Earn Passive Crypto Income on Bybit: Canada 2025 Guide

Listen up, eh? Before we dive into the loonie-making strategies, there's a massive elephant in the igloo we need to address. As of September 2023, Bybit officially exited the Canadian market due to regulatory changes introduced by the Canadian Securities Administrators (CSA). This means Canadian residents cannot directly access Bybit's platform from within Canada.

However, the strategies and mechanisms we're exploring remain highly relevant for understanding crypto passive income generation. Many Canadian crypto enthusiasts use VPN services or offshore solutions (though this carries legal and security risks), while others apply these same principles on Canada-compliant platforms like Kraken or regulated alternatives. This guide focuses on the strategies themselves — the "how-to" of passive crypto income that transcends any single platform.

The 2025 Reality: Why Passive Crypto Income Isn't Just Hype Anymore

In 2025, the crypto wealth landscape has exploded beyond anyone's wildest Tim Hortons-fueled dreams. Global crypto millionaires surged 40% in just 12 months, with Bitcoin millionaires alone jumping 70% to 145,100 holders. Institutional investors are now allocating over 5% of their assets under management (AUM) to cryptocurrencies, with 59% of respondents planning such allocations.

Translation? The big money is taking crypto seriously, and passive income strategies have matured from experimental DeFi degenerate plays into legitimate wealth-building tools. We're not in the Wild West anymore, folks — we're in the slightly-less-wild-but-still-pretty-exciting Canadian Prairies of crypto.

​The Bybit Passive Income Toolkit: 7 Strategies That Actually Work

1. Bybit Savings: The "Double-Double" of Crypto (Low Risk, Steady Returns)

Think of Bybit Savings as your crypto equivalent of a GIC — except instead of pathetic 2% returns, you're looking at 7-15% APY on stablecoins like USDT. This is the Tim Hortons coffee of passive income: reliable, accessible, and you can get it anytime.

How It Works:
Bybit Savings offers flexible-term (withdraw anytime) and fixed-term options (lock for 7-180 days). You lend your crypto assets to institutional borrowers, and Bybit pays you guaranteed APR.

2025 Analytics:

• USDT Flexible: 7.13-11.06% APR

• USDC Flexible: 6.09% APR

• DAI Flexible: 8.44% APR

• Fixed 180-day USDT: 3.15% APR (lower but guaranteed)

New User Exclusive (2025): First-time users can access promotional rates up to 555% APR for 2-3 days on small USDT deposits (100-300 USDT). Yeah, you read that right — five hundred and fifty-five percent. It's basically Bybit's way of saying "come for the promo, stay for the ecosystem."

Canadian Tax Consideration: Interest earned from crypto savings is treated as 100% taxable income in Canada, not capital gains. Your marginal tax rate applies, ranging from 15-33% federally plus provincial taxes.

2. Staking: HODL Your Way to Profits (The "Loonie and Toonie" Method)

Staking is beauty, eh? You lock up your Proof-of-Stake (PoS) coins, help secure the network, and earn rewards for doing absolutely nothing except resisting the urge to panic-sell.

​Bybit's Staking Arsenal (2025 Data):

Major Coins:

• Ethereum (ETH): 2.7-3.36% APR via Lido staking

• Solana (SOL): 11.68% APR via BybitSOL (bbSOL)

• Bitcoin: 1.45% APR (yes, you can earn on BTC now)​

High-Yield Options:

• USDE (Ethena): 10.90% APR

• NAVX: 20.58% APR

• GLP (GMX): 15.73% APR

• CAKE (PancakeSwap): Up to 79.89% APR on locked staking

• BSW: 48.9% APR

One-Click Staking vs. Liquid Staking:
Bybit offers simplified one-click staking for beginners. But the real beauty? Liquid staking gives you tokenized versions (like bbSOL for Solana) that you can trade or use in DeFi while still earning staking rewards. It's like having your poutine and eating it too.

Expert Insight: "Liquid staking is the game-changer for 2025," notes institutional analysis. "You're no longer choosing between liquidity and yield — you can have both".

3. Liquidity Mining: The High-Octane Zamboni (Medium Risk, High Reward)

This is where things get spicy, like adding ghost pepper sauce to your Montreal smoked meat. Liquidity mining on Bybit lets you earn 5-50% APY by providing liquidity to automated market maker (AMM) pools.

How It Works:
You deposit crypto pairs (like BTC/USDT or ETH/USDT) into liquidity pools. These pools facilitate trading on Bybit, and you earn:

• Trading fees from the pool

• Staking rewards (often paid in Bybit's BIT token)

2025 Top Performers:

• ETH/USDT Pool: Up to 49% APR

• BTC/USDT Pool: ~11% APR

• Average Range: 5-50% depending on volatility

Leverage Option (For the Degens):
Bybit allows up to 5x leverage on liquidity mining to amplify returns. But beauty, this cranks up liquidation risk faster than a Canuck can apologize.

The Catch — Impermanent Loss:
If the price ratio of your paired assets changes significantly after deposit, you experience "impermanent loss" — basically, you might've made more money just HODLing. Bybit uses AI-driven optimization to mitigate this, but it's still a risk.

Tax Heads Up: Liquidity mining rewards = 100% taxable income when received. Plus, removing liquidity may trigger capital gains tax if your crypto appreciated.

4. Dual Asset: The "Double-Double Win" (High Risk, Potentially Insane Returns)

This is Bybit's structured product for market predictions. Think of it as placing a bet on where crypto prices will land — with APRs exceeding 1,000% if you nail it.

How It Works:

• Buy Low Product: Set a target price below current market. If price drops to your target, you buy crypto at a discount PLUS earn interest. If it doesn't drop, you still get your capital back plus interest.

• Sell High Product: Set a target above market. If price rises to your target, you sell at a premium plus interest. If it doesn't, you keep your crypto plus interest.

2025 Example:
You have 1,000 USDT. BTC is at $15,000. You set target at $14,500 with 150% APR for 1 day.

• Scenario A: BTC drops to $14,500 → You get 0.0669 BTC (worth more than your initial USDT) + interest

• Scenario B: BTC stays above $14,500 → You get 1,004.11 USDT (your capital + 4.11 USDT interest)

The Risk: This is NOT principal-protected. If markets move unpredictably, you might end up with assets in a different form than you started. Not for the faint of heart — this is advanced territory, like driving the Coquihalla in a snowstorm without winter tires.

5. Wealth Management: Set It and Forget It (The "Snowbird" Strategy)

Perfect for investors who'd rather spend time skating on the Rideau Canal than monitoring charts. Bybit's Wealth Management uses professionally managed funds that execute arbitrage strategies between spot and futures markets.

Key Features:

• Auto-Reinvest Function: Automatically compounds your gains

• All-Market Conditions: Works in bull, bear, or crab markets

• Low Risk: Arbitrage strategies are generally lower risk than directional trading

2025 Performance: While specific APYs vary, wealth management products typically offer 3-8% annual returns with minimal user intervention.

Best For: Risk-averse investors, institutional clients, or anyone who wants stable returns without the stress of active management.

6. Discount Buy: Bargain Hunting on Autopilot

This structured product lets you buy crypto below market price or earn interest if the purchase doesn't execute.

How It Works:
Set a "knockout price" and "purchase price." If the settlement price falls between these levels, you buy at your discounted purchase price. If it stays above the knockout price, you receive your capital plus guaranteed interest.

Example:

• Current BTC Price: $108,000

• Knockout Price: $107,000

• Purchase Price: $106,000

• Interest Rate: 1.42%

Outcome A: BTC drops to $106,500 at settlement → You buy BTC at $106,000 (below market)
Outcome B: BTC stays above $107,000 → You get your USDT back + 1.42% interest

Canadian Angle: This is ideal for buy-the-dip mentality (or as we say up here, "BTD, eh?"). You're essentially getting paid to wait for your entry point.

7. Smart Leverage: The Double-Edged Hockey Stick

This product amplifies leveraged trade profits while protecting against short-term volatility. Warning: This is maximum degen territory.

How It Works:

• Apply leverage (up to 100x on select pairs) with built-in protection from short-term "washouts"

• If price hits breakeven at settlement, you get leveraged profits

• If price goes wrong, you risk losing ALL capital

2025 Analytics: Bybit's matching engine processes 3.5 million transactions per second with 99.99% uptime and sub-10ms response times. This infrastructure reduces slippage and execution risk during volatile periods — critical for leverage trading.

Real Talk: Unless you're a seasoned trader who understands liquidation mechanics, margin calls, and funding rates, stay away from high leverage. It's like trying to navigate a whiteout on the 401 — technically possible, but probably ending badly.

Comparative Analysis: Which Strategy Fits Your Risk Profile?

*Source: Compiled from *

The Canadian Tax Reality Check: Don't Get Rekt by the CRA

Here's the double-double truth bomb about crypto taxes in Canada — the CRA is watching, and they're not as friendly as your neighbor offering Tim Bits.

Tax Treatment Breakdown:

Capital Gains (50% taxable):

• Selling crypto for fiat

• Trading crypto-to-crypto

• Using crypto to buy goods/services

• Removing liquidity from pools (if asset appreciated)

Ordinary Income (100% taxable):

• Staking rewards

• Liquidity mining rewards

• Interest from savings products​

• Dual asset interest payments

2025 Tax Rates:
Federal rates range from 15% (income ≤$57,375) to 33% (income ≥$253,414). Add provincial taxes on top (varies by province).

Capital Gains Inclusion Rate: Only 50% of capital gains are taxable. So if you made $10,000 selling ETH, only $5,000 is added to your taxable income.

The Reporting Deadline: April 30, 2025, for 2024 transactions. Pro tip: Use crypto tax software like Koinly to track everything automatically.

Platform Alternatives for Canadians: Where to Actually Trade in 2025

Since Bybit ghosted Canada faster than a Tinder match after a bad date, here are legitimate, Canada-compliant alternatives offering similar passive income products:

1. Kraken

• 20 coins available for staking

• Canada-compliant and regulated

• Volume-based fee discounts

• Limitation: Staking not available for all US users, but accessible to Canadians

2. Crypto.com

• 33 staking options

• Earn on ETH, SOL, ADA, and more

• Note: Staking unavailable in US, but operational in Canada with restrictions

3. KuCoin

• 42 coins for staking

• Similar product suite to Bybit

• Regulatory Status: Use with caution; not fully registered in Canada

4. Netcoins (Canadian-Specific)

• Fully regulated Canadian exchange

• Compliance with Canadian AML/KYC requirements

• More limited product selection but stress-free from regulatory perspective

Expert Risk Management: Don't Be a Bagholder, Eh?

Drawing from institutional best practices for 2025, here's how to protect your capital while chasing yield:

Portfolio Allocation Strategy (60/30/10 Model):

• 60% Core Holdings: BTC (40%) + ETH (20%) in low-risk savings/staking​

• 30% Growth Plays: Altcoin staking, liquidity mining with moderate APYs​

• 10% Stablecoins/Cash: USDT savings for dry powder and downside buffer​

Risk Mitigation Tactics:

1. Start Small:
Begin with 1-5% of your portfolio in any single passive income strategy. Test the waters like dipping your toes in Lake Louise — gradually.

2. Diversify Across Strategies:
Don't put all your loonies in one hockey net. Spread across staking, savings, and maybe one liquidity pool.

3. Use Stablecoins for High-Risk Products:
When trying dual asset or leverage products, use stablecoins (USDT/USDC) instead of volatile assets. This limits your downside.

4. Understand Impermanent Loss:
Before liquidity mining, calculate potential impermanent loss using Bybit's built-in calculators. If the asset pair is highly volatile (like DOGE/USDT), reconsider.

5. Monitor Liquidation Prices:
If using leverage (which I don't recommend unless you're experienced), always know your liquidation price and set stop-losses.

6. Rebalance Quarterly:
Review your positions every 90 days. Markets change faster than Canadian weather — what worked in January might be garbage by April.

The 2025 Market Context: Why This Year is Different

The crypto landscape in 2025 is fundamentally different from previous cycles. Here's what institutional analysis reveals:​

Stablecoin Lending Yields (Aave V3 - October 2025):

• USDC Supply: 4.0-4.2% APY​

• USDT Supply: 4.0-4.3% APY

• DAI Supply: 3.8-4.0% APY

These on-chain rates set a 4% benchmark for dollar yields, making centralized platforms like Bybit (offering 7-15%) extremely competitive.

DeFi Yield Trends:

• Liquid Staking ETH: 2.7-3.36% APR

• Yield Farming (Top Protocols): 15-50% APY on specific pairs

• Bitcoin DeFi Yield: Emerging protocols like Rootstock and Babylon offering 1-2% APY on BTC

Key Insight: Institutional investors are now comfortable with yields below 2% on Bitcoin, viewing it as "acceptable for offsetting custody drag". This maturation signals that crypto passive income is no longer about chasing moonshots — it's about building sustainable portfolios.

Common Mistakes (And How to Avoid Being REKT)

1. Chasing APY Without Understanding Risk

That 555% APY promo? It's for 2-3 days on small amounts. Don't YOLO your life savings expecting sustained quadruple-digit returns. Reality check: Sustainable yields are 5-20% for most strategies.

2. Ignoring Lock-Up Periods

Fixed staking and dual asset products lock your funds. If you need liquidity suddenly, you're bagged. Solution: Keep 20-30% in flexible savings.

3. Not Tracking Transactions for Taxes

Every staking reward, liquidity claim, and interest payment is a taxable event. Use crypto tax software from day one. Trust me, reconciling thousands of microtransactions in April is worse than listening to Nickelback on repeat.

4. Falling for Exit Liquidity Traps

When influencers hype a new coin with "100% APY staking," you might be the exit liquidity for early investors. Do Your Own Research (DYOR) — verify TVL, audit reports, and team credibility.

5. Using Excessive Leverage

Bybit offers up to 100x leverage. This amplifies both gains AND losses. A 1% price move against you = total liquidation at 100x. Expert advice: Never exceed 2-5x leverage, even if experienced.

Advanced Strategies for 2025: Going Beyond the Basics

Yield Aggregation (The "Coast-to-Coast" Approach)

Instead of manually managing multiple platforms, consider:

• Yearn Finance: Auto-compounds yields across DeFi protocols​

• Convex Finance: Boosts Curve Finance yields

• Pendle: Tokenizes future yields for trading

How Pendle Works: Split yield-bearing tokens into Principal Tokens (PT) and Yield Tokens (YT). You can sell YT to lock in immediate income or buy YT to speculate on yield increases. 2025 Stats: Pendle TVL is growing rapidly with integrations to liquid staking derivatives.

Options Strategies for Yield Enhancement

Selling covered calls on your crypto holdings can generate 10-50% APY depending on volatility. This is institutionally accepted as a yield enhancement technique.

Basic Covered Call Strategy:

1. Hold ETH in your portfolio

2. Sell call options at a strike price above current market

3. Collect premiums regardless of whether options execute

4. Repeat weekly or monthly

Platforms: Deribit, Paradigm, and institutional desks offer crypto options.

Real-World Asset (RWA) Tokenization

Emerging in 2025, tokenized government bonds, real estate, and commodities offer crypto-accessible yields with traditional asset backing.

Examples:

• Tokenized T-Bills: 4-5% APY backed by US treasuries

• Real Estate Tokens: Fractional ownership with rental income distribution

Benefit: Diversification outside pure crypto volatility while remaining on-chain.​

Closing Thoughts: Building Sustainable Crypto Wealth in 2025

The era of "number go up" speculation is evolving into genuine wealth management. With global crypto millionaires up 40% year-over-year and institutional allocation surging, passive income strategies are no longer fringe experiments — they're portfolio staples.

For Canadian investors, the regulatory landscape may be trickier than a double-double order at a bilingual drive-thru, but the opportunities remain abundant on compliant platforms. Whether you choose conservative staking (2-15% APY), aggressive liquidity mining (up to 50%), or structured products (100%+), the key is matching strategy to risk tolerance.

Final Expert Tips:

1. Start Conservative: Begin with stablecoins in savings products (7-15% APY) to learn the mechanics

• Scale Gradually: Once comfortable, allocate 10-20% to staking or liquidity mining

• Track Everything: Use tax software to avoid CRA headaches

• Stay Informed: DeFi yields fluctuate — quarterly reviews are essential

• Never Invest More Than You Can Afford to Lose: This isn't financial advice, but common sense, eh?

The beauty of crypto passive income in 2025 is that you're not just speculating on price — you're earning yield from network operations, trading fees, and protocol revenue. As Philipp Baumann of Z22 Technologies notes, "Bitcoin is becoming the foundation of a parallel financial system, where it is not merely an investment for speculation but the base currency for accumulating wealth".

So whether you're stacking sats through staking, farming yields in liquidity pools, or playing the sophisticated dual asset game, make your crypto work for you. Because in 2025, passive income isn't passive anymore — it's professional.

Now get out there and start earning, you beautiful Canadian crypto enthusiasts. And remember: WAGMI... but only if we DYOR first, eh?

Disclaimer

This content is for educational purposes only and does not constitute financial, legal, or tax advice. Cryptocurrency investments carry significant risk, including potential loss of principal. Bybit services are not available to Canadian residents as of September 2023. Always consult licensed professionals for advice specific to your situation. The author is not responsible for any financial decisions made based on this information.

Sources: - (Comprehensive citations integrated throughout the article corresponding to search results)