I have been working with cryptocurrencies and trading for many years, and I am constantly looking for tools that allow you to make a profit efficiently and without unnecessary risks. A wide range of such opportunities is currently available on the Bybit exchange - from crypto loans and margin staking to margin trading and fast cryptocurrency conversion. In this text, I will talk in detail about each of these tools, how to use them and how to get the most out of my trading experience.
In addition, Bybit is currently running a promotion with a prize pool of 1 million USDT , where you can earn extra for your activity in all these tools. I will show you how to participate in the promotion and at the same time use the tools for your own profit.
Crypto loan: how to take assets as collateral
Crypto lending is a great tool for those who want to use their assets more efficiently. Imagine a situation: you have USDT, but you need SOL, ETH, or BTC to participate in launch pools or sales. Instead of buying the desired coin on the spot and risking the exchange rate, you can borrow it against your USDT or other assets.
Personally, I always use crypto loans to participate in launch pools that have a cap on the amount of the contribution. This allows me to participate in events without selling my assets and risking the exchange rate.
How it works in practice
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On the Bybit home page, click “More” → “Crypto Loan”.
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Choose the cryptocurrency you want to borrow. For example, SOL backed by USDT.
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Enter the amount and check the LTV (loan-to-value ratio). The exchange only lends up to 75% of the value of the collateral to avoid automatic liquidation.
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You confirm the loan - the assets are added to your balance sheet, and you can use them for launchpads, spot trading, or other instruments.
Personally, I recommend keeping the LTV below 70% , then the risk of liquidation is minimal. In the event of a sharp increase in the price of the borrowed asset, you can repay the loan early or add collateral, and the LTV decreases.
SOL Margin Staking: How to Multiply Your Profits
Staking is essentially passive income from holding cryptocurrency, similar to a bank deposit. But Bybit offers margin staking , which allows you to multiply your profits by borrowing money.
For example, I have one SOL coin. If I use 3x leverage in margin staking, the profit is calculated as if it were three coins. The staking is confirmed in BB Sol tokens, which can be exchanged for the base coin and the interest earned at any time.
Cons of margin staking
The main risk is the interest rate on the loan. If it exceeds the return on staking, it is financially more profitable to use regular staking without leverage. Therefore, always check that the interest rate on the loan is lower than the expected return on staking.
Margin Trading: The Balance Between Spot and Futures
Margin trading allows you to buy assets on credit in the spot market. It's a cross between spot and futures. You can:
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Buy assets with borrowed funds to make a greater profit when the price increases.
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Sell assets short and profit from falling prices.
For example, with 10x leverage on 100 USDT, you can buy BTC for 1000 USDT. If the price of BTC increases, the profit will be proportionally greater than if you used only your own funds. It is important to remember about the interest on the loan and monitor the LTV.
Personally, I recommend starting with minimal leverage for beginners. Margin trading is suitable for experienced traders who clearly control their risks.
Cryptocurrency conversion: a simple and fast way
Another useful tool is asset conversion. On Bybit, you can quickly exchange any cryptocurrency for another: USDT → USDC, BTC → USDT and vice versa. This is especially convenient for optimizing your portfolio or preparing assets for participation in promotions and launchpads.
Pros and cons of Bybit tools
Pros:
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Everything in one place: spot, margin trading, staking, conversion.
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The opportunity to participate in promotions and receive additional income.
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Flexible lending system for margin staking and trading.
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Simple interface and availability on both the mobile app and PC.
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Convenient LTV system and protection against liquidations when used correctly.
Cons:
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Margin instruments carry high risk if mismanaged.
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It is necessary to carefully monitor the interest rate on the loan.
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Margin trading and staking require experience to use effectively.
Typical mistakes of beginners
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Lack of LTV control in crypto positions.
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Using maximum leverage without experience.
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Ignoring interest on loans when margin staking.
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Failure to understand the mechanics of promotions and launchpads.
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Lack of an exit plan or strategy for closing positions.
Safety tips
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Use two-factor authentication (2FA) for all accounts.
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Do not leave large amounts on the exchange for a long time.
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Control loan interest and LTV in margin instruments.
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Start with small amounts and minimal leverage.
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Regularly monitor your assets and balance in promotions.
FAQ
Question: Is it safe to take out crypto loans?
Answer: Yes, as long as you control the LTV and repay the loan on time.
Question: How is margin staking different from regular staking?
Answer: It allows you to multiply profits through leverage, but carries additional risks due to interest on the loan.
Question: How to participate in the 1 million USDT promo?
Answer: Use spot, margin instruments, crypto loans, and staking — points are awarded for activity, which are then converted into USDT.
Conclusion
Bybit offers a full suite of tools for earning both in the cryptocurrency market and traditional activities. Crypto loans allow you to effectively use your assets, margin staking multiplies profits, margin trading allows you to earn on both market growth and decline, and conversion simplifies portfolio management.
Personally, I combine all these tools, using them in parallel with promotions on Bybit. This not only increases profits, but also allows you to better understand the market and learn to control risks. If you want to effectively earn on the crypto exchange and at the same time participate in additional bonus programs, Bybit is the perfect place for this.