ByBit vs Kraken: What Works Better For Canadians in 2024

Security Compliance

ByBit is lacking in information about its security. ByBit uses cold storage for assets but it’s not clear what percentage of funds are held in cold storage. 

For users that want to secure their account, they can set up two-factor authentication using Google Authenticator. Users will need to open this app and enter the code whenever they wish to withdraw from their ByBit account. 

This year the Ontario Securities commission (OSC) accused ByBit of selling unlicensed securities to residents of Ontario. ByBit paid a $2.5M fine and has since restricted new account sign-ups from residents of Ontario. 

Kraken keeps 95% of users’ funds in cold storage. All account information is encrypted, their servers are locked in cages under 24/7 surveillance by armed guards. 

To help secure your Kraken account you can use two-factor authentication. You will receive an email notifying you of any withdrawal, and there is an account timeout for added protection.

Both ByBit and Kraken take security seriously. ByBit employs a hierarchical deterministic cold wallet system, real-time risk audits, and multiple 2FA methods, ensuring the safety of user assets.

Similarly, Kraken stores over 95% of its digital assets in cold storage, employs encrypted account information, and implements 24/7 surveillance by armed guards. Each platform also has robust measures such as two-factor authentication, making them both highly secure. 

Regulatory Compliance

In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.

Kraken is fully compliant with US regulations. The exchange is independently audited to show that customers’ funds are properly held. Canadians can use the platform as well.

Both Kraken and ByBit are compliant with Canadian laws and regulations and is available for Canadians, except for those residing in Ontario due to the Ontario Securities Commission regulations.

Customer support

ByBit has a helpful support centre on its website with numerous guides about crypto and how to use the exchange. You can also create a ticket on the website if you need to contact support. The chat support helped me within an hour and I had an issue with the withdrawal of TONCOIN.

Kraken offers a 24/7 live chat and email support. It also offers a good amount of learning documentation and helpful articles on its website. Unfortunately, many people say Kraken has poor customer support with tickets taking a long time to be resolved if ever.

ByBit offers 24/7 customer support via live chat and email. They also have an extensive help center with numerous articles addressing common issues and guiding users. Kraken similarly provides round-the-clock support, with service channels including live chat, email, and phone support

Conclusion

While both ByBit and Kraken offer excellent platforms for cryptocurrency trading, ByBit edges out as the winner due to its competitive fee structure, specialized derivatives trading options, and comprehensive customer support. However, Canadian users should be cautious of ByBit's undefined compliance with Canadian regulations and consider their trading needs and priorities when making their choice.

Initially, we recommended choosing ByBit over Kraken for your cryptocurrency trading needs. However, Bybit has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Bybit over Kraken.

If you find that neither ByBit nor Kraken meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.