Welcome to this post, where we are going to see how you can staking your cryptocurrencies in ByBit and the different options you can find in this platform.
Also, later we will see other alternatives in case you don’t find what you are looking for in bybit and its options to generate passive income with your cryptocurrencies.
ByFi
To go to the staking and different financial products related to generating income with our cryptocurrencies, we should go to ByFi in the menu. Here, click on overview to go to the main panel where you will find the most used products that are currently available.
In overview you can find all the general information, with the different options that are in the menu and that we will now see in more detail one by one, so that you know what each of them is about.
You can scroll down to find the products that are trending and most users are using. In addition to the easiest and good products if you are new to this world, such as staking in bitcoin or Ethereum.
Before going into more detail on how each section works in ByFi, in order to use our cryptocurrencies here, we must transfer them from the spot account or account you have, to byfi account. To do this, we will go to assets in the menu and spot account. Here, we will click on transfer in any cryptocurrency, for example BTC, and indicate from spot account or where we have the funds and to byfi account. In Coin indicate the cryptocurrency you are going to use in byfi and the amount. Click on confirm and that’s it. This way, you will have the cryptocurrencies in byfi account to use them in this section of the platform.
Flexible Staking
Here we find the most common staking options, and we will be able to place our cryptocurrencies in exchange for the % that you can see in APY. Being flexible staking, you can place your cryptocurrencies and withdraw them at any time, without the need to block them for a certain time, as happens in other platforms that have what is known as blocked staking.
Here, if we go down we find the cryptocurrencies that are trending and there is an option of staking, with a counter underneath. Since these staking options are for a limited time, and after that time we can no longer make more staking with that token until they reopen the option. In addition to time, they have a maximum amount and when it is reached, no more users will be able to staking with that token. Therefore, if you are interested, I recommend you to place your cryptocurrencies before it ends or fills up.
To use it, simply click stake now, indicate the amount of the token below. You will see an estimate of the amount you will receive each day. Click on stake now and you are ready to go.
Below, we find the flexible staking that is always available and is of the main cryptocurrencies, such as BTC, ETH, USDT, USDC, BUSD and DAI currently. The operation is the same, where we will place our tokens in exchange for the annual % that we can see in APY, and it does not have a limited time. In addition to being able to withdraw the cryptocurrencies we have deposited whenever we want without penalty and receiving the rewards every day.
This is the most interesting option, but the problem is that it has few cryptocurrencies available for staking.
Dual Asset Mining
This type of product is something different and found in very few platforms. It can be a bit complex, so don’t be fooled by the high returns you can see, and understand it well before placing cryptocurrencies here.
Basically you select a pair, like for example ETH-USDT. Here, you will see an annual %, and the duration time. Usually it is 1 day, so, although the profitability is very high, you can only place it for 1 day, and you will have to wait to place it again if you want to continue using it.
Here, if you click on select, you can place USDT or ETH, to make it simpler we will use USDT, but the operation is the same if we place for example 1 ETH. I will leave you an example just below to understand it better. If you place 1.000 USDT, you will receive 1009,52 if the price of eth goes up, or you will receive 0,3825465 ETH if the price of ETH goes down. Anyway, you will receive more USDT if it goes up, but if it goes down, you will receive more ETH than you would get right now if you exchange your 1,000 USDT for ETH. So, if the price of eth goes up since you placed it, you will get that extra 9.52 USDT of profit in 1 day or the time it indicates. And if eth drops, you can get more eth than buying currently.
The risk is if ETH drops a lot in value, and you receive ETH, its value will be less than 1,000 USDT, and therefore if you sell it, you may lose money.
It is a good way if you want to accumulate a cryptocurrency, because when the price increases you will receive USDT and you can buy more of that cryptocurrency, and if the price falls, you will receive more of that cryptocurrency you had.
DEFI Mining
In DEFI Mining there are currently no open options, so we cannot cover this option. Here, you will find different farming strategies in DEFI and other platforms that you can do through ByBit with a good profitability, but they are usually finished quite quickly, as they are usually good options and with good profitability compared to other products that ByFi has.
Launchpool
Finally, we find launchpool. A similar system that we have seen in other exchanges such as binance. Here, you can place your tokens from the platform, in this case BIT, and receive new tokens that are launched on the platform.
Usually they are new projects that the platform selects, and by just placing your BIT here you will receive the tokens in your account, with the APY that you can see. Take into account the time it will last in order to calculate the annual % you will receive, as it is usually a day or a few days where you will receive the token. There is also a maximum of BIT that you will be able to place, to try to distribute the tokens among the most users. The operation is simple, click on stake now, indicate the amount of BIT you want to place and confirm. After the time you can find in distribution, you will receive the tokens in your account and you will be able to see them in your wallet.
Alternatives
Although ByBit has staking options, it has several limitations, mainly the limited supply of cryptocurrencies that you can use in staking. So, if you want to staking a cryptocurrency and you can’t find the option in bybit, let’s see what alternatives you can find.
The first alternative is to use other centralized exchanges with much more supply and variety of cryptocurrencies. This option is ideal if you are new and have little experience using wallets, as it has the same operation as ByBit, and you will surely be able to get better returns. I recommend using Binance, Kucoin or Gate.io, which are platforms with a wide range of staking and other financial products where you can maximize the profitability of your cryptocurrencies. Below you can create an account in one of them if you don’t have one yet.
Platform: Binance
Min. deposit: $10
License: Cysec
Very low commissions
Exchange with more cryptocurrencies
Platform: Gate.io
Min. Deposit: $10
License: Cysec
New cryptocurrencies (ICO’s)
Growing exchange
The second alternative is to use DEFI platforms, such as beefy finance, aave, curve or any DEFI platform that you can do staking of the cryptocurrency you want. Although this is somewhat complex if you are new and have never used a wallet like metamask, it is the most profitable option and that is the reason why exchanges can offer you this profitability, because they use the platforms and offer you a staking option with less annual %, earning the difference between the two.
Finally, if you have your own cryptocurrency from a network, such as ETH, AVAX, LUNA, ADA, ATOM, FTM or many others, you can delegate your cryptocurrencies usually with a wallet and get rewards for it. Where the annual % you will receive is higher than any Exchange can give you. Although in this case, it can also be somewhat complex if you have never used a wallet and know how to delegate your cryptocurrencies to a validator.
I hope it has helped you to know how staking works in ByBit and the different options it has. Remember that if you don’t have an account with binance, you can create one just below.
Platform: Binance
Min. deposit: $10
License: Cysec
Very low commissions
Exchange with more cryptocurrencies
