How Does Bybit Make Money in 2025: Revenue Explained

How does Bybit make money is a question many traders and crypto-curious people ask as exchanges grow in complexity and product range. This article summarizes the main revenue drivers behind Bybit’s business model in 2025, explains how each stream works with examples, and shows how traders can reduce costs or use services strategically. You’ll also find authoritative resources and practical links to related trading tools and exchanges to explore further.

Quick overview: Bybit’s business model at a glance

Bybit is a centralized cryptocurrency exchange that offers spot trading, perpetual and futures derivatives, margin trading, savings and staking products, OTC desks, institutional services, and a host of platform features (API access, launchpads, liquidity mining, etc.). Like most exchanges, Bybit’s revenue mix in 2025 is diversified; the largest contributors are trading fees (spot and derivatives), funding rates on perpetual contracts, liquidation fees and insurance profits, and income from asset-management and lending products. Additional income comes from listing and token sale services, institutional OTC operations, market data/APIs, and promotional partnerships.

Why understanding Bybit’s revenue matters

Knowing how exchanges like Bybit make money helps traders evaluate fee structures, hidden costs, platform risks, and incentive alignment. It also helps institutional clients and partners negotiate pricing or choose alternative venues. Below we break down each major revenue source and include practical examples and tips.

Main revenue streams

1. Trading fees (spot and derivatives)

Trading fees are the most transparent and predictable revenue source. Bybit charges fees on spot trades and on derivatives (futures and perpetual contracts). Fee structures generally use a maker/taker model:

• Taker fees: charged when your order executes immediately against existing orders on the order book (liquidity taker).
• Maker fees: charged (often lower or negative) when you add liquidity by placing limit orders that are not immediately filled.

Example: If a taker fee is 0.06% and you execute a $10,000 trade, the fee is $6. For a derivatives contract with higher notional leverage, the absolute fee increases accordingly. Fee tiers, VIP programs, and native token or referral discounts can reduce these costs.

Because derivatives trading volumes are often higher than spot volumes (due to leverage), fees from derivatives frequently exceed spot fee revenue for derivatives-first exchanges like Bybit.

2. Funding rates on perpetual contracts

Perpetual futures have no expiry and use a funding rate mechanism to tether contract prices to the underlying spot price. Funding rates are periodic payments exchanged between long and short position holders—when the rate is positive, longs pay shorts; when negative, shorts pay longs. The exchange facilitates and collects the transactions and often retains a small portion or benefits indirectly from increased trading activity and rolled interest.

Example: If the funding rate is 0.01% every 8 hours on a $50,000 notional position, that’s about $5 per funding period. While the payment is between traders, high and asymmetric funding rates drive churn, increasing fee income and liquidation events (which also produce revenue).

3. Liquidation fees and insurance fund gains

When highly leveraged positions are liquidated because margin falls below maintenance level, exchanges apply liquidation fees and may realize gains through the insurance fund mechanism. The insurance fund exists to absorb shortfalls when positions cannot be closed at market price without causing cascading liquidations. If the fund remains positive, it represents a retained profit source; when the exchange runs liquidation mechanisms (auto-deleveraging or socialized loss), it may also retain some fees or spreads associated with the liquidations.

4. Interest and margin financing

For margin trading and lending products, Bybit earns interest on borrowed assets and charges margin financing rates. This includes peer-to-peer lending markets on the platform (Bybit Earn), margin interest on leveraged spot positions, and rates charged to institutional borrowers.

5. Bybit Earn, staking and treasury management

Bybit offers savings, staking, and liquidity products that attract user assets. The exchange can invest pooled assets, engage in lending to margin traders, or provide liquidity to DeFi protocols (subject to policy). The spread between yield earned and yield paid to users is a profit source. In addition, treasury management of native tokens and corporate holdings can produce returns.

6. Listing fees, token sales and launchpads

Exchanges commonly charge projects to list tokens or run token sale/launchpad events. These listing or placement services are high-margin revenue for exchanges because they are one-off or periodic and derive from project budgets. Additionally, exchanges may acquire tokens at discounted sale prices that appreciate over time.

7. OTC desk, institutional services, and white-label solutions

OTC trading desks facilitate large trades for institutions and high-net-worth clients. Bybit’s institutional services include bespoke liquidity, custody integrations and white-label solutions. OTC and institutional channels typically carry higher fees, spreads, and carry advisory or subscription income.

8. Market data, APIs, and technology services

Professional and algorithmic traders pay for high-frequency market data feeds, co-location, and premium API access. Exchanges monetize this via tiered subscription models or enterprise licenses.

9. Advertising, partnerships, and referral programs

Affiliate/referral fees, promotional partnerships and co-marketing generate revenue and new users. Bybit and other exchanges work with affiliates, influencers, and partners to expand market share in exchange for commissions, which are mutually beneficial. (If you want to try Bybit, consider this official invite: Bybit invite.)

10. Spread and order execution

For spot trades, exchanges may profit from bid-ask spreads, especially in low-liquidity pairs. Market-making programs, internalization of flow, or aggregation across pools can create arbitrage revenue for the exchange.

Deeper look: How each revenue stream really works

Trading fees in practice

Trading fees are straightforward but nuanced:

• Fee schedules vary by product type (spot vs. perpetual vs. futures) and by user tier. Higher-volume traders get better rates.
• Maker rebates (sometimes negative maker fees) incentivize liquidity provision and reduce the exchange’s order book spread. Taker fees are generally higher because they consume liquidity.
• Exchanges often give fee discounts for using a native token, holding VIP status, or using a referral.

Actionable tip: Use limit orders and aim to be a maker when possible. Also, compare net fees (after maker rebates and discounts) across exchanges before executing large strategies.

Funding rate mechanics and why exchanges benefit

Funding rates lead to more frequent position updates and rebalances, which increases trading volume and fee revenue. Highly volatile markets can push funding rates to extremes, attracting traders who seek yield or want to arbitrage funding differences across venues.

Actionable tip: Monitor funding rate history before opening large perpetual positions. Funding rate arbitrage (long on one exchange, short on another) requires capital and careful execution but demonstrates how funding regimes create economic activity.

Liquidations—costly for traders, profitable for exchanges

Liquidations produce revenue in three ways: liquidation fees charged to liquidated accounts, the spread realized when liquidated positions are closed, and sometimes the recovery of losses via the insurance fund or auto-deleveraging (ADL). Exchanges with high leveraged product usage often see significant liquidation-driven churn.

Earn and staking—fee spread and float

Savings and staking attract idle capital. Exchanges route these assets into lending or yield-generating strategies; the margin between yield earned and yield paid is profit. Additionally, managing large asset floats provides operational efficiencies and investment opportunities.

Listing fees and launchpads

New projects often pay for listing or participate in launchpads to gain exposure. Exchanges may also retain a portion of tokens sold, which can appreciate. While controversial for potential conflicts of interest, this is a common revenue source across major exchanges.

Comparing Bybit to other exchanges (Binance, MEXC, Bitget)

When evaluating Bybit’s revenue model it helps to compare it to peers. Each exchange leverages different strengths—Binance has huge liquidity and diverse services, MEXC targets altcoin liquidity, Bitget emphasizes copy trading and derivatives—so their fee mixes differ.

• Open accounts at competing platforms to compare fees and promotional offers: Register on Binance, Join MEXC, Sign up for Bitget.
• These platforms compete on fee structure, liquidity, product range, and localized compliance—choosing the best venue depends on your strategy and region.

Practical examples and calculations

Example 1 — Spot trade fees

Trade size: $20,000. Taker fee: 0.1%. Fee = $20. For high-volume traders, VIP tiers might reduce this to 0.02% or lower, so the same trade would cost $4 at 0.02%.

Example 2 — Derivatives position and funding

Position notional: $100,000 with 10x leverage (initial margin $10,000). If funding rate charged to longs is 0.02% every 8 hours, the long pays $20 per funding period. If the position is held many funding periods, total funding paid can be material relative to P&L and increases exchange activity.

Example 3 — Liquidation fee

Suppose a liquidation fee is 0.5% on position notional (varies by product). For a $100,000 position, fee = $500. This fee is often larger than a single taker fee and is an effective revenue generator for exchanges that facilitate leveraged trading at scale.

How traders can reduce Bybit costs

1. Use limit (maker) orders when possible to qualify for lower maker fees or rebates.
2. Reach higher VIP tiers through volume to lower fee percentages.
3. Use referral discounts or native token discounts where available (check latest Bybit promotions).
4. Monitor funding rates and avoid holding large leveraged positions during extreme funding rate episodes.
5. Compare net effective costs across exchanges—sometimes slightly higher fees are offset by better execution or lower slippage.

Actionable tip: If you plan to trade actively, consider affiliate/referral programs. For example, use this Bybit invite to get started: Bybit invite. Also explore other exchanges if you need specific markets: Binance, MEXC, Bitget.

Regulatory, security, and reputational factors that affect revenue

Exchange revenue is tightly linked to regulatory status and user trust. Stricter regulation or licensing in key markets often increases compliance costs but can unlock institutional revenue. Security incidents, on the other hand, can reduce volume and incur remediation and legal costs.

High standards in custody, audits, and transparency can attract institutional clients who pay higher fees for bespoke services. Conversely, regulatory restrictions in some countries can force exchanges to change product sets or block services, altering revenue composition.

Risks and sustainability of the model

Key risks include:

• Regulatory pressure that limits product offerings or imposes taxes and compliance costs.
• Market volatility causing unexpected losses to the exchange’s insurance fund or requiring socialized loss mechanisms.
• Competition driving fees down and compressing margins.
• Reputational damage from hacks, poor customer support, or non-transparent token listings.

That said, exchanges that diversify revenue streams (spot/derivatives, institutional, earned yield, token sales) are more resilient. Many exchanges invest heavily in security, KYC, and product innovation to retain market share.

How to validate revenue claims and exchange health

Look for the following signals to assess an exchange’s financial health and earning sustainability:

• Transparent fee schedules and public API endpoints for market data and order book snapshots.
• Published insurance fund sizes for derivatives products. While not a guarantee, a healthy insurance fund reduces counterparty risk.
• External audits or third-party verifications of reserves and security practices. (See how other crypto firms report proof-of-reserves on industry pages.)
• Regulatory licenses and registrations in major jurisdictions.
• Depth of liquidity in key trading pairs (low slippage indicates robust market-making and higher trading volumes).

For general background on how centralized exchanges operate, see the Wikipedia article on cryptocurrency exchanges: Cryptocurrency exchange (Wikipedia).

Tools and resources for traders

To maximize trading performance and reduce costs, consider these resources:

• Market signals and strategy guides — for example, check out a practical guide to popular trading signals for 2025 here: Most popular trading signals 2025 — Practical guide.
• Live signal feeds and educational content — a guide to live Bitcoin signals on YouTube is here: Live Bitcoin signals — Ultimate guide.
• Algorithmic trading and automation — if you’re exploring bots, see vetted AI trading bot recommendations: Best AI crypto trading bot — Reddit picks.

Frequently asked questions (FAQ)

Q: Are Bybit’s fees higher than competitors?

A: Fee structures vary by product and user tier. Derivatives-heavy platforms may have different taker/maker splits. Compare net effective costs (fees + slippage + funding) rather than headline percentages.

Q: Does Bybit keep funding payments?

A: Funding payments are exchanged between traders, not the exchange. However, funding rates drive activity and liquidations, creating fee revenue. The exchange may also set mechanisms that indirectly capture value (e.g., spreads, settlement mechanics).

Q: Can exchanges run out of insurance funds?

A: In extreme market events, insurance funds can be depleted, forcing an auto-deleveraging (ADL) mechanism or socialized losses. Reputable exchanges maintain sizable insurance funds and risk systems, but risk is never zero.

Q: How can I minimize Bybit fees?

A: Use maker limit orders, join VIP programs, apply referral discounts, trade in pairs with high liquidity to reduce slippage, and avoid holding large leveraged positions across extreme funding periods.

Final thoughts — what to watch in 2025

Bybit’s revenue model in 2025 continues to be driven by trading fees, derivatives funding mechanics, and liquidation-related income, augmented by institutional services, listing fees, and yield products. The sustainability of that model depends on compliance, security, product innovation, and user trust. For traders, understanding fee mechanics and funding dynamics is essential to protect returns and choose the best execution venue.

Want to explore alternatives, complimentary tools, or trading signals? Consider using trusted signals and tools linked above, and if you’re opening new accounts, here are quick registration links to try (compare promotions and fees): Binance registration, MEXC registration, Bitget referral, and Bybit invite.

Disclaimer: This article provides general information about exchange revenue models and is not financial advice. Fee schedules, products, and regulatory statuses change frequently—always verify current terms on the official exchange websites and consult a professional for investment decisions.