Last reviewed: September 30, 2026
Short answer: Binance and Bybit are both large, offshore-headquartered crypto exchanges with deep spot and derivatives markets. Their headline fees for ordinary users are similar: spot trading starts around 0.1% per side on both, and futures fees are much lower per trade than spot. Binance has the wider range of coins, products and fiat routes, plus a small fee discount if you pay with its BNB token. Bybit grew up as a derivatives venue and is often chosen for its futures interface, copy trading and trading tools.
On safety, both publish proof of reserves and hold emergency funds, but neither is a bank and neither account is covered by deposit insurance. Binance carries a heavy regulatory history, including a 2023 guilty plea in the United States. Bybit suffered the largest crypto theft on record in February 2025, around $1.5 billion in ether, which the FBI attributed to North Korea; it kept processing withdrawals and replaced the lost ether. The right choice depends mostly on which one is legally available where you live, which products you actually need, and how much risk you are willing to carry by leaving funds on any exchange.
This guide replaces and expands our earlier comparison of the two exchanges. It also brings in material from three older articles on this site: Binance moving its SAFU emergency fund into bitcoin, what that bitcoin buying did and did not signal about the market, and the common ways people try to make money on Binance and the risks involved. Instead of scattering those topics across four short posts, we have put everything in one place so you can compare the two platforms on fees, safety, products and regulation, and then decide with your eyes open.
We rely on official sources where we can: the exchanges' own fee pages and help centers, the US Department of Justice, the FBI and the Austrian Financial Market Authority. Fees and country rules change often, so treat every number as a snapshot and check the live pages before you act. We have no commercial relationship with either exchange and use no referral links.
This article is general information, not financial advice. Crypto assets are volatile and high risk, and you can lose all the money you put in.
In this guide
- Binance vs Bybit at a glance
- Company background and leadership
- Regulation and legal history
- Availability by country
- Account opening and identity checks (KYC)
- Spot trading fees compared
- Futures and derivatives fees compared
- Costs people forget: spreads, funding and withdrawals
- Products and features side by side
- Safety funds and proof of reserves
- The 2025 Bybit hack and how it was handled
- Account security features
- App, support, deposits and withdrawals
- Ways people try to earn on each exchange, and the risks
- The real risk of leverage
- Who each exchange suits, and the alternatives
- Checklist before you choose
- FAQ
- Bottom line
- Sources
Binance vs Bybit at a glance
Before going deep, here is the short version. The table compares the two on the points most readers care about. "Typical" means the standard rate for a new, non-VIP account at the time of our review. Your own rate may differ by region, by account tier and by the specific trading pair.
| Point | Binance | Bybit |
|---|---|---|
| Founded | 2017 | 2018 |
| Main strength | Very wide coin selection, broad product range, large spot volume | Derivatives trading, trading tools, copy trading |
| Typical spot fee (regular user) | 0.1% maker / 0.1% taker; 25% off when paying in BNB | 0.1% maker / 0.1% taker |
| Typical USD-margined futures fee (regular user) | 0.02% maker / 0.05% taker; 10% off with BNB | Low maker/taker rates in a similar range; check the live fee page |
| US residents | Not served by Binance.com; Binance.US is a separate company | Not served |
| EU access | Varies by country and license status | Via Bybit EU, authorised under MiCA in Austria (May 2025) |
| Emergency fund | SAFU fund, about $1 billion, held in bitcoin since February 2026 | Insurance fund for derivatives liquidations; balance sheet reserves |
| Proof of reserves | Yes, Merkle tree based, user-verifiable | Yes, Merkle tree based, with third-party audit reports |
| Major incident | 2023 US guilty plea and $4.3 billion settlement; 2019 hack of about 7,000 BTC covered by SAFU | February 2025 theft of about $1.5 billion in ETH, attributed by the FBI to North Korea |
| Deposit insurance | No | No |
The fee gap is small for most people. The bigger differences are legal availability, product range and each company's history.
Company background and leadership
Binance
Binance launched in 2017, founded by Changpeng Zhao, widely known as CZ, together with co-founder Yi He and others. It grew fast on low fees, many listings and its BNB token and BNB Chain ecosystem, and has for years been the largest crypto exchange by volume.
For much of its early life Binance said it had no fixed headquarters, which later became central to its legal problems.
After CZ pleaded guilty in the United States in November 2023, he stepped down as chief executive. Richard Teng, a former regulator who had run Binance's regional markets, became CEO. On December 3, 2025, Binance named Yi He as co-CEO alongside Teng, creating a dual leadership structure. CZ served a four-month prison sentence in 2024 and received a presidential pardon in October 2025. The pardon was politically controversial; several US senators publicly objected to it. The pardon did not undo the company's own plea agreement or the compliance commitments that came with it.
Bybit
Bybit launched in 2018, co-founded by Ben Zhou, who remains its chief executive. It is headquartered in Dubai. Bybit started as a derivatives exchange focused on perpetual futures, and later added spot trading, copy trading, trading bots, earning products, a card, a Web3 wallet and more. It is usually ranked among the largest exchanges by derivatives volume.
Bybit has spent the last two years building licensed operations in specific regions. The most important for European readers is Bybit EU GmbH, based in Vienna, which received authorisation as a crypto-asset service provider under the EU's Markets in Crypto-Assets Regulation (MiCA). The Austrian Financial Market Authority (FMA) granted that authorisation by a decision dated May 28, 2025. According to the FMA, the authorisation covers services such as custody and administration of crypto-assets, exchange of crypto-assets for funds or for other crypto-assets, placing, and transfer services.
Both firms are private companies that do not publish audited financial statements the way a listed bank does. You are trusting management and whatever outside attestations they choose to publish.
Regulation and legal history
Binance's 2023 US settlement
On November 21, 2023, Binance Holdings Ltd. pleaded guilty in federal court in Seattle to charges involving the Bank Secrecy Act, operating an unlicensed money transmitting business, and violating US sanctions law. According to the US Department of Justice, the company agreed to pay more than $4.3 billion in total. The resolution covered the Justice Department and several other US agencies, including the Treasury's Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Commodity Futures Trading Commission (CFTC).
The Justice Department said Binance's failures allowed money to flow between US users and users in sanctioned jurisdictions, and that the company did not maintain an effective anti-money laundering program. CZ pleaded guilty to failing to maintain an effective anti-money laundering program, agreed to pay a $50 million fine, and stepped down as CEO. As part of the resolution, Binance agreed to retain an independent compliance monitor and to improve its compliance and sanctions programs.
Separately, the US Securities and Exchange Commission sued Binance in 2023 over securities law issues. That civil case was dropped in 2025 after a change in the SEC's approach to crypto. The criminal plea and the agreements with FinCEN, OFAC and the CFTC were separate from the SEC case.
Binance.US is a different company
People in the United States cannot use Binance.com. Binance.US is a separate company with its own US registrations, its own product list and its own fee schedule. For US residents, a Binance.com versus Bybit comparison is academic: neither global platform is available to you.
Other regulatory history
Binance has faced regulatory action or warnings in many countries, has left some markets such as Ontario in Canada and the Netherlands, and has obtained registrations elsewhere. The picture changes often. Check your national regulator's register to see whether Binance, or a local Binance entity, appears on it.
Bybit's regulatory position
Bybit has had fewer headline enforcement actions than Binance, but it has also faced restrictions. It withdrew from the UK in 2023 when the UK's new financial promotions rules for crypto took effect. Industry reports say it returned to the UK in late 2025 through a partnership with an FCA-authorised firm, with a limited product set. It has also obtained licenses or registrations in several places, including the MiCA authorisation in Austria mentioned above, which allows Bybit EU to passport its services across the European Economic Area.
A license in one place does not protect you everywhere: a MiCA license covers the EU entity and its customers, while users of the global platform deal with a different entity. The same applies to Binance's regional entities.
| Regulatory point | Binance | Bybit |
|---|---|---|
| Major US enforcement | 2023 guilty plea; over $4.3 billion with DOJ, FinCEN, OFAC and CFTC | None on the scale of Binance's; does not serve US residents |
| Founder outcome | CZ pleaded guilty, served four months, pardoned October 2025 | CEO Ben Zhou not subject to comparable charges |
| Compliance monitor | Required under the 2023 resolution | Not applicable |
| EU framework | Depends on country and license status; check your local regulator | Bybit EU GmbH authorised under MiCA by Austria's FMA |
| UK | Restricted for new users in the past; check current status with the FCA register | Exited in 2023; reported return in late 2025 via an FCA-authorised partner |
Availability by country
This question comes first. If an exchange does not serve your country, the comparisons below do not apply to you.
Where Bybit says it does not operate
Bybit's Service Restricted Countries page and its terms list jurisdictions where it does not provide services. These have included the United States, mainland China, Hong Kong, Singapore, Canada, and sanctioned territories such as North Korea, Iran, Cuba and occupied regions of Ukraine. The list changes as Bybit gains or loses local registrations, so read the current page.
Binance.com, VPNs and product limits
Binance.com does not serve the United States and restricts services in other countries because of sanctions, withdrawals or local rules; in some, users are moved to a local Binance-branded platform with fewer products. Do not use a VPN to reach an exchange that does not serve you. Both exchanges' terms prohibit it, identity checks reveal your country, and a flagged account can be frozen with little legal recourse. Even where an exchange is allowed, some products may not be: the UK's FCA has banned the sale of crypto derivatives to retail consumers since January 2021, and in the EU derivatives fall outside MiCA under separate rules. Your menu may be shorter than the one described here.
Account opening and identity checks (KYC)
Both exchanges now require identity verification, often called KYC ("know your customer"), before you can deposit fiat money or trade in meaningful size. This is a result of anti-money laundering rules and, in Binance's case, of the commitments it made in its US settlement.
Expect to give your name, date of birth and address, photograph a government ID, and complete a selfie or liveness check. Proof of address or source of funds may be requested for higher limits or large transfers. Both use tiered limits that differ by country.
Only start verification from the official app or a website address you typed yourself, never send ID documents through chat apps, and use your real details: an account opened with false information can be frozen when you most need it. Fake "verification" messages are one of the most common tricks used against exchange users. Our guide on how to spot a crypto scam covers the warning signs.
Spot trading fees compared
Spot trading means buying or selling a crypto asset for immediate settlement: you pay USDT and receive bitcoin, for example. Both exchanges use a maker-taker model.
A maker order is a limit order that rests on the order book; a taker order fills immediately, as every market order does. For regular spot users on both exchanges, the standard rate is currently the same for both.
Binance spot fees
Binance's official fee schedule lists a standard spot rate of 0.1% maker and 0.1% taker for regular users. If you choose to pay fees in BNB and hold enough BNB in your account, you receive a 25% discount, bringing the rate to 0.075%. Binance runs nine VIP levels above the regular tier. Each level lowers fees and is reached by 30-day trading volume or by holding a certain amount of BNB. The fee schedule shows the top tier reaching roughly 0.011% maker and 0.023% taker. Binance also sometimes runs zero-fee promotions on selected pairs, which come and go.
Bybit spot fees
Bybit's help center states that non-VIP users pay 0.1% for both makers and takers on spot. Bybit also has VIP tiers, reached by trading volume or by total asset balance, and a separate "Pro" level for very large traders and institutions. As on Binance, rates fall sharply at higher tiers.
What this means in money
For someone making a few purchases a month, the fee difference between the two is a few cents or dollars. For heavy daily traders, tiers and the BNB discount matter more.
| Spot fee scenario (regular user) | Binance | Bybit |
|---|---|---|
| Buy $1,000 of BTC with a market order | About $1.00 (about $0.75 if paid in BNB) | About $1.00 |
| Buy and later sell $1,000 (round trip) | About $2.00 (about $1.50 with BNB) | About $2.00 |
| Trade $50,000 a month in total | About $50 (about $37.50 with BNB) | About $50 |
| How to lower fees | Pay with BNB; reach VIP tiers by volume or BNB holdings | Reach VIP tiers by volume or asset balance |
These figures cover the trading fee only, not spreads or withdrawal fees.
A note on "convert" and "buy crypto" buttons
One-tap "buy" or "convert" screens may advertise zero fees while quoting a rate worse than the order book. For larger amounts, compare the quote with the spot market price first.
Futures and derivatives fees compared
A perpetual future ("perp") lets you bet on a price rising or falling without owning the asset, usually with leverage and with no expiry date. A periodic funding payment between long and short traders keeps its price near spot.
Binance futures fees
Binance's futures FAQ lists regular-user fees for USD-margined (USDⓈ-M) futures of 0.02% maker and 0.05% taker. Paying fees in BNB gives a 10% discount on USDⓈ-M futures, provided you keep enough BNB in the futures wallet; otherwise fees are charged in USDT and the discount does not apply. Coin-margined futures have their own schedule. VIP tiers reduce the rates further.
Bybit futures fees
Bybit lists derivatives fees on its trading fee structure page and under "My Fee Rates" in the account. Standard non-VIP perpetual fees are in the same low range as Binance's, with maker below taker. Special products differ: the help center lists pre-market perpetuals at 0.04% maker and 0.1% taker for non-VIP users. Check the live page for the exact contract you plan to trade.
Why low futures fees can be misleading
A 0.05% taker fee looks tiny. But futures fees are charged on the full position size, not on your margin. If you post $1,000 of margin at 10x leverage, you control a $10,000 position. A taker fee of 0.05% is then $5 to open and about $5 to close, or 1% of your margin for one round trip. Trade in and out a few times a day and fees alone can eat a large share of your account, even before any losses.
| Example: $1,000 margin, market orders both ways | Position size | Round-trip fee at 0.05% taker | Fee as % of your margin |
|---|---|---|---|
| No leverage (1x) | $1,000 | About $1 | About 0.1% |
| 5x leverage | $5,000 | About $5 | About 0.5% |
| 10x leverage | $10,000 | About $10 | About 1% |
| 50x leverage | $50,000 | About $50 | About 5% |
The table uses a simplified flat rate for illustration. It ignores funding payments, slippage, and the chance that the position is liquidated before you close it.
Costs people forget: spreads, funding and withdrawals
The advertised trading fee is only part of what you pay.
Spread and slippage
Spreads on bitcoin and ether are usually very tight on both. On small tokens they can be wide, and a large market order can fill at progressively worse prices (slippage). Limit orders help.
Funding rates on perpetual futures
Funding is commonly exchanged every eight hours on major perpetuals. In bullish markets longs usually pay shorts, and the reverse in bearish ones. It goes to other traders, not the exchange, but in a hot market it can add up to a meaningful cost over weeks.
Withdrawal fees
Withdrawal fees depend on the coin and network: USDT on a low-cost network can be cheap, on Ethereum mainnet much dearer. The fee is shown before you confirm. Sending on the wrong network is a common way to lose funds.
Fiat deposit and card purchase costs
Bank transfers are often cheap or free; card purchases usually cost much more once processing fees and provider margins are added, and some issuers treat them as cash advances. Cards in another currency may add foreign transaction fees; our explainer on foreign transaction fees and dynamic currency conversion explains how those work.
Products and features side by side
Both exchanges have grown into large "super apps" for crypto. The broad menu is similar; the depth and emphasis differ.
| Product | Binance | Bybit |
|---|---|---|
| Spot trading | Very large coin list; many pairs | Large coin list; fewer pairs than Binance on many assets |
| Perpetual and dated futures | USDⓈ-M and coin-margined | USDT, USDC and inverse contracts; core strength |
| Options | Yes | Yes |
| Margin trading | Cross and isolated margin | Spot margin and unified trading account |
| Copy trading | Yes | Yes; a prominent feature |
| Trading bots | Grid, DCA and other strategy bots | Grid, DCA, martingale and other bots |
| Earn / savings / staking | Simple Earn, staking, structured products | Savings, staking, structured products |
| Token launches | Launchpool, Launchpad and similar programs | Launchpool and Launchpad-type programs |
| P2P marketplace | Yes, in many local currencies | Yes |
| Payment card | Available in some regions | Available in some regions |
| Web3 / self-custody wallet | Binance Wallet | Bybit Wallet |
| Own token | BNB, used for fee discounts and more | No equivalent fee-discount token of the same scale |
Coin selection: Binance typically lists more assets and pairs. That helps if you want less common tokens, but smaller tokens are more volatile, easier to manipulate and more likely to be delisted.
Unified accounts: Bybit's unified trading account, and Binance's portfolio margin for eligible users, let one balance serve as collateral across products. That is efficient, but it links risks: a losing futures position can draw on assets you thought of as separate savings.
Cards: both have offered crypto-linked cards in some regions through partner issuers. Spending with one converts crypto to fiat, which can be a taxable event in some countries. For everyday online spending, a regular card may be simpler; see our overview of virtual cards for online payments.
Web3 wallets: both offer a separate wallet in their apps. Check exactly who holds the keys before relying on one. For long-term savings, our guide on hot wallets versus cold wallets explains the options.
Safety funds and proof of reserves
Emergency funds and proof of reserves are the two tools exchanges use to answer "will I get my money back?" Both are useful. Neither is a guarantee.
Binance's SAFU fund
Binance created its Secure Asset Fund for Users, known as SAFU, in July 2018. The company said at the time it would allocate 10% of trading fees to the fund to protect users in extreme cases. The fund was used in May 2019, when hackers stole about 7,000 BTC from a Binance hot wallet. Binance said SAFU covered the loss and users did not lose funds.
Why Binance moved SAFU into bitcoin in 2026
On January 30, 2026, Binance announced it would convert the roughly $1 billion SAFU fund from stablecoin reserves into bitcoin over about 30 days. The announcement came during a sharp market decline, when bitcoin had fallen to its lowest level in several months. Binance began buying in early February and said on February 12, 2026 that it had completed the final tranche, bringing the fund to 15,000 BTC. At the prices of that day, reported at around $67,000 per bitcoin, that was worth about $1 billion.
Binance also said it would monitor the fund's market value and top it up if it fell below $800 million, rebalancing as needed. Before the switch, the fund had been held mainly in stablecoins. A bitcoin fund swings in dollar terms, so the floor matters: it can rise with the market and fall just as easily.
Did the purchase signal market confidence?
Many commentators read the move as a vote of confidence in bitcoin, and some as a buy signal. Be careful:
- It was a treasury decision, not a price forecast. It shows how Binance wants to hold its own emergency money, not what the price will do.
- $1 billion is small relative to the bitcoin market. Spread over 30 days, the buying was a tiny share of daily global trading volume. It may have helped sentiment, but it was not large enough to set the price on its own.
- It changes the risk profile of the protection fund. A bitcoin fund can be worth much less exactly when a crash causes problems. The $800 million top-up pledge depends on the company following through.
- Company-held bitcoin is not your bitcoin. The fund belongs to Binance and gives you no legal right to a payout.
Our view is simple: the SAFU conversion is an interesting fact about Binance's risk appetite, not a reason to buy bitcoin and not a reason to feel that your exchange balance is insured. If you are thinking about volatility, our guide on crypto volatility and risk management is a better starting point.
Bybit's insurance fund
Bybit's insurance fund is a different animal. Like similar funds at other derivatives exchanges, it mainly absorbs losses when a leveraged position is liquidated at a price worse than its bankruptcy price, so winning traders are paid and other users are not "auto-deleveraged". Bybit publishes its balances. It keeps the derivatives market orderly; it is not general hack insurance for your spot balance. After the 2025 hack, which we cover in the next section, Bybit used loans, purchases and its own balance sheet to replace the stolen ether, not the insurance fund alone.
Proof of reserves
After the collapse of FTX in November 2022, where customer funds were missing, large exchanges began publishing proof of reserves (PoR). The idea: show that the exchange holds at least as much of each asset as it owes to customers.
Both Binance and Bybit use a Merkle tree approach: the exchange snapshots every customer balance, combines them into a cryptographic tree, and shows evidence of the assets it holds against the total. Each user can check that their own balance was included without seeing anyone else's.
Bybit publishes periodic PoR reports, including audit reports from an outside firm, and has released its Merkle tree code on GitHub so users can verify their inclusion. It reports a reserve ratio for each covered asset, with major assets typically shown above 100%. Binance offers a similar user-verifiable PoR page with reserve ratios per asset.
What proof of reserves does not prove
- Liabilities may be incomplete. PoR proves assets against the customer balances in the snapshot. It does not prove the company has no other debts, such as loans, that could compete with customers in a bankruptcy.
- It is a point in time. A snapshot on one day says nothing about the next day.
- It is not a full audit. An attestation checks specific figures. It is not the same as an audit of the whole company's financial statements.
- It does not cover legal risk. If regulators freeze accounts or a court orders assets seized, having reserves may not help you access them quickly.
Treat PoR as a basic hygiene check: its absence is a warning sign, but its presence is not a guarantee.
The 2025 Bybit hack and how it was handled
On or about February 21, 2025, attackers stole roughly $1.5 billion in ether and ether-based tokens from Bybit. It is the largest crypto theft on record, well above earlier incidents such as the Ronin bridge hack.
What happened
The theft happened during what should have been a routine transfer from one of Bybit's cold wallets (an Ethereum multisignature wallet) to a warm wallet. The attackers manipulated the transaction that Bybit's signers approved, so the signers believed they were approving a normal transfer while in fact they were handing control of the wallet to the attackers. Investigations pointed to a compromise of the multisig interface used to prepare the transaction, not a flaw in Ethereum itself.
On February 26, 2025, the FBI publicly stated that North Korea was responsible. The FBI calls this cluster of North Korean activity "TraderTraitor"; it is widely associated with the group many security researchers call Lazarus. The FBI said the attackers were moving quickly to convert stolen assets into bitcoin and other assets across thousands of addresses on multiple blockchains, and asked exchanges, bridges and other services to block transactions linked to the laundering addresses.
How Bybit responded
- It disclosed quickly. CEO Ben Zhou went public within hours, including a livestream, and said clearly that the exchange was solvent.
- It kept withdrawals open. Bybit said it would process all withdrawal requests. It handled a very large wave of withdrawals in the following days without suspending them.
- It said client assets were backed 1:1. Zhou stated that even if the stolen funds were not recovered, all client assets remained fully backed and Bybit could cover the loss.
- It closed the ether gap. Bybit arranged bridge loans and made purchases to replace the missing ether. Within about three days it said the ETH gap had been fully closed, and an updated third-party proof of reserves report was published to show the restored balance.
- It launched a bounty. Bybit set up a recovery bounty program offering a share of recovered funds to people and firms that helped freeze or trace stolen assets.
What the hack teaches users
The case cuts both ways: a huge theft hit a cold wallet process many assumed was safe, yet the exchange had the resources, credit and outside support to make customers whole, and its response was widely seen as fast and transparent.
The main lesson is that exchange custody always carries company risk. A weaker exchange could not have absorbed that loss, and even a strong one depended on outside lenders. For long-term holdings, consider how much you really need to keep on any exchange.
Binance's own security history
Binance's largest publicly known exchange hack was in May 2019, when about 7,000 BTC, then worth roughly $40 million, was stolen from a hot wallet and covered by SAFU. A 2022 exploit of a BNB Chain cross-chain bridge hit blockchain infrastructure rather than exchange customer balances.
Account security features
Most individual losses come not from exchange-wide hacks but from stolen passwords, SIM swaps, phishing, malware and social engineering. Both exchanges offer strong tools against these; you have to switch them on.
| Security feature | Binance | Bybit | Why it matters |
|---|---|---|---|
| Authenticator app 2FA | Yes | Yes | Much stronger than SMS codes, which can be stolen by SIM swap |
| Passkeys / security keys | Yes | Yes | Phishing-resistant login tied to your device or hardware key |
| Withdrawal address whitelist | Yes | Yes | Withdrawals only to addresses you have pre-approved |
| Anti-phishing code | Yes | Yes | A personal code shown in genuine emails from the exchange |
| Device management | Yes | Yes | See and remove logged-in devices |
| Withdrawal lock after changes | Yes, temporary holds after sensitive changes | Yes, temporary holds after sensitive changes | Gives you time to react if someone changes your settings |
| Sub-accounts and API permissions | Yes | Yes | Limit what bots or third-party tools can do |
A sensible setup
- Use a unique, long password from a password manager, and secure the linked email account just as well.
- Turn on a passkey or security key; otherwise an authenticator app, not SMS.
- Set an anti-phishing code and turn on the withdrawal whitelist with only your own addresses.
- Give any API keys for bots trading-only permission, never withdrawal permission, restricted to specific IP addresses.
The support-impersonation trap
Scammers pose as "Binance Support" or "Bybit Support" on social media, messaging apps and phone calls, claiming your account is under investigation and asking you to move funds to a "safe" wallet or share a 2FA code. Genuine support never asks for passwords, 2FA codes or seed phrases, or asks you to move funds to protect them. Both exchanges offer an official verification tool to check whether a site, email, number or social account is genuine.
App, support, deposits and withdrawals
Apps and customer support
Both exchanges offer web platforms and iOS and Android apps, each with a simplified beginner mode and a professional mode. Binance's app is feature-dense and can overwhelm newcomers; its "Lite" mode hides advanced products. Bybit's derivatives screen is often praised by active traders, though its wider app has also become crowded. Both push promotions heavily, so open the app with a specific task in mind and ignore banners encouraging leverage or new tokens.
Both offer 24/7 live chat, a help center and ticket-based support. Simple questions are often answered quickly; account reviews, frozen accounts and disputes can take much longer. Formal complaint routes are limited except where a local licensed entity must follow local rules; a MiCA-authorised provider in the EU, for example, must have complaint-handling procedures. Use only support channels reached from inside the official app, and keep records of ticket numbers, dates and transaction IDs.
Crypto deposits and withdrawals
Both support many coins across many networks, and the same rules apply on both. Match the network on both sides: USDT sent on one network must go to an address on that same network. Include the memo or tag for assets that need one. Send a small test amount first for large or first-time transfers. Expect security holds on withdrawals after you change account settings.
Fiat deposits and withdrawals
Fiat options depend heavily on your country: local bank transfers or SEPA in Europe (often the cheapest), debit or credit cards (fast but usually pricier), third-party payment providers inside the "buy crypto" screen, and P2P trading. Banking partners come and go, so check the current options in your own account.
Some people use exchanges to move money across borders by buying crypto in one country and selling it in another. That combines trading, exchange, counterparty and legal risk. For ordinary transfers, a regulated money transfer service is usually simpler; our guide on sending money internationally for less compares the main options.
Ways people try to earn on each exchange, and the risks
This section absorbs our older article on making money on Binance. We have kept the eight methods it covered, applied them to both exchanges, and put the risks up front. We are not suggesting any of these will make you money. Many people lose money doing them. Past returns shown in an app are not a promise of future returns, and advertised yields can change or vanish without notice.
| Method | Available on | Main risks | Risk level |
|---|---|---|---|
| Spot trading | Both | Price falls, fees, emotional decisions | High |
| Futures and margin | Both, where allowed | Liquidation, rapid total loss, funding costs | Very high |
| Earn, savings and staking | Both | Price of the asset falls, lock-ups, platform risk, product complexity | Medium to high |
| Launchpool / token launches | Both | New token price collapses, lock-up of staked assets | High |
| P2P trading | Both | Fraud, reversed payments, frozen bank accounts | High |
| Referral / affiliate programs | Both | Legal and advertising rules, reputational harm, encouraging others to take risk | Varies |
| Copy trading | Both | Leader's losses become yours; survivorship bias | High to very high |
| Trading bots | Both | Strategy fails in trends; settings errors; leverage | High |
1. Spot trading
Buying an asset and hoping to sell it higher later. Binance offers more pairs and the BNB discount; Bybit is deep on major coins but thinner on some smaller ones. Risks: prices can fall 50% or more and stay down for long periods, frequent trading multiplies fees, and small tokens can collapse or be delisted. Without leverage, at least you cannot lose more than you put in.
2. Futures and margin trading
Using borrowed funds or derivatives to take larger long or short positions. Risks: this is where most rapid, total losses happen. A small move against you can wipe out your margin within minutes. See the leverage section below.
3. Earn, savings and staking
Flexible savings, locked products, staking rewards and structured products such as "dual investment". Risks: the yield is paid in crypto, so a 5% yield does not offset a 30% price fall. Locked products may not let you exit in a crash. Structured products can convert your holding into another asset at a price you would not have chosen; the high headline yield is payment for that risk. Your funds stay exposed to the exchange, and lending platforms such as Celsius froze withdrawals and went bankrupt in 2022 after offering attractive yields. Advertised rates are often promotional and change without notice.
4. Launchpool and token launches
Binance Launchpool and similar Bybit programs let you lock tokens such as BNB or stablecoins and receive new tokens around their listing; launchpad-style sales let you buy new tokens at a set price. Risks: new tokens are often very volatile and many fall well below their early price. You also carry the price risk of what you locked, and rewards on small deposits can be tiny. Buying extra BNB just to join concentrates your exposure in one company's token.
5. P2P trading
Buying or selling crypto with other users for local currency, with the exchange holding the crypto in escrow; some users act as "merchants" to earn the spread. Risks: buyers paying with stolen or reversible money, fake payment screenshots, attempts to move the deal off-platform where escrow no longer protects you, and bank accounts frozen when received money is linked to fraud, even if you acted honestly. Never release crypto until the money has actually arrived. Running P2P as a business may need a money services licence in some countries.
6. Referral and affiliate programs
Both exchanges pay commissions on the trading of people you refer. Risks: promoting crypto is regulated in many countries; in the UK, crypto promotions must follow the FCA's financial promotion rules, and communicating an illegal promotion can be a criminal offence. Referral income is highest when the people you referred pay the most in fees, often by trading with leverage. That conflict of interest is also why so many online "reviews" of these exchanges are not neutral, and why this article has no referral links.
7. Copy trading
Automatically copying a "lead trader" from a leaderboard, who takes a share of your profits. Risks: leaderboards show survivors, not the traders who blew up. Many leaders use high leverage, so a good record can end with one bad trade. Your results can differ because of timing and slippage, and while profits are shared, losses are all yours.
8. Trading bots
Automated strategies such as grid bots, which trade within a price range, or DCA bots, which buy at intervals. Risks: a grid bot does well sideways and badly in a strong trend, leaving you holding a falling asset or selling too early. Futures bots add liquidation risk, and "top bot" marketplaces share copy trading's survivorship bias. See our guide to crypto trading bots and how they work.
"Guaranteed" income schemes: anyone promising fixed daily returns from "Binance arbitrage", "Bybit signals" or "AI trading" should be treated as a likely scammer. Real trading has no guaranteed returns.
The real risk of leverage
Both exchanges make leverage easy, and the slider in the app makes 50x or 100x look like just another setting. It is not.
When you open a leveraged position, you post margin. If the price moves against you and your margin falls below the maintenance level, the exchange closes the position automatically. That is liquidation: you lose the margin in that position, often plus a fee. Roughly, ignoring fees and maintenance margin, a move against you of about 50% wipes you out at 2x, about 10% at 10x, about 2% at 50x and about 1% at 100x. In practice it happens a little earlier. Bitcoin moving 2% in a day is ordinary; smaller coins can move 10% in an hour.
With isolated margin, only the margin assigned to a position is at risk. With cross margin, your whole available balance can be used to keep a losing position open. During sharp moves, liquidations trigger more liquidations, and stop-loss orders can fill far worse than you set.
The UK's FCA banned the sale of crypto derivatives to retail consumers, citing extreme volatility, difficulty valuing the underlying assets and the harm caused by leverage. If you are new, a reasonable position is not to use leverage at all. If you are experienced and choose to, use low leverage, isolated margin, predefined exits and a size you can afford to lose entirely.
Who each exchange suits, and the alternatives
Here is how the two tend to fit different users, assuming both are legally available where you live.
| If you are... | Binance may fit if... | Bybit may fit if... |
|---|---|---|
| A beginner buying bitcoin or ether occasionally | You want many fiat options and a simple "Lite" mode | Your country is served by a licensed Bybit entity with good fiat routes |
| Someone who wants less common tokens | You value the widest coin selection | The token you want is listed and liquid on Bybit |
| An active spot trader | You can use the BNB discount and are comfortable holding some BNB | You prefer Bybit's tools and the fee difference does not matter to you |
| An experienced derivatives trader | You want deep liquidity across many contracts | You prefer Bybit's derivatives interface and unified account |
| Someone who cares most about regulatory standing | A local Binance entity is licensed in your country | You are in the EU and can use Bybit EU under MiCA |
| A long-term holder | Use it only to buy, then move most holdings to your own wallet | Same: buy, then move most holdings to your own wallet |
When neither is the right answer
If you live in the US, neither global platform serves you. If you want deposit-insurance-style protection, no crypto exchange offers it on crypto balances. If you only want price exposure in a brokerage or retirement account, regulated exchange-traded products may be available through a normal broker in some countries. And if you cannot afford to lose the money, crypto may not be suitable right now.
Regulated local exchanges and brokers
For many people, a smaller, locally regulated platform is a better fit, even with slightly higher fees or a shorter coin list. A locally authorised firm usually has to follow local rules on client assets, complaints and advertising, often has steadier banking links, and may provide tax statements that match local rules. To check a firm, search your regulator's public register (the FCA register in the UK; national regulators and ESMA's list of MiCA-authorised providers in the EU; FinCEN's MSB search and state regulators in the US), confirm the website address matches, and read which legal entity you will contract with. Regulated does not mean risk-free: prices are just as volatile. But it improves your position if the company runs into trouble.
Checklist before you choose
- Legal availability and entity: is the exchange, or its local entity, allowed to serve your country, and which company will hold your account?
- Products: do you need anything beyond spot trading, and is it offered in your region?
- Full costs: check the live trading fees, withdrawal fees for your coins and networks, and fiat deposit costs.
- Money in and out: is there a reliable bank route in your currency? Know how to withdraw before you need to.
- Security on day one: passkey or authenticator app, anti-phishing code, withdrawal whitelist.
- Custody plan: decide how much stays on the exchange and how much goes to your own wallet.
- Risk limits: decide whether you will use leverage at all, and the total amount you can afford to lose.
- Taxes and scams: learn how your country taxes crypto, keep records, bookmark the official site and verify any "support" contact.
FAQ
Is Binance or Bybit cheaper?
For regular users, standard spot fees are the same headline rate on both, 0.1% per side. Binance becomes slightly cheaper if you pay fees in BNB, which gives a 25% spot discount. Futures fees are in a similar low range on both. For most occasional buyers, the difference is a few dollars a year. Spreads, withdrawal fees and card purchase costs usually matter more.
Which is safer, Binance or Bybit?
There is no simple answer. Binance is larger, has the SAFU fund and publishes proof of reserves, but it has a serious regulatory history, including a 2023 US guilty plea. Bybit publishes audited proof of reserves and handled the 2025 hack without halting withdrawals, but it did suffer the largest crypto theft on record. Both are private, largely offshore companies. The safest approach on either is strong account security and not keeping more on the exchange than you need.
Can I use Binance or Bybit in the United States?
No. Binance.com does not serve US residents; Binance.US is a separate company with its own products and fees. Bybit lists the United States as a restricted jurisdiction. Using a VPN to get around these restrictions breaks the terms and can lead to a frozen account.
Is Bybit available in the UK and EU?
In the EU, Bybit EU GmbH was authorised under MiCA by Austria's Financial Market Authority in May 2025 and can passport services across the EEA. In the UK, Bybit withdrew in 2023 and was reported to have returned in late 2025 through a partnership with an FCA-authorised firm, with a limited product range. Check the current position on Bybit's site and the FCA register before relying on it.
What is the Binance SAFU fund?
SAFU, the Secure Asset Fund for Users, is an emergency fund Binance set up in 2018 to cover users in extreme cases such as hacks. It was used to cover the 2019 theft of about 7,000 BTC. In early 2026 Binance converted the roughly $1 billion fund from stablecoins into 15,000 BTC and said it would top it up if its value fell below $800 million. It is a company fund, not insurance, and gives users no guaranteed legal claim.
Did Binance buying bitcoin mean the price would go up?
No one can say. It was a decision about how to hold Binance's own reserve, small compared with global trading volume, and not a forecast or a buy signal.
What happened in the Bybit hack?
Around February 21, 2025, attackers took about $1.5 billion in ether from a Bybit cold wallet by manipulating a transfer that Bybit's signers approved. The FBI attributed it to North Korea, which it tracks as "TraderTraitor". Bybit stayed open for withdrawals, arranged bridge loans and purchases to replace the ether, published an updated proof of reserves, and launched a recovery bounty.
Is my money insured on Binance or Bybit?
Not in the way a bank deposit is. Crypto balances on either exchange are not covered by deposit insurance schemes such as the FDIC in the US or the FSCS in the UK. Emergency funds and insurance funds are company resources that the exchange may use at its discretion.
What is proof of reserves and can I check it?
Proof of reserves is a report showing the exchange holds at least as much of each covered asset as customers hold in their accounts. Both exchanges let you verify that your balance was included, using a Merkle tree check. It does not prove the company has no other debts, and it only reflects a snapshot in time.
Is copy trading or a trading bot a good way to make money?
Neither is a reliable way to make money. Copy trading means taking on another person's risks, often with leverage, and leaderboards hide the traders who lost. Bots follow fixed rules that can fail badly when markets trend. Some users make money, many lose. Start from the assumption that you could lose what you put in.
Should I keep my crypto on an exchange?
Keeping a small amount on an exchange for trading is common. For long-term holdings, many people prefer self-custody in a wallet they control, ideally a hardware wallet, to remove exchange risk. That brings its own responsibilities, such as protecting your seed phrase.
Bottom line
Binance and Bybit are closer than their marketing suggests: similar headline fees, similar product menus, proof of reserves on both, and no deposit insurance on either.
Binance's advantages are its size, its coin selection and the BNB fee discount. Its drawbacks are its regulatory past and the fact that its protective fund is now held in a volatile asset. Bybit's advantages are its derivatives tools, a MiCA-authorised EU entity, and a demonstrated ability to survive a massive hack while keeping withdrawals open. Its drawbacks are that the hack happened at all, and that it is unavailable in several major markets.
For most readers, the decision comes down to three questions. Which one is legally available to you, through which entity? Which products do you actually need, as opposed to the ones the app promotes? And how much are you prepared to leave on any exchange? Answer those honestly, secure your account properly, stay away from high leverage and "guaranteed" income schemes, and you will have avoided the most common ways people get hurt on either platform.
This article is general information, not financial advice. If you are unsure whether crypto is suitable for you, consider speaking to a licensed financial adviser in your country.
Sources
Official sources referenced in this guide. Fees, availability and product details change often; check the live pages before acting.
- US Department of Justice, Office of Public Affairs: "Binance and CEO Plead Guilty to Federal Charges in $4B Resolution" (November 21, 2023) — justice.gov
- US Department of Justice, Criminal Division: case pages for United States v. Binance Holdings Limited and United States v. Changpeng Zhao — justice.gov
- US Department of Justice, Office of the Pardon Attorney: pardon of Changpeng Zhao (October 2025) — justice.gov
- Commodity Futures Trading Commission: Binance and Changpeng Zhao settlement release (November 2023) — cftc.gov
- Financial Crimes Enforcement Network and Office of Foreign Assets Control: Binance enforcement actions (November 2023) — fincen.gov, treasury.gov
- Federal Bureau of Investigation: "North Korea Responsible for $1.5 Billion Bybit Hack" (February 26, 2025) — fbi.gov and ic3.gov (PSA 250226)
- Austrian Financial Market Authority (FMA): "Granting of Authorisation Bybit EU GmbH" — fma.gv.at
- Binance: Trading fee schedule — binance.com/en/fee/schedule
- Binance: Futures trading fees FAQ (USDⓈ-M futures) — binance.com support
- Binance: SAFU fund announcements, including the 2026 conversion to bitcoin and completion update — binance.com and Binance's official X account
- Binance: Proof of reserves page — binance.com
- Bybit: Trading Fee Structure, Spot Trading Fees Explained, and Futures Contracts Fees Explained — bybit.com help center
- Bybit: Service Restricted Countries — bybit.com help center
- Bybit: Proof of Reserves page, "How to Verify the Assets in Your Account", and periodic PoR audit reports — bybit.com
- Bybit: "Bybit Security Incident: Timeline of Events and FAQs" — bybit.com
- UK Financial Conduct Authority: ban on the sale of crypto derivatives to retail consumers (effective January 2021) and crypto consumer warnings — fca.org.uk