The demand for crypto has been steadily rising over the years, even as the prices fluctuate considerably. This high demand has led to the emergence of several crypto exchange platforms, and Bybit and KuCoin are two of the most popular across the world.
Both exchanges allow traders to swap various digital coins and tokens. However, they differ in several aspects, from the supported assets to the fees and security features. If you find it hard to pick between these two, it is vital to understand these differences.
Introduction: Bybit vs. KuCoin
Bybit was founded in 2018 and incorporated in the British Virgin Islands. However, the company now has other office locations in Hong Kong, Taiwan, and Singapore.
The Bybit platform allows for spot trading, and they also have a derivatives trading market where traders can trade Inverse Perpetual contracts, USDT Perpetual and Inverse Futures contracts.
The 24-hour trading volume in Bybit averages over $6.5 billion, and the platform is quite fast growing as it already has more than 3 million users.
KuCoin is a global crypto exchange platform that has been live since 2017. The exchange was incorporated in Seychelles but now has office locations in other places like Singapore.
KuCoin has a diverse product offering with trading pairs for spot and derivatives markets. Also, it supports staking, lending, and leveraged tokens to give traders more than enough options for making money.
The exchange has more than 10 million traders from at least 205 countries, making it one of the largest crypto platforms globally.
Bybit vs. KuCoin: Supported Cryptocurrencies
Any platform you choose should support all the crypto assets you prefer to trade. Hence, cryptocurrency offering should be one of the first factors to consider when pocking between Bybit and KuCoin.
Here KuCoin seems to have the edge over Bybit and most other exchanges as they support more cryptocurrencies than most platforms. Currently, it supports more than 500 coins and tokens, many of which you cannot find in any other exchange.
Check this KuCoin supported cryptocurrency list to understand the different assets you can trade on the platform.
Bybit supports fewer coins and tokens than KuCoin however, traders still get access to at least 32 digital assets. These assets include popular ones, like BTC, ETH, XRP, and LTC. Also, they have other less known ones like the Oasis Network Coin and Solagenic Token that still hold good potential.
Bybit vs. KuCoin: Trading Fees
High trading fees can be bad for your trade, and this is more so for regular traders with several transactions per day. As you choose between KuCoin and Bybit, it is vital to acquaint yourself with the trading fees you have to pay per trade.
Bybit charges their trading fees using the maker and taker model, where liquidity takers pay a higher fee than the liquidity makers. Bybit users will pay 0.1% in maker and taker fees for spot trading.
On average, traders on Bybit will pay 0.075% in taker fees if they place an order that removes liquidity from the books and get a maker rebate of 0.025% for all derivatives contracts that add liquidity.
KuCoin uses a tiered fee structure for their trading fees. Their charges depend on a trader’s 30-day trading volume, and the exchange has at least 10 tiers of traders. The traders with the lowest volume on the exchange will pay 0.1% in maker and taker fees. High volume traders with a 30-day trade volume of over 20,000 BTC pay 0.0125% and 0.03% in maker and taker fees, respectively.
Bybit vs. KuCoin: Account Funding Methods
Bybit offers traders several account funding methods to make it easier to start trading. The platform accepts both fiat and crypto deposits. However, for fiat deposits, you have to use third-party fiat gateways like Paxful, Banxa, Simplex, MoonPay, and Mercuryo.
If you are a trader on Bybit, you can easily fund your account using crypto deposits from another wallet. The platform accepts crypto deposits for 17 coins, including BTC, ETH, USDT, BIT, DOT, LTC, XRP, and EOS.
KuCoin allows direct crypto deposits to your account from other wallets, which is the easiest way to fund the account. Although it does not support direct fiat payments, you can deposit fiat through third-party apps. Traders can pay through credit/debit cards, Google Pay, and Apple pay, but the exchange does not accept funding through bank transfers.
Bybit vs. KuCoin Liquidation Mechanism
Both Bybit and KuCoin have mechanisms to prevent the liquidation of traders’ positions. However, in some cases, liquidation is inevitable, so it is essential to know the tool the exchange will use in case you get there.
Bybit uses partial liquidation to bring down the maintenance margin requirements, reducing the risk of full liquidation. For traders under the lowest risk of liquidation, Bybit cancels all active orders to attain maintenance margin for the live position. If this does not work, the liquidation engines take over and close the position at the bankruptcy price.
If the position is at medium or high risk of liquidation, Bybit employs their insurance funds or ADL mechanism. Insurance funds absorb some of the loss, while the ADL mechanism comes in when the insurance funds are not enough to cover the loss.
KuCoin has a more straightforward liquidation mechanism than this. When a position is in danger of liquidation as it gets to or below the maintenance margin.
With KuCoin, the forced liquidation is triggered when the position’s debt ratio gets below the 97% liquidation line. When this happens, the liquidity provider mechanism takes over the position to liquidate it and pay the outstanding debts.
Opening Account & Account Limits
Bybit and KuCoin have specific limits for deposits and withdrawals that traders should know before opening and using the accounts.
With Bybit, the deposit and withdrawal limits will depend on the specific asset and deposit method. For example, when using MoonPay to deposit BTC, you can add a minimum of $30 worth of BTC and a maximum of $12,000.
The minimum withdrawal for BTC on Bybit is 0.001, and the maximum depends on your verification level. KYC level 0 account holders can withdraw up to 5 BTC a day. Level 1 can withdraw up to 50 BTC, while traders at level 2 can withdraw 200 BTC per day.
KuCoin does not have maximum deposit limits, but your deposit method can restrict you to a specific amount. When it comes to withdrawals, it will also depend on your verification level. Unverified traders can withdraw a maximum of 1 BTC, while those with level 1 verification can withdraw up to 200 BTC every day.
How to Open Bybit Account
- Go to https://www.bybit.com/ and click on “Sign Up”
- Fill in the form with your email, password, and referral code
- Click the “Continue” button
- Check your email for the verification code and enter it to complete the registration
How to Open KuCoin Account
- Go to https://www.kucoin.com/ and select the “Sign Up” button at the top right
- Choose to sign up by phone or email
- Enter your email/phone number and click on send code
- Enter the email verification code
- Set your password
- Click “Sign Up” to complete the process
Bybit vs. KuCoin: Ease of Use & Interface
Bybit provides extensive tools to aid traders when trading, but the interface is still quite intuitive, making the platform easy to grasp even for beginners. Most of these tools are from third parties like TradingView, Coinalyze, and CoinGecko, but they are easy to integrate with their platform for an enhanced trading experience.
KuCoin has both a web interface and a mobile app. Trading on both platforms is easy as everything on the interface is intuitive and self-explanatory. However, some functions like the Fast Pay button can be confusing for beginner traders. Therefore, if you are new to crypto trading, you can expect a steeper learning curve on KuCoin compared to Bybit.
Bybit vs. KuCoin: Security Features
There have been several security issues on many crypto exchanges over the years, with some traders losing a lot of cash to hackers. Traders need to be careful when choosing a crypto exchange to avoid falling victim to hackers.
Bybit takes security seriously and uses some of the most advanced security features in the industry to protect users and their assets. They enforce KYC verification for traders that want to use the platform without limits. Also, they use IP whitelisting, conduct regular monitoring and audit of their systems and keep the assets offline where there are out of reach for hackers.
KuCoin also uses a top-tier security system, which should explain why millions of traders from different parts of the world trust their platform. The exchange allows traders to secure their accounts with 2FA, uses highly advanced encryption, and partners with third-party custodians to protect user assets on the platform.
Bybit vs. KuCoin: Customer Support
Any crypto exchange platform you choose should provide simple mechanisms for resolving your issues if you run into trouble when trading.
Bybit has a learn center full of articles and videos that can be very helpful in resolving trader issues. Also, they have and help center with more useful answers for any queries you have. When you need more direct help, you can fill out a form and wait for an email response. Also, the platform has 24/7 multilingual support that ensures quick resolution for customer issues.
KuCoin does not offer live support, but like Bybit, they have a lot of helpful material on their help center that often answers most of the queries traders have. Also, you can open a support ticket and wait for an email response.
Is Bybit a safe exchange?
Bybit has never been hacked, which is a good indication that it has a good enough security system to keep trader assets safe. With the enforcement of KYC verification, the exchange has successfully weeded out dishonest traders. They also keep the assets offline, eliminating the risk of traders ever losing anything.
Is KuCoin a safe exchange?
Overall, KuCoin is a safe exchange that uses multiple security features from 2FA to KYC verification to ensure traders and their assets will be secure on the platform. Although the exchange was hacked in 2020, most of the funds were recovered and returned to customers. There has not been any other incidence since then.
Bybit and KuCoin are two of the best crypto exchanges out there. You can be sure of many opportunities to make money and maximum security regardless of which one you choose.
Bybit is the better of the two companies as it outperforms KuCoin in several aspects such as security, trading fees, ease of use, and customer support. Therefore, if you have to pick between the two, Bybit is better.
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