Since the crypto market is growing rapidly and people are investing aggressively, the trading business is also touching new heights. Therefore, in this BitMEX vs Bybit review, we will discuss an array of factors that make these exchanges two of the best in the industry.
|Fees||-0.025% for makers and 0.075% for takers||-0.025% for makers and 0.075% for takers|
|Deposit Method||Crypto only||Crypto only|
|Leverage||Up to 100X||Up to 100X|
|Customer Support||Email, telegram, Weibo, Wechat, IRC||Live chat, email, social media, telegram|
Well, BitMEX is relatively a young and less popular exchange when we compare it with the likes of Coinbase and Binance. However, ever since its launch in 2014, the platform has covered several milestones. For instance, in 2019, BitMEX hit its record high 24-hour trading volume of roughly $11 billion and that is indeed pretty significant.
Moreover, another great reason for their soaring demand is the use of sophisticated products and tools. See, the forex has already matured, but crypto trading was evolving at a very steady pace before BitMEX’s emergence. When they came into play, they introduced several advanced tools, including futures, perpetual contracts, and margin trading.
So, now that you have developed a decent idea about the platform, let’s dive into some specifics.
First of all, it is essential to note that Bitmex does not allow U.S. citizens to use its platform. Although this policy is not enforced through a system that verifies your identity, BitMEX will close all the positions and accounts if they suspect you are a U.S. citizen.
BitMEX has an excellent user interface that shows a well-organized summary in a price chart of your preferred asset, recent trades, order book, contract details, and the necessary elements to create a buy or sale transaction.
More importantly, BitMEX allows users to customize their dashboards by merely dragging and dropping different components. This feature may seem small but comes in handy for avid users.
Another critical factor to consider is the liquidation process. When the price approaches the bankruptcy price, your order will be closed automatically.
When an order undergoes liquidation, there is the chance that it may get automatically closed under the bankruptcy price because of slippage. That is why most exchanges keep an “insurance fund” to avoid auto deleveraging.
Typically, a large insurance fund reduces the probability of your orders being deleveraged during massive price shifts. Currently, BitMEX’s insurance fund is worth 30,000 BTC.
Well, BitMEX is not so different from the mainstream crypto exchanges when it comes to regular trading – they charge pretty much the same.
Just to give you a clue about their fees, please note that the exchange implies a maker and taker model. It should be mentioned that liquidity is one of the most crucial aspects for an exchange and therefore if you add liquidity to BitMEX (maker), they will reward you with 0.025% of the transaction value. Contrarily, if you happen to be the taker, you will be charged at a rate of 0.075%.
However, it is quite understandable that when we explore their advanced products and tools, the rates vary and one of the primary reasons is that BitMEX offers some of the products which are not available on competitor exchanges. So, it gives them an edge and they can charge a premium.
Furthermore, one of the best perks is that they do not charge you anything for either deposits or withdrawals. But, please keep in mind that the network fee of BTC transaction does apply.
Following is a table, corresponding to the fee structure of some of the advanced products offered at BitMEX.
Here, it is worth noticing that even though BitMEX does not charge anything for deposit or withdrawal, they are strictly a crypto-only exchange. So, it implies that you must deposit one of the accepted cryptocurrencies to buy the coins and start trading.
Furthermore, even if we talk about the withdrawal, there is no option for fiat. However, if you still want to avail it, then you must transfer your funds to another exchange that facilitates crypto to fiat withdrawals.
So, as you must have realized, BitMEX has a pretty complex leverage plan and this is primarily due to the fact that they have plenty of products. However, just to give you a rough comparison, please note that the exchange offers the highest leverage for Bitcoin trading, which stands at 100X. Thus, allowing BitMEX to beat several competitors.
Undoubtedly, their customer support is quite reasonable when we consider the scale of operations. Moreover, the best part is that the following support mediums entertain queries in a variety of languages:
Well, in this BitMEX vs Bybit review, it is worth mentioning that their security is quite commendable. Of course, they have to maintain this level, given the extensiveness of the platform.
So, let’s have a quick look at some of the salient security features:
- They utilize the same technology as implemented by some of the big banks specializing in High-Frequency Trading
- For all could-based operations, BitMEX utilizes AWS, which (in itself) is a very popular name when it comes to security and robustness
- All of the wallets come with multiple keys
Available coins and contracts
Traders on the BitMEX platform have access to a mixture of regular futures contracts as well as perpetual swaps. BitMEX offers perpetual swaps only for Bitcoin and Ethereum. It provides a slightly more extensive choice of futures, that is EOS, Bitcoin Cash, Litecoin, Cardano, Ripple, and Tron.
Interestingly, BitMEX offers up to 100x leverage for the perpetual swap. Standard futures are capped at a maximum of either 50x, 30x, or 20x. Note that BitMEX accepts deposits in BTC only. Other digital and fiat currencies are not supported. The profits and loss accounts of the exchange are also presented in BTC form, making withdrawals possible in BTC only.
Bitmex has been in business for five years, and in that period, not much has changed in terms of design. Although some may find it a little bit outdated by today’s standards, it all boils down to personal preference.
Furthermore, the layout is perfect, and the user is free to play around with the elements to create a dashboard that they find most comfortable. Users can choose between a white and grey theme. Overall, however, the design looks a bit outdated.
For exchanges such as BitMEX and ByBit, liquidity is a critical factor since it dictates just how safe investment will be. High liquidity means that you can close a position at any moment you wish and thus quickly mitigate potential losses.
BitMEX is currently the most liquid BTC futures exchange with a trading volume of over $5 billion as of writing. At some point, this number hit over $10 billion.
So, Bybit is yet another great platform and just like BitMEX, they have captured a decent share of the market in less than 1 year after the launch.
Basically, it happens to be a P2P exchange and if you look at their website, the team is quite well experienced in their respective fields. Just to clue you in, they have people on board from the likes of Morgan Stanley and Tencent.
So, let’s talk about their core areas in this BitMEX vs Bybit review and understand how good they are in a variety of aspects.
Bybt’s trading experience is very similar to BitMEX’s, with a few subtle but significant differences. To begin with, Bybit does not allow U.S. citizens on their platform due to regulatory issues. Next, Bybit has an outstanding and intuitive user interface that allows users to customize their dashboards. You can access your price chart, order books, recent transactions, contract details, and many more.
Compared to BitMEX, Bybit has more checks in place to make the liquidation process as fair as possible. Besides using a price that is very close to the bankruptcy price, ByBit also employs a dual price-mechanism that avoids liquidations brought about by* market manipulators.
Compared to BitMEX, Bybit has a rather small insurance fund amounting to 350 BTC. Finally, Bybit has an advantage over BitMEX in terms of withdrawals since it allows users to withdraw at any time.
When it comes to volume trading, the fee is one of the crucial factors that is considered by many traders before selecting an exchange. So, it is worth mentioning that just like BitMEX, Bybit also follows a maker and taker model and therefore, every order is classified in either of these two categories.
Therefore, since makers ‘bring’ something to the exchange, Bybit pays them 0.025% of the transaction fee and since takers use the existing orders from the book, the exchange charges them a fee of 0.075%. Fortunately, both BitMEX and ByBit offer the same rates so the competition is quite staunch here.
Moreover, their withdrawal fee is significantly lower (i.e. 0.0005 BTC) than most of the competitors and it gives Bybit a big edge in the industry.
So, this is yet another area where Bybit is not any different from BitMEX. The exchange is strictly crypto-oriented and you must have one of the supported cryptocurrencies to trade on the platform.
Furthermore, it should also be noted that although it’s a P2P exchange and operates all across the Globe, the US-based traders may face difficulties trading on Bybit due to America’s strict laws.
Well, it is quite surprising that an exchange so young as Bybit offers a leverage of up to 100X. Just to clue you in as to what it means, please note that if you possess $20 in your Bybit wallet and you take leverage of 100X, then you would be able to buy BTCs or ETH worth of $2000 while spending only $20 from your wallet.
Well, the community has not reported any glitches with respect to their customer care and if we compare the feasibility they are offering, ByBit seems quite a decent option.
Primarily, they answer immediate queries through live chat which is available 24/7 in multiple languages. Furthermore, for technical queries, you can also reach out to the support team through email. If you do not get a response from any of these methods, then you can also reach out to the team through social media or the Telegram channel.
So, whenever a young exchange is under discussion, traders often want to have clear insights about security. Fortunately, ByBit is able to compete with the likes of Binance and Kraken when it comes to robust security. Apart from a regular SSL certificate, the exchange keeps your assets in cold wallets. Therefore, any potential attempt from hackers can be prevented.
Moreover, they also have a multi-sig method which adds another layer of security when the coins are being moved from one wallet to another. As a result, hackers cannot determine the parties involved in a transaction.
Available coins and contracts
Currently, Bybit offers the broadest range of perpetual swaps for digital coins, including some not provided by BitMEX. These are Bitcoin, Ethereum, Ripple, and EOS.
Just like BitMEX, ByBit offers 100x leverage for Bitcoin perpetual swap. All the other contracts are limited at a maximum leverage of either 50x, 30x, or 20x. Unlike BitMEX, Bybi allows users to make deposits and withdrawals in any currency supported on the platform.
Bybit is a relatively new platform, and it shows, through its newer, more modern design. The platform allows users to choose between a dark and light theme with all the crucial elements laid out thoughtfully. Everything on Bybit is sleek and transparent, making it ideal for long trading sessions.
Most people would argue that security and stability are all you need to worry about in an exchange. Nonetheless, the U.I. is also an essential part of the package and will have a significant impact on your trading experience.
Although not as liquid as BitMEX, ByBit has very healthy liquidity. Furthermore, ByBit is much younger compared to BitMEX and growing rapidly. Moreover, the crypto market is vast, and there is room for more than one player, especially as more people understand and invest in digital coins.
Hence, it is quite evident in this BitMEX vs Bybit review that in most of the aspects, feasibility is pretty much the same, especially if you are an intermediate trader. However, if you happen to be a newbie and do not understand much about advanced tools or you easily get overwhelmed by a lot of details on the screen, then I would recommend you to start with Bybit before going for BitMEX.