Many novice traders on the crypto market don’t think twice about choosing an exchange. They just look for the most popular one, and so many of them end up on platforms like Binance. But if you have enough patience, you can find other exchanges with more interesting options like ByBit. In this article, we’re going to compare Binance and ByBit to determine which one will be a better choice for a novice crypto trader.
Many newcomers to the market tend to choose the most reputable and huge exchanges without thinking too much about other options. In most cases, that just means signing up for Binance, the leading exchange in terms of daily trading volume. However, there are many decent competitors like ByBit which may offer their users rather interesting and rare features.
In this article, we’re going to explain which of the ByBit trading options are really worth your time and then answer the question: should you choose it over Binance or not?
About Binance
Binance is probably the most well-known crypto exchange in the world. It has extremely high liquidity, and that allows the exchange to offer very low fees compared to other platforms. The array of trading assets is also impressive: Binance allows you to choose from about 400 cryptocurrencies, and it has its own native BNB coin that is used to further reduce the commissions.
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However, Binance seems to be rather conservative in terms of trading conditions. The leverage is limited to 1:10, and the platform requires verification to trade: you won’t be able to withdraw more than 2 BTC without verification.
About ByBit
ByBit is a relatively new face on the crypto market. Founded in 2018, ByBit offers its users a wide range of derivatives and cryptocurrencies, including BTC, XRP, ETH, and many others, but the array is not that impressive, after all. However, this exchange allows you to use a much riskier strategy since the leverage can go all the way to 1:100.
When it comes to fees and commissions, ByBit seems to be more expensive than Binance. For example, ByBit sets its min maker fee to 0.1%, and Binance charges you with just 0.012%. If you compare Binance vs. ByBit in terms of BTC withdrawal fees, the former is also better: the exchange charges 0.0001 against 0.0005 offered by ByBit.
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Conclusion
While the two exchanges are very similar in many ways, Binance seems to be a bit better. The fee structure is more user-friendly, and the array of available trading assets is also wider. That doesn’t mean, however, that ByBit is worse — it just focuses on traders who prefer derivatives.