading only in Bitcoin and Ethereum, is ranked 10th on the list.
In this blog, we will review both the exchanges and check which one is a better exchange.
Deribit vs. Bybit: A Comprehensive Review
|📖 AML & KYC||Yes||No|
|💰 Supported Coins||21||237|
|🚀 Maximum Leverage||20X||20X|
|⚖️ Taker Fees (Futures Market)||0.05%||0.075%|
|⚖️ Maker Fees (Futures Market)||0.05%||-0.025%|
|🔧 Withdrawal Fees||Yes, varies blockchain to blockchain||Yes, varies blockchain to blockchain|
|➡️ Deposit Fees||0||0|
|📱 Mobile App||No||Yes|
|📝 Demo Account||No||Yes|
|💳 Spot Trading||Yes||Yes|
|📈 Futures & Margin Trading||Yes||Yes|
|🎁 Joining Bonus||N/A||Up to $4450 Bonus|
Deribit was launched in June 2016 and is founded by its CEO John Jansen. It is a Netherland-based exchange. The name Deribit is derived from two words, Deri for derivatives and Bit for Bitcoin.
The exchange specifically caters to experienced traders and allows them to trade in both futures and options.
Bybit was established in March 2018 and is a Singapore-based exchange. It is one of the fastest-growing exchanges in the crypto derivatives space.
The exchange is known for its smart trading system, having the ability to process a voluminous amount of trades. It offers trading in perpetual futures with up to 100X leverage.
Deribit vs. Bybit: Product Offering & Leverage
Deribit offers to trade only Bitcoin and Ethereum perpetual futures, weekly futures, and options with up to 100X leverage.
For options trading, it offers up to 10X leverage and 100X on futures trading.
On the other hand, Bybit allows trading in 13 different perpetual futures contracts, which include:
It also allows trading in inverse futures on two BTC contracts with up to 100X leverage on BTC/USD inverse and BTC/USDT contracts. On the remaining contract type, it offers up to 50X leverage.
Winner: Bybit has a wide range of trading options.
Deribit vs. Bybit: Trading Fees
Deribit has a maker fee and taker fee pricing structure on all its contracts. The following is the rate structure:
- The BTC/Weekly Futures has a maker fee of -0.01% (rebate) and a taker fee of 0.05%.
- On BTC Perpetual and ETH Perpetual, the maker fee is NIL, and the taker fee is 0.05%
- On BTC/ETH option, the maker and taker fee per options contract is 0.03%
Bybit too follows a maker fee and taker fee pricing model on all its contracts. It offers a maker rebate of 0.025% and charges a taker fee of 0.075%, and is applicable on both inverse perpetual and USDT perpetual contracts.
Winner: Bybit has an attractive rate structure.
Deribit vs. Bybit: Trading Platform
Deribit has a web-based trading platform and has an intuitive and easy interface. It claims to be the world’s fastest trade matching engine with less than 1-millisecond latency and supports multiple trading bot software, including FMZ Quant, Haasonline software, and Actant.
Apart from common features that include order books, trading history, and recent trades, the platform offers a range of features like futures, index, and volatility charts, and other range of technical indicators for futures and options trading.
The minimum contract size on the platform is $10 and can be increased in the multiple of $10. Deribit also offers a demo account with 10 BTC worth of demo funds to practice trading strategies.
On Bybit, the minimum contract size is $1 with more following exciting features integrated into the platform that includes:
- TradingView charting software
- One-click coin swaps
- 100,000 transactions per second matching engine
- Powerful APIs that refresh market data every 20 milliseconds
- State-of-the-art mark and index pricing mechanism to avoid unfair liquidation
- 99.99% system functionality
- And, the ability to integrate third-party trading bots through API keys
Winner: Both exchanges have a powerful and stable trading platform
Deribit and Bybit: Account Opening Process
Deribit’s account opening process is easy and fast. You can sign-up using your email id, username, password, and country of residence.
However, before trading and making deposits, all users need to obtain the verified status by completing the KYC process.
To complete the KYC process, users need to provide an ID document, proof-of-residence that reflects the country of residence that includes a utility bill, bank statement, tax bill, or other documents from the local authority.
Bybit is a non-KYC exchange, and you can sign-up by using your email-id and password. The account opening process is real quick, and you can start trading by making fund transfers through wallet transfers or buying BTC, ETH, and USDT using fiat currency.
Winner: Bybit scores ahead due to its non-KYC feature
Deribit vs. Bybit: Platform Security
Deribit team uses multiple security features to provide a secure and safe trading environment that includes real-time auditing, liquidation, and risk management. Some other security features include:
- Use of cold wallet system, in which 99% of the users’ funds are stored
- Two-factor authentication for login and withdrawal
- IP-pinning feature that detects a change in IP address during the session and terminates the ongoing session
- Allows to set the default timeout period for inactivity to adjust session timeout
- Insurance fund to protect bankrupt traders
Bybit too incorporates some solid security mechanisms to protect users’ funds and provide a safe and secure trading environment. It includes:
- SSL encryption to secure website data and traffic
- Use of two-factor authentication for login, withdrawal, and password change
- Use of deterministic & multi-sig cold wallet system
- Insurance fund to decrease the probability of auto-deleveraging
Winner: Both exchange platform uses top-of-the-line security features
Deribit vs Bybit: Customer Support
The Deribit site is available in English, Russian, Chinese, Korean, and Japanese. You can reach the customer support team for general support by writing them directly to firstname.lastname@example.org. And for technical/API support, you can reach email@example.com.
Apart from that, you connect with the customer support team on the Telegram group and Twitter account.
The website also includes a FAQ page and Youtube channel that contains information regarding commonly faced issues and explanatory videos.
Bybit has a 24/7 multilingual customer support team and can provide support through the live chat feature for instant resolution of issues. You can also write to them directly at firstname.lastname@example.org or contact @BybitTradinChat on Telegram.
Winner: Bybit, with its live chat feature, has an advantage
Conclusion: Which is better in 2021?
Choosing between Deribit and Bybit should not be tough for you. Deribit is a platform suitable for experienced traders, and limited product offering is a big disadvantage for the platform.
Bybit, with its low fee structure, anonymous account, deep liquidity, and good customer support service scores ahead. The platform is suitable for beginners as well as experienced traders.
Therefore, if you want to excel in crypto derivatives trading, then Bybit is the platform you should keep faith in.