Binance versus Bybit: Which Exchange Is Better for Trading?

We compared Bybit and Binance, which are dominant players in the world of cryptocurrency exchanges, each with unique offerings.

With the ongoing evolution of the digital asset market, investors face a critical choice between these two options.

While Binance is currently the top crypto exchange in terms of trading volume, Bybit is rapidly gaining popularity due to its user-friendly interface and emphasis on derivatives trading.

This detailed analysis compares Bybit and Binance, uncovering the intricacies that differentiate them and exploring which one might better align with your investment needs.

Source note: All figures and data used in this article were current and accurate at the time of publication.

Is Binance safer than Bybit?

This section examines whether Binance or Bybit offers a more secure environment for digital assets. We compare their safety features and track records to help you decide which platform best protects your crypto.

Basic defenses

Binance and Bybit offer two-factor authentication (MFA) and comply with KYC/AML regulations. This secures your account and deters illegal activities.

Cold storage

Bybit surpasses Binance here. Bybit stores most assets in cold wallets, offering superior protection against hacking. Binance uses a mix of hot and cold wallets, increasing vulnerability.

Audits & Insurance

Both platforms undergo security audits. However, Binance boasts a Secure Asset Fund for Users (SAFU) – a financial safety net for user assets in emergencies. Bybit currently lacks such insurance.

Decision: It’s close. Bybit wins on cold storage, but Binance counters with SAFU. The US SEC’s lawsuit against Binance has been placed on hold.

Which exchange is regulated in the US?

Before we dive into the features, let’s settle on a key difference: regulations. Binance US operates as a licensed Money Services Business, while Bybit doesn’t have equivalent US licensing. Here’s a breakdown:

Region	Binance’s Regulations	Bybit’s Regulations
United States	FinCEN-registered MSB (Binance US)	None
Europe	Registered DASP in France, Italy, and Spain	Attempting to secure a European MiCA license in Austria, temporarily suspended services for EEA. Regulated in Malta
Middle East	Dubai – VARA Specialist License, Bahrain – CBB License	Dubai – MVP License
Others	FCA (UK), ASC (Canada), Registered with AUSTRAC (Australia), may obtain a securities brokerage license in Brazil	Registered with Seychelles FSA and Mauritius FSC (VASP), secured license in Kazakhstan

Binance also boasts a wider reach with regulatory approval in various regions, including:

• US (Limited): Binance US operates as a licensed Money Services business.
• Europe: Offers crypto-related services under regulations in France, Italy, and Spain.
• Middle East: Licensed in Dubai by VARA and Bahrain by CBB.
• Other: Registered with financial authorities in Canada, Australia, and Kazakhstan. The central bank of Brazil approved Binance’s acquisition of Sim;paul Investimentos, which means the exchange may now hold a securities brokerage license in Brazil.

Bybit focuses on global operations but with a lighter regulatory footprint:

• Dubai: Holds a minimal viable product (MVP) license from VARA.
• Europe: Regulated by the Maltese authorities. It was removed from France’s Autorité des Marchés Financiers (AMF) blacklist and is in the progress of obtaining a MiCA license in Austria.
• Global: Registered with financial authorities in Seychelles and Mauritius.

Which exchange has better trading features?

Choosing the right crypto exchange hinges on transaction fees. This head-to-head between Binance and Bybit dissects their cost structures to help you pick the most cost-effective platform.

Spot trading fees

Binance boasts some of the lowest spot trading fees in the industry, with discounts for holding Binance Coin (BNB). Bybit counters with a competitive maker-taker fee structure.

Copy trading

Both exchanges offer copy trading features to their clients. In December 2024, Binance added a new feature, ‘Lead Trader Comparision.’ Users can compare up to 4 Lead Traders to see which one best suits their needs.

Bybit also provides a similar option; however, the focus is mainly on derivatives and futures (leveraged products), while Binance also offers great exposure to spot trading.

Margin trading fees

Bybit takes the lead here. It offers lower margin trading fees compared to Binance.

Deposit and Withdrawal Fees

Binance and Bybit accept various deposit methods, but the associated fees may vary. Binance P2P allows traders to engage in peer-to-peer trading to reduce deposit fees. Bybit generally keeps the deposit fees for most cryptocurrencies at a minimum. However, withdrawal fees differ based on the specific coin selected.

KYC overview

Both Binance and Bybit offer different KYC verification levels. Bybit’s higher KYC levels unlock features like higher withdrawal limits. Binance news suggests they might introduce similar KYC-linked benefits in the future.

Mobile app

Both Binance and Bybit provide user-friendly mobile apps for trading on the go. Binance’s app is consistently rated among the best in the industry, offering a wide range of features and functionalities. Bybit’s app is known for its sleek design and ease of use, making it a good option for new traders.

The verdict

If you are interested in spot trading, Binance provides a great option with its low fees and BNB discounts. On the other hand, if you prefer margin trading, Bybit may be a better choice due to its lower margin fees. Before making a decision, it’s important to consider your trading style and preferred features. Both platforms also offer mobile apps for convenient trading.

Feature	Binance	Bybit
Spot Trading Fees	Lower, with BNB discounts	Competitive maker-taker fees
Margin Trading Fees	Higher	Lower
Deposit Fees	Can vary, P2P option available	Mostly minimal
Withdrawal Fees	Vary by coin	Vary by coin
KYC Impact	Potential future benefits for higher tiers	Higher withdrawal limits for higher tiers
Mobile App	Available	Available

Which exchange is more innovative?

Regarding innovation in the cryptocurrency exchange space, both Binance and Bybit have made significant strides, each showcasing unique features and advancements.

Binance, one of the largest exchanges globally, has continuously pushed boundaries with its diverse range of products and services, including the introduction of Binance Smart Chain and its native token, BNB.

Bybit, on the other hand, has gained traction for its user-friendly interface and advanced trading tools, particularly in derivatives trading.

While Binance has a broader reach and more extensive offerings, Bybit has carved out a niche focusing on perpetual contracts and leveraged trading.

Recent news

Despite its history, Binance is constantly pushing the boundaries of innovation. Their new platform, Binance Megadrop, gamifies token launches by combining airdrops with Web3 quests.

Users can earn rewards from new projects before they hit the exchange. This unique approach educates users and fosters early engagement within the crypto ecosystem.

Bybit, however, focuses on refining existing features. Their upgraded Spot Grid 3.0 bot offers more flexibility and control. Users can now choose between three investment modes and a wider grid range, allowing for more nuanced trading strategies.

While Bybit innovates through improvements, Binance takes a bolder approach with entirely new platforms and experiences.

Which is better for trading Bitcoin futures?

Let’s compare Binance and Bybit in a head-to-head format for Bitcoin futures trading.

Feature	Binance	Bybit
Fees	Generally lower	Slightly lower
Leverage	Up to 125x	Up to 100x
Futures crypto pairs	493	650
User interface	Easier to navigate	Simpler, futures-focused
Fiat options	Yes (through Binance P2P)	No
Regulation	Varied by region	Varied by region
KYC requirements	Required for most features	Required for all features
Mobile app	Available (Binance App)	Available
News & Analysis	Extensive	Limited

The choice between Bybit and Binance depends on your priorities. Binance offers maximum leverage and specific coin futures, while Bybit provides more future pairs.

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Trading volumes compared

Binance still boasts a massive user base (245M registered users) and sky-high trading volumes ($14.0 billion daily).

Though smaller, Bybit is a rising star. Its BTC/USDT pair thrives with over $1 billion in daily trades. Bybit is user-friendly and caters to growth markets.

Feature	Binance	Bybit
Category rank (by Trading Volume)	1th	3th
Established	2017	2018
Country of incorporation	Cayman Islands, no HQ, still choosing a location	British Virgin Islands, HQ is in Dubai
Average 24-hr trading volume	$14.0B	$8.2B
Monthly pageviews	Over 100M	Over 38M
X (Twitter) followers	Over 14M	Over 4.9M

Conclusion: Binance offers vast liquidity and established dominance. Bybit provides a strong alternative focused on growth and user-friendliness. Before moving, consider your trading needs, risk tolerance, and preferred platform features.

Trading fees compared

Binance boasts competitive trading fees of 0.10% per spot trade. However, users can reduce these fees by holding Binance Coin (BNB). Bybit counters have even lower base trading fees of 0.075%. This rate applies to makers and takers, making Bybit a potentially more cost-effective option for frequent traders.

For casual traders, Binance’s fee structure might be sufficient. However, Bybit’s lower fees have become increasingly attractive due to the higher trading volume. Remember, Bybit KYC verification unlocks their full suite of features.

Market	Binance	Bybit
Spot Trading	1,351 coins	666 coins
Total Tradable Pairs	1,264 pairs	555 pairs
Margin Trading	Trade crypto pairs with leverage up to 50x	Specializes in futures contracts with up to 100x leverage on select pairs
Futures	493 pairs	650 pairs
24hr open interest (Bitcoin)	113.96K BTC	81.23K BTC

The amount of open interest signifies the total number of contracts that traders hold and are ready for trading.

Withdrawal fees (and deposit fees) compared

Both Binance and Bybit demonstrate strengths in terms of withdrawal fees. Binance’s extensive cryptocurrency support and transparent fee structure are commendable, while Bybit’s competitive fees and innovative P2P crypto withdrawal feature provide added convenience.

Market	Binance	Bybit
Withdrawal Fees (Spot)	BNB 0.0005, BTC 0.005, ETH 0.001, LTC Free, NEO 0.01, QTUM 50, SNT 0.6, BNT 2, EOS 0.0005, BCC GAS Free 5, USDT 2, OAX 30, DNT 0.15, MCO 0.5, ICN 0.2, WTC 0.1, OMG 5, ZRX 0.1, STRAT 4, SNGLS 2, BQX 1, KNC 50, FUN 10, SNM 5, LINK 0.1, XVG 1, CTR 0.3, SALT Free, IOTA 0.5, MDA 0.15	0.0005 BTC
Withdrawal Fees (Futures)	N/A	BTC 0.0005, ETH 0.01, XRP 0.25, EOS 0.1
Fiat withdrawals	Fiat withdrawals supported	Fiat withdrawals are facilitated via third-party integrations, while P2P withdrawals are exclusively for crypto

Lower Withdrawal Fees: Bybit generally offers lower withdrawal fees than Binance. Binance charges a flat percentage, while Bybit charges a fixed amount per coin, which can be significantly cheaper for larger withdrawals.

Additional Considerations:

• Minimum withdrawal amount: Check the minimum withdrawal amount for each exchange before initiating a withdrawal.
• Network fees: Depending on the chosen coin and network congestion, Binance and Bybit might pass on additional fees.

Now let’s move on to deposit fees

Deposit Fee Comparison: Bybit vs. Binance

Exchange	Deposit Fee (Crypto/Stablecoin)	Deposit Fee (Fiat)
Bybit	Free	Not Offered (Fiat deposits require 3rd party services with variable fees)
Binance	Free	Variable (depends on deposit method)

• Both Bybit and Binance offer free deposits for cryptocurrencies and stablecoins.
• Bybit does not offer direct fiat deposits. Users need to utilize third-party services, which may incur variable fees.
• Depending on the chosen deposit method, Binance charges fees for fiat deposits (e.g., bank transfer or credit card).

Recommendation: Bybit generally has a simpler deposit fee structure, while Binance offers fiat deposits but with variable fees. However, when considering withdrawal fees, Bybit’s fixed structure might be more cost-effective, though Binance’s minimum withdrawal fees could be lower for very small amounts.

Unique features compared

Binance and Bybit offer core functionalities like spot trading, margin trading, and derivatives, but critical differences emerge in their unique features. Binance boasts a robust peer-to-peer (P2P) marketplace, Binance P2P, which allows users to buy and sell crypto directly with other users.

Bybit, on the other hand, emphasizes derivatives trading with innovative products and high-leverage options. Both platforms provide mobile apps (Binance app, Bybit app) for on-the-go trading. Still, Binance News offers a constant stream of industry updates and educational content directly within its platform.

Bybit takes a user-centric approach with its ‘Easy Options,’ a simplified options trading tool. It highlights popular options, key information, and one-click buying for effortless profit-seeking. This user-friendly feature caters to beginners and those who want to copy experienced traders, making the trading experience more accessible and less intimidating.

On the other hand, Binance counters with its innovative ‘Discover‘ feature for copy trading. This intuitive swipe interface allows users to easily explore and follow successful traders’ strategies.

The simple ‘right swipe to favorite’ and ‘left swipe to pass’ system streamlines discovery and instills confidence in users, making them feel in control of their trading decisions. Binance’s copy trading has seen a surge in participation and assets under management, solidifying its user-centric approach.

User Opinions on Bybit vs Binance 

Final verdict, Binance or Bybit?

Binance reigns supreme as a one-stop crypto shop, boasting millions of users and catering to all experience levels. Its feature-rich platform offers everything a crypto enthusiast could desire. However, this abundance can be overwhelming, potentially confusing new users.

Bybit, with its streamlined interface and powerful trading engine, caters to serious traders. Its top-notch copy trading product attracts investors seeking to mirror successful strategies. While lacking Binance’s sheer variety, Bybit has carved a niche for itself, capturing market share with rapid project listings.

Binance is actively countering Bybit’s rise by strategically listing popular Bybit projects. This fierce competition benefits users by driving innovation and potentially lower fees. So, the choice boils down to preference: a feature-rich giant (Binance) or a streamlined platform with a strong trading focus (Bybit).

You may also find reading our other comparison articles, which highlight Kraken and Crypto.com, helpful.

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