- Platform overview
- Deribit vs Bybit crypto options offerings comparison
- Trading experience
- Fee structure
- Security and safety
- Additional features and tools
- Customer support
- Regulatory compliance and restricted countries'
- Key takeaways and verdict: Deribit vs. Bybit
- Trading experience
- Interface and ease of use
- Fee structure
- Security and safety
- Leverage and capital efficiency
- Customer support
- Regulatory compliance
If you have been lurking around the crypto market for some time, you have probably heard what happened to FTX. Thousands of investors have lost millions of dollars trying to trade crypto options. You don’t want that to happen to you, do you?
That’s why it’s important to find trustworthy exchanges where you can do option trading without having to worry 24/7. In this high-stakes game, choosing the right platform can make all the difference between a profitable trade and a missed opportunity. In this article, we will dive deep into two such platforms and provide you with a comprehensive assessment of their options offerings.
The purpose of comparing Deribit and Bybit’s crypto options offerings is to evaluate the features, benefits, and potential drawbacks of each platform. This comparison is going to be crucial for traders and investors who are considering venturing into crypto options trading. So, buckle up and read on.
Deribit is a Panama-based crypto futures and options exchange. The platform was launched in June 2016 and has since grown rapidly to become one of the top exchanges providing crypto futures and perpetual contract trading.
Initially, Deribit was a platform dedicated solely to Bitcoin options trading. However, recognizing the growing demand for diverse crypto options, it expanded its offerings to include Ethereum (ETH) in 2019. Following this, it further broadened its portfolio by adding support for Solana (SOL) and USD Coin (USDC) in subsequent years.
As of now, Deribit supports trading for Bitcoin, Ethereum, Solana, and USDC. It has plans to include options for XRP, SOL, and Matic in the future.
One of the interesting aspects to note is that Deribit is not regulated by any financial entity in Europe or the United States. The landscape of crypto is dynamic and continually evolving, which means that Deribit, like other crypto exchanges, faces the risk of potential clashes with regulatory bodies in the future.
However, Deribit has taken steps to address these concerns. It has implemented know-your-customer (KYC) requirements to prevent illegal activities on its platform. It’s also planning to apply for a full market product license in Dubai, pending clarification of certain regulations.
Deribit video review
Bybit is a Dubai-based crypto futures exchange established in 2018. It has grown into one of the largest and most reputable crypto exchanges, with over 10 million customers worldwide in 2023.
The platform is popular globally, largely due to its policy of not requiring identity verification. This means users can deposit, buy, sell, stake, and withdraw assets from the exchange without needing to complete KYC. While this may raise some eyebrows, the platform is committed to maintaining high standards of compliance and security.
Bybit is registered in the British Virgin Islands (BVI) and follows BVI laws and regulations. However, like Deribit, it is not subject to the regulatory oversight of any specific country or regulatory authority.
Bybit provides a fair trading environment for trading futures with good leverage in BTC/USD, ETH/USD, XRP/USD, EOS/USD, and BTC/USDT perpetual contracts. We will talk more about this in the later sections of this article.
The leadership team at Bybit includes industry leaders from the banking and FX sectors, including representatives from Morgan Stanley, Tencent, and other well-known organizations. One of the most impressive features of this platform is that it has not yet encountered any system overload, making it an attractive option for seasoned investors. That’s why this platform is poised to capture a significantly larger market share in 2024 as its innovation and growth continue to attract new customers.
Bybit video review
Deribit vs Bybit crypto options offerings comparison
Deribit prides itself on providing a diverse roster of options contracts catering to various trading strategies and risk tolerances. Their platform comprises some great features that empower your options trading journey, such as option wizard, position builder, tight spreads, and zero-fee spot training. However, amongst all the great features they provide, options wizard makes the life of a crypto options trader much easier.
The option wizard is a tool provided by Deribit to assist traders in finding the optimal option strategy based on their price predictions. This tool is designed to simplify the process of selecting the right options and to help traders make informed decisions.
Here’s how it works:
- Price prediction: You start by entering your price prediction for the crypto.
- Strategy selection: Based on your prediction, the options wizard suggests an optimal options strategy.
- Detailed analysis: The tool provides a detailed analysis of the suggested strategy, helping you understand the potential risks and rewards.
In addition to the options wizard, Deribit also offers other advanced trading tools, such as options discovery and calculators, which further assist traders in making effective trading decisions. These tools, combined with Deribit’s wide range of crypto options, make it a comprehensive platform for crypto options trading.
Just like Deribit, Bybit has established itself as a major player in the crypto derivatives arena. Its options offerings now cater to both seasonal options traders as well as those seeking to expand their crypto portfolios with leveraged precision. Beyond the standard offerings, Bybit boasts some distinctive features: USDT-margined options, one-click buy/sell, trading bot, and copy trading.
USDC Options are contracts that give the holder the right, but not the obligation, to buy or sell a crypto asset, such as BTC, at a predetermined price and at a specified time in the future. Bybit was the first crypto exchange to offer options that are margin and settled in USDC. They are European-style cash-settled options, which means they can only be exercised when the contract expires.
Bybit was the first crypto exchange to offer options that are margin and settled in USDC. This allows traders to settle and trade with more certainty and ease without needing to own the underlying crypto asset. They are European-style cash-settled options, which can only be exercised when the contract expires.
But what‘s so great about this? Here’s why this is such a big deal for every crypto trade enthusiast:
- Ease of trading: Bybit users can settle and trade with more certainty and ease without needing to own the underlying crypto asset.
- No need to hedge underlying collateral: Since USDC is pegged to the USD, there is no need to hedge underlying collateral.
- Settlement in USDC: All contracts are settled in USDC.
- Enhanced capital efficiency: Bybit options support portfolio margin, a risk-based margin policy that is aligned with the general risk of your portfolio. It is designed to lower your margin requirements on hedged positions.
- Competitive fees: Enjoy trading fees as low as 0.01% (taker fee) and 0.01% (maker fee).
- Best-in-class liquidity: Bybit offers the best-in-cla1ss liquidity and market depth. This provides users with a fair and transparent trading experience with minimal slippage.
Here’s a side-by-side comparison between the two:
|✅ Intuitive tool for building complex option spreads
|❌ Lacks a dedicated wizard but offers API for automation.
|First-in-market USDC Options
|❌ Primarily European BTC and ETH options contracts denominated in USDC.
|✅ Pioneered USDC options as an underlying settlement currency, offering more flexibility and stability.
|✅ Visualize portfolio and calculate potential risks and rewards before executing trades.
|✅ Offers portfolio tracker, but risk calculations might be less comprehensive.
|✅ Boasts some of the tightest spreads in the crypto options market.
|✅ Competitive spreads, but may not consistently match Deribit's tightness.
|Zero-fee spot trading
|✅ Offset potential option premium costs with free spot trading on the platform.
|❌ Spot trading incurs fees like other exchanges.
|✅ Broad range of strike prices for precise price expectations.
|✅ Diverse strike prices, but may be slightly less granular than Deribit.
|❌ Standard order book interface for options entry and exit.
|✅ Simplified interface for quick option buying and selling.
|❌ Lacks a built-in trading bot for options.
|✅ Offers pre-configured and customizable bots for automated options strategies.
|❌ No copy trading functionality for options.
|✅ Follow experienced traders' options strategies and potentially mirror their success.
A smooth and easy-to-use interface can make the difference between a successful deal and a stressful mess. Both Deribit and Bybit are formidable contenders, but when it comes to user experience, their strengths and weaknesses diverge.
Deribit feels like it is made for seasoned traders. Packed with powerful tools like the options wizard and detailed charts, it offers granular control and unparalleled versatility. However, this abundance of functionality can be overwhelming for new adventurers. Menus cascades and graphs abound, and understanding the intricacies requires dedication and experience. For seasoned traders who thrive on complexity, Deribit's interface is a playground of possibilities. But for those starting their crypto journey, it might feel overwhelming.
Bybit's interface, in contrast, shines with user-friendliness. Clean lines, intuitive layouts, and minimal clutter guide users through a well-marked path. Features like one-click buy/sell buttons and pre-configured trading bots cater to quick decisions and streamlined execution. Navigating through menus feels like a stroll, and even beginners can quickly get the hang of it.
Trading fees can silently erode all your profits. That’s why it's important to understand the structures of Deribit and Bybit so that you can make informed decisions.
Let’s have a look at the fee structure and break down the costs associated with it.
Both platforms offer competitive maker/taker fee structures, with makers enjoying rebates for adding liquidity and takers paying slightly higher fees for removing it. Deribit's maker fees start from 0.0% to 0.03%, while the taker fee remains between 0.03% to 0.05%.
On the other hand, Bybit has higher fees than Deribit in the USDC options. As per our research, the minimum maker fee in this platform is 0.00%, with a taker fee of 0.01%.
When an option contract expires “in the money,” meaning the underlying asset price is above the strike price for call options or below for put options, physical delivery might occur. Deribit charges different fees on the delivery value, which is in line with the industry average.
On the other hand, Bybit’s fee structure is flat, but no possibility of free delivery.
Liquidations are charged an additional fee that is charged by a percentage of the underlying contract size.
Deribit’s liquidation fee floats from 0.16% to 0.19%, applicable to ETH and BTC contacts.
On the other hand, Bybit’s liquidation fee is slightly higher, fixed at 0.2%.
Security and safety
With all the rug pulls that have happened over the years, it's very important we know and understand how our money will be protected in case of a mishap. Both platforms prioritize security, but their approaches cater to different priorities. Deribit's focus on independent audits, public proof of reserves, and mandatory 2FA might appeal to users seeking maximum transparency and self-reliance.
Bybit's adherence to KYC/AML regulations, insurance fund, and offline multi-signature wallets cater to users who value regulatory compliance and additional financial protection.
Here are some things to consider:
- Regulation: Neither platform is fully regulated yet, although Bybit's efforts toward KYC/AML compliance might offer a slight edge.
- Transparency: Deribit provides more public transparency through proof of reserves, while Bybit might be perceived as slightly less transparent.
- Track record: Both platforms have experienced security incidents in the past, highlighting the importance of continued vigilance and security updates.
Ultimately, the choice between Deribit and Bybit for security depends on your individual risk tolerance and priority for transparency vs. regulatory compliance.
Remember, no platform is immune to security breaches. Always practice caution, monitor your accounts closely, and utilize all available security features to navigate the crypto derivatives seas with calm confidence.
Here’s a head-to-head comparison of their security and safety features:
|Majority of funds
|A significant portion of funds
|Pen testing by security experts
|Bug bounty program
|Proof of reserves
|Available as an option
|Offline multi-signature wallets
|Yes (for large transactions)
Additional features and tools
Both of these platforms come with some amazing and unique tools of their own.
We have already talked about option wizard in a previous section. The options wizard on Deribit is more than just a fancy tool; it’s an option trader’s dream feature for crafting potent option strategies.
With the options wizard, you don’t have to decipher complicated formulas anymore. It presents a user-friendly interface where you can visually build spreads by selecting call and put options at different strike prices and expiry dates. As you adjust your selections, the wizard creates real-time P&L charts depicting potential profits and losses across various market scenarios. This allows you to fine-tune your strategy for optimal risk-reward ratios.
This great tool eliminates the need for any tedious calculations. The wizard lets you tweak crucial parameters like leverage, delta, and gamma with ease. See how each tweak affects your P&L in real-time, allowing you to experiment and optimize your strategy to perfection.
In addition to that, The options wizard lets you test your strategy against historical data to gauge its performance in different market conditions. This historical lens offers valuable insights for refining your approach and building confidence in your chosen strategy.
Once satisfied with your masterpiece, the wizard grants you the ultimate convenience: one-click execution. Simply click “Trade,” and your meticulously crafted strategy springs to life on the Deribit platform.
While the option wizard steals the spotlight, Deribit's recent feature upgrades offer additional magic:
- Advanced charting: Dive deeper into market complexities with customizable technical indicators, drawing tools, and layouts. Analyze trends, identify patterns, and make informed trading decisions with newfound clarity.
- Stop-loss and take-profit orders: Automate your risk management and safeguard your profits with these essential tools. Set your limits, and the platform automatically executes your exit strategy when price levels are reached.
- Enhanced market depth: Gain deeper market insights with detailed buy and sell order information at different price points. See the forces at play and anticipate potential execution prices for your trades.
But Bybit is not lagging behind in any way. It comes with exciting features. The “Bybit Learn” is the stand-out feature that is unique to the platform. It is your friendly translator, teaching you everything you need to know from scratch. No matter if you're a complete beginner or a seasoned trader looking to level up, “Bybit Learn” has something for you.
Some bite-sized articles and tutorials break down the fundamentals, explaining key concepts like options, leverage, and basic trading strategies. These are perfect for a quick grasp or a convenient refresher. For deeper dives, video courses delve into specific topics like risk management and advanced strategies, providing in-depth explanations and insights from industry experts. And if you prefer interactive learning, live and on-demand webinars keep you connected with market trends and offer a platform to ask questions and engage with renowned analysts.
But Bybit Learn doesn't stop at the basics. It caters to the advanced traders as well. It's a place that keeps you up to date on how crypto is changing all the time. Blog posts and market research studies are like your daily feeds; they tell you about new trends, changes in the industry, and possible business prospects. With this up-to-date information, you can confidently move through the market and avoid missing out on good opportunities.
Bybit Learn is the key to unlocking your full potential as a crypto futures investor. You can use it to learn more, get better at what you already know, and come up with even better plans.
No matter what service you are using, customer support is important. This is especially true for crypto platforms where you are investing thousands of hard-earned dollars. Deribit and Bybit both offer great assistance, but there are obviously differences in their approach.
Deribit customer support
- Support channels: Primarily relies on email support and an extensive FAQ section.
- Response times: Emails are typically answered within 24-48 hours, with longer wait times for complex inquiries.
- Availability: Support is available during business hours (GMT+1), with limited weekend coverage.
- Language support: Limited language support, primarily English.
Bybit customer support
- Support channels: Offers 24/7 live chat, email support, and a comprehensive FAQ section.
- Response times: Live chat offers immediate responses, while email inquiries are answered within 12-24 hours.
- Availability: Live chat and email support are available 24/7, with additional regional language support teams.
- Language support: Multilingual support is available in English, Chinese, Korean, Russian, Vietnamese, Portuguese, Spanish, Turkish, and Arabic.
Remember, even the best customer support teams can encounter delays or limitations. Always utilize additional resources, such as FAQs and communities, to empower yourself with knowledge and seek alternative solutions.
Regulatory compliance and restricted countries'
Crypto regulations pose challenges for traders navigating different platforms. The choice between Deribit and Bybit depends on your risk tolerance and regulatory priorities. While Deribit might offer access to certain restricted countries, its lack of formal license might make some users cautious. Bybit's KYC/AML compliance and efforts towards local regulatory cooperation might provide an added layer of comfort for others.
Let's see the dead-to-head comparison regarding the complaint and restricted countries:
|A gray area, unlicensed
|Taking steps towards compliance, not fully regulated
|More extensive list
Key takeaways and verdict: Deribit vs. Bybit
Selecting between Deribit and Bybit ultimately depends on your individual trading style, risk tolerance, and priorities. Here's a quick summary of the key takeaways:
- Deribit: Powerful but complex, ideal for seasoned traders.
- Bybit: User-friendly and accessible, perfect for beginners and intermediates.
Interface and ease of use
- Deribit: Feature-rich but challenging to navigate.
- Bybit: Simple and intuitive, excellent for smooth learning.
- Deribit: Slightly higher taker fees, good for high-volume traders with tiered discounts.
- Bybit: Tighter spreads, suitable for frequent traders focused on popular contracts.
Security and safety
- Deribit: Emphasis on transparency with proof of reserves and independent audits.
- Bybit: Focuses on regulatory compliance and user protection with KYC/AML and insurance fund.
Leverage and capital efficiency
- Deribit: Granular control and higher leverage for experienced traders.
- Bybit: Flexible range, including USDT-margined options for efficient capital allocation.
- Deribit: Email-based, best for independent users comfortable with longer wait times.
- Bybit: 24/7 live chat and multilingual support, ideal for immediate assistance and diverse language needs.
- Deribit: Operates in a gray area, with limited restrictions but less regulatory comfort.
- Bybit: Takes steps towards compliance, larger restricted country list but might offer a sense of security.
In concluding our comparative analysis of Deribit and Bybit, it is evident that the choice between these two cryptocurrency trading platforms should be informed by a trader’s experience level, risk appetite, and specific needs.
For the veteran trader seeking robust, advanced trading options and willing to navigate a more complex interface, Deribit emerges as the superior choice. Its platform, while intricate, offers powerful tools and a transparent approach to security that caters well to professionals. The tiered fee structure benefits high-volume traders, and the high leverage options provide the granular control seasoned traders often require.
Conversely, Bybit is the go-to for newcomers and intermediate traders due to its user-friendly interface that streamlines the learning curve. It also offers competitive spreads that appeal to frequent traders who favor popular contracts. Bybit further secures its position by emphasizing regulatory compliance, offering a level of security and user protection that includes KYC/AML processes and an insurance fund to mitigate losses.
On the customer support front, Bybit's 24/7 live chat with multilingual capabilities stands out against Deribit’s email-based support, marking it as the platform of choice for those who prioritize immediate and diverse language assistance.
Regarding regulatory compliance, Bybit appears to be taking more definitive steps towards adherence to regulatory requirements, potentially providing users with an added sense of security, despite the larger list of restricted countries. Deribit’s less stringent approach may offer more freedom but also comes with less regulatory clarity.
Ultimately, the decision to trade with Deribit or Bybit should align with a trader’s individual strategy, preferences, and requirements. Both platforms have their unique strengths and cater to different segments of the crypto trading community, each providing the tools and services necessary to thrive in the dynamic world of cryptocurrency trading.