What are Twitch Bits?
Twitch Bits are a virtual currency used exclusively on the Twitch platform. Viewers can purchase Bits and then use them to "Cheer" in a streamer's chat. Cheering is a way to show support, celebrate moments, and contribute financially to the streamer. Each Cheer uses Bits, and the streamer receives a portion of the revenue from the Bits used.
This system provides a secure way for streamers to earn revenue directly through Twitch, minimizing risks like chargebacks often associated with third-party donation methods.
How Do Twitch Bits Work?
Viewers buy Bits directly from Twitch. While purchase prices can vary slightly based on region and purchase amount, a common rate is $1.40 USD for 100 Bits.
When a viewer Cheers with Bits in a streamer's chat (e.g., uses 100 Bits), the streamer earns $0.01 USD per Bit. In this example, the streamer receives $1.00 USD for the 100 Bits Cheered.
The difference ($0.40 in this example) represents Twitch's share and covers processing fees and platform costs. This transparent system allows streamers to easily track earnings within their Twitch dashboard.
How much is 1 Bit worth to a streamer?
Each Twitch Bit is worth $0.01 USD to the streamer. So, 100 Bits equals $1.00, 1,000 Bits equals $10.00, and so on.
How much does it cost to buy Bits?
The cost for viewers to buy Bits is slightly higher than the value streamers receive. Typically, 100 Bits cost around $1.40 USD. Prices may vary slightly depending on the quantity purchased and the viewer's region. Twitch offers discounts for buying larger amounts of Bits at once.
Why is there a difference between the purchase price and streamer payout?
Twitch takes a share of the Bit purchase price. This share covers payment processing fees, platform development, and provides revenue for Twitch. The standard split is $0.01 per Bit for the streamer and the remainder for Twitch.
What are the benefits of using Bits over direct donations (e.g., PayPal)?
For streamers, Bits offer protection against chargebacks, as transactions are handled entirely within Twitch. For viewers, Bits allow for integrated cheering within the chat, often accompanied by special badges and emotes, making the support more visible and interactive within the community. Direct donations often give the streamer a larger percentage but lack the integrated features and chargeback protection.
How do streamers receive their earnings from Bits?
Streamers must be Twitch Affiliates or Partners to receive payouts from Bits. Earnings accumulate in their Twitch account. Once the payout threshold (typically $100 USD) is met, Twitch processes the payment through the streamer's chosen payout method (e.g., direct deposit, PayPal, check) according to their payout schedule.
Are Twitch Bits considered taxable income for streamers?
Yes, income earned from Twitch Bits is generally considered taxable income for streamers. Streamers are responsible for reporting this income according to their local tax laws and regulations. It's advisable to consult with a tax professional for specific guidance.