Today in this comparative guide, we will look at two new crypto derivatives platforms, Phemex and Bybit. Since its launch, both the platforms have generated significant user interest and are also giving tough competition to established players like BitMEX and Deribit.
It’s a difficult choice for traders between the two as both have a solid exchange platform integrated with advanced features to meet the evolving needs of crypto margin trading.
So, if you are confused between these two great options, read this comparative guide before choosing the best one for you.
Phemex Vs. ByBit Overview
Bybit was established in March 2018 and is one of the leading crypto margin trading platforms. In a short period, it has attracted considerable interest from all types of traders, beginners to professionals, for its super intuitive and easy to handle platform.
Currently, it has over 400,000 registered users from throughout the world.
Phemex is a Singapore-based crypto derivatives platform launched on 25th Nov 2019 and is founded by eight ex-Morgan Stanley executives.
The platform is the fastest in the segment and is highly scalable with 300,000 TPS. Currently, it offers perpetual swaps in BTC, ETH, and XRP and has plans to support traditional financial contracts soon.
Leverage & Trading Pairs Available Comparison
Phemex offers trading in six different crypto futures contracts viz. BTC/USD, ETH/USD, XRP/USD, LINK/USD, XTZ/USD, and LTC/USD. All the contracts are quoted and settled in USD.
It offers leverage of up to 100X only on BTC/USD pair and up to 20X on the rest of the crypto pairs.
Whereas, Bybit offers trading in only four different perpetual swaps BTC/USD, ETH/USD, XRP/USD, and EOS/USD. It also offers USDT perpetual for only hedging purposes.
And, regarding leverage, it offers up to 100X leverage on BTCUSD and BTCUSDT futures contracts and up to 50X on the rest three trading pairs.
Trading Fees comparison
Both exchanges follow a maker-fee and taker-fee pricing structure for all their futures contracts and have the same trading fee. Depending on the type of trade (long or short), they offer a maker rebate of 0.025% and charge a taker fee of 0.075%. But because of more trading pairs, your average fee will be less on Phemex.
Phemex, being a newly launched crypto derivative platform, gets an impressive average daily trading volume of over $500 million and is continuously rising. It has more trading pairs also in comparison with ByBit, including GOLD.
On the other hand, Bybit gets an average daily trading volume of over $800 million, of which nearly 75% comes from BTC/USD pairs. In one instance recorded in June 2019, Bybit has received a daily trading volume of $1 billion and $2 billion on consecutive days.
Order Type Comparison
Phemex offers five different order types: market, limit, conditional, stop-loss, and take-profit orders. It also offers two advanced order functions like post-only order, close-on-trigger order. Phemex offers more flexibility to users and helps to make the most of the market.
Whereas, ByBit offers only three order types, limit, market, and conditional orders. It also offers three order life options that include good-till-canceled, immediate-or-cancel, and fill-or-kill.
(Result: ByBit Winner)
Trading Platform Comparison
Both exchanges have a pretty solid trading platform that offers ease of use as well as security. Let’s look at it in detail.
Phemex has built a user-centric platform that meets the evolving needs of crypto margin trading with ease. The platform can easily support 300,000 TPS and has a latency of less than 1 millisecond, ensuring instant trade execution.
The platform is also suitable for large and institutional traders as it provides a state-of-the-art FIX API for the smooth onboarding of traditional institutional clients.
Right now, Phemex offers only a web-based trading platform that is quite intuitive and easy to use. It includes a vertically arranged order book, charting feature from Tradingview.com, and separate widgets for the order form, order position, order history, etc. The trading platform looks cleans and avoids crowding the screen with excessive data flow, which hampers the trading experience.
Phemex uses a fair price marking mechanism to help users avoid forced liquidation either due to lack of funds or market manipulation.
Bybit offers trading services through web-based and mobile applications, giving users a certain degree of flexibility. The trading platform is quite intuitive and has a standard interface similar to that of Phemex.
It uses an advanced Mark & Index Pricing System to provide the most reliable pricing, and the data are shown in real-time on the platform.
Phemex has a slight edge over Bybit as it can handle the evolving needs of the crypto margin trading sphere pretty well, but Bybit is the leader at the moment.
How does Phemex stand against other competitors:
Deposit Limits & Funding Options Comparison
Phemex requires a minimum deposit of 0.00000001 BTC in its trading account, whereas Bybit does not have any limits.
However, funding options differ in both exchanges. Phemex does not support any fiat currencies and has only a BTC funding option. On the other hand, Bybit allows its users to deposit funds in their trading account using BTC, ETH, XRP, EOS, and USDT.
(Result: ByBit Winner )
Security Features Comparison
Phemex has pretty comprehensive security protocols in place to ensure every single user account is secured.
It uses a Hierarchical Deterministic Cold Wallet System, which allows it to assign a unique cold wallet deposit address to its users for wallet security. And processes withdrawal requests only 3 times a day, and each request is audited vigorously.
It uses the Amazon Web Service cloud to secure its machine and system. Apart from this, it has many checks to ensure only whitelisted devices have access to the platform. To ensure user account security, it uses two-factor authentication, a bank-level double-entry bookkeeping system, to prevent any data tampering.
To ensure reliability and seamless service, its trading platform is written on C++, making it an ideal and promising trading system.
Bybit also has comprehensive security protocols for its platform. It stores 100% of user funds in the cold-storage wallet and keeps its own funds in the hot wallet to support trading operations.
All withdrawal requests are manually verified and are subject to three levels of risk-control verification. Apart from this, it has two-factor authentication for user access, encryption techniques, IP whitelisting, and many more.
Both the exchange follows some of the industry’s best security protocols
Customer Support Comparison
Phemex provides 24/7 multilingual customer support through its live chat feature and email. Apart from this, you can also approach the Phemex team through their Telegram group. It also has a knowledge base that helps users to learn about the platform.
Bybit also has a live chat feature and email-based customer support. You can also approach the Bybit customer support team through their multiple social media accounts like Twitter, Reddit, Telegram, etc.
It also has a detailed FAQ page explaining different product features and common issues. Thus both the exchanges offer excellent customer support services.
Being new-age crypto margin trading platforms, the choice between the two is fairly difficult as both platforms are equal. But, if I have to choose one, I will go with Phemex.
Phemex, apart from providing a seamless trading experience, provides users the ability to trade in a multi-asset environment from a single platform combined with features like advanced trading tools and fast & reliable trade execution. With the availability of L3 market data shortly, crypto margin trading will become more rewarding.
If you have any questions or want to share your input, write it in the comment box below.
- 1 Phemex Vs. ByBit Overview