Bitmex vs ByBit Review: Which Crypto Margin Exchange Is Better?

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As the cryptocurrency space continues to grow, so does the number of crypto margin exchanges.

When choosing a cryptocurrency margin exchange, it’s hard to ignore the elephant in the room: BitMEX.

However, how does it compare to newer alternatives like ByBit?

BitMEX vs ByBit

In this review, we compare BitMEX vs ByBit to help you decide which exchange you should trade at.

BitMEX vs ByBit Comparison Table

 BitMEXByBit
bitmex logobybit logo
Available contractsPerp. swaps and futuresPerp. swaps
Fees0.075% taker fee0.075% taker fee
Available coinsBTC, ETH, EOS, LTC, ADA, TRX, XRPBTC, ETH, EOS, XRP
KYC/AMLNo identity verificationNo identity verification
Excluded jurisdictionsUS citizens not allowedCitizens from USA and Singapore not allowed
Customer SupportFast response via email. Good help center.Quick response via email. Excellent help center.

Background

BitMEX was founded back in 2014 by an experienced group of traders. Today, with a daily trading volume of over $3 Billion, BitMEX is the most liquid Bitcoin futures exchange.

The exchange rose to popularity after offering its “perpetual swap” contract for Bitcoin. As the name suggests, the perpetual swap is a contract with no expiry date. 

The price of the perpetual swap is determined by an index price calculated from the average of 3 major Bitcoin spot exchanges, and funding fees incentivize market makers to keep the peg as tight as possible.

Although BitMEX offers futures contracts for several altcoins, including Litecoin, Bitcoin Cash, and Cardano, the exchange only has perpetual swap contracts for Bitcoin and Ether.

ByBit is a significantly newer exchange than BitMEX, having been founded in 2018. However, with a daily average volume of over $850 Million, the margin exchange is quickly catching up with BitMEX.

Similarly to BitMEX, ByBit also offers up to 100x leverage for its Bitcoin perpetual swap contracts. That said, it differentiates itself significantly from BitMEX by also offering perpetual swap contracts for Ripple and EOS, in addition to Bitcoin and Ether.

Trading experience

Before diving into more technical details of the trading experience, it’s important to note that both BitMEX and ByBit do not allow US Citizens to use its platform. 

Although this rule is not enforced through an identity verification system, if any of the two exchanges suspect that a particular user is a US citizen then it will immediately close all positions and close the account.

Both exchanges have an excellent user interface that shows at a glance the price chart of your asset of choice, order book, recent trades, contract details and the interface to create a buy or sell order.

Further, in both exchanges, this interface can be easily customized by dragging and dropping elements. This is a small but valuable add-on that enables you to personalize your trading dashboard.

An important aspect of every crypto margin exchange is the liquidation process and insurance fund.

On a top-level, the liquidation process in BitMEX and ByBit is fairly similar: when the price gets close to the bankruptcy price, the exchange will automatically close the order. 

That said, ByBit has more checks in place to make the liquidation process more just. Namely, the fact that it uses a price that is very close to the bankruptcy price and also that it uses a dual-price mechanism to avoid liquidations caused by market manipulators.

If an order is liquidated, there is the possibility that it gets closed at a price lower than the bankruptcy price due to slippage. In those cases, in order to avoid auto deleveraging, most margin exchanges have an “insurance fund”.

Generally, the larger the insurance fund of a margin exchange is, the lower the probability is that your orders will be auto deleveraged in big price moves.

At the time of writing, the BitMEX insurance fund is worth 30,000+ BTC, while ByBit’s insurance fund only holds around 350 BTC.

Finally, a major advantage of ByBit over BitMEX is that it processes withdrawals at all times, while BitMEX only processes withdrawals at 13:00 UTC once every 24 hours.

BitMEX

  • Very large insurance fund to protect users
  • US Citizens not allowed
  • Withdrawals processed once every 24 hours

ByBit

  • Withdrawals all around the clock
  • Fairer liquidation process than on BitMEX
  • US Citizens not allowed

Available coins and contracts

BitMEX offers a combination of perpetual swaps and regular futures contracts. 

Although BitMEX only offers perpetual swaps for Bitcoin and Ethereum, it also offers futures for EOS, Litecoin, Bitcoin Cash, Cardano, Tron, and Ripple.

On the other hand, ByBit’s trading contracts offering is composed of perpetual swaps for Bitcoin, Ethereum, EOS, and Ripple.

So, although ByBit offers fewer coins overall, it offers perpetual swap contracts for coins that BitMEX does not.

In terms of leverage, both BitMEX and ByBit offer up to 100x leverage for the Bitcoin perpetual swap. All other contracts are capped at either 50x, 30x or 20x maximum leverage.

BitMEX

  • Most liquid Bitcoin trading pair in the world
  • Up to 100x leverage for Bitcoin
  • Perpetual swaps for only BTC and ETH

ByBit

  • Up to 100x leverage for Bitcoin
  • Perpetual swaps for BTC, ETH, EOS, and XRP
  • Only perpetual swaps, no regular futures

Trading fees

Both BitMEX and ByBit charge 3 types of fees: trading fees, withdrawal fees, and funding fees.

The trading fees of both BitMEX and ByBit consist of a 0.075% taker fee and -0.025% maker fee. So, when providing liquidity to the market through a maker order, the trader gets paid 0.025% of the order’s value.

Secondly, funding fees depend on current market conditions and it’s not possible to assign an average value to each exchange. You can check the current funding fees for BitMEX here and the current funding fees for ByBit here.

Finally, the withdrawal fees of both exchanges are also very competitive. BitMEX charges a fixed 0.001 BTC withdrawal fee and ByBit charges a fixed fee of 0.0005 BTC, 0.01 ETH, 0.25 XRP or 0.1 EOS, depending on the asset that you are withdrawing.

BitMEX

  •  -0.025% maker fee (you get paid)
  • 0.075% taker fee
  • Higher withdrawal fee than ByBit

ByBit

  • -0.025% maker fee (you get paid)
  • Low withdrawal fee (0.0005 BTC)
  • 0.075% taker fee

Security

BitMEX and ByBit both take security very seriously and neither has been compromised since their launch. 

That said, although both exchanges have never been hacked, BitMEX has been around for significantly longer than ByBit which makes its security systems much more battle-tested.

Further, by only processing withdrawals once per day, BitMEX can monitor suspicious activity in more detail which decreases security risks further.

Needless to say, the two exchanges enable their users to make use of advanced security settings like two-factor authentication, email verification, and IP whitelisting.

BitMEX

  •  Battle-tested security
  • Manually monitors every withdrawal
  • Optional 2FA, email verification and IP whitelisting available

ByBit

  • Optional 2FA, email verification and IP whitelisting available
  • Exchange still relatively new and security not battle-tested

Customer support and education

Cryptocurrency exchanges are not precisely known for their great customer support. With exchanges like Coinbase often taking days to reply to a support inquiry.

However, BitMEX and ByBit challenge that status quo. Both exchanges have an excellent help center and also a highly qualified support team that quickly resolves support tickets.

Although it’s hard to pronounce a clear winner on the customer support front, BitMEX sets itself apart by also creating extremely valuable research reports about the crypto ecosystem as part of its “BitMEX Research” initiative.

BitMEX

  •  Fast and competent customer support
  • Excellent research resources
  • Good help center

ByBit

  •  Relatively fast customer support
  • Excellent help center
  • No social media support

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