Bybit vs Coinbase: 2022 Comparison

bybit vs coinbase

Bybit and Coinbase are two popular cryptocurrency exchanges that each serve a global clientele base. Generally, each exchange appeals to a different investor profile. Both exchanges have similar and different positives, negatives, product offerings, and features. This 2022 comparison aims to give a succinct, information-packed overview and comparison of the good, the bad, and the ugly of both Bybit and Coinbase. So here we go, Bybit vs Coinbase!

Executive Summary

ByBit is a Singapore-based crypto exchange. Founded in 2018, the exchange currently services approximately 5 million global users. The exchange offers users a very diverse menu of trading instruments, including spot, margin, options, futures, and perpetual derivatives. The exchange also features multiple savings products, decentralized finance opportunities, and an NFT marketplace.

ByBit likely appeals to intermediate and experienced crypto investors and traders due to its diverse, exotic product menu and low trading fees. Bybit offers extensive optionality with regards to trading order types and TA tools. No KYC is required on ByBit, but depositing fiat is a hassle. Most users likely fund and withdraw via only crypto, which adds to the sense that most of ByBit’s users are not crypto beginners.


Bybit vs Coinbase: 2022 Comparison - - 2022

Buy, sell & trade crypto on bybit

$4,100 BONUS + 30% OFF TRADING FEES

Coinbase is an American-based crypto exchange. Founded in 2012, Coinbase is one of the oldest, most prominent exchanges in the industry. Servicing approximately 98 million global users, the exchange offers users smooth fiat on and off ramps between bank accounts and the exchange. Coinbase features a simple, clean UI that pairs with its limited trading instrument menu. Additionally, Coinbase offers users a debit card that pays back crypto, and a line of credit collateralized by bitcoin.

Coinbase seems well-suited for crypto beginners because of its seamless fiat to exchange on and off ramps, simplified, straightforward trading interface, and limited trading instruments, order types, and tools. Most need to crawl before they walk, and Coinbase seems like a decent place for the former. Coinbase’s hot wallet offering is a fantastic getaway for beginners to learn how to self-custody crypto. However, concerns loom with regards to Coinbase’s commitment to user privacy.

This comparison will analyze ByBit and Coinbase under the following seven factors:

  1. Security
  2. Ease of access, control, and use
  3. Fees
  4. Supported trading instruments, orders and tools
  5. Unique features
  6. Aesthetic experience
  7. Supported cryptocurrencies.

Finally, this analysis focuses on ByBit and Coinbase product suites for retail investors only. Coinbase does offer products geared towards family offices, businesses, and institutions, but those are not reviewed in this analysis.

Definitions

Security: Degree of protection against hacks, theft, losses, exchange freezes or seizures, and privacy leaks

Ease of Access, Control, and Use: Ease and ability to access, deposit, withdrawal, and trade assets

Fees: Fees charged to deposit, withdrawal, and trade assets 

Supported Trading Instruments, Orders & Tools: Diversity of available trading instruments,  order types, and TA indicator tools

Unique Features: Additional features, products, and investment opportunities

Aesthetic Experience: Quality of UI and visuals

Cryptocurrencies Supported: Number of cryptocurrencies supported

coinbase

Security

With regards to risks of loss due to hacks or theft, Bybit and Coinbase offer arguably the same high levels of security. Both exchanges offer several 2FA options, including SMS, email, and Google Two Factor. 2FA can be customized to trigger when funds are being withdrawn on both exchanges. Coinbase (and not Bybit) does offer 2FA hardware security, which provides extremely robust security protection. Coinbase offers $250K USD FDIC insurance. Withdrawal requests on Bybit (and not Coinbase) are subject to manual reviews three times a day. Both exchanges custody user funds in cold storage solutions to protect from theft. So while there are some minor differences, the level of security each exchange offers is effectively the same.

It’s genuinely difficult to assess the risks of exchange seizures or freezes from either of these exchanges. However, given the recent news of Celsius halting customer withdrawals and Binance temporarily halting BTC withdrawals, this is an important security consideration for users. Importantly, Coinbase has publicly stated through its earnings reports that the company retains the right to hold any and all crypto assets deposited on its exchange in the event of bankruptcy. Under that scenario, Coinbase users would become general unsecured creditors. How likely is such an event? Probably low. And it can be further mitigated by using Coinbase’s hot wallet option. But regardless, the disclosure is disturbing as it’s fundamentally contrary to the ethos of crypto. Stay frosty friends.  

In terms of privacy, Bybit has the edge on Coinbase. And by edge, I mean a mile. Bybit does not require any intrusive KYC. Anyone with an email can create an account and begin operation in under two minutes. Conversely, Coinbase requires name, email, phone number, and identity proof (passport, driver’s license, or government ID). What makes this so concerning is Coinbase’s embarrassment of a privacy track record:

  • In 2019, Coinbase acquired a controversial blockchain intelligence startup that allegedly sold surveillance technology to governments, law enforcement agencies, corporations, and authoritarians.
  • In 2020, Forbes reported that Coinbase was gearing up to sell “blockchain analysis software to the U.S. government.”
  • In 2020, The Block reported that Coinbase was selling blockchain analytics software to the US Secret Service and wanted to sell the same to the DEA and IRS.

Ease of Access, Control, and Use

Bybit and Coinbase have effectively the same levels of user access, control, and use, although each has differing positives and negatives in this category.

With regards to availability, Bybit and Coinbase are offered in most countries. Of course, neither are available for residents in Mainland China. And Bybit is not available for residents in the USA or Singapore. VPN anyone?

With regards to opening a new account, individuals can open a Bybit account in less than two minutes, given the system does not require any KYC. Only an email account is required! However, Bybit will require KYC for users requesting to withdraw more than 2 BTC on any given day. Conversely, Coinbase requires KYC for every account holder. The process is automated, so most new accounts can be opened in approximately 15 minutes. 

Let’s talk about exchange deposits and withdrawals. Generally, the more options, flexibility, and frictionless access between bank accounts and exchanges, the better. Bybit and Coinbase both technically offer fiat and crypto deposits and withdrawals, but Coinbase offers users multiple, smooth fiat gateways. However, Bybit only offers fiat on and off ramps via multiple third-party providers. And those providers require KYC. So this all adds up to a hurdle for Bybit users and an additional KYC snare.

bybit

The differences between ByBit and Coinbase regarding fiat on and off ramps reflect the general thesis of this comparison. Bybit is excellent for more intermediate or experienced traders, because these individuals likely already utilize other crypto exchanges. Therefore, these individuals will likely want to fund and withdraw from Bybit using only crypto. Coinbase is great for beginners because it’s easy to move fiat directly between bank accounts and the exchange.

Bybit vs Coinbase: 2022 Comparison - - 2022

As was previously mentioned, Bybit withdrawal requests are subject to a manual review approximately three times per day. This represents a slight sacrifice of freedom of monetary movement in exchange for security because withdrawals are not instantaneous.  

Finally, each exchange’s user interfaces (UI) reflect their clientele. Bybit’s UI is a bit more segmented and layered, a feature intermediate and experienced traders want and need. Coinbase’s UI is clean and straightforward. Again, something beginners want and need. 

Fees

Overall, Bybit’s fees are much less expensive compared to Coinbase, the latter of which has some of the highest fees in the industry. 

Bybit generally uses the maker – taker fee model. Market makers are those whose trade orders are not immediately filled (e.g. limit buy or limit sell orders). Market takers are those whose trade orders are immediately filled (e.g. market buy or market sell orders). ByBit gives a .025% rebate (credit) to market makers and charges a .075% fee for market takers. Bybit charges a flat .1% fee for spot trades, and offers free peer-to-peer (P2P) trades. It’s free to deposit crypto into Bybit, and the exchange charges a crypto flat fee for withdrawals.

Coinbase has a complex fee structure based on three factors:

  1. Market fluctuations
  2. Method of payment, and
  3. Order size.

Generally, Coinbase’s maker – taker fees range from .04% to .05% per transaction. The company has publicly stated that .05% is a good estimate of their trading fees. Coinbase’s fee-to-trade ratio is inversely correlated, with fees dropping as the size of trades increase. 

coinbase comparison

The fee comparison chart above is not comprehensive because both exchanges offer sliding scale fee structures and different user tiers. Here are more comprehensive details regarding the fee structures for both Bybit and Coinbase

Supported Trading Instruments, Orders, and Tools

ByBit has a significant edge over Coinbase in terms of supported trading instrument, order, and tool optionalities.

Regarding trading instruments, ByBit  shines because it offers one of the most extensive trading instrument menus I’ve ever seen. Users can trade spot, P2P, margin, and linear and inverse derivatives (options, futures, and perpetual). Coinbase is much more narrowed, offering only spot and one futures product. These differences again appeal to each exchange’s different clientele base. 

bybit comparison

Bybit offers more order types than Coinbase. Users on Bybit can deploy market, limit, stop limit, trailing stop, conditional, automated grid bots, and copy trades orders. Coinbase offers market, limit, and stop limit orders. 

Both Bybit and Coinbase feature trading desks with beautiful TradingView charts, but ByBit offers seemingly every TA indicator tool under the Sun, while Coinbase currently offers EMA, MA, MACD, RSI, Bollinger Bands, and drawing tools. Coinbase does specify that more indicators are coming soon.

coinbase vs bybit

Unique Features

Both Bybit and Coinbase each offer a unique set of additional features that help round out both exchanges, and offer users new ways to dig deeper into crypto and increase their investment opportunities.

Both exchanges host large NFT marketplaces, which allow users to buy, sell, and auction a growing selection of NFTs. Both exchanges offer a unique, but different, set of financial products.

Bybit

Bybit offers an “Earn” menu of financial products, comprised of a savings product, a “dual asset” investment instrument, liquidity pool investing, and exposure to decentralized finance via Curve – USDT liquidity pools. Let’s look at the details: 

bybit features
  • Savings Product: allows users to deposit multiple assets such as USDT, DAI, BTC, and ETH, select a fixed or flexible term lockup period, and receive a certain APY. Currently, users can receive 4.25%, 3%, 1.5%, and 1.75% on USDT, DAI, BTC, and ETH respectively, for a 60 day lockup period. 
  • Dual Asset: allows users to earn high returns in low-volatility markets. Users have to predict the short-term price movement (or direction) of a particular asset within a predefined short-term period. Users who predict correctly can earn high APYs. Currently, the ETH-USDT 1 Day asset pays 356% APY, while the BTC-USDT 1 Day pays 265% APY.
  • Liquidity Pool Investing: users can add liquidity pairs to trading pools and receive returns. This product essentially allows individuals to become market makers. The BTC-USDT pool pays between 4% to 14%, while the ETH – USDT pool pays between 8% to 24%.
  • DeFi via Curve-USDT: users have access to Curve-USDT DeFi pools. This is the same concept as the liquidity pool investing described above, but ByBit allows easy access to these very popular DeFi pools via their website. 

Coinbase

Coinbase offers users a crypto wallet, a Visa debit card, and a line of credit.

  • Coinbase Hot Wallet: users can download a Coinbase hot wallet which allows users to custody their crypto assets and NFTs. When using the Coinbase wallet, users are taking possession of the private keys of their crypto. Therefore, users are protected from any risks of Coinbase seizing or freezing their assets in the event of a company liquidity crisis. It’s good to see Coinbase offering beginners an easy way to learn self-custody.
  • Visa Debit Card: users can receive a Visa debit card that pays back crypto rewards with every purchase. It appears that users can spend USD or USDC and receive a certain percentage of cashback through user-selected BTC, ETH, ALGO, XLM, etc.
  • Line of Credit: users can receive a Coinbase line of credit by using bitcoin as collateral. It appears that users can borrow  40% of the value of their Bitcoin holdings, up to a total of $1M USD. Users pay approximately 8.7% APR on the loan.
coinbase features

Aesthetic Experience

This is subjective but important to many people, given the amount of time some spend on these platforms.

I prefer Coinbase’s clean, modern, and simplified UI, compared to ByBit’s more colorful and vibrant experience. Coinbase delivers a more professional look with its shades of white and blue and clear text segmentation. 

Coinbase UI

Coinbase NFT

In my opinion, Bybit has a more  cartoonish look, due to the nature of the images on its site. This look is inconsistent with the high-grade, sophisticated trading products offered on the exchange. So consider this as a formal appeal for ByBit to revamp their website’s visuals to deliver a more professional look! However, Bybit does feature a lovely trading desk with a beautiful charcoal black background.

Bybit UI

buybit trading desk

Supported Cryptocurrencies

Bybit has a slight edge on Coinbase regarding the total number of supported cryptocurrencies. While these numbers are constantly changing, current estimates indicate that ByBit supports approximately 160 different cryptocurrencies compared to Coinbase’s 150. Users will find all the major blue chips on both.

Final Thoughts

The proper way to compare ByBit and Coinbase might not be by asking which is better, but rather by asking which is better for your particular needs! 

As this article has iterated, ByBit looks to be tailored to intermediate and experienced investors and traders because of the exchange’s deep selection of trading instruments, order types, and TA tools. While experienced users view these selections as advantageous, it might cause confusion or frustration with beginners. No KYC on ByBit is a huge advantage. We also like their low fee structure and additional product suite. Areas for improvement include adding easier fiat to exchange on and off ramps, as well as revamping the website’s visuals to reflect the sophistication of ByBit’s trading instruments. 

Coinbase is engineered well for crypto beginners. In many ways, Coinbase is a good entry point for beginners as is reflected by the company’s 98 million global users. Coinbase offers beginners simple ways to trade and hold digital assets. Beginners can take comfort with Coinbase’s hack and theft security features, as well as FDIC insurance. We applaud Coinbase offering its users with an easy way for them to take self-custody of their digital assets, and we also love the website aesthetic. Having said that, Coinbase’s fee structure is complex and difficult to understand. And we have serious concerns regarding user privacy in relation to Coinbase’s relationships with particular blockchain intelligence companies and US enforcement agencies. Coinbase’s associations seem contrary to the philosophy embedded within bitcoin and expressed by Satoshi Nakamoto.

If you are in the middle of choosing which platform to go with, you might find this article interesting too: Binance vs Coinbase – 2022 review


Bybit vs Coinbase: 2022 Comparison - - 2022

Buy, sell & trade crypto on bybit

$4,100 BONUS + 30% OFF TRADING FEES
Bybit vs Coinbase: 2022 Comparison - - 2022

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Bybit vs Coinbase: 2022 Comparison - - 2022
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