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An explosion of cryptocurrency derivatives hit the market in 2019 and 2020, despite many challenges faced in other areas of the economy. Many new players geared up to participate in this crypto derivatives ecosystem, from public exchanges to privately funded investment funds.
Among the companies that entered the digital currency derivatives market were two notable exchanges that continue to garner attention, Bybit and Phemex. Both are headquartered in Singapore and share many similarities.
But there are also vital differences you need to know about when it comes to Bybit vs. Phemex. Keep reading for our full breakdown and comparison of these two exchanges and the derivatives services they offer.
Centralized Exchanges, Decentralized Exchanges, and Derivatives
Not too long ago, most customers in the cryptocurrency market relied on a handful of exchanges to swap digital assets. But things have changed dramatically over the past few years. Today, investors find myriad trading options from which to choose.
They range from centralized exchanges to those that are considered fully decentralized. With this evolution has come massive upticks in the types of assets available to trade via these exchanges. We've also witnessed the introduction of derivatives exchanges.
These platforms facilitate the trading of assets such as perpetual contracts, options, and futures. Most popular exchanges today are centralized, and they include Bybit and Phemex.
While both exchanges offer many similar services, how do they ultimately compare? Let's take a closer look.
What Is Bybit?
Founded in early 2018, Bybit exchange represents one of the largest derivatives exchanges in cryptocurrency today. It boasts 24-hour volumes worth more than $10 billion. As a result, it can offer extremely liquid trading pairs.
Liquidity often proves a significant factor for investors when it comes to derivatives exchanges. Why? Because spot assets, in particular, are more traded than most other derivatives.
How popular is Bybit? It serves more than one million registered users and has proven very popular among crypto enthusiasts due to its customer-centric approach to derivatives trading. Nowhere is this better exemplified than the platform's intuitive and easy-to-use mobile app.
Trading With Bybit
What else sets Bybit apart from the competition? The exchange offers multi-language support you can rely on 24/7. And its overall trading environment comes with many impressive features.
For these reasons, Bybit has become the go-to exchange for many investors dealing in cryptocurrency derivatives.
A Very Popular Platform
This top-rated peer-to-peer derivatives trading platform also offers 100x leverage. And it supports a wide variety of digital assets, including Ethereum, Ripple, and Bitcoin.
What else will you get if you select this exchange? The platform has introduced state-of-the-art features with rigid security protocols. These protocols ensure user safety and help prevent loss of funds.
Speed of Transactions
You'll also be happy to know that Bybit has a first-class customer support team that traders love. And the exchange's matching engine can handle up to 100,000 transactions each second, making it one of the speediest platforms on the market today.
The result? A high-performance platform free from overload issues or fund losses.
Other Features You Need to Know About
When it comes to trading cryptocurrencies, you'll appreciate the many features offered by Bybit. These include 100x leverage, a very generous system that permits trade contracts in many digital assets.
You can also participate in coin swaps with a simple click of the mouse, and you don't have to fill out a Know Your Customer (KYC) form to get started. This last point translates into more privacy for individual customers.
What else do you need to know about Bybit? The company keeps all funds in cold storage wallets. And the security of these wallets gets verified through three manual withdrawals.
The exchange supports multiple cryptocurrencies and accepts open positions, deposits, and various altcoins, including Ethereum and Bitcoin.
There's no history of breaches with Bybit, and user privacy remains a top priority. Fantastic customer service makes the exchange responsive, and you can expect to receive an answer to your questions 24/7.
What Is Phemex?
Phemex exchange is another crypto derivatives exchange that a growing number of customers continue to turn to for their digital trading needs. Founded in 2019 in Singapore by Phemex Financial Pte. Ltd, it boasts a highly experienced team of financial experts.
This team includes eight former Morgan Stanley Executives, an impressive foundation for any crypto company. What has set Phemex apart from the pack? Its claim to reduce barriers to entry in the digital currency derivatives trading market.
But does it hold up to all of the hype? Many loyal customers think so.
After all, the derivatives exchange offers powerful features, ensuring all crypto enthusiasts have the opportunity to conduct marginal trading. No matter their level of expertise.
Investing in Phemex
Besides an intuitive platform that users at various levels of crypto experience feel comfortable using, Phemex comes with other essential advantages. For example, it was developed to take into account the high volatility of the digital currency market.
A Platform on the Rise
The Phemex platform functions as one of the speediest exchanges out there. While this might not seem like a big deal, it's enormous when you remember that many other exchanges suffer from inadequately low TPS. As a result, they prove unable to trade high volumes rapidly.
But you'll never worry about this with Phemex. The exchange claims it can function up to ten times faster than many of its competitors.
Speed of Transactions
According to the team, Phemex can conduct 300,000 transactions per second, making it three times faster than Bybit. That's a TPS unmatched by other exchanges.
What are some other key features of the exchange? It supports both US dollar and Bitcoin contract settlements. And it renders the process of derivatives trading more accessible and less risky.
Other Features You Need to Know About
If you opt for this platform, you'll gain access to up to 100x leverage trading and multiple order types. These include limit orders, market orders, conditional orders, take profits, stop-loss orders, and other advanced order functions.
For security reasons, Phemex also features something unique to the industry. A hierarchical deterministic cold wallet system.
It includes sub-account setup, permitting customers to hold short and long positions at the same time. And users can even provide fund managers with account access to receive additional assistance.
Phemex relies on an advanced FIX API. As a result, it represents a highly stable API for algorithmic trading. What's more, it makes trading easier for customers.
You'll find greater flexibility when it comes to this exchange and trading different types of cryptocurrencies. The same goes for making withdrawals. You can take out up to three per day.
The website has native mobile applications. It also comes in various languages for global accessibility. And it allows customers to trade conventional contracts such as crypto with gold.
Bybit and Phemex: Fees
When it comes to trading with cryptocurrencies, there are many compelling reasons to consider both Phemex and Bybit. And both exchanges rely on the latest innovations to make their platforms user-friendly.
How do fees compare? On both platforms, you'll deal with the industry standard.
This standard breaks down as -0.025 percent on maker and 0.075 percent on taker fees. Both exchanges prove identical in this area.
Bybit vs. Phemex: Supported Coins
What else do you need to know about each of these exchanges? Phemex offers customers a choice of seven different assets. They include:
As for Bybit? You'll have the following options:
While you can trade traditional assets such as gold through Phemex, such isn't the case with Bybit. What's more, you've got greater options overall when it comes to Phemex.
Bybit and Phemex: Mobile Apps
We've covered many of the handy features offered through the Bybit and Phemex exchanges. But we have yet to consider how their mobile apps fit into the mix.
With Bybit, you get a fully native mobile crypto trading app. Available for both Android and IOS devices, it proves convenient and easy to navigate. It also offers fantastic functionality.
As for Phemex? It also boasts a well-designed app that places a premium on ease of use. The completely native mobile app comes in two versions, one for IOS and one for Android.
Like Bybit app, Phemex app makes trades, withdrawals, and deposits a cinch. In other words, both platforms have developed seamless apps that take the guesswork out of investing on the go.
Bybit vs. Phemex: The Takeaway
In a comparison of Bybit vs. Phemex, both exchanges come with many desirable features. But there are two distinct areas where Phemex pulls ahead of Bybit.
These include the ability of investors to trade in gold as an asset, which you can't do with Bybit. What's more, it's tough to smoke Phemex's ultra-speedy TPS. Nevertheless, Bybit still performs better in this area than many other exchanges.
Either way, you'll gain access to a user-friendly and innovative platform. But if you've got more crypto investment experience and highly prize the thought of an uber-fast exchange, Phemex remains the clear winner.
Are you interested in researching other exchanges that deal in derivatives? Browse our comprehensive list of crypto platforms for the information you need to make better investment decisions.