In recent months, the scope of crypto trading has increased dramatically and as a result, the industry has flooded with a variety of exchanges. In this article, we will present a review of ByBit vs Kraken and compare multiple factors for gauging their market performances and salient features.
|Overall experience||⭐ 9.5/10||⭐7/10|
|Deposit fee||No||In some cases|
|Leverage||Up to 100x||Up to 50x|
ByBit vs Kraken – diving into the review!
By looking at the table, you must have understood that in terms of features, ByBit and Kraken are decent competitors. However, they do have some differences.
It happens to be a Singapore-based startup, primarily offering a P2P crypto futures exchange. Please note that we have only a handful of reliable startups in the market dealing with futures and ByBit enjoys a decent edge from that perspective. Moreover, the team is quite well-versed and is laced with industrial experience related to the blockchain and finance sectors.
Their main target is to sell perpetual futures products, offering leverage of 100:1, thus positioning ByBit to compete with the likes of BitMEX and Deribit in terms of friendly feasibilities.
Despite all these pros, a significant con is that ByBit is restricted in some countries (due to prevailing laws and regulations) including Syria, USA, and Quebec (a Canadian province). However, given their market presence and acceptability among crypto traders, they might be available across the World soon, without any restrictions.
Plenty of people are concerned before trusting a new venture when it comes to security. This is what ByBit handles robustly. To start with, most of the coins are stored in cold wallets, thus adding a barrier between hackers and ‘original coins’.
Secondly, whenever they need to move the coins from this secure vault, a multi-signature address mechanism is used to increase the difficulty for any malicious element to trace the transaction.
Moreover, as a standard feature, the website comes with an SSL certificate that encrypts all the information going from client-side to ByBit and vice versa. As a result, the packets become secure from any kind of sniffing and phishing attacks.
Trading fee (or transaction fee) is a very important factor to consider while choosing an exchange, particularly if you are going for a futures option where you have to pay a significantly higher amount than your original margin.
Fortunately, ByBit offers a very practical method for fee calculation and they charge only if you take liquidity off the market. However, if you do otherwise, ByBit will certainly compensate you and this process resembles the conventional taxation system as well.
While plenty of exchanges have started accepting fiat as well, in order to boost their usability and facilitate more customers, ByBit is strictly focused on cryptocurrencies only. It implies that you can neither withdraw or deposit funds in fiat.
Of course, it is one of the cons, but given an array of options in the market, you could always transfer your funds from ByBit wallet to any other platform and then carry out the conversion process.
This exchange was launched in 2013 and since then, it has done a decent business, going well beyond $100m. Kraken happens to be one of the most popular and trusted platforms when it comes to advanced trading (e.g. margin), 24/7 customer support, high liquidity, and robust security measures.
Feel free to check read Kraken users review here.
Being one of the best crypto exchanges in the industry, Kraken is bound to offer state-of-the-art security to its clients and their funds. Therefore, as a foremost measure, they have 2FA in place at the time of withdrawals and you have to verify your ID before transferring any funds.
Apart from these regular checks, Kraken also has a Global Settings Lock. It acts as a blocking service for IP addresses that are not associated with your account and hence, prevents unauthorized access.
Just like ByBit, Kraken also offers a maker-taker model and their transaction fee is one of the lowest in the industry. It is worth noticing that the fee varies between 0.025% – 0.010% , depending on your trading volume for the last 30 days.
Apart from that, if you happen to be a maker and add liquidity to the exchange by using limit orders, your fee will be decreased further.
Unlike ByBit, Kraken allows its traders to deposit/withdraw funds in cryptocurrencies as well as fiat (although the number is limited). The deposits usually take about 1-5 business days and can be done through SWIFT, SEPA, domestic and wire transfers.
As mentioned in the table above, the deposits are usually free. However, in some cases, Kraken may charge a nominal fee for setting up the address.
If you happen to be a crypto enthusiast and a regular trader, you must have heard about Kraken. However, in this ByBit vs Kraken review, it becomes pretty evident that both are competing with each other in 3 of the core areas.
If we particularly talk about the security aspect, it is worth mentioning that none of the technologies/platforms are 100% secure. However, both of them have taken decent measures to guard the interests and assets of their respective users.