What Is Bybit Flexible Savings: Explaining Staking & How It Works
Understanding Crypto Staking
Simply put, crypto staking means earning a percentage rate of staking rewards over time by contributing to a staking pool. Participants who lock their funds serve as validators for a blockchain using a proof of stake (PoS) system to validate transactions for rewards. Crypto staking serves as a source of passive income for investors who generally prefer to HODL their crypto assets, rather than trade them.
Although crypto staking resembles crypto mining, the main difference is that mining involves the proof of work (PoW) consensus. Miners are incentivized with rewards whenever a block is successfully added to the blockchain. As mining becomes more labor-intensive and expensive, investors turn to staking. In this article, we’ll introduce what Bybit flexible savings is — and how you can earn high yields in a jiffy.
What Is Bybit Flexible Savings?
As the name suggests, Bybit flexible savings is flexible in the staking period, allowing users to stake and unstake anytime. The staked assets help you earn annualized percentage yield (APY), just as you would earn interest by opening a savings account in a traditional bank. The only difference is that Bybit’s flexible savings is based on crypto assets instead of fiat currency. The staking period is flexible, meaning you can unstake and liquify your assets whenever you want. Once unstaked, your assets will be auto credited to your Bybit Earn Account.
Whether you’re an advanced trader or novice, Bybit flexible savings is one of the easiest ways to earn crypto without strenuous market monitoring. Beyond the actively listed new tokens for those with a higher risk appetite, you’ll find staple coins with competitive yields like BTC, ETH, USDT and USDC.
How Does It Work?
- Choosing a coin to stake
New coins will be updated from time to time and you can choose to participate in any events that involve the coins you hold. Coins that are labeled Limited Time Only are seasonal, and may not be extended once their cap is hit.
- Staking your coins
Once you’ve selected the coin you wish to stake, you’ll arrive at the confirmation page. On the screen will be more information about the following:
- Yield calculation start time
- Yield distribution start time
- Maximum staking amount
- Total amount staked by all users
- Estimated APY (please note that the APY varies based on the token type and market conditions)
The screen will display the balance in your Bybit Earn Account that’s available for staking. The estimated daily yield is calculated based on the estimated APY. Once you’re ready to confirm, click on Stake Now to proceed.
Once your order has successfully gone through, you’ll arrive at the screen below to confirm your order details. You’ll be able to view this order in Orders & Trades –> Bybit Earn Order –> Flexible Savings –> Effective Orders.
Just three simple steps — and you’re on your way to earning guaranteed yields with stable APYs.
Let’s say that Alice stakes 10,000 USDT on Jan. 10, 2022, and the estimated APY for USDT is 3.5%. Starting at 00:00AM UTC on Jan. 11, 2022, calculations for Alice’s daily yield will begin automatically.
Shortly after 00:00AM UTC on Jan. 12, 2022, 0.9589 USDT will be auto deposited to her Bybit Earn Account, assuming that Alice doesn’t unstake her staked assets before this time.
If, for example, Alice unstakes, 100 USDT before this time, no yield will be credited to her Bybit Earn Account at 00:00AM UTC on Jan. 12, 2022.
If Alice stakes an extra 10,000 USDT on Jan. 11, 2022, the yield she receives at 00:00AM on Jan. 12, 2021 will still be 0.9589 USDT. The yield derived from her second staking will be credited to her Bybit Earn Account shortly after 00:00AM on Jan. 13, 2022.
APY Calculation for Bybit Flexible Savings
A quick glance at how the APY above was calculated:
Daily Yield = amount of tokens you’ve staked × APY/365
Daily Yield for Alice = 10,000 × (0.035/365)
= 10,000 × 0.00009589
= 0.9589 USDT
Calculations for yield start on the next day (T+1) after staking the tokens, and will be deposited daily to Bybit Earn Accounts starting one day after the calculation period starts (T+2). No yield is generated on the day you unstake your staked assets, and yield is refreshed daily at 00:00AM UTC.Stake & Earn up to 120% APY
Benefits and Risk of Flexible Savings
- Low risk.
- Stable APY.
- High flexibility. You can stake and unstake at any time.
- As the APY changes with market conditions, it may vary from the APY that was displayed when first subscribing to the plan.
The Bottom Line
The entry point to flexible savings is as low as 50 USDT. If you have any coins sitting idly in your account, why not earn passive stable interest on them?
Find out more at Bybit’s Flexible Savings FAQ.