Summary: Bybit and KuCoin are global crypto platforms; Bybit specializes in derivatives trading with 25x leverage and a clean security record. KuCoin offers 100x leverage and supports over 700 cryptocurrencies, but had a security breach of $280 million in 2020.
Both have similar features and user-friendly interfaces, but Bybit offers lower derivatives trading fees and has never been hacked, making it the preferred platform.
Bybit vs KuCoin Overview
Bybit and KuCoin are two of the most popular global crypto trading platforms, boasting millions of users and billions of dollars in daily trading volume. Bybit is renowned for its focus on derivatives and futures trading. It supports various trading types like spot, margin, options and futures trading, enabling up to 25x leverage on 350 cryptocurrencies with the deepest liquidity.
KuCoin, on the other hand, is well-regarded as one of the best no-KYC exchanges that are available in every country in the world and support over 700 cryptocurrencies. Their platform also offers higher leverage, with up to 100x available on their listed assets, but with significant depth and liquidity on the order books.
Is Bybit Safer than KuCoin?
Yes, Bybit is safer than KuCoin because the exchange has not suffered any notable exploits or security breaches. In 2020, KuCoin fell victim to a significant security breach that saw hackers steal over $281 million in crypto assets from the platform's hot wallets. Remarkably, they were able to recover or freeze about 85% of the stolen funds due to the collective effort of the crypto community.
Furthermore, while KuCoin did take steps to compensate affected users and fortify its security measures post-breach, Bybit's unblemished security record inspires more confidence. Bybit's multi-layered security protocols such as two-factor authentication, multi-signature withdrawal process, and cold storage for funds, are effective safeguards against potential breaches.
Bybit and KuCoin are widely regarded to be two of the most feature-rich platforms in the industry. The list below is a high-level overview of their most popular products and features used by millions of digital asset investors worldwide:
- Derivatives Trading: Bybit is best known for its derivatives trading platform that allows users to long and short a variety of crypto assets with deep liquidity.
- Options Trading: Bybit supports options contracts for BTC, ETH and SOL.
- Bybit Earn: Bybit offers a secure earn program that allows users to earn high yields on hundreds of crypto assets. They offer both fixed and flexible savings products.
- Security Measures: Bybit employs robust security features, including two-factor authentication (2FA), a multi-signature withdrawal process, cold storage for funds and an audited proof of reserves highlighting 1:1 backing of all assets.
- Intuitive User Interface: Bybit's interface is clean and intuitive, although it may be complex for beginners due to its focus on derivatives trading.
- Bybit Blockchain: Bybit is releasing a zk-rollup Layer 2 called Mantle, which will be a hub for DeFi enabled by the BybitDAO and community.
- Variety of Cryptocurrencies: KuCoin offers the widest variety of coins out of all major exchanges, with over 700 listed on the platform. They are fast to list popular new assets and meme coins like Pepe Coin, Milady (LADYS) and Wojak (WOJAK)
- Leverage Trading: Similar to Bybit, KuCoin also offers leveraged trading with up to 100x leverage.
- KuCoin Earn: KuCoin also offers flexible and fixed savings accounts on cryptocurrencies and stablecoins. They also allow users to borrow with collateral via KuCoin lend.
- Enhanced Security: KuCoin provides multiple layers of security, including 2FA, anti-phishing measures, and improved security protocols after a significant breach in 2020.
- User-friendly Interface: KuCoin's interface is user-friendly and also has a mobile app, making it easily accessible and suitable for beginners.
- KuCoin Chain: KuCoin has its own native blockchain called the KuCoin Community Chain (KCC) that has dozens of live DeFi applications and millions in total value locked. Read our guide on how to join KuCoin Chain to get started.
Bybit and Kucoin both support the same set of deposit methods for users to begin using their platforms. This includes bank transfers, ACH transfers, SEPA transfers, debit cards, credit cards, e-wallets and hundreds of other third-party payment services.
Investors and traders can also deposit crypto assets like BTC or USDT to the exchange to use as collateral to swap with other assets or take out leverage.
Bybit uses a maker-taker fee model for spot and futures trading. The spot trading maker fee (when you add liquidity to the order book) is 0.1% and the taker fee (when you remove liquidity from the order book) is 0.1%. When it comes to derivatives trading, users get charged 0.01% for maker orders and 0.06% for taker orders.
Kucoin charges the same fees as Bybit for spot trading with a 0.1% flat rate for maker and taker orders. However, they are slightly more expensive when it comes to trading derivatives contracts with a 0.02% maker fee and 0.06% taker fee.
To wrap up, Bybit and KuCoin both serve as robust crypto trading platforms with diverse features, including leveraged trading and earn programs. However, Bybit's unblemished security record, coupled with its highly-regarded derivatives trading platform, provides a slight edge over KuCoin.
Though KuCoin offers a wider range of cryptocurrencies, its history of a security breach may be a cause for concern for some. Additionally, while both platforms have competitive fees, Bybit's lower derivatives trading fees may appeal to frequent traders. Based on these factors, Bybit could be seen as the more preferred platform overall.