When it comes to choosing the right crypto exchange, understanding the differences between Bybit vs Kraken is crucial. Both platforms offer unique features and cater to different types of traders. In this guide, we’ll compare Bybit and Kraken based on trading features, trading fees, and security measures, and which might be the best fit for your trading needs.

Key Takeaways:

  1. Bybit is best for advanced traders with 100x leverage trading and 1200+ supported altcoins, compared to Kraken’s 50x leverage and only 200 coins and tokens available for trading.
  2. Kraken is more secure due to its regulatory licenses and availability in countries like the US, UK, and Canada, whereas Bybit is unavailable in these jurisdictions.
  3. Bybit has lower spot trading fees and higher liquidity for crypto pairs, while Kraken provides better fiat-to-crypto trading options.

Bybit vs Kraken: Overview

ExchangeBybitKraken
Launched Date20182011
Best forBest for derivatives tradingBest for high-volume US traders
Supported Assets1200+200+
Trading ProductsSpot, futures, margin, options, copy trading, and trading botsSpot, futures, and margin trading
Maximum Leverage100x50x
Margin TradingYes (5x leverage)Yes (5x leverage)
Copy Trading
P2P Trading
NFTs
Earn ServicesSavings, structured products, crypto loans, and liquidity miningOnly fixed/flexible staking
Fees0.1% maker/taker for the spot market
0.02% maker and 0.055% taker for the futures market
0.25% maker and 0.4% taker
0.02% maker and 0.05% taker for the futures market
Withdrawal FeesLowHigh
Payment MethodsBank cards, Google Pay, Apple Pay, and 300+ more in the P2P market. ACH, SWIFT, SEPA, bank transfer, and Wire transfer
Mobile AppBoth iOS and AndroidBoth iOS and Android
PoR (Solvent)YesYes

What is Bybit?

1 What Is Bybit 1

Bybit is a popular derivatives cryptocurrency exchange that was launched in 2018. It is headquartered in Dubai and is registered under the Virtual Assets Regulatory Authority (Dubai) and the Cyprus Securities and Exchange Commission. It also offers spot trading, USDT and USDC perpetual contracts, margin trading, and options trading. The introduction of the Bybit Unified Trading Account (UTA) allows you to trade multiple products from a single account.

Bybit has over 20 million users worldwide and handles more than $10 billion in daily trading volume. It operates in over 160 countries and offers 24/7 customer support in multiple languages.

One of Bybit’s key features is its high-leverage futures trading, allowing up to 100x leverage on perpetual contracts. The platform also boasts a state-of-the-art matching engine that can handle 100,000 transactions per second (TPS), making it one of the fastest in the industry. This speed ensures that users experience minimal latency and no overloads during peak trading times.

Bybit also collaborates with prominent partners. It launched the Bybit Card in partnership with Mastercard. This allows you to spend your crypto funds daily and earn up to 10% cashback. This card functions as a Mastercard debit card, providing a convenient way to access and use crypto assets. Additionally, It has a “Proof of Reserves” system, ensuring transparency by allowing users to verify that the platform holds their deposited assets.

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[Bybit]

Bybit Pros

  • It boasts excellent order book depth, meaning high liquidity for popular crypto pairs
  • Leverage of up to 100x on certain crypto pairs, significantly amplifying potential returns
  • Advanced order types like trailing stop and OCO orders for more sophisticated trade strategies
  • Free testnet platform (demo trading) with simulated funds.
  • 1200+ tradable assets with many low-cap altcoins and new projects

Bybit Cons

  • Direct fiat-off-ramp is not available
  • Restricted for the US and UK customers

What is Kraken?

2 What Is Kraken

Kraken is a regulated cryptocurrency exchange based in the United States, founded in 2011 by Jesse Powell. Headquartered in San Francisco, it operates globally, supporting over 190 countries and offering more than 200 different cryptocurrencies for trading.

Kraken provides various services to accommodate different user needs. For retail investors, the platform features a user-friendly “Basic” interface for buying and selling digital assets. Advanced traders can use “Kraken Pro”, which offers advanced charting tools and order books. Institutions can utilize Kraken’s OTC desk for handling large trades and can integrate with the API for automated trading.

The exchange is notable for its stringent security measures. The exchange employs encryption, two-factor authentication, and predominantly offline storage. Regular audits are conducted to ensure transparency, with proof-of-reserves (PoR) audits providing additional assurance. Kraken is also licensed by multiple regulatory authorities, including FinCEN, FINTRAC, FCA, AUSTRAC, and FSA.

With a trading volume exceeding $207 billion per quarter, Kraken offers a variety of trading options. These include spot trading, margin trading with up to 5x leverage, and futures trading with up to 50x leverage. It also supports staking, enabling users to earn rewards on their crypto assets. 

Kraken Pros 

  • Highly secure with industry-leading safety practices including regulatory licenses
  • Advanced trading tools on the “Pro” platform for experienced traders
  • Available in countries like the US, UK, and Canada
  • A vast library of educational materials for beginners
  • OTC trading for high-volume or institutional traders

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Kraken Cons

Bybit vs Kraken: Trading Volume & Liquidity

Bybit is a major player in the derivatives market. According to CMC, Bybit’s 24-hour spot trading volume is approximately $3.94 billion and its futures volume is over $17.9 billion. It supports a substantial number of trading pairs and has deep liquidity, with high trading volumes, particularly in BTC/USDT and ETH/USDT pairs, which account for a significant portion of its overall volume.

Kraken, on the other hand, has low trading volume. Kraken’s 24-hour spot trading volume is around $777.4 million and $880 million in the derivatives market. It supports a wide range of fiat currencies, contributing to its substantial spot market liquidity. The most traded pairs on Kraken include BTC/USD, ETH/USD, and USDT/USD, with notable volumes in these pairs reflecting strong liquidity in fiat-to-crypto trades.

3 Trading Volume And Liquidity

Winner: Bybit has significantly higher trading volume and liquidity than Kraken in crypto-to-crypto trading pairs, whereas Kraken has more in crypto-to-fiat pairs.

Bybit vs Kraken: Products & Features Comparison

Leverage Trading

Bybit offers various leverage trading options, including futures and margin trading. The maximum leverage in the futures market can go up to 100x for some trading pairs like BTC/USDT and ETH/USDT. For other low-cap altcoins, the maximum leverage is 50x. 

Bybit supports 3 different types of futures contracts:

  • USDT Perpetual Contracts: These contracts use USDT as collateral and have no expiration date.
  • USDC Contracts: It uses USDC as collateral and includes both perpetual and fixed-term futures contracts with expiry.
  • Inverse Contracts: These contracts use the underlying cryptocurrency like BTC as collateral. They come in both perpetual and fixed-term varieties.

Bybit also offers two types of margin modes:

  • Isolated Margin: The margin is isolated to the individual position. This means that if the position is liquidated, only the margin assigned to that position is lost.
  • Cross Margin: The margin is shared across all positions in the account. This can prevent the liquidation of a single position by using the available balance from the entire account. Remember, your entire portfolio can be liquidated. 

Apart from standard market and limit orders, Bybit supports several advanced order types in its derivatives trading portal:

  • Chase Limit Order: Automatically adjusts the limit order price to chase the market price within a predefined range.
  • TWAP (Time-Weighted Average Price): Executes the order over a specified period to achieve an average price.
  • Iceberg Order: Splits a large order into smaller limit orders to avoid revealing the full order size.
  • Scaled Order: Places multiple orders at different price levels, allowing for a more strategic entry or exit.

Bybit is also a popular margin trading exchange. It allows you to borrow funds to trade larger positions than your actual account portfolio balance. For margin trading, Bybit offers leverage up to 5x.

4 Btcusdt

Similar to Bybit, the Kraken crypto exchange also offers both futures and margin trading. It is popular for multi-collateral perpetual futures trading. It allows you to use various collateral types to manage your positions, without transferring funds from one internal wallet to another. For example, you can open a position on BTC/USD, use USDT as collateral, and convert any profits to ETH.

Kraken also offers various advanced conditional order types like stop loss limit, take profit limit, and trailing stop. It also offers margin trades. The maximum leverage for margin trading on Kraken varies by cryptocurrency pair but generally ranges from 2x to 5x.

Kraken requires traders to meet two types of margin requirements: Initial Margin (IM) and Maintenance Margin (MM)

  • The Initial Margin is the minimum collateral needed to open a new trading position, usually starting at 2% on Kraken.
  • Maintenance Margin, which also typically begins at 2%, is the minimum collateral required to keep the position open and avoid liquidation.
5 Leverage Trading

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Earn Interest on Crypto

Bybit’s interest-earning products provide various options for both conservative investors looking for stable returns and those willing to take on more risk for potentially higher rewards.

  • Flexible Savings: This allows you to stake and unstake your crypto assets anytime. It offers an Annual Percentage Rate (APR) that is guaranteed, although the rate can vary based on market conditions. This product supports popular cryptocurrencies like BTC, ETH, and USDT.
  • Fixed Savings: You lock your crypto for a set period in return for a higher guaranteed APR. The lock-up period typically ranges from 7 to 90 days.
  • Launchpool: Stake specific cryptocurrencies, generally MNT and USDT, to earn new tokens for free. This includes earning the staking currency, new tokens, and sometimes bonuses in USDT. It’s a way to participate in new crypto projects early.
  • Dual-Asset Investment: It is a non-principal protected product with floating returns. It allows you to deposit crypto and earn enhanced yields based on the performance of two assets like BTC and USDT. Returns can be higher but come with increased risk.
  • Liquidity Mining: This involves providing liquidity to decentralized finance (DeFi) projects directly through Bybit Web3 Wallet. It offers competitive trading fees and commissions.

Kraken supports staking for over 24 assets with up to 28% yearly rates, including popular cryptocurrencies like Ethereum (ETH), Polkadot (DOT), and Cosmos (ATOM).

It currently offers both flexible and bonded staking. Flexible Staking allows users to earn rewards without locking their assets, whereas Bonded Staking involves a commitment period, offering higher rewards.

Yearly rewards vary by asset and staking type. For instance, Ethereum offers 1-4% flexible and 3-6% bonded rewards. Polkadot offers 7-11% flexible and 15-21% bonded rewards, while Cosmos provides 6-10% flexible rewards. Check all Kraken staking rates here.

6 Earn Interest On Crypto

Winner: Bybit offers more earn products like dual investment, liquidity mining, and launchpool, whereas Kraken only focuses on fixed and flexible staking products.

NFT Marketplace

Kraken has a dedicated NFT marketplace for digital art creators and collectors. The platform supports trading NFTs with many cryptocurrencies and fiat currencies, providing substantial flexibility for users. Currently, it supports NFTs on the Ethereum, Polygon, and Solana blockchains.

A key feature of Kraken NFT is the elimination of gas fees, enabling users to trade NFTs without the additional costs usually associated with blockchain transactions. The marketplace also supports creator earnings, meaning a portion of each sale returns to the original creator.

7 Nft Marketplace

On the other hand, Bybit also has integrated NFT support on its Bybit Web3 Wallet, but not as broad as the Kraken NFT marketplace with centralized security oversight.

Bybit vs Kraken: Supported Cryptocurrencies

Bybit boasts a wider selection, listing over 1200 cryptocurrencies on their platform. This means you’ll likely find a wider variety of lesser-known altcoins alongside popular ones like Bitcoin and Ethereum.

Kraken, on the other hand, focuses on major players and popular coins. They offer around 200 cryptocurrencies, including Bitcoin, Ethereum, and other established tokens.

Winner: Bybit is a clear winner with a wide range of selected coins and tokens compared to Kraken.

Bybit vs Kraken Fees

Bybit Trading Fees

Bybit’s fee structure is designed to reward 30-day high-volume traders with lower fees across spot, futures, and options trading. The VIP levels significantly reduce trading costs, benefiting those with higher trading volumes or asset balances.

For spot trading, non-VIP users are charged a fee of 0.1% for both makers and takers. Higher VIP levels provide reduced fees. For example, VIP 1 users pay 0.0675% for makers and 0.08% for takers. Supreme VIP users, who have the highest trading volumes benefit from the lowest fees at 0.03% for makers and 0.045% for takers.

VIP Level30-day VolumeBybit Spot Maker FeeBybit Spot Taker Fee
Non-VIP0.1%0.1%
VIP 1≥1,000,0000.0675%0.08%
VIP 2≥2,500,0000.065%0.0775%
VIP 3≥5,000,0000.0625%0.075%
VIP 4≥10,000,0000.05%0.06%
VIP 5≥25,000,0000.04%0.05%
Supreme VIP≥50,000,0000.03%0.045%

In derivatives trading, which includes futures and perpetual contracts, non-VIP users face a maker fee of 0.02% and a taker fee of 0.055%. As users move up the VIP tiers, these fees decrease. For example, supreme VIP users can enjoy a 0% maker fee and a 0.03% taker fee.

Options trading fees on Bybit are also structured according to the user’s VIP level. Non-VIP users are charged 0.03% for both makers and takers. Check the full Bybit trading fees here.

Kraken Trading Fees

For spot trading, Kraken uses a maker-taker fee model. Maker orders, which add liquidity to the market, are charged lower fees compared to taker orders, which remove liquidity

For users with a 30-day trading volume of less than $10,000, maker fees start at 0.25% and can go as low as 0% with higher volumes. Taker fees for the same volume range start at 0.4% and can reduce to 0.10% as volume increases.

30-Day Volume (USD)Kraken Spot Maker FeeKraken Spot Taker Fee
$0 – $10,0000.25%0.40%
$10,001 – $50,0000.20%0.35%
$50,001 – $100,0000.14%0.24%
$100,001 – $250,0000.12%0.22%
$250,001 – $500,0000.10%0.20%
$500,001 – $1,000,0000.08%0.18%

For futures trading, the maker fee starts at 0.02%, and the taker fee starts at 0.05%. Talking about Kraken margin fees, when opening a margin position, there is an opening fee of 0.02%. Additionally, a rollover fee of 0.02% is charged every four hours while the position remains open. 

Read the full Kraken fee structure here.

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Deposit and Withdrawal Fees

Bybit does not charge any fees for deposits. However, there are withdrawal fees that vary depending on the cryptocurrency and network. For example, withdrawing Bitcoin (BTC network) incurs a fee of 0.0001 BTC, while Ethereum (ERC20) has a fee of 0.0015 ETH. Other cryptocurrencies have their respective fees, such as 0.25 XRP for Ripple and 1 USDT for Tether​ (TRC20).

Kraken, on the other hand, also does not charge fees for most cryptocurrency deposits, making it quite similar to Bybit in this regard. For withdrawals, Kraken’s fees vary. For example, the fee for withdrawing Bitcoin is 0.0002 BTC, which is higher than Bybit’s fee. Ethereum withdrawals have a fee of 0.003 ETH. Check Kraken withdrawal fees here.

Kraken also supports various fiat withdrawals with different fees and limits. Here’s a quick overview:

Payment MethodWithdrawal FeesMinimum WithdrawalProcessing Time
ACH (USA only)Free1 USD0-2 business days
SWIFT35 USD150 USD3-5 business days
SEPA1 EUR2 EUR0-5 business days
Interac e-Transfer10 CAD15 CAD0-1 business days or instant
Bank Transfer (Australia)Free5 AUD0-2 business days

Winner: Bybit has lower withdrawal fees than the Kraken exchange.

Bybit vs Kraken: Security

Bybit offers robust security features to protect user accounts and funds. The exchange uses cold storage to store users’ assets. This means the assets are kept offline, away from potential online threats. 

It also employs Multi-Signature Wallets, Trusted Execution Environment (TEE), and Threshold Signature Schemes (TSS) for data security. Bybit also implements two-factor authentication (2FA) for account logins and withdrawals. This ensures that even if login credentials are stolen, an attacker would need the second authentication factor to gain access. 

Here are some other safety measures offered by the Bybit exchange:

  • Withdrawal address whitelisting
  • Anti-phishing code
  • Customizable daily withdrawal limit
  • Transparent PoR data

On the other hand, Kraken also has an extensive range of security features aimed at protecting its users. Like Bybit, Kraken uses cold storage for the majority of its funds. Kraken’s Security Labs continuously audit and improve their security measures.

One notable feature of Kraken is its focus on hardware security keys for 2FA. Users can utilize devices such as YubiKeys for an extra layer of security. These keys generate a unique 44-character passcode, significantly longer and more secure than typical 6-8 character codes from authentication apps. 

Kraken also supports the FIDO2 protocol, which ensures that the security key only responds to challenges from the registered website, preventing phishing attacks.

Bybit vs Kraken: Regulatory Licenses

Bybit holds the following regulatory licenses:

  • Bybit has been granted a license by the Virtual Assets Regulatory Authority (VARA), which is responsible for overseeing the virtual asset industry in Dubai.
  • Registered with the Cyprus Securities and Exchange Commission (CySEC) for derivatives trading.
  • Licensed by AFSA, which regulates financial services within the Astana International Financial Centre.

Kraken’s regulatory licenses include:

  • To serve clients in the United States, it maintains registration as a Money Services Business with FinCEN.
  • Registration as a Money Services Business with FINTRAC in Canada
  • In the United Kingdom, Kraken operates locally as a Financial Conduct Authority (FCA) registered cryptoasset firm.
  • In Italy, with the Organismo degli Agenti e dei Mediatori (OAM)
  • In Australia, Kraken maintains local operations as a registered Digital Currency Exchange (DCE) with AUSTRAC.

Bybit and Kraken Supported Countries

Bybit supports users in over 160 countries. Some of the key supported countries include Australia, Germany, India, Japan, and many more. Its services are accessible in regions across Europe, Asia, and Oceania. However, Bybit restricts its services to specific countries such as the United States, United Kingdom, mainland China, Singapore, and Canada, among others. These restrictions are in place due to regulatory compliance requirements.

In contrast, Kraken supports users in around 190 countries, making it widely accessible globally. It operates in the United States, Canada, the United Kingdom, and Australia, among other regions. However, like Bybit, Kraken also restricts services in some regions due to regulatory issues. These regions include North Korea, Iran, and Syria.

Winner: Kraken is available in major financial hubs such as the US, UK, and Canada due to its compliance with local regulations, whereas Bybit does not operate in these regions.

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Conclusion

To conclude our Bybit vs Kraken comparison, both cryptocurrency exchanges cater to different trader profiles. Bybit excels in futures trading, offering a plethora of altcoins and high-leverage trading. Conversely, Kraken prioritizes regulatory compliance and crypto-to-fiat trading. 

In the final analysis, the selection of Bybit or Kraken depends upon your individual trading goals and the specific functionalities that hold the greatest importance for you. You can also check out our other related comparison guides like Bybit vs KuCoin and Kraken vs Coinbase.

FAQs

Is Bybit Better than Kraken?

Bybit is better if you’re looking for a derivatives trading platform and want high leverage up to 100x. It offers a wide range of tradable assets, advanced order types, and has deep liquidity, especially for crypto-to-crypto pairs. 

On the other hand, Kraken is better suited for users who prioritize security and regulation. It offers more fiat trading pairs and is accessible in major regions like the US, UK, and Canada. Kraken also provides extensive educational resources and a more straightforward interface for beginners.

Should I trust Bybit?

Bybit is a trustworthy platform with 20m+ registered users and mainly because of its strong security measures. It uses cold storage for most funds, multi-signature wallets, and 2FA to protect user accounts.

Additionally, Bybit operates under regulatory licenses from reputable authorities like the Virtual Assets Regulatory Authority in Dubai and the Cyprus Securities and Exchange Commission. The platform also maintains a Proof of Reserves system, ensuring transparency about its holdings.

Which is easiest to use, Bybit or Kraken?

When it comes to ease of use, Kraken is generally more beginner-friendly. It offers a straightforward interface for buying and selling cryptocurrencies, making it easy for new users to navigate. Kraken also provides a lot of educational resources to help beginners understand trading concepts.

Bybit, while also user-friendly, is more tailored for professional traders. It offers advanced trading features like high leverage and multiple order types which might be overwhelming for new users.

Which offers good customer support, Bybit or Kraken?

Both Bybit and Kraken provide good customer support. Bybit offers 24/7 customer support in multiple languages, which is very helpful for users around the world. They have a live chat option and help center, and are known for their quick response times. Kraken also offers 24/7 support, including live chat and email support. Plus, Kraken has a comprehensive help center with detailed guides and FAQs, which is beneficial for users needing help with common issues.