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What Is Bybit Savings & 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 Savings is — and how you can earn high yields in a jiffy. 

What Is Bybit Savings?

Bybit Savings is flexible when it comes to the staking period, allowing users to stake under flexible and fixed terms. 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 Savings is based on crypto assets instead of fiat currency.

When staking for a flexible term, you can unstake and liquify your assets whenever you want. Conversely, if you're staking for a fixed term, you stand to earn higher yield but your assets will be locked in for the selected duration.

Whether you’re an advanced trader or novice, Bybit 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 Bybit Savings Work?

1. 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 Exclusive Offers are seasonal, and may not be extended once their cap is hit.

2. 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. 

3. Confirmation

Once your order has successfully gone through, you’ll arrive at a screen to confirm your order details.

Just three simple steps — and you’re on your way to earning guaranteed yields with stable APYs.

Example 

Let’s say that Alice stakes 10,000 USDT for a Flexible Term on Jun. 3, 2022, and the estimated APY for USDT is 2.25%. Starting at 00:00AM UTC on Jun. 4, 2022, calculations for Alice’s daily yield will begin automatically. 

Shortly after 00:00AM UTC on Jun. 5, 2022, 0.6164 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 Jun. 5, 2022.

If Alice stakes an extra 10,000 USDT on Jun. 4, 2022, the yield she receives at 00:00AM on Jun. 5, 2021 will still be 0.6164 USDT. The yield derived from her second staking will be credited to her Bybit Earn Account shortly after 00:00AM on Jun. 6, 2022.

APY Calculation for Bybit Savings 

A quick glance at how the APY above was calculated:

Formula:

Daily Yield = amount of tokens you’ve staked × APY/365

Daily Yield for Alice = 10,000 × (0.0225/365)

        = 10,000 × 0.00006164

        = 0.6164 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 Guaranteed APY

Benefits and Risk of Bybit Savings

Benefits:

  • Low risk.
  • Stable APY. 
  • Option for high flexibility under flexible term. You can stake and unstake at any time.

Risks:

  • 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 Bybit Savings is low so make sure to get started today. If you have any coins sitting idly in your account, why not earn passive stable interest on them? Find out more at Bybit’s Savings FAQ.

Keen on learning more about things you can and should do during a crypto bear market? Educate yourself by reading our Ultimate Bear Market Trading Guide.