What Is Bybit Savings and How Does It Work?

Understanding Crypto Staking

Simply put, crypto staking can be considered a source of passive income for investors to earn interest yields. Investors who prefer to HODL their crypto assets rather than trade them can appreciate staking, as they earn a percentage rate of staking rewards over time by contributing their unused crypto funds 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.

Although crypto staking resembles crypto mining, the main difference is that mining involves using a proof of work (PoW) consensus mechanism. Miners are rewarded when a block is successfully added to the blockchain. As mining becomes more labor-intensive and expensive, investors turn to crypto staking as an alternative to diversify their income streams.

In this article, we'll look at Bybit Savings and see how to earn high yields in a jiffy. 

Key Takeaways:

• Bybit Savings offers users the flexibility to earn attractive interest yields based on their chosen investment plans — Flexible Savings or Fixed Term Savings. 

• Users can invest their crypto assets in Bybit Savings to earn crypto interest yields without having to rigorously monitor volatile markets. 

• Bybit Savings is a relatively low-risk investment product that’s beginner friendly. 

What Is Bybit Savings?

Bybit Savings (previously known as Bybit Staking) is a passive income, flexible investment plan for users to earn yields from their unused funds in the platform by depositing them in a staking pool. The staked assets can be withdrawn flexibly depending upon the chosen staking period — flexible or fixed-term.

Participants who stake their assets can now earn interest at an annualized percentage rate (APR), just as they 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 however you'd like. Conversely, if you're staking for a fixed term, you can earn a higher yield in return on capital from locking your assets with the platform for a longer duration.

Whether you're an advanced trader or a novice, Bybit Savings is one of the easiest ways to earn crypto without strenuously monitoring the market. Beyond the actively listed new tokens for those with a higher risk appetite, you'll find most blue-chip coins with competitive yields, such as BTC, ETH, USDT and USDC. 

Of note here is that the yields on Bybit Savings are not non-compounded. In other words, investors must manually compound their yields by reinvesting their assets in order to generate additional yields within the minimum staked amount requirement. 

Bybit Savings vs. Other Earn Products 

Bybit Earn is a management platform that helps crypto investors control and expand their assets. The product aims for competitive yields and top-notch security, making it perfect for both beginners and seasoned investors. Bybit Savings, however, is a secondary product of Bybit Earn, offering investors an easier way to earn crypto yields steadily with calculated risks based on their investment duration preference.

Here’s an overview of Bybit Earn products available to suit different investor profiles:

Liquidity Mining is designed for long-term yield seekers and DeFi enthusiasts who want to tap into the automated market market (AMM) lending pool to earn high yields in a volatile market. Users can add liquidity to the AMM pool to earn yield from the swap fees in the pool, and amplify their returns by leveraging up to 5x.

ETH 2.0 Liquid Staking is a low-risk, passive income tool that allows users to profit from securing the Ethereum network through staking. With a minimum stake of just 0.01 ETH, users can earn tokenized versions of ETH — stETH or mETH — which can reap daily yields of up to 6% APR and also be used in DeFi for yield farming and as collateral for trading.

Wealth Management is a financial service designed to support users in their crypto investment through professional investment strategies and diversified portfolios. Wealth Management currently offers a Fund Pool in either BTC or USDT created to maximize profits while minimizing risks in all market conditions.

Bybit Savings Flexible Terms vs. Fixed Terms: Which One to Choose?

Bybit pays out yields to participants based on the platform's income in the form of APR. The APR may occasionally fluctuate, depending upon market conditions and the platform's performance. In addition, a user's status on the platform may also affect the APR. For example, Bybit VIP users are entitled to unlock exclusive staking offers with higher APR rewards. 

Both flexible and fixed terms on Bybit Savings offer unique deals. Participants should make a decision based on the following preferences.

Flexible Term: Participants can stake and unstake their committed assets in this product at any time. Daily yields are paid out, depending upon the type and number of coins you've staked and the Savings APR tier you've committed to. Yields can also be compounded by activating the Auto-Savings option, subject to a minimum stake amount. 

The APR level rates for USDT are as follows:

Suppose an investor, Alice, stakes 10,000 USDT on T-day. Starting at 12AM (midnight) UTC on Day T+1, the calculation of Alice's daily yield will begin automatically, rounded to the nearest integer.

After 12:30 AM (midnight) UTC on Day T+2, 0.243 USDT [(500 USDT × 12% / 365) + (500 USDT × 0.7% / 365) + (9,000 USDT × 0.28% / 365)] will be auto deposited to her Funding Account, assuming that Alice doesn't unstake her assets before this time.

Flexible Savings also offers an APY Booster feature that can only be earned via the Bybit Rewards Hub. These Boosters offer additional cumulative interest payout on a selected investment plan. For example, users can apply the 10% Booster Voucher on the USDT Flexi Savings, which offer 50% APR, to earn a total of 60% daily APR payout on the USDT Savings until the Booster expires.

Fixed Term: Participants can earn fixed yields — even during a market downturn — when their assets are locked in the staking pool. However, the staking period and the APR are fixed, and users can't withdraw their assets flexibly.

How Does Bybit Savings Work?

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

2. Stake your coins

Once you've selected the coin you wish to stake, you'll arrive at the confirmation page, where you’ll find more information about the following:

• Yield calculation start time

• Yield distribution start time

• Maximum staking amount 

• Total amount staked by all users

• Estimated APR (please note that the APR varies based on the token type, the duration terms you choose, the selected APR tier and market conditions)

The screen will display the balance in your Funding Account that's available for staking. Estimated daily yield is calculated based on the estimated APR. Once you're ready to confirm, click on Stake Now to proceed. 

3. Confirmation

Once your order verification 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.

Example:

Let's say that Alice stakes 10,000 USDT for a Flexible Term on Jul 27, 2023, and the estimated APR for USDT is 2.25%. Starting at 00:00AM UTC on Jul 28, 2023, calculations for Alice's daily yield will begin automatically. 

Shortly after 00:00AM UTC on Jul 29, 2023, 0.6164 USDT will be auto deposited to her Funding 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 Funding Account at 00:00AM UTC on Jul 29, 2023.

If Alice stakes an extra 10,000 USDT on Jul 28, 2023, the yield she receives at 00:00AM on Jul 29, 2023 will still be 0.6164 USDT. The yield derived from her second staking will be credited to her Funding Account shortly after 00:00AM on Jul 30, 2023.

APR Calculation for Bybit Savings 

A glance at how the APR above was calculated:

Daily Yield = amount of tokens you’ve staked × APR/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 your Funding Account starting one day after the calculation period starts (T+2). No yield is generated when you unstake your staked assets, and yield is refreshed daily at 00:00AM UTC.

Benefits and Risks of Bybit Savings

Benefits:

• Low risk

• Stable interest yields

• High flexibility option under flexible terms

• Stake and unstake at any time

Risks:

• As the APR changes with market conditions, it may vary from the originally displayed yield when first subscribing to the plan

FAQ

Is there a minimum investment amount required to participate in Bybit Savings?

Yes. Each chosen crypto asset in the Flexi Savings or Fixed-Term Savings has a minimum investment amount, which varies from one asset to another. For example, the Bybit Savings Flexible term for $USDT has a minimum of 1 $USDT, while participants must stake a minimum of 100 $USDT in the 1 Day Fixed-Term Savings.

How often does the APR fluctuate?

The Bybit Savings Flexible term APR changes daily, while the Fixed-Term Savings doesn’t fluctuate. Yields are determined based on the agreed payout terms and locked period upon the Savings activation. 

The Bottom Line

The entry point to Bybit Savings is low, so be 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 Savings FAQ. #LearnWithBybit