It can be hard to decide which crypto exchange is right for your needs, as your experience, goals, and portfolio interests can all affect which one you should sign up for.
That is where the CryptoVantage comparison series comes to your aid, as we compare the most popular exchanges for you so you can see which one meets your needs.
In this comparison, we will be looking at Bybit, a quickly rising derivatives exchange, and Coinbase, one of the top exchanges in the world. Check out the comparison below.
Coinbase Quick Overview
Coinbase is one of the biggest cryptocurrency exchanges in the world with trading volume only beaten by Binance and a great reputation for industry-leading security. It is considered one of the best ways to buy Bitcoin, especially for Americans.
Coinbase is one of the oldest cryptocurrency exchanges in existence, having been in operation since 2012, and is one of the earliest adopters and providers of various cryptocurrency-related products. Over the years the company has entered into partnerships with a variety of mainstream companies such as Dell, Overstock, and Time Inc, which helped solidify them as one of the most trusted organizations in the cryptocurrency community. A Coinbase listing has become synonymous with an asset seeing a new pump. To learn more about the exchange be sure to check out our in-depth Coinbase review.
Coinbase Pros & Cons
Pros
1. New users can earn free crypto through coinbase.com/learn
2. User-friendly design with simple buy/sell buttons and indicated prices
3. Large selection of crypto assets and tokens
4. Have their stable coin (USDC)
5. Users can earn up to 10% APY on their holdings
Cons
1. Fees are right in the middle of industry standards
2. No ability to earn interest on holdings
3. Significant identity verification required
Full Coinbase Review
Bybit Quick Overview
Bybit Exchange is a cryptocurrency exchange focused on futures trading. based in Singapore and launched in 2018 the derivatives exchange gives users the ability to trade crypto perpetual contracts with up to 100:1 leverage. Bybit used to only offer a few assets for spot trades but has added lots of assets to their exchange.
Bybit is a crypto-only exchange meaning you can only fund your account with digital currency unless you want to use a third party to fund with fiat. This combination of a focus on futures trading and crypto-only funding makes Bybit more suited to more experienced crypto traders and speculators, and less suitable for crypto newcomers or those looking for an exchange with a diverse range of assets available for purchase and trade.
Bybit Pros & Cons
Pros
1. Easy registration process for website and mobile app
2. Attractive fee structure
3. Fully anonymous exchange
4. Trading bonuses and rewards
Cons
1. Limited crypto-asset selection for derivatives
2. Cannot fund account with fiat currency without third-party gateway
Beginner Friendliness
Coinbase is more of a beginner-friendly platform than Bybit. This is because they allow purchases with a credit card without having to go through a third-party gateway.
That said, it is easier to sign up for Bybit than Coinbase, so if you already own some crypto you can sign up for Bybit faster than Coinbase, as Coinbase requires identity verification for all accounts. For total beginners though, Coinbase is a much easier platform to navigate and use.
Trust & Security
Both Bybit and Coinbase are extremely safe and trustworthy exchanges. Neither exchange has ever been hacked, and they both require Two-Factor Authentication (2FA).
In addition, both exchanges keep almost all of their funds in cold storage, meaning even if there was a hack, there would be little for a hacker to take. But even if there is a hack on either exchange, Coinbase has private insurance, while Bybit also keeps an insurance fund.
Fee Structure
Bybit has an edge over Coinbase when it comes to trading fees. This is because Bybit has a 0.1% maker and taker fee for spot trading compared to Coinbase’s fees that start at 1.49%.
It is closer if you are a user of Coinbase Pro, as those fees can be as low as 0% but require high monthly trading volumes to be achieved. Bybit’s fees for derivatives are even lower than for their derivatives trading, where taker fees are 0.075% and maker fees are -0.025% meaning you get money back.
Sign-Up Process
The sign-up process for Bybit is far easier than for Coinbase.
This is because there is no Know Your Customer identity verification process when signing up for Bybit, meaning that you just need to verify your email or phone number to begin trading on Bybit.
The caveat to this is that you have to already have crypto to deposit onto Bybit, as you do need to do identity verification to purchase crypto with fiat through their third-party gateway partners otherwise.
Available Cryptocurrencies
This is an extremely close contest, as both Bybit and Coinbase offer just under 100 crypto assets and tokens for users to buy and sell.
Coinbase gets a slight edge over Bybit because Bybit only has 3 spot pairs for BTC pairs, with the rest being USDT pairs, whereas Coinbase offers a variety of trading pair options.
Standout Features
Both Coinbase and Bybit have several standout features that separate the platforms from the rest of the industry. Here’s a look at some of the most notable ones:
Bybit Defi Mining and Dual Asset Mining
Frictionless on-ramp to defi services that let users earn interest rates of up to 20% for mining and over 200% for dual asset mining.
ByBit Flexible Staking
Flexible Staking allows you to stake tokens (BTC, ETH, USDT, and USDC) and earn guaranteed yields in the same type of tokens with a high APY. The yield will be auto deposited daily to your account and you can unstake at any time.
Coinbase Card
While not a credit card that allows you to earn crypto rewards for your spending, the Coinbase Card is a Visa Debit card that allows you to spend your Coinbase holdings anywhere Visa is accepted. They also offer you up to 4% in crypto rewards for your spending.
Coinbase Earn and Staking
Coinbase Earn is a way to earn free crypto rewards for taking short lessons on that specific cryptocurrency. Assets are then immediately sent to the user who can do what they please with their rewards.
Staking is available for certain assets and lets you earn interest on your held crypto assets.
Voskcoins Verdict: Coinbase Better for Beginners
When comparing Bybit and Coinbase, it is a close race, with both platforms offering a similar number of assets to trade, and similarly beneficial features and products.
Bybit offers slightly better fees, while also offering derivatives, but is geared more towards more experienced crypto traders, especially the user interface. Therefore, Bybit is better for more seasoned traders, but for total newbies, the ease of purchase, and beginner-friendly interface make Coinbase a better choice.