Binance vs ByBit: Which Exchange Is Better?

Binance and Bybit are two of the most popular crypto trading platforms, especially for aspiring traders. The two exchanges support a wide variety of cryptocurrencies and offer numerous features to users.

This review explores Binance vs ByBit exchange and how their offerings differ so that you can choose the best platform for your trading needs. 

About the Exchanges

Binance

It is improbable that a cryptocurrency investor has never come across Binance or, at the very least, given some thought to the possibility of using it as a marketplace for their crypto endeavors.

Namely, Binance is the leading cryptocurrency exchange in the industry that allows traders to engage in spot trading and derivatives trading on more than 400 different currency pairings. 

This exchange has made a name for itself by providing a reliable trading platform, a vast selection of cryptocurrency, new and innovative financial products, and enthusiastic support for the growth of the cryptocurrency industry. Binance is also the cryptocurrency exchange that leads the industry in terms of the number of users and the volume of trades conducted.

This should not come as a surprise, given that this global fintech company, founded by Changpeng Zhao, currently ranks top in the world in several key metrics, including trading options, forms of payment, the backing of fiat currencies, and other rankings. 

In addition, this platform boasts deep liquidity and the lowest overall cost structure for trading a wide variety of digital assets.

Bybit

Bybit is an international cryptocurrency exchange for trading cryptocurrency derivatives and futures, with headquarters in Singapore. Bybit’s CEO, Ben Zhou, saw the need for a more focused approach to the crypto market as the demand for digital currencies like Bitcoin (BTC) grew steadily.

As a direct consequence of this, Zhou and his team of forward-thinking blockchain professionals established the Bybit trading platform to assist all cryptocurrency enthusiasts in attaining financial independence. Consequently, Bybit was built on the idea that the needs of the people who use its services are more important than anything else. 

Furthermore, this platform provides you with a one-of-a-kind experience in trading cryptocurrencies and a wide range of advanced trading choices thanks to its cutting-edge blockchain technology and lightning-fast order-matching algorithms. Additionally, the platform can process up to 100,000 transactions per second, making it one of the fastest platforms available.

The company works tirelessly to provide commercial and institutional clients with a safe, simple, and lightning-fast ecosystem for electronic sales, cryptocurrency mining, and staking.

Pros and Cons

Binance Pros

• Provides access to financial services appropriate for novice as well as experienced traders;
• Provides support for trading in margin, derivatives, and futures;
• Traders that live in the United States can use their specialized platform;
• Has some of the cheapest trading fees in the industry;
• Has the most cryptocurrency and fiat currency options;
• Has a wide variety of investment choices.

Binance Cons

• The platform is not regulated;
• The large variety of trading products available could be overwhelming for novice investors;
• Has regulatory concerns with a number of countries;
• Has a history of security breaches. 

Bybit Pros

• Leverage of up to 100x on both ETH/USD and BTC/USD pairs;
• Market-optimized, high-performance API for rapid trades and updates;
• Elaborate charts for analyzing the market’s swings;
• 24/7 live chat customer support;
• Enables copy trading;
• NFT market.

Bybit Cons

• Unfortunately, US investors are locked out; 
• Withdrawal fees are higher than average.

Binance vs Bybit: The Crypto Exchange Comparison 

Opening an Account

The procedure of opening an account on Binance is relatively straightforward. However, traders interested in futures contracts must register their trading account on a distinct variant of the platform known as Binance Futures. This particular platform is not accessible from every region of the world.

To have access to all of this exchange’s functionality, users must first pass a Know Your Customer (KYC) verification process. On the other hand, users in certain parts of the world do not need to comply with this requirement.

The registration procedure for Bybit is also uncomplicated and only takes a few minutes to complete. Users can register for an account by providing their email addresses and creating a password. 

In addition, the Bybit exchange’s security protocol mandates that users go through the KYC verification process. In turn, the KYC procedure bolsters the system’s overall security and raises the maximum amount that users can withdraw. Two KYC verification increases the withdrawal amount to 50 or 100 BTC, depending on the chosen tier.

Main Features 

Binance

Since Binance has the widest range of trading instruments in the industry, this platform meets the needs of every trader. 

To begin, Binance’s P2P market eliminates the need for any kind of middleman by directly connecting buyers and sellers. It is a straightforward platform that enables users to trade cryptocurrencies directly. Even while peer-to-peer trading allows for greater levels of independence in the trading process, a reliable third party such as Binance is still required to guarantee the continuity of transactions and the safety of user assets.

One of the financial products available on Binance that I found especially enjoyable was the perpetual futures market. The reason for this is straightforward: traders can lock in a specific price for the settlement of a deal at a later date, regardless of how the underlying asset’s value has changed in the meantime. Additionally, this trading strategy enables you to acquire extensive market exposure while requiring a small investment of funds.

When speculating on the future value of a cryptocurrency through a futures exchange, the exchange will require collateral. Through Binance’s Cross Collateral service, you can borrow virtual currencies on whatever terms Binance deems suitable for your strategy involving futures trading.

ByBit

If you’re familiar with cryptocurrency exchanges, let me describe the advantages of ByBit by stating that it’s not like the other platforms. Namely, the primary purpose of the Bybit exchange is to facilitate the purchase and sale of derivative contracts derived from cryptocurrencies.

Digital assets can be bought and owned on regular exchanges. Still, derivatives trading, also called contract trading, is a type of trading in which the value of a financial product is based on the worth of the underlying asset.

ByBit enables you to trade derivatives on various contracts and provides a copy trading option to make the procedure easier for you to understand and implement. Copy trading allows you to effortlessly and quickly imitate the investment strategy currently producing the best results, all while saving you money and effort through automation.

In addition, market makers frequently use margin accounts to boost the profits they could make from attractive offers. A trader who borrows money to trade on the cryptocurrency market can thus make more money with the same initial investment. 

The vast majority of cryptocurrency exchanges do not offer margin trading, and even the minority that does typically provide only a minimal amount of leverage. To this end, Bybit permits up to 100x leverage, which is more than sufficient for most crypto investors accustomed to getting a maximum of 5x leverage on most platforms.

On the other hand, ByBit isn’t just a gateway to the crypto world. Many passive income streams can be triggered automatically through this platform. One such location is the Rewards Hub, where you can earn points toward prizes worth up to $600. To receive rewards, all you have to do is open a ByBit trading account, complete some simple in-app tasks, and withdraw your earnings.

Supported Cryptocurrencies

Binance has one of the broadest currency offerings because it presently offers over 600 digital assets, one of which is the exchange’s native token, denoted by the symbol BNB. Traders can create hundreds of different trading pairs using the marketplace. 

Having said that, it is important to point out that the exchange only supports a limited number of assets for its Binance.US platform.

On the other hand, Bybit offers over 160 digital assets for instant trading and over 100 perpetual and quarterly futures contracts. In addition, Bybit’s fiat gateway accepts deposits in nearly all popular fiat currencies if you’d rather use your native currency to fund your trading account. 

Despite the fact that Bybit doesn’t allow direct transfers of fiat money, you can reach the fiat gateway by clicking the Buy Crypto icon on the top left of the dashboard. You can make deposits in more than 50 fiat currencies, which can be quickly and simply converted into Bitcoin, Ethereum, or USDT. 

After this process is complete, a directory of currency exchanges will appear to the right. When you click the Buy button, you’ll be taken to the site where you can make your purchase using the selected fiat currency.

Payment Methods

Binance supports a wide range of payment methods to facilitate the purchase of Bitcoin and other digital currencies – from Visa and Mastercard credit or debit cards to SEPA or wire transfers, transfers between bank accounts (P2P), and third-party payment processors such as Simplex.

On the other hand, considering that you have to pay a fee of 3.5% for every transaction or 10 USD (depending on which is higher), I believe this to be one of the costlier payment methods on Binance.

As said before, the platform accepts a wide range of fiat currencies, such as the Australian Dollar (AUD), the Canadian Dollar (CAD), the Euro (EUR), the Japanese Yen (JPY), the British Pound (GBP), and the Swiss Franc (CHF) among others.

In comparison, Bybit accepts deposits made via EFT, bank transfer, and several other payment methods. Moreover, Bybit collaborates with Banxa, Xanpool, and MoonPay to facilitate the ability to send and receive fiat currency across national borders via wire transfer.

Trading Fees and Limits

Binance is strongly associated with its low trading fees, and both market makers and market takers pay the same flat trading fee. The trading fee is calculated depending on the total trading volume over a period of 30 days, with the first level (VIP 0) charging 0.1% if your 30-day trading volume is less than 50 BTC. Additionally, the trading cost is reduced by 25% if paid with the BNB coin.

The fact that Binance does not charge any fees for fiat or crypto deposits makes it, in my opinion, the greatest alternative for active investors looking to make deposits. On the other hand, you can try to fill your Binance account with a credit card or a bank transfer if you are a beginner with only a few coins in your possession. 

Please keep in mind that depending on your situation and how you choose to make deposits, you may have to pay extra fees. For instance, sending money from one bank account to another is normally free of charge, while using a debit card to make a purchase typically results in costs. Binance, in particular, applies a fee of 1.8% on deposits made using a bank card.

Similarly to other P2P marketplaces, Bybit takes a cut from each transaction. Bybit doesn’t charge any fees for buying or selling a cryptocurrency with fiat currency or vice versa. Depending on your payment method, you could be subject to transaction fees charged by their payment service.

Every trade you make on the cutting-edge Bybit trading platform will also cost you a maker/taker charge. There is a 0.075% fee assessed to market makers who fill orders out from the order book. What sets this platform unique from others is its refund to market makers for their trading operations, which is 0.025%.

Financing fees and funding rates are what traders must pay when borrowing assets for purposes like margin trading. This cost is subject to change depending on the rate of interest and market conditions, which in turn affects the financing rate.

How Safe Are Binance and Bybit?

Binance makes use of a wide variety of various security protocols in order to defend its network and trading accounts against the fraudulent operations of cyber criminals. Both the Know Your Customer (KYC) and two-factor authentication (2FA) protocols fall into this category, with 2FA typically being activated by either a text message or Google Authenticator.

Because the findings of my research on the security of this platform were less favorable than I had hoped for, I feel obligated to highlight the regulatory issues that exist in a slew of countries regarding Binance’s unregulated services.

Bybit, on the other hand, is a cryptocurrency exchange based in the British Virgin Islands. Hence, it is exempt from the requirement that all its present and potential customers undergo KYC checks and only requires identity verification for large withdrawals. 

Although there have been no security breaches on the ByBit platform, you should be aware that Bybit operates outside any conventional regulatory framework.

However, rest assured that your financial and personal data are protected on Bybit since the company takes user security and privacy seriously. The monitoring of public Wi-Fi networks by Bybit ensures the greatest levels of online security possible for your personal information.

To further guarantee the safety of your assets, this trading platform uses many authentication methods, including the 2FA protocol, multi-signature identification, and cold wallet technologies.

Customer Support

Customer support is one of the areas where Binance needs improvement, particularly in terms of how quickly it responds to user inquiries. Still, the Help Centre offers a plethora of information you can use to educate yourself about the marketplace and find quick solutions to your problems.

Back to Bybit now. One of the most appealing features of an exchange is the security of knowing that someone is there to lend you a hand if you encounter difficulties while dealing with high-risk products like derivatives and leverage trading. Customers can get in touch with ByBit’s helpful staff via live chat any time of day or night.

You can contact one of the ByBit assistants by clicking the helpdesk icon in the top right-hand corner of the UI. All you have to do is type in your query, and the software will return the most relevant results. If you still need assistance after reading this, you can always try the live chat feature.

In my experience, it usually takes between eight and fifteen minutes before a customer service representative answers your question. The response time of the ByBit customer service team isn’t impressive, but it’s better than just having an email address at your disposal.

Mobile Trading

The Binance app serves as a central location for the trading of cryptocurrencies. It offers users a wide range of cryptocurrencies and fiat currencies for trading, in addition to a number of useful payment systems, such as loan application forms, crypto lending and staking options, and more.

If high-risk instruments like leveraged futures and margin trading are your thing, I think you can still use Binance’s mobile trading platform with confidence.

The Bybit mobile trading app is a top-tier piece of software with a clean design, lightning-fast performance, and a plethora of useful tools. It works with both Apple and Google’s mobile operating systems. One of the things I enjoyed best about this app was that it provides access to all of the same features, indices, and trading tools that are available via the website.

How Do Binance and Bybit Compare to Other Crypto Exchanges

Binance vs Bybit vs Coinbase

Bybit and Coinbase represent polar opposites in the realm of cryptocurrencies, while Binance provides the best of the two worlds as it’s a platform suitable for both professional traders and beginners and also offers some of the lowest trading fees in the industry. 

While Coinbase is the simplest platform for beginners, Bybit works with highly volatile crypto products that are difficult to manage even for crypto specialists, as they, too, have to pay close attention to market fluctuations. 

Last but not least, one more key difference stands out when comparing these three cryptocurrency exchanges. Coinbase’s trading fees are way higher than those of Binance or Bybit. 

Conclusion

There must be a good reason why so many individuals put their faith in the Binance cryptocurrency exchange. The service’s appeal has grown as the company has added various additional features over the years of its development.

The adoption of the local BNB currency is also noteworthy, as traders can use it to reduce transaction fees. No matter your trading preferences, Binance is sure to provide you with a wide variety of exciting new opportunities.

When it comes to ByBit, I don’t think this exchange is for people who are just starting. ByBit, like Binance, has numerous tools to help you trade successfully, but the variety of trading instruments could be overwhelming for newcomers to the market.

Ultimately, examining the technicalities of several exchanges is the best method to determine which option is the better fit for your trading needs. A thorough analysis will show you which of the different markets best meets your needs.