Summary
This article explains Bitvavo Convert, a feature that allows you to easily trade one cryptocurrency for another. It details how the process works, including the behind-the-scenes mechanics and transaction fees, and provides step-by-step instructions for using Bitvavo Convert to exchange digital assets efficiently.
What is Bitvavo Convert?
Bitvavo Convert simplifies the process of trading one cryptocurrency for another. With this feature, you can quickly exchange a cryptocurrency like ETH for another one, such as XRP, directly from your dashboard.
How Does Bitvavo Convert Work?
Behind the scenes, a Bitvavo Convert consists of two separate transactions:
- Step 1: The initial cryptocurrency (e.g., ETH) is traded for euros (EUR).
- Step 2: The euros are then automatically used to buy the target cryptocurrency (e.g., XRP).
Since Bitvavo uses EUR as the base currency in trading pairs, this intermediate step is necessary. Consequently, two sets of transaction fees apply: one for converting the initial cryptocurrency to EUR and another for converting EUR to the target cryptocurrency.
Step-by-Step Guide to Using Bitvavo Convert
Follow these steps to perform a Bitvavo Convert:
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Find the digital asset to buy:
- Navigate to the assets list on Bitvavo and click on the digital asset you wish to buy to open its details page.
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Select the asset to pay with:
- In the buy module, click the downwards arrow and choose the digital asset from your wallet that you want to use to pay.
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Enter the amount to pay:
- Input the amount of the chosen digital asset you want to spend.
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Confirm the transaction:
- Click "Buy" to confirm your transaction.
After completing these steps, you will have successfully exchanged your selected digital asset (A) for another digital asset (B).
Important Notes
- Transaction Fees: Due to the dual transaction process (crypto to EUR and then EUR to crypto), you will incur transaction fees twice. Be mindful of this when planning to use Bitvavo Convert.
- Efficiency: Bitvavo Convert offers a convenient way to trade cryptocurrencies without manually conducting multiple transactions.