What Is Staking at Bitvavo?
Staking at Bitvavo allows you to earn extra returns on your crypto holdings by receiving "interest" on your outstanding cryptocurrencies. This passive income method is ideal for long-term investors. Below, we explore how staking works, its benefits, drawbacks, and eligible cryptos.
Understanding Staking
Bitvavo employs both off-chain and on-chain staking:
- Off-chain staking: Bitvavo uses your crypto for its services.
- On-chain staking: You help validate blockchain transactions.
No technical expertise is required—once enabled, staking runs automatically. It’s best suited for long-term holders rather than day traders.
How to Stake at Bitvavo
- Enable Staking: Go to Settings > Enable the staking option.
- Automatic Staking: Eligible coins are staked automatically.
- Staking Dashboard: View staked coins, estimated annual returns, and reward percentages.
👉 Learn how to maximize your staking rewards
Key Details:
- Reward Payouts: Distributed every Monday in crypto.
- Eligible Coins: Only proof-of-stake (PoS) cryptos qualify.
- No Lock-In: Coins remain liquid and can be sold anytime.
Benefits of Staking
- Passive Income: Earn compound interest without additional effort.
- Blockchain Support: Contributes to PoS networks’ security and sustainability.
- Eco-Friendly: PoS consumes less energy than proof-of-work (PoW).
Drawbacks of Staking
- Security Risks: Coins must stay in Bitvavo’s wallet (potential hacking vulnerability).
- Volatility: Crypto price swings may outweigh staking gains.
- Lower Rates: Bitvavo’s staking returns are modest compared to some competitors.
👉 Secure your Bitvavo account with these tips
Eligible Cryptos for Staking (Updated List)
| Crypto | Annual Reward Rate |
|---|---|
| ICON | 7.5% |
| Dai | 6.1% |
| Tether | 6.1% |
| Cardano | 5% |
| Ethereum | 1.01% |
| Bitcoin | 0.77% |
| Tezos | 0.66% |
Rates fluctuate based on market conditions.
Strategic Considerations
- Focus on Crypto Potential: High staking rewards mean little if the asset’s value drops significantly.
- Diversify: Balance staking with other investment strategies.
Frequently Asked Questions
When are staking rewards paid out?
Rewards are distributed every Monday via email and account notifications.
Are my coins locked when staking?
No. Bitvavo allows instant selling of staked coins.
Is staking mandatory?
No, but it’s recommended to capitalize on passive income opportunities.
Final Thoughts
Staking at Bitvavo is a low-effort way to grow your crypto holdings. While rewards are modest, the compounded returns can add up over time. Always prioritize security and asset fundamentals over short-term gains.