Bits on Twitch are becoming more and more popular every day. If you’re in a channel with a reasonable amount of viewers, chances are you will see more bits come in than donations. However the big question is, are Twitch taking money from bits? If you are supporting a creator you probably want as much money to go to the creator as possible.

Let’s jump in and take a look at whether or not Twitch are taking money from bits.

Do Twitch Take Money From Bits?

Do Twitch Take Money From Bits? Yes, Twitch are taking a cut from bits when you purchase them. While 1 bit is worth $0.01 to a streamer it costs you more than $0.01 to purchase the bits. Generally 100 bits costs $1.40 on Twitch. This means that out of the 100 bits you purchase Twitch gets $0.40 and the Streamer gets $1.00. This means that Twitch is taking a 28.6% cut on bits with streamers getting the rest.

This might seem like Twitch is taking a lot from bits but compared to a subscription the average streamer gets a higher cut from bits. With subs Twitch take a 50% cut from streamers. If we run the math:

$5 Spent on Bits = ~345 bits = $3.45 directly to the streamer

$5 Spent on A Sub = $2.50 directly to the streamer

As you can see it is much more beneficial to give a streamer $5 in bits instead of a $5 sub as they are getting almost $1 more. When you buy bits in bulk you can also sometimes get a discount meaning that you would be paying less that $1.40/100 bits. So if you have a choice between bits and a sub it’s actually better to give the bits.

Do Twitch Take Money From Donations?

Do twitch take money from donations? No, Twitch do not take money from donations outside of the Twitch platform. If you are using Paypal, Streamlabs or Cryptocurrency for donations then Twitch will not get a cut of these. However there are fees associated with these platforms as well but they are much smaller than Twitch’s 50% cut on subs. Usually on these platforms you will pay 2-4% per donation.

While these platforms are much cheaper to use it is usually safer getting payment through the Twitch platform it self. You don’t have to worry about chargebacks or fake donations.

Why Do Twitch Take A Cut Of Bits?

It may seem unfair that Twitch are taking a cut of streamers bit donations and subscribers however there’s more to it than meets the eye. While Twitch are a business and yes they need to make money there is a lot of costs involved with their platform.

Twitch aren’t just pocketing the money they take from bits and subs. That money has to go back into the business to pay for video hosting, staff and everything else involved with running the platform. Video hosting and streaming is very expensive. Twitch provide all of this for free for streamers to use so they have to take a cut somewhere to pay for this.

Why Do People Use Bits On Twitch?

If streamers get more money from a direct donation why are people using bits. There are a few reasons people prefer using bits over other donation methods.

  • Viewers may prefer to use bits as it allows them to spread their donations over a larger number of streamers. If someone wants to use a dollar to donate the streamer may not even allow that through their donation platforms whereas the viewer can pay a dollar for bits and send 10 to 10 different streamers. Even though it’s not a lot of money it can be exciting to receive any bits at all if you are a new streamer.
  • Viewers get some extra benefits when they use bits in chat. When you “Cheer” on Twitch with bits it will appear in chat. You also have the ability to participate in trains and compete for spots on the top donation leaderboard.
  • Streamers may prefer to receive bits over subs as they get a higher cut from bits as we shown above.
  • Streamers may prefer to receive bits over donations as it is safer. On other platforms you have to deal with chargebacks and fake donations. With bits Twitch deal with all of that for you.

How Much Do Twitch Bits Cost

Below you can see the pricing for bits. When you make a purchase roughly 29% is going to Twitch right away. After that every bit you donate to a streamer is worth $0.01.

As you can see the more bits you purchase the cheaper it gets on a per bit basis. So the more bits you buy the less of a cut Twitch is taking off the top as the streamer is still getting their $0.01 per bit, no matter what.

If you want to purchase bits we would recommend doing it in bulk rather than lots of small purchases as you will save some money.

What payment methods can I use to buy Bits?

Twitch state on their site that “Bits can be purchased via major credit cards, Amazon Payments, PayPal, and a wide variety of global payment methods.”

Wrapping Up

So there you have it. Twitch are of course taking a cut from bits. It’s one of their monetisation streams on the platform. Bits is actually one of the most cost efficient ways to donate on Twitch when compared to subs.

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