Everyone is rushing into the cryptocurrency margin trading scene. The stakes are high, and everything moves at nosebleed speeds. Trading volume is through the roof, and there are a myriad of exchanges from which to choose.
However, if you’re not in the game of exchange arbitrage, you’ll likely be checking top-10 lists for the most vetted crypto exchanges.
Two names you’ll see on any list are BitMEX and a rising underdog, Bybit. The two platforms dominate the margin trading in the sector, but there are some significant differences you’ll want to consider when deciding which platform to feed your money.
Just a heads up, this article assumes you already know enough about the similarities between most exchanges and have some prior knowledge of margin trading. If you need a primer, check out this video by Fidelity.
Let’s discuss some of the differences between BitMEX and Bybit.
- Leverage and trading pairs
- Trading fees
- Liquidity
- Trading platform/ UI
- Customer support
- Privacy and security
BitMEX vs. Bybit | A Bird’s-eye Comparison
BitMEX is a peer-to-peer trading platform offering leveraged contracts for eight separate Bitcoin pairs. Founded in 2014 by now-billionaire Arthur Hayes ($3.7 billion), BitMEX debuted as the world’s first crypto platform to provide margin trading. With an average daily trading volume of $2 billion, BitMEX is nearly three times busier than its closest competitors.
Bybit is a crypto derivatives exchange based in Singapore, serving more than 300,000 users worldwide. Bybit is closing in on its rival, BitMEX. The platform regularly surpasses $850 million in daily trading volume, with a record volume of $4.2 billion, placing it among the top-performing derivatives exchanges in the space.
Leverage and Trading Pairs by Comparison
Bybit currently offers BTC/USD, ETH/USD, XRP/USD, and EOS/USD perpetual contracts. The exchange also allows users to hedge asset risks by converting cryptocurrency assets into USDT, but USDT currently cannot be used for trading. This USDT addition is a huge deal, but we’ll save that detail for later.
Leverage limits on Bybit clock out at 100X with BTCUSD and BTCUSDT futures contracts and up to 50X on the remaining trading pairs.
BitMEX allows trading of perpetual swaps of XBT, ETH, and XRP, and futures contracts of XBT, ADA, BCH, ETH, EOS, LTC, TRX, and XRP.
The platform offers different leverage levels depending on the cryptocurrency or type of contract. It is one of the few exchanges on the market that provides 100X leverage in BTC.
A breakdown of their traditional futures leverages is below:
| Asset | Leverage |
| Bitcoin | 100x |
| Bitcoin Cash | 20x |
| Cardano | 20x |
| EOS Token | 20x |
| Ethereum | 50x |
| Litecoin | 33.33x |
| Ripple | 20x |
| Tron | 20x |
[Winner: Bybit, and you’ll understand why once you read the finale.]
Fees by comparison
BitMEX and Bybit follow a similar pricing model. Fees differ depending on which cryptocurrency you trade and the type of contract. The chart below breaks down the fee structures of both platforms.
Based on each company’s respective rates, the maker and taker fees are quite low and nearly equal between exchanges.
Neither BitMEX nor Bybit charges for deposits or withdrawals, but both will charge a minimum Bitcoin network fee. Also, neither exchange handles fiat currencies at this time. However, Bybit makes it easy for users to buy ETH and BTC using fiat.
[Bybit user guide – Fiat Gateway]
[BitMEX documentation on fiat currency]
[Winner: Tie, though Bybit has an edge with convenience.]
Comparing Liquidity
Liquidity is a crucial factor in choosing the right derivatives platform, as higher liquidity allows you to close a position quickly and easily. Both BitMEX and Bybit are highly liquid, but BitMEX has a first-mover’s advantage in this category. However, BitMEX’s liquidity is at odds with ongoing controversy.
Notorious “scam wicks” plague low-liquidity exchanges, and a recent event saw $50 million in liquidations on the BitMEX exchange in a very short timespan. Considering BitMEX’s size and reported volume, this is an aggravating surprise for the platform’s users.
Bybit uses “fair price marketing” to protect users from liquidation caused by low liquidity or market manipulation. BitMEX lacks these checks-and-balances, as we shall soon discover.
[Winner: Bybit]
User Experience (UI) | Platform Comparison
Bybit’s sleek, contemporary design and dark color scheme are easy on the eyes and intuitive for any trader. Also, Bybit regularly includes updates to the platform based on user-generated recommendations. They even offer a calculator to help users protect their trades.
Bybit also provides a mobile app for on-the-go trading, while BitMEX currently does not have any official app. In the same vein of extra features, Bybit has integrated well with TradingView to provide advanced technical analysis tools. By comparison, BitMEX only provides essential tools within a somewhat clunky charting interface.
By comparison, while BitMEX offers an intuitive layout, it can be an eyesore to a beginner or for long sessions in general. Just look at the aesthetic difference between order books on these two exchanges (warning: BitMEX may cause seizures):
BitMEX order books
https://stoneba1992.tinytake.com/tt/NDQzNjU0Ml8xNDAyOTI4NA
Bybit order books
https://stoneba1992.tinytake.com/tt/NDQzNjU0NF8xNDAyOTMxNA
BitMEX is also the only large exchange to suffer from persistent “system overload” errors. During periods of sudden volatility, new orders are rejected or slowed.
Some people argue that this is a deliberately prolonged issue that benefits the exchange’s internal trading desk. Such preferential treatment is a hazard for many who have lost money and opportunities due to this regular system error.
Bybit stands out here with a system functionality of up to 99.9%. Also, the company is transparent with the few crashes they’ve experienced.
[Winner: Bybit, by a long shot]
Customer Service Comparison
The way exchanges interact with their customers can be a make-or-break deal regarding whether they park assets on the platform. How do the two derivative heavyweights perform?
BitMEX offers ticket-based customer support via email, while ByBit provides both the standard email support and live chat. While both companies utilize social media, Bybit is reportedly a winner in terms of response time.
BitMEX provides perpetual contract and futures guides on their site, with a decent resource base of complex order types, fee structures, and legal matters.
Bybit offers a robust FAQ section, and staff regularly publish to the company blog, which is enhanced by a comprehensive Trading School category.
[Winner: Bybit]
Security
Both exchanges use multi-sig wallet security, while Bybit stores 100% of user funds in cold storage. For an overview of Bybit’s security accomplishments, check their site. You can locate BitMEX’s security features here.
Additionally, both exchanges are free from KYC, meaning your privacy is secure from prying eyes.
BitMEX did a massive oopsie by accidentally exposing thousands of its users’ emails. To date, Bybit has not suffered from anything close to this magnitude.
As mentioned, BitMEX was involved in a few significant controversies in recent years. Accusations include market manipulation, fraud, money laundering, and racketeering. A lawsuit also accused the exchange of setting its index price to a few illiquid spot exchanges, “weaponizing deliberate server freezes.”
BitMEX is prepared to fight these accusations in court, but the battle will be amidst another lawsuit by multiple early investors for violation of their contract. If that wasn’t enough, the company is under investigation by the CFTC.
The question for traders is clearly: How much of BitMEX’s liquidity is real, and how much is smoke and mirrors?
[Winner: Bybit, by a landslide]
Finally, Bybit’s Gangster Move
The one huge reason why we prefer Bybit over other derivatives exchanges is this: Hedged trading.
Bybit allows traders to carry long and short positions of a USDT contract simultaneously. The exchange consolidates long and short orders of each contract for simplicity. This upgrade eliminates the need for traders to maintain multiple balances across different platforms or accounts.
From the AlphaTradeZone community –
“I’ve been trading with Bybit since November 2019, and the experience has been amazing! The welcome bonus is unbeatable, plus the customer support is top-tier. They provide the best liquidity among all the exchanges we’ve tried, scam wicks and slippage are no longer a problem—no overload errors.
The mobile app checks all of our wishlist boxes, a massive plus in a market where opportunities come and go within seconds. I recommend Bybit without any hesitation.” -Talin, founder of AlphaTradeZone
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