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.
NDAX keeps its digital assets in cold storage using Ledger Vault, although they do not state the percentage. Ledger is a big name in the cryptocurrency space, known for making secure hardware wallets.
When signing up to NDAX, you are forced to enable two-factor authentication. Most crypto exchanges will leave this optional, but we think everybody should do it, so we like this mandatory policy.
Additionally, when you wish to change your details such as your email, address, phone number etc, NDAX requires you to submit a selfie with a handwritten note outlining the request.
ByBit utilizes a variety of security methods, including the use of cold storage for protecting assets, implementing encryption procedures, and mandating two-factor authentication. However, the exact proportion of funds kept in cold storage isn't specified. NDAX has robust security measures, storing its digital assets in cold storage through Ledger Vault, renowned for secure hardware wallets. The platform requires mandatory two-factor authentication upon sign-up and has unique security measures such as selfie verification for changes in personal details. While NDAX doesn't state the exact percentage of funds kept in cold storage, their security measures have been lauded as being amongst the best in the industry.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
NDAX is registered as a Money Service Business with FINTRAC and AMF, NDAX is fully compliant with Canadian regulations.
ByBit has faced regulatory issues in Canada. The Ontario Securities Commission (OSC) accused ByBit of operating without the required license, leading to a fine of $2.5M and restrictions on new accounts from Ontario residents. This raises concerns about ByBit's overall compliance in the Canadian market. NDAX is fully compliant with Canadian regulations. It is registered as a MSB with FINTRAC and AMF, ensuring it operates within the stipulated guidelines. They also have protections in place for users' Canadian dollars, held in segregated accounts, providing an extra layer of security not seen in many other exchanges.
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.
NDAX provides a knowledge centre on its website. Articles here answer some of the most common questions. They also have a live chat function, which is handy when you need a quick answer. You can also email them for support. Confusingly, NDAX lists its phone number on its contact page, which is rare for a crypto exchange to do. We weren’t sure if this meant they had phone support, so we reached out via email to ask. They got back to us a very impressive 20 minutes later to let us know that they only have email support. So that’s that. Still, that’s the fastest response we’ve seen.
ByBit offers 24/7 customer support via live chat and email in multiple languages.
NDAX maintains a well-rounded knowledge base on its website and provides customer service via live chat and email. Their response times have been noted as particularly fast, a point that enhances their overall customer service experience.
Conclusion
In conclusion, both ByBit and NDAX are reputable and well-constructed platforms for cryptocurrency trading, each boasting impressive features and secure measures. However, when all is said and done, ByBit edges out NDAX as the winner in this comparison. This decision primarily hinges on ByBit's competitive fee structure and broader range of trading options, both factors that benefit a larger spectrum of traders from novices to professionals. Furthermore, despite some regulatory setbacks, ByBit's commitment to addressing these issues and enhancing their compliance shows their dedication to their user base. While NDAX excels in its own right, ByBit's broader global footprint and versatile features make it the winner in this matchup.
Initially, we recommended choosing ByBit over NDAX 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 NDAX.
If you find that neither ByBit nor NDAX 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.
