Earn on Bitvavo: Stake 70 tokens and get up to 32.8% APR!

Do you want to earn passive income with cryptocurrencies without technical complications? Bitvavo has simplified this process with its staking solutions available to everyone. Whether you prefer flexibility or optimized returns, this adjustable platform allows you to safely deploy your assets. Let’s dive into the principles of operation, advantages and subtleties of staking on Bitvavo to help you get the most out of your digital assets.

Le Journal du Coin brings you this promotional article in collaboration with Bitvavo.

Founded in 2018 in Amsterdam, Bitvavo is on a mission to democratize access to cryptocurrencies through an intuitive platform designed for both beginners and experienced traders.

Until 2024 Bitvavo has become the European leader of Euro exchanges with a record volume of 100 billion euros and more than 2 million users, surpassing many established competitors. Its offerings are gradually being improved and expanded: by 2025, the platform will offer more than 400 tokens, all of which can be exchanged for euros.

Security and compliance are the cornerstones of Bitvavo. Regulated MICA in Europe and holding a valuable PSAN issued in France by the AMF the company offers a private guarantee of €100,000 against loss due to unauthorized access (subject to certain conditions). Additionally, the vast majority of funds are held in “cold storage” through regulated and insured custodians such as Coinbase Custody.

But Bitvavo doesn’t just allow you to trade cryptocurrency. The platform also offers options to use your coins and earn passive income.

Staking: a key service on Bitvavo Staking is the main feature of blockchains Proof of Stake . It allows participants, called validators, to stake their tokens to secure the network and validate transactions.

Such staking serves as a guarantee : if a validator acts dishonestly or makes mistakes, the protocol can confiscate all or part of its tokens. This system encourages honest behavior. In exchange for this service and loyalty, validators are rewarded by the network.

We won’t go into too many technical details about staking and how it works. If you are interested in this topic, you can refer to this article for more information.

Bitvavo takes care of all the technical aspects. There is no need to become a validator yourself or choose one. The platform takes all the technical complexity out of it and offers you two simple options for passive income:

• Flexible staking: you stake tokens while retaining the ability to sell or withdraw them at any time;

• Fixed staking: You lock up your cryptocurrencies for a fixed period in exchange for potentially higher returns.

Bitvavo offers you the opportunity to use your cryptocurrencies

Profitability and commissions for staking It is important to understand that profitability from staking does not guarantee the interest rate, as in the case of bank savings products. This is a variable reward that fluctuates depending on the economic and technical parameters inherent in each blockchain network.

The determination of the reward is influenced by several factors, such as:

• The amount of cryptocurrency you bet;

• Duration of immobilization of your assets;

• Network inflation and distribution of transaction fees;

• Consensus rules specific to a given blockchain.

The final calculation depends on the stacking algorithm of each protocol. The reward can be simply proportional to the amount you invest. This may be influenced by other criteria, such as the performance of the validator.

For all these reasons Bitvavo indicates the maximum return from staking, but it can vary.

For fixed staking the advertised reward rate is guaranteed by Bitvavo and does not fluctuate throughout the lock-in period.

Costs

Staking may incur certain fees, such as network transaction fees and service fees associated with providing staking functionality.

Simplicity is again key at Bitvavo: all these fees are already included in the displayed interest rate, so you don’t have to pay any extra costs.

Flexible placement of bets Flexible staking is an option that applies to all eligible cryptocurrencies in your portfolio. It can be activated globally for all your assets.

Its main advantages:

• Passive income : earn up to 10.90% per year on your respective cryptocurrencies;

• Preserved liquidity : you can continue trading as usual, as your assets are not blocked;

• Accessibility : there is no minimum amount.

Once activated for an asset, its entire balance is automatically staked. Rewards calculated daily are distributed weekly on Mondays directly in cryptocurrencies.

Fixed stacking Fixed staking usually offers higher returns in exchange for locking up your funds for a certain period of time (eg 30 days). During this period, you cannot trade or withdraw blocked cryptocurrencies.

Key points to remember:

• Necessary obligations : a minimum amount may be required, which depends on the cryptocurrency;

• Irrevocability : it is impossible to return funds before the end of the blocking period;

• Payment of earnings : You will receive all rewards at the end of the term.

This option is ideal if you have a medium-term plan for the asset and want to maximize your passive income.

Annual percentage rates (APY) and lock-up periods are constantly changing depending on the market (but not after you have staked your tokens). Here are the latest rates offered by Bitvavo.

Bitvavo fixed betting rates

To access staking, you must first enable flexible staking. To do this, simply go to the “Earn” section of your account and click on the corresponding icon.

Enabling staking on Bitvavo

For eligible cryptocurrencies, you have the option to subscribe to fixed staking agreement . When you transfer your assets under such a contract, you lock them up for an agreed term. After the expiration date, you regain full control of your funds and can decide to:

• Re-commit them to a new fixed contract.
• Leave them in flexible stacking .
• Stop all betting activity.

Whichever option you choose (flexible or fixed), it is important to remember that rates carry risks, even if they are minimal:

• Market risk : the value of the cryptocurrency in which staking is placed depends on market volatility;

• Network risk : The underlying blockchain may be subject to errors, attacks or failures, which may affect the security of your allocated assets;

• Downsizing risk : On some networks, validator abuse or unavailability can result in penalties known as “cuts” and potentially the loss of some of your pledged funds.

Need more information before you get started? Check out our comprehensive Bitvavo guide, which provides an overview of the platform and explains the step-by-step process of signing up with peace of mind.

Source: journalducoin.com