Bybit is a trailblazing derivative crypto exchange, co-founded in 2018 by Ben Zhou. Bybit unites the world of crypto and finance through its exceptional products. It supports [By]+ cryptocurrencies and offers derivative and spot trading products with up to 100x leverage for margin trading. It also offers a test net (demo) trading account. Bybit’s central trading infrastructure is built for experienced traders. Bybit’s goal is to empower the crypto industry through its innovative platform.

On the other hand, Kraken is one of the oldest crypto exchanges. Jesse Powell founded it in San Francisco in 2011 - only two years after the creation of Bitcoin. Kraken allows users to stake their crypto assets to earn interest. Australian users can trade [KrAu] cryptocurrencies in spot or futures trades with up to 50x leverage on Kraken. It is a beginner-friendly exchange that allows users to buy coins instantly. It also has three mobile apps that serve users depending on their experience level.

Bybit Australia vs Kraken Features

Both Bybit and Kraken are big players in the crypto market and hence offer lots of excellent features. However, in this review, we will only focus on their unique features so users can decide which exchange is suitable for their needs.

With 5 million registered users, Bybit is one of the biggest crypto exchanges in the world. Such a high number of users provide excellent liquidity in its P2P market. The exchange also offers a test net (demo) trading account to new users to get them acclimatised to the platform. The platform does not follow Know you Customer (KYC) requirements which makes it extremely easy to join with just email verification.

Bybit primarily is a derivatives exchange and that is why some of its contracts are so unique that they are only available on this platform. It offers three types of derivatives contracts: Inverse Perpetual contracts with cryptocurrency as collateral; USDT Perpetual contracts with USDT as collateral; and Inverse Future contracts with coin as collateral. 

Spot trading was also added to the exchange last year with only four pairs initially but now the number of pairs available have reached more than 70. Bybit also offers up to 100x leverage for margin trading with an insurance fund for highly leveraged trades. There is also a fiat gateway for people to buy coins with AUD.  

Kraken also offers Margin trading with up to 5x leverage on both long and short positions on various coins with just 0.02% as position opening and maximum rollover fees. It has regulated futures trading options on Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple with up to 50x leverage. 

Kraken offers three mobile apps depending on the type of trading: Kraken, Kraken Pro and Kraken Futures. It has an over-the-counter (OTC) desk to provide personalized consultation and trade execution to specialized institutions and high net worth traders. Spot trading fees are also low; makers are charged 0.16% and takers 0.26%. 

In addition, Kraken has a Forex trading option as well where 9 forex pairs are available for trading with excellent infrastructure and low fees. Users can also stake their crypto or fiat currencies to earn interest on their assets parked with the exchange with an option to compound for the future or get paid twice a week.

Number of Coins

Bybit Australia supports [By]+ coins.

Kraken users in Australia can only trade [KrAu] cryptocurrencies.

Bybit Australia vs Kraken Fees

Bybit has a flat 0.1% fee for all spot trades. Derivative contract trades have a maker and taker fee model. Makers have to pay only a 0.01% fee because they provide liquidity while takers pay 0.06%.  

Crypto deposits are free on Bybit. There are no fiat deposits allowed but you can use the fiat gateway to purchase cryptocurrencies with AUD. Bybit has no fee for fiat gateway but the third-party service providers like Banxam MoonPay, XanPool, Simplex and Paxful charge different fees. Check the websites of service providers for the exact fee.

Bybit also does not support AUD withdrawals. Crypto withdrawals do have a fee that varies with the currency being withdrawn.

On the other hand, Spot trades on Kraken have a tiered maker/taker structure based on 30-day volume meaning users with high volume will pay less in fees. Initial fees are 0.16% and 0.26% for makers and takers respectively. The margin trade opening fee is 0.02% with a 4-hour rollover fee of an extra 0.02%. Initial future trading fees for makers are 0.02% and 0.05% for takers. Future trading fees are also tiered and volume-based.

The instant buy/sell feature for coins has a 1.5% per transaction fee. 

Crypto deposits are mostly free on Kraken with a few exceptions. AUD deposit fee depends on the method of deposit. AUD deposits with OSKO/ bank transfers are free while Apple pay and Google pay transfers have a 3.75% + $0.25 fee. If you buy coins with a debit or credit card, then there is a 3.75% fee plus 0.25 EUR fee. The card payments are taken in EUR, even for Australian users, so you need to ensure your card supports this conversion.

Deposit Methods

Bybit does not allow fiat deposits. The only deposit method allowed is cryptocurrency. However, users can buy USDT, ETH or BTC directly using the fiat gateway and use them to trade on the exchange.

Kraken supports both crypto and AUD deposits. Users can deposit AUD using OSKO/bank transfers, Google Pay, Apple Pay and credit/debit cards.

Bybit Australia vs Kraken Security

Bybit and Kraken are both very safe and dependable crypto platforms. They both have mandatory data encryption and 2FA for any user activity. Mobile apps for both exchanges have state-of-the-art management and development protocols. However, they follow somewhat different security ideologies.

Bybit takes security very seriously. Since its foundation, It has never been compromised in any form. Bybit uses a multi-signature cold (offline) wallet to store most of the assets. Multi-signature wallet means anybody trying to access the coins would have to provide more than one signature. This provides an extra layer of safety from hackers. Some funds are also stored in hot wallets to streamline client withdrawals. 

Bybit has developed a “zero-trust architecture” protocol to manage and deploy software updates on its entire network. It also works with top cybersecurity experts for regular security audits to ensure the safety of the whole system. In addition, there is also an active bug-hunting competition that pays significant funds to people who highlight the potential weak points.

On the other side, Kraken follows the Know Your Customer (KYC) requirements. It passed the cryptographic inspection for Proof-of-Reserves and now feeds the data related to crypto prices to Bloomberg Terminal. It is also regulated by the USA and Canada based financial crime regulators FinCEN and FINTRAC respectively. Kraken is also registered with UK’s Financial Conduct Authority for futures trading regulation.

Kraken as a policy stores 95% of its funds in cold wallets that are air-gapped and geographically scattered for maximum security. Constant surveillance by video and armed personnel ensures there is no unauthorized physical access to its servers. Kraken has a dedicated penetration testing team. It also has a bug bounty programme along with a security lab to proof-check third-party service providers.

ByBit Australia Pros & Cons

Kraken Pros & Cons

Conclusion

Bybit Australia and Kraken are top-notch trading platforms for Aussies. Both exchanges have their own target audiences and thus the offered features. However, it is hard to pick a clear winner between the two. Users will have to weigh both exchanges against their needs to select one.

Bybit would be an excellent choice for those who want a higher number of cryptocurrencies ([By]+) to trade along with industry-leading charting and analysis tools. Experienced users might also prefer 88+ derivative products with up to 100x leverage in margin trading with lower fees that Bybit offers.

On the contrary, new users would prefer Kraken due to its beginner-friendly interface. Kraken supports AUD deposits and withdrawals along with options to Instant buy/sell coins. It also allows crypto purchases with credit/debit cards. It does however have a significantly lower number of cryptocurrencies (just [KrAu]) for Australian users.

If you want to do some more research before making up your mind, you can take a look at our article on the best crypto exchanges in Australia.