For anyone new to the crypto derivatives segment, selecting an exchange platform can be a challenging task.
On the one hand, there are traditional crypto exchanges that have expanded to the crypto derivatives segment. On the other, we have new-age crypto exchanges specializing in crypto derivatives trading.
Compared to the traditional ones, new-age crypto exchanges are becoming more popular due to their unique product and service offering and their accessibility.
This blog will compare two such new-age crypto exchange platforms, FTX and Bybit, and check how they match up and which one is better.
FTX vs. ByBit: A Comprehensive Review
|📖 AML & KYC||No||No|
|💰 Supported Coins||284||237|
|🚀 Maximum Leverage||20X||20X|
|⚖️ Taker Fees (Futures Market)||0.09%||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||No||Yes|
|💳 Spot Trading||Yes||Yes|
|📈 Futures & Margin Trading||Yes||Yes|
|🎁 Joining Bonus||5% Off on Trading Fee||Up to $4450 Bonus|
ByBit is a crypto derivative-only trading platform launched in March 2018 and is registered on the British Virgin Island.
It is known for its powerful platform and is consistently ranked in the top 5 cryptocurrency derivatives exchanges by trading volume. The exchange has over 1.2 million registered users and caters to experienced traders.
FTX is an Alameda Research Ltd. (cryptocurrency liquidity provider) incubated cryptocurrency exchange platform founded in 2018 by Sam Bankman-Fried and Gary Wang. It is backed by leading crypto VC firms, including Binance.
The exchange specializes in margin trading and offers users to trade perpetual futures, options, leveraged tokens, and also spot.
FTX v Bybit: Supported Assets
FTX and Bybit are tip-tier crypto exchanges that support various digital assets to allow traders to have a diverse crypto investment portfolio.
FTX supports over 250 digital assets that are a blend of both popular coins and tokens like BTC, ETH and XRP, and many other less known ones. Traders can also use at least 10 fiat currencies, including USD, GBP, JPY, and EUR. The exchange provides a complete list of the supported coins, including their trading pairs for the spot and futures market and network.
Bybit supports over 80 cryptocurrencies that are also a blend of the traditional and other less known assets. Additionally, it also supports at least 5 fiat currencies for making deposits: USD, EUR, GBP, CAD, AED, and AUD.
Winner: FTX supports more crypto assets than Bybit
FTX vs. ByBit: Product Offering and Leverage
Bybit supports only inverse perpetual and USDT perpetual futures contracts on its platform. The futures contract include:
BTC/USD, ETH/USD, EOS/USD, XRP/USD, BTC/USDT, ETH/USDT, BCH/USDT, LTC/USDT, XTZ/USDT, LINK/USDT, ADA/USDT, DOT/USDT, and UNO/USDT.
It offers maximum leverage of 100X on BTC/USD and BTC/USDT contracts. And, for remaining trading pairs, the maximum leverage offered is 50X.
FTX supports trading in the following markets in the crypto derivative segment:
- Futures: It supports crypto futures trading in over 150 perpetual and quarterly futures market
- Leveraged tokens: Allows taking a leveraged position in 45 ERC-20 tokens with a maximum leverage of up to 3X
- Options: Bitcoin options contracts settled in USD
- MOVE: MOVE contracts are FTX’s unique Bitcoin futures contracts that come with daily, weekly, and quarterly expiry
FTX offers leverage of up to 101X on futures and options contracts. However, you need to set the default leverage level of 50X, 100X, or 101X, based on your trading preference and risk appetite.
FTX v Bybit: Trading Fee
FTX has a tiered fee structure for all the futures contracts divided into six levels (Tier1-6) based on the last 30-day trading volume.
For the first level (Tier 1), with a trading volume less than the US $2,000,000, the maker fee is 0.020%, and the taker fee is 0.070%. For the last level (Tier 6), with a cumulative trading volume of over 50,000,000, the maker fee is nil, and the taker fee is 0.040%.
Traders using the leverage of 50X increase the trading fee by 0.02%, while for leverage of 100X and higher, the trading fee increases by 0.03%. However, this increased fee structure does not apply to BTC-Perp and ETH-Perp contracts.
FTT token holders are offered discounts on trading fees based on the quantum of holding.
Bybit has a flat fee rate structure on all its futures contracts. The maker’s (liquidity provider) are offered a maker’s rebate of 0.025%, and takers are charged a taker’s fee of 0.075%.
FTX vs. Bybit: Trading Platform
FTX provides institutional-grade services to its users. It has a very responsive trading platform with some top-class features incorporated into the platform like deep liquidity and order books, a tradingview charting system, and a state-of-the-art liquidation engine that uses intelligent and efficient values to choose the liquidation process.
The liquidation engine sends gradual and limited liquidation warnings to users to close the position if the maintenance margin falls below 4.5%.
ByBit too has an innovative and smart trading platform that offers a significant market depth, ultra-fast order matching engine which can process up to 100K TPS, a state-of-the-art mark & index pricing mechanism to prevent unfair liquidation, powerful APIs that refreshes market data every 20ms and 99.99% system functionality rate.
You can also integrate third-party bot trading services into the platform through API keys.
Winner: Both exchanges have powerful and stable trading platforms.
FTX vs. Bybit: Account Opening Process
FTX has a straightforward and easy account creation process. To access the entire platform functionality, here, you need to complete the identity verification process.
Initially, you can register using your email-id and password and start trading, but you can withdraw up to $1000 only in the account’s lifetime, also called a Level-0 account. To enable higher withdrawal limits, you need to complete the identity verification process and other required KYC procedures mandated by the exchange.
Bybit, on the other hand, is a no-KYC exchange. You can register using your email-id and password and start trading.
The user-registration process is easy and simple and is completed within minutes. You can fund the account either through the wallet transfer feature or by buying BTC, ETH, or USDT using fiat currency.
FTX vs. Bybit: Platform Security
There is very little information on the FTX website about the security features incorporated into the platform. But, from the user’s end, there are a few stringent security checks to prevent unauthorized system access:
- Use of strong password
- Two-factor authentication for login, placing withdrawal requests, and changing password
- Withdrawal lock after 2FA removal or password change
- Monitoring of user account activity to detect any suspicious activity
Additionally, FTX uses SSL encryption to secure website data, whitelisting IP addresses, and wallet addresses.
Bybit incorporates solid security features into the platform to offer a safe and secure trading environment to its users. It includes SSL encryption to secure website data, two-factor authentication using email, SMS, or authentication apps, a deterministic & multi-sig cold wallet system, and an insurance fund to decrease the probability of auto-deleveraging.
Winner: Both the exchanges provide a secure trading environment
FTX vs. Bybit: Customer Support
FTX has extensive customer support resources, including a knowledge base, social media accounts, and Telegram communities. It offers Telegram chat groups in over 10 languages to offer personalized services.
You can also connect the customer support team directly at firstname.lastname@example.org and email@example.com (for Korean users)
Bybit has a 24/7 multilingual customer support team and provides support through the live chat feature. You can reach them via the live chat feature on the platform. Also, you can write about the issue directly at firstname.lastname@example.org or contact @BybitTradinChat at Telegram.
Winner: With live chat functionality, Bybit has the edge over FTX
FTX Vs. Bybit: Liquidation Mechanism
When the margin for your position gets to the maintenance margin level, crypto exchanges will trigger liquidation. Liquidation aims to help prevent massive losses for the traders and ensure the positions’ debts are paid before bankruptcy.
FTX uses a 3-tier liquidation mechanism that aims to minimize the likelihood of clawback. To start with, the liquidation mechanisms will close the position carefully using rate-limited liquidation orders from the market. Once the liquidation engines take over, traders cannot send orders on their accounts.
For accounts that fall further close to the bankruptcy price even with the tier 1 mechanisms above, the backstop liquidity provider systems will kick in. The third tier comes in if the position falls to bankruptcy. Here, an insurance fund is utilized to bring the account back to zero to prevent massive customer losses by ensuring they do not lose more than they invested.
Bybit will liquidate a position when the mark price, which is the average asset price calculated from several top exchanges, hits the liquidation price. The last traded price will not be used to trigger liquidation but will be used to determine the closing price of the position.
The Bybit liquidation engine will also use a dual-price mechanism to prevent market manipulation. Market cap is relatively small in crypto exchanges, so it is easy to manipulate during liquidation, hence the need for the dual-price mechanism.
Another important point to note is that, unlike with many other exchanges, the maintenance margin on Bybit is fixed at 0.5% of the liquidation price. Therefore, the Bybit liquidation engines will only close down your position when you have just 0.5% of your initial margin remaining.
The Bybit liquidation mechanism means that Bybit will never close your position partially, which ensures you do not lose out on any potential gains until you use your initial margin almost used up entirely.
Winner: With the 3-tier liquidation mechanism that is more effective at preventing customer losses, FTX is the winner here.
FTX v Bybit: KYC Verification
FTX enforces mandatory KYC verification, which is one of the reasons they have one of the secrets platforms. Traders registered on the platform without undergoing verification can only explore the site but not deposit, trade or withdraw.
FTX has two tiers of KYC verification. Traders at tier 1 will have a daily withdrawal limit of $2,000 or its crypto equivalent but no deposit limits. Those with tier 2 verification have unlimited access to the site with no deposit and withdrawal limits.
Bybit does not have mandatory KYC verification, meaning you can set up an account and start trading immediately. However, traders that do not do any verification have a daily withdrawal limit of 2 BTC.
Like FTX, Bybit also has two levels of KYC verification for individuals: level 1 and level 2. Traders have to prove their identity for level 1 verification, increasing their daily withdrawal limit to 50 BTC. For level 2 verification, you also need to prove your address, which gives you a daily withdrawal limit of 100 BTC.
Winner: Bybit wins here as it does not enforce mandatory KYC verification, meaning anonymous trading is possible.
- Is FTX a good exchange?
FTX is a good and trustworthy crypto exchange with a lot to offer to beginner and professional traders worldwide. To start with, the crypto trading platform has a diverse product offering that includes both spot trading and crypto derivatives trading with up to 100X leverage.
Additionally, the exchange has some of the lowest crypto trading fees for their spot and crypto derivatives market. Traders with high 30-day volumes (over $25 million) will not need to pay any maker fees, and their taker fees can be as low as 0.04%.
FTX is also one of the few exchanges you can use in the USA, thanks to their FTX.US platform that already supports over 20 digital assets and provides access to crypto derivatives and margin trading for US traders.
Overall, the exchange is also secure enough with some highly advanced security protocols, and it offers excellent customer support available round the clock in multiple languages.
- Is Bybit a good trading platform?
Bybit is among the top 10 crypto exchanges based on their average daily trading volume that is currently close to $10 billion. Therefore, you can be sure the exchange has a deep enough liquidity, which is one of the key factors that define a good trading platform.
The exchange also guarantees one of the smoothest trading experiences, whether you are using their mobile app or web-based platform. There are no serve downtimes on the exchange, and the system provides a functionality rate of 99.99% to allow for smooth round-the-clock trading.
Like FTX, the trading fees are also quite low. The exchange gives traders a 0.025% maker rebate for adding liquidity to their books and charges liquidity takers 0.075%. Spot trading fees are also fairly low compared to other spot markets as the exchange charges 0.1% per transaction.
Overall, Bybit has an easy-to-use trading interface with various order types and several useful tools like advanced charts and indicators that will ensure traders have an excellent trading experience.
Conclusion: Which is Better?
It’s a difficult choice between the two platforms.
The main difference between FTX and Bybit is that FTX offers more trading products like Futures, Leveraged Tokens and Options as compared to Bybit exchange. Therefore, if you are looking to trade more than just perpetual futures contracts and don’t have any issues with the identity verification and KYC process, you can definitely go for FTX.
Otherwise, you can consider Bybit, which has established itself as a customer-centric platform and is known for its smart trading platform.
- 1 FTX vs. ByBit: A Comprehensive Review
- 1.1 FTX v Bybit: Supported Assets
- 1.2 FTX vs. ByBit: Product Offering and Leverage
- 1.3 FTX v Bybit: Trading Fee
- 1.4 FTX vs. Bybit: Trading Platform
- 1.5 FTX vs. Bybit: Account Opening Process
- 1.6 FTX vs. Bybit: Platform Security
- 1.7 FTX vs. Bybit: Customer Support
- 1.8 FTX Vs. Bybit: Liquidation Mechanism
- 1.9 FTX v Bybit: KYC Verification
- 1.10 FAQs