What is Bitvavo Swaps and How Does It Work?
What is Bitvavo Swaps and How Does It Work? What is Bitvavo Swaps and How Does It Work?

What is Bitvavo Swaps and How Does It Work?

Summary

This article explains Bitvavo Swaps, 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 Swaps to exchange digital assets efficiently.

What is Bitvavo Swaps?

Bitvavo Swaps 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 Swaps Work?

Behind the scenes, a Bitvavo Swap 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 Swaps

Follow these steps to perform a Bitvavo Swap:

  1. Find the Digital Currency to Buy:

    • Navigate to the assets list on Bitvavo and click on the digital currency you wish to buy to open its details page.
  2. Select the Currency to Pay With:

    • In the buy module, click the downwards arrow and choose the digital currency from your wallet that you want to use to pay.
  3. Enter the Amount to Pay:

    • Input the amount of the chosen digital currency you want to spend.
  4. Confirm the Transaction:

    • Click "Buy" to confirm your transaction.

After completing these steps, you will have successfully exchanged your selected digital currency (A) for another digital currency (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 your swaps.
  • Efficiency: Bitvavo Swaps offers a convenient way to trade cryptocurrencies without manually conducting multiple transactions.

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