Cryptocurrency staking has become a popular way for investors to earn passive income by holding digital assets. Bitvavo, a leading European crypto exchange, offers staking services that allow users to earn rewards on their holdings. This guide explores how Bitvavo staking works, which cryptocurrencies are eligible, current reward rates, and the benefits and risks involved.
What Are Staking Rewards?
Staking rewards are incentives paid to users who hold specific cryptocurrencies in their wallets or on an exchange like Bitvavo. These rewards are typically distributed in the same cryptocurrency and function similarly to interest earned on a savings account. However, instead of a bank, the rewards come from participating in the blockchain’s consensus mechanism—specifically, Proof of Stake (PoS) networks.
Not all cryptocurrencies support staking. Only those built on PoS or similar consensus models qualify. By locking up your coins, you help validate transactions and maintain network security, earning a share of transaction fees or newly minted coins in return.
👉 Discover how you can start earning crypto rewards today with flexible staking options.
How Does Staking Compare to Traditional Savings?
Earning staking rewards is often compared to receiving interest on a bank savings account. However, traditional banks currently offer minimal or even negative interest rates across much of Europe. In contrast, crypto staking can yield significantly higher returns—sometimes exceeding 5–7% annually, depending on the asset.
Still, there's a crucial difference: volatility. While your bank deposit retains its nominal value, the price of your staked cryptocurrency can fluctuate dramatically. A 6% annual return means little if the underlying asset loses 30% of its market value during the same period.
This makes risk management essential. Always consider both potential rewards and market risks before committing funds to staking.
Benefits of Crypto Staking
Staking offers several advantages for both new and experienced investors:
- No specialized hardware required: Unlike mining, staking doesn’t demand expensive equipment.
- Passive income generation: Once set up, rewards accrue automatically without active trading.
- Low maintenance: No need to constantly monitor markets.
- Higher yields than traditional finance: Often outperforms savings accounts and bonds.
- Supports network stability: Increased staking participation enhances blockchain security and decentralization.
For platforms like Bitvavo, staking also provides accessibility—users don’t need deep technical knowledge to participate.
Risks Involved in Crypto Staking
Despite its benefits, staking comes with important risks:
- Capital requirement: To generate meaningful passive income, a substantial initial investment may be needed.
- Lock-up periods: Some platforms impose time restrictions during which assets can't be sold—though Bitvavo allows flexible access (more on this below).
- Exchange dependency: When staking via an exchange, you don’t fully control your private keys, increasing counterparty risk.
- Market volatility: Gains from staking rewards can be offset by drops in coin value.
- Regulatory uncertainty: Crypto regulations are evolving, and future changes could impact staking legality or taxation.
Always assess these factors before engaging in any staking activity.
Understanding Bitvavo’s Staking Model
Bitvavo supports both on-chain and off-chain staking mechanisms:
- On-chain staking involves participating directly in a PoS blockchain (e.g., Cardano or Tezos), where users contribute to transaction validation and earn native rewards.
- Off-chain staking means Bitvavo uses customer-held assets through third-party lending or yield programs. This applies to non-PoS assets like Bitcoin and Ethereum (pre-Merge), where true staking isn’t natively possible.
This dual approach expands the range of eligible assets beyond strict PoS coins.
Cryptocurrencies Available for Staking on Bitvavo
As of early 2025, Bitvavo supports staking for the following digital assets:
- ADA (Cardano)
- ETH (Ethereum)
- DAI (Dai)
- USDT (Tether)
- USDC (USD Coin)
- XZTZ (Tezos)
- LINK (Chainlink)
- VET (VeChain)
- WAVES (Waves)
- TRX (Tron)
- NEO (Neo)
- ONT (Ontology)
- ARK (Ark)
- LTC (Litecoin)
- BTC (Bitcoin)
- BCH (Bitcoin Cash)
- ICX (ICON)
While the list continues to grow, it remains selective. Bitvavo focuses on established projects with reliable yield infrastructure.
Current Staking Reward Rates (2025 Update)
Reward percentages vary by asset and market conditions. Below are approximate annual yields based on recent data:
| Asset | Approximate APY |
|---|---|
| ICON (ICX) | 7.50% |
| DAI, USDT, USDC | 6.10% |
| WAVES | 5.50% |
| ADA | 5.00% |
| ARK | 1.07% |
| LTC | 1.04% |
| TRX | 1.03% |
| BCH | 1.02% |
| ETH | 1.01% |
| BTC | 0.77% |
| XTZ | 0.66% |
| NEO | 0.52% |
| ONT | 0.51% |
| LINK, VET | 0.49% |
Note: These figures are indicative and subject to change daily based on supply, demand, and platform policies.
Key Advantage: Flexible Staking
One of Bitvavo’s standout features is flexible staking. Unlike some platforms that lock funds for fixed terms, Bitvavo allows users to:
- Sell staked assets at any time
- Withdraw coins to external wallets
- Trade staked tokens instantly on the platform
This flexibility reduces opportunity cost—if the market surges, you’re not stuck waiting for a lock-up period to end.
👉 Learn how flexible staking can boost your portfolio without limiting your freedom to trade.
Deposit Protection: What You Need to Know
Bitvavo operates as a crypto exchange, not a licensed bank. Therefore, it does not fall under the European Union’s deposit guarantee scheme. This means:
- Funds held on Bitvavo are not insured
- No protection against exchange insolvency
- Security relies on Bitvavo’s operational integrity and cold storage practices
While Bitvavo maintains strong security protocols, always practice caution: only stake what you can afford to lose and consider diversifying across self-custody wallets and exchanges.
Frequently Asked Questions (FAQ)
Can I stake Bitcoin and Ethereum on Bitvavo?
Yes—but not through traditional Proof of Stake. For Bitcoin, which uses Proof of Work, Bitvavo offers off-chain yield programs where your BTC is lent to institutional borrowers. For Ethereum, post-Merge upgrades enable real PoS staking; however, direct node operation requires 32 ETH. Bitvavo simplifies this by pooling user funds to meet minimum thresholds.
Are staking rewards guaranteed?
No. Reward rates fluctuate based on network activity, supply, and platform decisions. While historically stable for major coins, returns are not fixed or contractually guaranteed.
How are staking rewards distributed?
Rewards are typically paid out daily or weekly, credited directly to your Bitvavo account in the respective cryptocurrency. You can track earnings in real time via the platform’s dashboard.
Is there a minimum amount required to start staking?
Most assets have low or no minimums on Bitvavo, making staking accessible even with small holdings.
Are staking rewards taxable?
In most jurisdictions, yes. Staking income is generally treated as ordinary income at the time of receipt. Capital gains tax may also apply when selling the earned coins later.
Does Bitvavo plan to add more stakable coins?
Yes. The platform regularly evaluates new assets for inclusion based on demand, security audits, and network maturity.
Final Tips for Successful Staking on Bitvavo
- Prioritize stability: High yields attract risk. Favor well-established coins like ADA, USDC, or DAI over volatile or lesser-known tokens.
- Monitor exchange rates: For stablecoins like USDC or DAI, currency conversion between EUR and USD can affect net returns.
- Diversify your portfolio: Don’t put all funds into one stakable asset—spread risk across multiple cryptos.
- Stay updated: Follow official Bitvavo announcements for changes in reward rates or new offerings.
- Use staking as part of a broader strategy: Combine with dollar-cost averaging, trading, or long-term holding for optimal results.
👉 Maximize your crypto potential with smart staking strategies tailored to your goals.
By understanding how Bitvavo staking works—including reward mechanisms, supported assets, and inherent risks—you can make informed decisions about building passive income in the crypto space. Whether you're new to digital assets or expanding your investment toolkit, staking offers a compelling opportunity when approached wisely.