how does bybit make money

Bybit generates revenue through a diversified portfolio of streams, including trading fees, liquidity mining, listing fees, derivatives trading, staking rewards, referral programs, ecosystem services, margin trading, and other income sources.

Nov 01, 2024 at 10:44 am

How Does Bybit Make Money?

Bybit, a cryptocurrency exchange founded in 2018, generates revenue through various streams, including:

1. Trading Fees:

• Bybit charges a 0.1% maker fee and a 0.1% taker fee on all spot trades.
• For perpetual futures, a maker fee of 0.025% and a taker fee of 0.075% apply.
• These fees are deducted from the trades executed on the platform.

2. Liquidity Mining:

• Bybit offers liquidity mining programs that reward users who provide liquidity to the platform's trading pools.
• These programs offer a share of the trading fees generated from the respective pools.

3. Listing Fees:

• Bybit charges listing fees to projects that want their tokens to be traded on the exchange.
• These fees vary depending on the project and the number of tokens being listed.

4. Derivatives Trading:

• Bybit offers perpetual futures contracts that allow traders to speculate on the price of cryptocurrencies without taking physical delivery.
• The exchange charges fees on these contracts, including funding fees and liquidation fees.

5. Staking Rewards:

• Bybit has partnered with various projects to offer staking services.
• Users who stake their crypto assets on the platform earn rewards in the form of additional coins or tokens.

6. Referral Program:

• Bybit offers a referral program that rewards users who invite new traders to the platform.
• Referrers earn a percentage of the trading fees generated by their referred users.

7. Ecosystem Services:

• Bybit has developed its own ecosystem of services, including a non-custodial wallet, a lending platform, and a derivatives exchange.
• These services generate revenue through transaction fees, interest payments, and trading fees.

8. Margin Trading:

• Bybit allows traders to borrow funds to increase their trading leverage.
• The exchange charges interest on these loans, which adds to its revenue.

9. Other Income Sources:

• Bybit also generates revenue from occasional promotions, events, and collaborations.
• The exchange may also earn income from investments or partnerships.