Margin Staked SOL is a Bybit product that allows you to earn SOL staking rewards and utilize leverage of up to 2x to amplify your earnings.

 can be a great way to earn yield in crypto, and 

 (SOL) is one of the most popular blockchain platforms for doing so. However, setting up and running a Solana validator node is technically complex. Additionally, financial requirements for Solana validators are high. While the official minimum stake is just 0.01 SOL (around $1.33), in reality, a typical Solana validator needs 

 staked just to break even — an investment of about $6.66 million (as of Mar 28, 2025).

Most crypto users who would like to benefit from staking rewards on Solana simply don’t have that kind of capital. And many don’t want the hassle of setting up a full validator node.

Back in September 2024, Bybit introduced 

 (LST) that lets you earn Solana staking rewards with minimal investment, and no need to manage a validator node.

bbSOL has been a major success, allowing Bybit users to earn staking rewards without technical or financial barriers. Now, Bybit is taking it a step further with Margin Staked SOL — a new Solana staking product that utilizes bbSOL and offers leveraged borrowing to amplify the rewards.

 is a Bybit leveraged liquid staking product that’s designed to help you earn Solana staking rewards with minimal hassle.

 Using it, you can invest your SOL and Bybit will allocate the funds to Solana blockchain validators, allowing you to earn staking rewards. When you stake through Margin Staked SOL, you receive bbSOL, an LST that serves as a deposit certificate and accrues staking rewards. Unlike standard bbSOL staking, Margin Staked SOL allows you to use 

For example, if you have 100 SOL and opt for 2x leverage, the total amount committed to Solana staking will be 300 SOL — your 100 SOL principal plus the borrowed 200 SOL. You’ll pay interest (which is variable and calculated hourly) on the borrowed amount.

Bybit allocates your total staking amount through 

 (CLOUD), Solana's leading liquid staking solution. Sanctum's 

 distributes staked funds across multiple validators to optimize the total yield.

The key advantage of Margin Staked SOL is its capacity to amplify staking rewards through leverage. In addition, you don't need to handle the technical complexities of running a Solana validator. The minimum investment required is just 0.5 SOL (around $70), drastically lower than the millions of dollars needed to run a profitable validator node in Solana's highly competitive staking ecosystem.

Upon committing your funds to Margin Staked SOL, you’ll receive the bbSOL LST. All staking rewards accrue in this asset, and you can redeem your investment at any time by exchanging bbSOL for your original SOL. After deducting interest on the borrowed funds, you’ll receive your SOL, along with all the accrued rewards. bbSOL accumulates rewards every time a Solana epoch is completed, typically taking 2–3 days.

As an LST, bbSOL normally allows you to keep your original SOL locked while using the liquid token across the Solana 

 (DeFi) ecosystem, and within Bybit products like On-Chain Earn, Bybit Savings and Crypto Loans. However, when bbSOL is issued via Margin Staked SOL, it must remain locked, and cannot be used in other Bybit or DeFi products. It acts solely as your deposit confirmation, and continues accruing rewards until you withdraw from Solana staking via Margin Staked SOL.

Interest on the borrowed funds within Margin Staked SOL is calculated hourly, with any duration under one hour rounded up to a full hour. The interest rate is variable, and updates every hour. You can check the current rate in your account under 

Rewards in Margin Staked SOL aren’t distributed immediately. Instead, they accumulate in your bbSOL, and can be redeemed at any time alongside your SOL principal investment. Bybit provides two redemption options for bbSOL:

If your PnL position declines beyond a certain level during staking, Bybit will send you a margin call notification via email, prompting you to either redeem your investment or contribute more SOL. If your PnL drops even further, an automatic stop-loss transaction will be triggered to redeem your funds and cover the loan and accrued interest. These measures are designed to protect you from unexpected losses.

Besides Margin Staked SOL, Bybit also offers another product for those who would like to earn yields from hassle-free decentralized staking: 

. There are three key differences between the two products: 

1) Unlike On-Chain Earn, Margin Staked SOL allows you to use leverage, amplifying your potential returns and risks. 

2) On-Chain Earn creates opportunities for staking on several blockchains, while Margin Staked SOL is a solution that’s designed exclusively for Solana staking.

3) Staked assets in On-Chain Earn can be withdrawn and utilized in their respective blockchain ecosystems, whereas the bbSOL from Margin Staked SOL is locked solely for yield generation, and cannot be used elsewhere. 

How to get started with Margin Staked SOL

Here’s how to get started with staking your SOL.

: In your account’s navigation pane, click on 

: On the left side, you’ll see the APR chart for the product, containing information on the Net APR; the trend over the past 1,7 or 30 days; and the highest and lowest Net APRs over a selected time period.

: On the right side, you can set options for your Margin Staked SOL (the leverage ratio and the SOL amount to transfer from your main account). You’ll see the amount of automatically calculated bbSOL you’ll receive, total borrowed amount and estimated daily yield.

to view a detailed breakdown of your bbSOL holdings. Then, click on either

: On the confirmation pop-up window, enter the amount of bbSOL you wish to redeem, or click on 

to redeem your full balance. Review the details, then click on

 to proceed, depending upon your earlier choice. 

to finalize your redemption on the redemption confirmation pop-up. Your redeemed SOL will be sent to your 

Until Apr 4, 2025, 10AM UTC, you can also take advantage of Bybit’s 

 campaign that’s dedicated to the Margin Staked SOL product. This campaign lets you earn up to 10 Lucky Draw tickets, each guaranteeing at least a 1 USDT 

, with a chance to win up to 100 USDT. In order to participate in the campaign, you must register for the event and complete a series of tasks as follows:

Bybit’s Margin Staked SOL allows you to earn Solana staking rewards without the hassle of setting up and running a validator node — all via your account’s easy-to-use interface. The leverage option is also a great way to multiply your rewards. Moreover, the minimum investment is minuscule, especially compared to running a Solana validator, and there are two easy redemption options — and all of these benefits without needing to interact with the underlying Solana blockchain!

Beginner

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Bybit Margin Staked SOL: Unlock higher yields with less effort

Animoca Brands has partnered with Soneium, Sony’s Ethereum Layer 2 blockchain, to develop Moca Network’s identity layer and launch anime initiatives on Soneium.

The S&P 500 fell 0.33% as tariffs and inflation concerns weighed on markets, with energy, tech, and communication sectors leading losses. Gold hit a record $3,059 as Trump’s tariffs fueled trade war fears, boosting safe-haven demand. The Coindesk Indices, which tracks the broader crypto market, are down by 1.01%, with Bitcoin up by 0.55% and Ether down by 0.18% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is CARV, up 9.2%, as it expands globally and redefines data ownership.

CARV (CARV), founded in 2022, is a modular data layer empowering users to control their data, enhancing privacy for gaming and AI systems through its CARV Protocol and ecosystem platforms. 

, advancing AI, gaming, and data ownership with its SVM Chain, which ensures privacy, scalability, and interoperability between Ethereum and Solana. With listings on Tokocrypto and Mercado Bitcoin, CARV is targeting Southeast Asia and Latin America, where users can better control and monetize their data. The $CARV token powers governance, gas fees, and incentives, fostering a user-owned data economy. Strategic partnerships with Kite AI and ARPA enhance AI intelligence, verifiable randomness, and blockchain security.

Check out the latest prices, charts, and data of 

, Sony’s Ethereum Layer 2 blockchain, to develop Moca Network’s identity layer and launch anime initiatives on Soneium. Moca Network’s AIR SDK will integrate into Soneium, enabling decentralized identity (DID) and reputation features, starting with San FranTokyo’s Anime ID. This collaboration aims to onboard anime fans to blockchain-powered experiences and enhance engagement across anime, gaming, and Web3. Sony’s Soneium, developed by Sony Block Solutions Labs and Startale Group, seeks to merge creativity and technology, while Animoca Brands’ partnership strengthens the digital identity infrastructure for an interconnected Web3 ecosystem.

Yesterday, BTC spot ETFs saw $85M in inflows, all from non-GBTC funds.

, allowing users to earn Fragments through Galxe and Zealy quests, potentially qualifying for an airdrop. Participants must complete quests, connect wallets, and use a referral code. Points update weekly, and the program may be limited in duration.

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Animoca Brands and Sony’s Soneium partner to enhance digital identity and anime experiences in Web3

Surging gold prices and bullish equity markets are reshaping the macro landscape. Find out how you can trade the macro boom with Bybit Gold&FX.

 and ignore the cheers for all-time highs? The global financial markets are undergoing a transformative macro boom, driven by bullish stock market rallies, historic surges in gold prices and heightened volatility across asset classes. As geopolitical tensions, inflationary pressures and monetary policy shifts reshape the investment landscape, traders are being presented with unparalleled opportunities to diversify and capitalize on cross-market dynamics. 

From gold’s ascent past $3,000 per ounce to the S&P 500 and Nasdaq-100 

 reaching new highs, this interconnected environment is offering crypto traders the chance to leverage strategic fund rotation across gold, forex, stocks and cryptocurrencies. 

In this article, we’ll explore these drivers and provide actionable insights into navigating this unprecedented macroeconomic wave.

The current macro boom isn’t a random phenomenon. Rather, it’s the result of interconnected global events reshaping the financial landscape. From surging gold prices to bullish equity markets, developments are being driven by a mix of geopolitical tensions, monetary policy shifts and economic recovery efforts. Understanding these drivers is essential for traders aiming to position themselves strategically in the face of upcoming macroeconomic catalysts and heightened volatility.

Gold has reached historic highs, surpassing $3,000 per ounce for the first time in history. This unprecedented milestone is underpinned by several key factors.

These factors collectively underscore why gold remains an indispensable asset during periods of economic and geopolitical uncertainty.

Equity markets also experienced a robust rally in 2024, with indices like the S&P 500 and Nasdaq-100 posting strong gains. This bullish momentum reflects renewed optimism in global markets, despite lingering uncertainties.

While the above factors have supported equity markets so far, experts caution that volatility remains a key risk, due to potential corrections driven by geopolitical shocks and/or shifts in monetary policy.

Beneath the surface of this macro boom lies significant economic uncertainty that continues to shape market dynamics.

While these uncertainties pose challenges for policymakers and businesses alike, they also create opportunities for traders to capitalize on price movements across asset classes.For traders willing to navigate these complexities strategically, this environment offers significant opportunities for gains while underscoring the importance of diversification and risk management across markets.

Gold vs. crypto: complement or competition?

Is there a world in which both physical gold and “digital gold” can coexist and thrive? 

Gold and cryptocurrencies like Bitcoin are often pitted against each other due to their roles as alternative assets. In actuality, they serve distinct purposes in portfolios. 

With its centuries-long history, gold is widely regarded as the ultimate safe haven during economic uncertainty. Its stability and low correlation with equities make it an effective hedge against inflation, geopolitical turmoil and systemic market shocks. For example, gold prices surged by over 25% during the 2008 financial crisis and recently climbed past $3,000 per ounce amid global economic concerns in 2025.

While traditional gold remains a reliable hedge, traders who want the same stability with more flexibility can turn to 

). These assets are pegged to the price of physical gold and backed by real reserves, allowing holders to gain exposure to gold’s value while transacting on-chain. With the ability to trade 24/7, fractionalize ownership and move seamlessly across wallets and exchanges, gold-backed tokens are becoming a popular option for crypto-native investors looking to diversify without leaving the blockchain ecosystem.

On the other hand, Bitcoin emerged after the Great Financial Crisis as a decentralized digital asset designed to bypass traditional financial systems. While often dubbed 

 (due to its fixed supply of 21 million coins and potential as an inflation hedge), Bitcoin’s inherently high volatility makes it more attractive to risk-tolerant traders seeking explosive speculative growth. Despite these differences, both assets have seen increased institutional adoption, with 

 recently enabling easier access for investors.

Rather than competing directly, gold and Bitcoin can indeed complement each other within a diversified portfolio. Gold provides stability during crises, acting as a defensive asset that cushions portfolios against drawdowns. Bitcoin offers growth potential fueled by technological innovation and adoption cycles, making it suitable for traders seeking higher returns.

Interestingly, recent market trends suggest convergence between the two: Bitcoin’s resilience alongside gold during periods of volatility indicates that both may now fulfill similar roles as hedges against macroeconomic risks. However, their divergence in risk profiles underscores the importance of balancing these assets (based on individual investment goals and 

This divergence results from the contrast between gold’s predictable regulatory framework and Bitcoin’s susceptibility to liquidity shifts and regulatory changes. Together, the two assets offer unique strengths that cater to different needs in today’s interconnected financial landscape.

Before diving into the intricacies of stocks and crypto, it’s essential first to consider the landmark announcement represented by spot crypto ETFs.

The increasing correlation between the stock and crypto markets is becoming undeniable, particularly for seasoned crypto traders observing the rise of spot crypto 

 (ETFs) within traditional finance (TradFi). This regulatory milestone provides institutions with a structured avenue to gain exposure to digital assets, and signals a significant step toward mainstream acceptance of cryptocurrencies as legitimate financial instruments.

Notably, the rising popularity of Bitcoin Spot ETFs and 

 exemplifies this progress, as they effectively bridge the gap between traditional and 

 (DeFi). The substantial inflows of funds into these ETFs underscore the deepening relationship between the stock and crypto markets, offering both valuable insights and opportunities for traders who must now navigate this increasingly intertwined landscape.

What’s the link between crypto and stocks?

The correlation between stocks and cryptocurrencies has grown significantly, and is primarily driven by shared investor sentiment and overlapping market dynamics. Large-cap coins like Bitcoin often move in tandem with traditional markets during risk-on periods as traders seek high-yield opportunities across diversified asset classes. This connection is particularly pronounced in the tech sector, where Bitcoin’s performance aligns with tech-heavy indices like the Nasdaq-100, reflecting BTC’s adoption by tech-savvy investors.

Additionally, stock market events such as positive earnings reports from companies like Tesla or Amazon can bolster confidence across both equities and crypto markets as traders take on a more risk-on approach. Similarly, macroeconomic data releases, such as Federal Reserve rate decisions or unemployment figures, can also trigger volatility in stocks and crypto alike, creating lucrative opportunities for traders to capitalize on price fluctuations across the two interconnected markets.

3 reasons why rotating capital between markets is an essential cross-market strategy for crypto traders

1. Tap into global liquidity across asset classes

With the introduction of spot crypto ETFs, stock market indices trading at close to all-time highs and a renewed interest in gold as a portfolio hedge, there’s never been greater liquidity across various financial markets. As such, rotating capital between markets is a valid cross-market strategy for crypto traders seeking to maximize returns and mitigate risks in today’s interconnected financial landscape. The ability to shift one’s funds dynamically across asset classes such as cryptocurrencies, gold, forex and stock indices allows traders to capitalize on varying market conditions and economic cycles. 

2. Align with market cycles to maximize returns

From adopting an aggressive risk-on approach by positioning one’s portfolio in tech stocks and crypto, to rotating toward defensive assets like consumer defensive stocks and gold during times of volatility, the possibilities are endless for those who are well-versed with market cycles and the way they tend to affect asset prices.

For instance, during periods of heightened inflation or geopolitical uncertainty, allocating capital to gold can act as a hedge against currency devaluation, while bullish trends in equity markets provide opportunities for growth-focused investments in indices like the S&P 500 or Nasdaq-100.

3. Seize volatility-driven opportunities across markets

Similarly, forex markets offer liquidity and volatility-driven opportunities when major currencies react to macroeconomic events, such as interest rate decisions or trade policy shifts. For crypto traders, this strategy is particularly valuable, as it enables them to leverage their expertise in volatile environments while diversifying exposure to traditional assets that may exhibit lower correlation to digital currencies.

 as they offer seamless multi-asset trading capabilities, zero-fee indices trading and advanced tools for efficient fund rotation. By adopting a cross-market strategy, traders can optimize their portfolios, reduce reliance on single-market performance and enhance resilience against unpredictable economic shocks.

The Bybit Gold&FX zero-fee indices trading advantage

 offers numerous benefits to allow for frictionless trading as you’re rotating your funds across various markets. This includes the following advantages:

When coupled with MT5 integration, Bybit's zero-fee indices enable traders to efficiently move funds across diverse forex, gold and stock indices without incurring excessive trading fees. Combined with high leverage and robust liquidity, this ultimately enables rapid portfolio adjustments based on market conditions. The platform's comprehensive tools and copy trading features further streamline this process, minimizing friction and maximizing flexibility for traders seeking to capitalize on opportunities across various asset classes.

The current macro boom presents lucrative opportunities for crypto traders willing to diversify into traditional markets, such as gold and stock indices, while leveraging cutting-edge trading platforms like Bybit for seamless fund-rotation across asset classes. 

Whether investing in gold as a safe haven during economic uncertainty or capitalizing on stock market volatility fueled by earnings growth and dovish monetary policies, cross-market strategies empower crypto traders to position themselves strategically for success amidst the current unprecedented macro boom — an essential tactic for thriving in today’s interconnected financial ecosystem.

Intermediate

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Macro boom: How crypto traders can ride the gold & stock rally

Bedrock is a multi-asset liquid restaking protocol that enables users to earn yields across multiple blockchain networks while maintaining liquidity.

As the crypto market evolves, innovative staking solutions are becoming increasingly important for users seeking to maximize their digital asset potential. Bedrock (BR) has emerged as a pioneering protocol, offering next-level liquid staking across multiple cryptocurrencies.

This article explores Bedrock's unique approach to 

, its supported assets and the powerful technology that makes it possible. Whether you're an experienced crypto enthusiast or just entering the market, understanding Bedrock's capabilities can help you navigate the growing world of yield-generating opportunities.

 that enables users to earn yields across multiple blockchain networks while maintaining liquidity through noncustodial solutions backed by infrastructure provider RockX.

Bedrock was initially launched in March 2023 by RockX, a company with extensive experience in blockchain infrastructure and staking services. Founded with the vision of bridging the gap between traditional finance and 

 (DeFi), Bedrock was designed to strike a balance between security, compliance and the flexibility of DeFi.

The protocol began by supporting Ethereum 

, introducing uniETH, a non-rebasing reward-bearing token. Since then, Bedrock has expanded its capabilities to support multiple assets across different blockchain networks.

In 2024, Bedrock attracted substantial investment from leading crypto firms, including OKX Ventures, LongHash Ventures and Comma3 Ventures. Waterdrip Capital, LBank Labs and Amber Group also participated in the funding round, propelling Bedrock's expansion and development in the liquid restaking sector.

Bedrock seeks to transform the staking ecosystem by addressing critical gaps in current platforms as follows.

By addressing these four challenges, Bedrock creates a more accessible staking ecosystem in which users can earn sustainable yields across multiple assets without sacrificing security or liquidity.

Bedrock operates via a modular infrastructure that supports multiple assets and integration with various staking protocols. The system allows users to deposit their crypto assets in exchange for "uni" standard tokens (such as uniETH, uniBTC or uniIOTX), representing the staked assets and all future staking rewards.

Unlike traditional rebasing tokens that increase in quantity over time, Bedrock's tokens grow in value. As staking rewards accumulate, one uniETH becomes worth more than one ETH. Bedrock’s non-rebasing model simplifies accounting, and makes interaction with other DeFi protocols more seamless.

For Ethereum staking, Bedrock integrates with 

 to enable restaking, allowing users to earn additional rewards beyond basic staking by supporting multiple network services. With Bitcoin, Bedrock works with 

 to enable BTC holders to participate in staking for the first time — opening a new frontier for the trillion-dollar asset.

 to manage staking processes, validator operations and reward distribution. Bedrock has eliminated reliance on oracles for security, instead using on-chain data to calculate validator balances and staking rewards. This approach reduces vulnerability to external attacks and/or data manipulation.

One of Bedrock's key innovations is its support for multiple cryptocurrencies within a unified staking ecosystem. This multi-asset approach allows users to diversify their staking portfolios across various blockchain networks while simultaneously accessing enhanced yields through restaking mechanisms.

As Bedrock's liquid restaking token for Ethereum, uniETH is designed to natively restake and harness additional EigenLayer rewards. It combines institutional-grade security with enhanced yield potential from EigenLayer’s ecosystem.

When staking ETH with Bedrock, users receive uniETH tokens representing their staked ETH and future rewards. Unlike rebasing tokens, uniETH grows in value (rather than quantity) over time to improve compatibility with other DeFi protocols and simplify the user experience.

Through EigenLayer integration, uniETH holders earn base Ethereum staking rewards and additional yields from Actively Validated Services (AVS), such as EigenDA and Espresso Systems. Bedrock employs a noncustodial approach, with smart contract–controlled withdrawal credentials and an oracle-less system that relies upon on-chain data for enhanced security.

Bedrock BTC (brBTC) is designed for Bitcoin holders seeking next-generation DeFi opportunities. As Bedrock's flagship Bitcoin liquid restaking token, it serves as a gateway to BTCFI 2.0, an ecosystem of yield-generating strategies for Bitcoin.

The token accepts uniBTC and multiple Wrapped BTC (WBTC) assets, with Bedrock managing these across trusted yield sources, including Babylon, Kernel, Pell Network and SatLayer. This diversification mitigates risk while maximizing returns for Bitcoin holders.

The primary advantage of using brBTC is that of yield diversification through intelligent asset allocation. Connecting to multiple restaking protocols simultaneously delivers enhanced returns while lowering the entry barrier for Bitcoin holders seeking sophisticated DeFi strategies. 

uniBTC is a specialized restaking protocol that accepts WBTC tokens in partnership with Babylon chain. The first supported token is WBTC on Ethereum, allowing holders to earn staking yields while maintaining Ethereum network security.

Through Babylon's approach, uniBTC bridges Bitcoin's value with 

 (PoS) yield potential, addressing both Bitcoin's capital dormancy and PoS chains' need for security backing. The protocol features fully slashable security, whereby 1/3 of the Bitcoin stake is guaranteed to be slashed during safety violations.

uniBTC maintains staker security and liquidity in order to enable Bitcoin holders to withdraw funds, provided they follow protocol rules. By enabling staking without transferring ownership, uniBTC preserves Bitcoin's security principles while creating new yield opportunities previously unavailable to BTC holders.

 is Bedrock's liquid staking solution for the 

 blockchain. It’s designed to overcome several limitations of the traditional delegated PoS mechanism on IoTeX. As the first and largest liquid staking protocol on the IoTeX network, uniIOTX has established Bedrock as a key player in this ecosystem.

Like other Bedrock tokens, uniIOTX follows the non-rebasing model, meaning its value (rather than the quantity of tokens) increases over time. This approach simplifies integration with other DeFi applications, and improves the user experience.

The unilOTX token represents both the staked IOTX and all future staking rewards, thus allowing users to maintain liquidity while earning staking yields. By removing barriers to entry and exit in the IOTX staking system, uniIOTX enhances capital efficiency and accessibility for IOTX holders.

 of the Bedrock ecosystem. It’s designed to align stakeholder incentives while driving protocol growth, and supports holders in voting on proposals affecting the protocol's direction, including supported assets and fee structures.

Distribution of the BR token allocates 5.5% to early supporters during the token generation event (TGE), with the remaining portions for community 

, ecosystem growth, team members (with vesting) and liquidity incentives. Individual wallet allocations are capped at 0.4% during airdrops to prevent concentration.

BR maintains value through multiple mechanisms. Users can lock tokens for veBR to reduce circulating supply, protocol revenue funds regular buybacks, and seasonal governance resets to encourage ongoing participation. This balanced approach creates a tokenomics model that’s focused on sustainable growth and fair distribution while it controls inflation.

Looking to trade Bedrock tokens? Bybit now offers the BR/USDT Spot trading pair and BRUSDT Perpetual contract. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While BR demonstrates strong fundamentals in the liquid staking space, investors must carefully consider its growth potential and risk factors before making investment decisions.

BR shows promising potential with its multi-asset approach and institutional-grade security features. However, potential investors should 

 before investing, particularly given the innovative nature of liquid restaking technology.

Bedrock's multi-asset liquid restaking mechanism addresses traditional staking limitations by maintaining liquidity while enhancing yields across Ethereum, Bitcoin and IoTeX. With battle-tested security and strategic partnerships, Bedrock offers a practical solution for yield-seeking crypto holders in today's evolving DeFi market.

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Bedrock (BR): Next-level liquid staking across multiple cryptos

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The Martingale strategy is a trading strategy that involves doubling your next bet every time you take a loss. Find out how it works for crypto in this article.

When you're investing in crypto, there are many different strategies to try. The Martingale strategy is a technique that has its roots in gambling. Though it's not foolproof, this system is a great way to account for the unpredictability of the market. Truth be told, 

the Martingale strategy is a bold technique that hinges on doubling your stake after each loss to bounce back and win big. Applying this high-stakes strategy to crypto futures trading could reduce your average entry price and boost your profits.

This article introduces the Martingale strategy and its usage in crypto futures trading, and shows you how to supercharge your trades using the Bybit Futures Martingale bot. 

The Martingale strategy is a type of betting system that originated in 18th-century France. It was designed for a game where the gambler wins if a coin comes up heads, and loses if it comes up tails. This approach involves doubling the bet after every loss so that the first win will recover all earlier losses, plus win a profit equal to the initial stake.

The logic behind this strategy is that the probability of a favorable outcome increases after a series of unfavorable outcomes. For example, if a coin toss is fair, then the probability of the coin coming up heads after five consecutive tails is still 50%. However, the probability of getting six straight tails is only 1.56%. By increasing the stake after every loss, the gambler expects to win and eventually make up for all the losses.

However, the Martingale strategy assumes that the gambler has infinite wealth — and that there’s no limit on money earned in a single bet. Of course, in reality, no gambler has endless wealth, and most games have a maximum bet limit or a house edge that reduces the expected value of each bet. Therefore, this strategy isn’t guaranteed to work in the long run, as there’s always a possibility that the gambler will run out of money or reach the maximum bet limit before winning.

So how does a probability theory originally used for coin tosses work for crypto? Of course, crypto trading isn't gambling, because an informed investor has a reasonable certainty as to how their money will work. However, the Martingale trading strategy can still be a useful way of handling money.

It starts with selecting the amount of money you want to invest over a certain period of time. This money functions as your initial bet. At the end of the time period, you analyze your profits and losses. If you gain money, you invest the same amount of funds all over again. If you lose money, you double the amount of money you’ll invest, wait for the same time period and then assess your funds.

The Martingale strategy involves doubling your investment every time you have a loss, instead of only doubling your initial bet. Thus, if you were to lose your first $100 investment, you would then invest $200, and if you lost that investment, you would double again and invest $400.

How to Use the Martingale Strategy in Crypto Trading

The Martingale strategy can be applied to many types of trading, including 

, which are contracts that allow traders to buy or sell an underlying asset at a predetermined price and date in the future. Traders can use leverage to borrow funds from an exchange and increase their exposure to the market. This practice means they can potentially amplify their profits or losses, depending upon whether their predictions are correct or not.

Using the Martingale strategy in crypto futures, traders can adjust their investment size automatically, based on market conditions. For example, if a trader opens a 

 (buy), expecting that the price of Bitcoin will increase in the future, but instead it decreases, they can double their position size at a lower price, hoping that the price will eventually rise and they can sell at a higher price. This way, they can lower their average entry price and increase their chances of making a profit when the market reverses.

Investors also have the choice of usinga 

. The approach involves doubling your bet when you gain a profit, and halving your investment each time you take a loss. This system isn't as effective as the Martingale strategy, but it works better when trading with a limited amount of money in a hot market.

 However, this strategy has inherently higher risks of losing everything if the market continues to move against the trader's prediction. 

For example, if the price of Bitcoin keeps dropping and the trader keeps doubling their position size, they’ll eventually reach a point where they can’t afford to open any more positions, or they’ll trigger a liquidation event in which the exchange will automatically close their positions (at a loss) in order to prevent further losses. As a result, traders must be careful and use proper 

 techniques when applying the Martingale strategy to crypto futures trading.

What Is the Bybit Futures Martingale Bot?

The Bybit Futures Martingale Bot is an automated program that trades Perpetual contracts on Bybit, a crypto derivatives exchange. The bot uses the Martingale strategy, adjusting the position size automatically based on market conditions, applying advanced risk management features and using AI-recommended strategies based on historical data and analysis to optimize trading strategies and lower average costs.

How to Use the Martingale Strategy to Minimize Crypto Losses

 can automatically execute the Martingale strategy for you. Access the bot from the 

 tab on the Bybit Desktop App, create your bot and get started with the following steps.

To illustrate how the Martingale strategy works in practice, let’s consider an example of a trade using the Bybit Futures Martingale Bot.

Let us assume that the current price of BTC is 26,000 USDT and the trader has enough margin to execute the maximum addition for this round. The trader decides to short BTCUSDT with an initial order size of 0.1 BTC, and configures the Futures Martingale with the following parameters: 

Suppose the market price continues to rise, for every 2% increase. In that case, the bot will automatically create another short order at the higher price point and repeat the process until the Profit Target for that round is reached.  After the third round of addition, the position details are as follows:

The order price for the additional order is determined by multiplying the average holding cost by the specified Price Increase or Decrease.

For long positions: Next order price = Average holding cost 

For short positions: Next order price = Average holding cost 

26,000×0.1+26,520×0.12+26,809×0.144+27,021×0.1728 = 14,312.12 USDT

Average Holding Cost (Average Entry Price)

= Total Contract Value / Total Order Size 

Let’s assume that the Funding Fees are negligible. After three additions, the current take profit price for this round of Futures Martingale trading is:

Take Profit Price =  (Total Contract Value - Profit Target x Total Investment  + Realized Fee)/ Order Size × (1+0.06%)

      = (14,312.12 -2%×26,000+8.5872)/0.5368/(1+0.06%)

By doubling your position size after each loss, you could recover your losses and make a profit when the price eventually turns in your favor. However, this example also reveals some of the following risks associated with using the Martingale strategy:

To ensure effective risk management when using the Martingale strategy, use the following guidelines:

Markov analysis is a mathematical technique that studies the behavior of random variables that change over time, based on specific rules or probabilities. According to the Markov memoryless property, the future state of a system depends solely upon its present state and not on its previous history.

While Markov analysis assumes that the future state of a system depends only upon its present state, the Martingale strategy assumes that the probability of a favorable outcome increases after a series of unfavorable outcomes. 

Markov analysis also requires accurate data and probabilities for each possible state and transition, whereas the Martingale strategy supposes infinite wealth and no maximum bet limit.

How to Get Started With the Bybit Futures Martingale Bot

To get started with the Bybit Futures Martingale Bot, traders can follow the steps below.

What Is the Martingale Strategy: Turning Losses Into Wins

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards