From The Chobots Wiki

Bugs are the in-game currency used by Chobots to purchase Items, Magic Items, Backgrounds, Pets, Pet Items, Furniture Items, Homes, and more.

File:Bugs currency.png
The Icon for Bugs in-game

Bugs could be earned by playing Mini-Games, doing Quests, selling items from your Wardrobe which may have been earned from parties or items you no longer want, and a few other ways such as being gifted by Chobots Staff.