Bybit Discount Buy: Unlocking Lower Prices in a Stable Market
The allure of cryptocurrency trading lies not just in its potential for high returns, but also in the continuous innovation that shapes its landscape. A key aspect of this dynamic market is the pursuit of strategies that enable traders to maximize their investments, particularly in stable or sideways market conditions. In such scenarios, the ability to purchase digital assets at lower prices becomes a significant advantage.
This is where Bybit's Discount Buy feature comes into play, offering a unique solution for investors looking to capitalize on market stability for major cryptocurrencies like BTC, ETH and SOL. Furthermore, using Discount Buy to purchase MNT offers an additional upside opportunity due to its unique structure for MNT.
Key Takeaways:
Bybit’s Discount Buy allows you to purchase major cryptocurrencies at preset discounted prices, with MNT always available at a discount, regardless of market movement.
Since Discount Buy is principal-guaranteed, your initial investment is protected, and you may earn additional APR if the Settlement Price meets or exceeds the Knockout Price.
What is Discount Buy?
Discount Buy is a principal-protected product from Bybit that allows clients to acquire major cryptocurrencies like BTC, ETH, SOL and MNT at prices lower than the market rate. If the Settlement Price at maturity is lower than the Knockout Price, you’ll be able to purchase your desired token at the preset discounted price. Otherwise, you’ll receive your principal back, together with the interest.
In the case of MNT, there is no knockout restriction. Hence, you’ll always receive tokens at a discounted price at maturity, giving you even greater upside as the market rises.
How does Discount Buy work?
Discount Buy operates on a unique mechanism whereby users can purchase a specific asset at a predetermined price on the settlement date, which is below the market rate at the time of order placement. This is particularly advantageous when the Settlement Price falls between the Knockout Price and Purchase Price.
Understanding key terms
Settlement Price: The price of the target asset at the time of settlement
Knockout Price: A price determined by a built-in mechanism to decide whether the user will buy the desired coin or receive a payoff
Purchase Price: The price at which users purchase the desired asset on the settlement date, provided the Settlement Price falls below the Knockout Price
Knockout APR: In the Knockout Scenario, users receive their principal with an additional APR on top of it (in USDT) as a final payoff
Bybit’s Discount Buy is structured to function optimally in specific market scenarios as follows:
Knockout scenario
Condition: Settlement Price is equal to or greater than the Knockout Price
Outcome: Investors receive their principal plus an additional APR in USDT, which is profitable
Knockout scenario, whereby investors receive principal and additional APR
Buy scenarios
Condition: Purchase Price is less than the Settlement Price, which is less than the Knockout Price
Outcome: Investors buy the desired coins at the Purchase Price, leading to a profitable situation
Condition: Settlement Price is equal to or less than the Purchase Price
Outcome: Investors still buy the desired coins at the Purchase Price, though this may not be profitable
Buy scenarios
MNT scenario
Since MNT has no knockout limit, you can acquire MNT at a preset discounted price on the settlement date, regardless of market fluctuations. The MNT tokens you buy are locked up for a period, and the system will calculate your holdings based on MNT. Hence, buying MNT lets you benefit immediately from the discounted purchase while also retaining the potential upside and utility of holding MNT.
MNT scenario
Benefits of Using Bybit’s Discount Buy
There are several advantages to using Discount Buy. Following are four of its key benefits.
Discounted token purchase
If the Settlement Price is below the Knockout Price at maturity, you can purchase your chosen tokens at a preset discounted price, allowing you to maximize your potential returns compared to buying directly on the market.
Principal protection and stable returns
The principal-guaranteed nature of Discount Buy means that your invested capital is safeguarded. If the Settlement Price reaches or exceeds the Knockout Price, you’ll receive your original investment plus accrued interest. This protection offers you assurance that even if the market moves unfavorably, you’ll still preserve your capital.
Structured investment strategy
The product's structured nature, akin to a knockout option, provides a cap on the price level in the holder’s favor. However, unlike traditional knockout options, Discount Buy won’t expire worthless as your principal is protected. When the Settlement Price is favorable (below the Knockout Price), you can purchase your desired coin at a price lower than the market price.
Potential for additional returns
Since MNT has no Knockout Price restriction, you’ll always receive MNT at the preset discounted price at maturity, regardless of how high the market price rises. This allows you to benefit more from market gains as the price of MNT increases, maximizing your potential returns.
How to use Discount Buy
Now that you're familiar with the essentials of Bybit’s Discount Buy, let's delve into a comprehensive guide on how to begin using it. Before proceeding with Discount Buy, ensure you have an active Bybit account. If you haven't set one up yet, sign up for a Bybit account and refer to our registration guide for more details.
Subscribe to a Discount Buy Plan
Step 1: Log in to your Bybit account and hover your cursor over the Finance tab on the navigation bar at the top of the page. Then, hover over Advanced Earn and click on Discount Buy.
Step 2: Use the simulator to explore available plans, based on Coin, Purchase Price, Knockout Price, Knockout APR and the investment period. Click on the Invest Now button of the corresponding plan that you’d like to select.
Step 3: Input your investment amount and ensure that you acknowledge all the parameters you’ve chosen. Once these are acknowledged, click on Buy Now.
Step 4: Please ensure that you’re aware of the following:
Once you’ve successfully subscribed, you cannot modify or cancel your order.
Click on Confirm. Your order will take one minute to process before it’s successfully placed.
View your orders
If you’d like to view the details of your Discount Buy orders, simply click on View Order in the successful order notification pop-up window.
Alternatively, you can follow the steps below if the pop-up window has disappeared.
Step 1: Hover your cursor over the Orders button on the top-right corner of the homepage and click on Earn Products in the left column.
Step 2: Click on the Discount Buy tab to view your existing orders.
Who should consider using Discount Buy?
Discount Buy is particularly suitable for anyone expecting the market price to fluctuate within the range of the preset purchase and Knockout Prices, as it allows them to acquire their desired crypto at a favorable discount while safeguarding their principal.
The advantage is even greater for MNT buyers. As there is no knockout restriction, you’ll always receive MNT at the preset discounted price upon maturity. In fact, if the market price rises sharply, your discount advantage will be greater, giving you a potentially wider profit margin.
The Bottom Line
Bybit’s Discount Buy is a medium-to-high-risk structured product that allows users to purchase crypto at a preset price below the market price. This is especially true when purchasing MNT, because the absence of a knockout restriction means that the discounted purchase price becomes increasingly advantageous as the market rises, boosting your potential gains. It offers flexibility and the potential for additional returns, giving you the opportunity to buy the dip and grow your holdings with confidence.
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