Deciding which crypto exchange is right for your needs can be a difficult process, as your experience, goals, and portfolio interests can all affect which one you should sign up for.
That is where the our showdown series comes to your aid, as we compare the most popular exchanges for you so you can see which one meets your needs. In this comparison we will be looking at Bybit, a quickly rising derivatives exchange, and Binance, one of the top exchanges in the world. Check out the comparison below.
Binance Overview
Binance Exchange is one of the top cryptocurrency exchanges in the world and offers users the most cryptocurrency trading pairs of any trusted exchange, resulting in Binance having the highest trading volume of any crypto exchange.
Founded in 2017 by Changpeng Zhao, Binance quickly became a leading cryptocurrency exchange and has its own crypto called Binance Coin (BNB). Binance offers users ways to purchase crypto assets directly using fiat currencies, credit/debit cards, and bank transfers. Binance can be accessed through its website, desktop, or mobile app.
Binance Pros & Cons
Pros
1. Hundreds of trading pairs and available cryptocurrencies
2. Low trading fees
3. Buy crypto through multiple avenues
4. Mobile app
5. Users can earn up to 10% APY on their holdings
Cons
1. Not available to US citizens
2. High withdrawal fees to external wallets
3. Can be overwhelming for new crypto users
Bybit Quick Overview
ByBit Exchange is a cryptocurrency exchange focused on futures trading. based in Singapore and launched in 2018 the derivatives exchange gives users the ability to trade crypto perpetual contracts with up to 100:1 leverage. ByBit used to only offer a few assets for spot trades but has added lots of assets to their exchange.
Bybit is a crypto-only exchange meaning you can only fund you account with digital currency unless you want to use a third-party to fund with fiat. This combination of a focus on futures trading and crypto only funding makes ByBit more suited to more experienced crypto traders and speculators, and less suitable for crypto newcomers or those looking for an exchange with a diverse range of assets available for purchase and trade.
Bybit Pros & Cons
Pros
1. Easy registration process for website and mobile app
2. Attractive fee structure
3. Fully anonymous exchange
4. Trading bonuses and rewards
Cons
1. Limited crypto asset selection for derivatives
2. Cannot fund account with fiat currency without third-party gateway
Beginner Friendliness
Binance is more beginner friendly than Bybit for beginners, though Bybit has somewhat copied the layout of Binance’s platform and is somewhat similar to navigate. That said, Binance has many more crypto pairs for users to choose from than Bybit, and has more user-friendly buy and sell options, making it a more attractive option for a beginner.
Neither platform is entirely beginner friendly though and both are more suited to traders with at least some experience.
Trust & Security
Bybit and Binance offer top of the industry security for their users, however Bybit has never been hacked and therefore is more trustworthy than Binance at this time.
Binance has been hacked previously, but they were able to cover users’ losses with their insurance fund. Bybit also offers insurance for users’ funds but has not had to use it so far.
Fee Structure
Both Bybit and Binance have extremely low fees, with 0.1% for both maker and taker trades on both platforms. However, Binance gives you the opportunity to get even lower fees when you hold Binance Coin (BNB) and meet certain monthly trading volume thresholds.
Bybit does offer a rebate for maker fees on derivatives trading but otherwise offers no incentives in the form of lower fees on their spot trading. In addition, Bybit has far less pairs than Binance, meaning you may need to execute multiple trades to swap one asset for another whereas Binance may have a direct pair, which would save fees further.
Sign-Up Process
The sign-up process for Bybit and Binance is almost identical because neither requires users to do identity verification if they just wish to deposit and begin trading their previously owned crypto assets.
They both require you to do identity verification once you want to purchase digital assets with your fiat option of choice through one of their fiat gateway partners. There are now some location for which Binance automatically requires full identity verification.
Available Cryptocurrencies
Bybit offers a wide selection of cryptocurrencies, with just under 100 available for trade, but Binance is far and away the better option, with over 175 available, and a ton more trading pair options than Bybit has. Binance also has a wider selection of assets available for derivatives than Bybit does.
Standout Features
Both Binance and Bybit have a number of compelling features that might draw you to their platforms. Here’s a look at a few of the standouts:
Bybit Defi Mining and Dual Asset Mining
Frictionless on-ramp to defi services that let users earn interest rates of up to 20% for mining and over 200% for dual asset mining.
ByBit Flexible Staking
Flexible Staking allows you to stake tokens (BTC, ETH, USDT and USDC) and earn guaranteed yields in the same type of tokens with a high APY. The yield will be auto deposited daily to your account and you can unstake at anytime.
Binance Visa Card
With Binance Visa Card, you can convert and spend cryptocurrencies at more than 60 million merchants worldwide. Just transfer crypto from your Binance Spot Wallet to your Funding Wallet and you are ready to start spending your crypto worldwide.
Binance Liquid Swap
Liquid Swap is a liquidity pool developed based on the AMM (Automatic Market Maker) principle. It consists of different liquidity pools, and each liquidity pool contains two digital tokens or fiat assets. You can provide liquidity in the pools to become a liquidity provider and earn transaction fees and flexible interest.
Conclusion: Binance is #1 for a Reason
When deciding which exchange between Binance and Bybit is better it is not too much of a contest.
This is because Binance offers everything that Bybit does, and then some. In addition, Binance has the highest trading volume of any exchange meaning it is even more liquid to use than Bybit while also having a ton more trading pair options.