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
ByBit is a crypto derivative-only trading platform launched in March 2018 and is registered in British Virgin Island.
It is known for its powerful platform and is consistently ranked in the top 5 cryptocurrency derivatives exchange 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 vs. ByBit: Product Offering and Leverage
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.
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 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 cumulative trading volume 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 a 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 users ends, there are a few stringent security checks to prevent unauthorized system access:
- Use of strong password
- Two-factor authentication for login, placing withdrawal request, 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 email@example.com and firstname.lastname@example.org (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 email@example.com or contact @BybitTradinChat at Telegram.
Winner: With live chat functionality, Bybit has the edge over FTX
Conclusion: Which is Better?
It’s a difficult choice between the two platforms.
The only major point of difference is the product range, where FTX scores ahead. 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.