What is Auto Earn?
Summary: This article provides an overview of the Auto Earn feature at Bitvavo. You will learn how Auto Earn combines Flex Staking and Lending to generate rewards, and how to easily enable or disable one or both of these services in your Bitvavo account.
Introduction to Auto Earn
Auto Earn is a flexible reward program meaning your crypto-assets remain completely flexible and you can trade or withdraw your crypto-assets at any time without restrictions. This option groups together flexible staking and lending to generate your rewards and when you enable Auto Earn, you generate rewards automatically on all eligible crypto-assets in your Bitvavo account.
What services are included in Auto Earn?
Auto Earn generates rewards in two ways:
- Staking: Your eligible crypto-assets help support blockchain networks that use proof of stake. In return, you receive weekly staking rewards.
- Lending: Your eligible crypto-assets are lent to trusted partners on the Bitvavo platform to generate liquidity. Lending crypto-assets can also be utilized for on-chain staking and margin product provisions. In return, you receive weekly lending rewards.
How to enable or disable Auto Earn
Bitvavo makes it simple to manage your preferences through the Earn Hub. While Flex Staking and Lending are grouped together under Auto Earn, you have the flexibility to toggle them on and off individually.
App
- Open the Bitvavo app and tap the profile icon in the top-right corner.
- Navigate to the "Earn" section.
- Select the 3 dots in the top-right corner and navigate to "Earn settings".
- Enable or disable Flex Staking and Lending as desired.
Web
- Log in to the Bitvavo website and click on "Earn" in your balance overview.
- Click on "Manage".
- Enable or disable Flex Staking and Lending based on your preferences.
Complete flexibility
The main advantage of Auto Earn is that your crypto remains entirely flexible. You can trade or withdraw your crypto-assets at any time without having to manually unstake those crypto-assets first. Any rewards you have accrued up to the moment of your trade or withdrawal will still be credited to your Bitvavo account during the next payout cycle.
Asset eligibility and minimums
To make earning rewards as simple as possible, Auto Earn automatically applies to all eligible crypto-assets in your account if you have both Flex Staking and Lending enabled. You can see the full list of crypto-assets eligible for Auto Earn on our Earn page. You do not need to manually select which crypto-assets to stake.
There are two minor requirements to receive rewards on an asset:
- Minimum balance: You only receive rewards for an asset if your balance for that specific cryptocurrency is worth more than €1.
- Minimum reward size: The calculated daily reward must be large enough to form the smallest possible unit of that specific cryptocurrency. If the reward is too small to be credited, it is rounded down to zero for that day. For example: Bitcoin rewards are paid in Sats (1 Bitcoin = 100 million Sats). You need to earn at least 1 Sat per day (365 Sats per year) to receive a payout. Therefore, at a reward rate of 0.01%, you need to hold at least 0.0365 BTC to qualify.
How Auto Earn rewards are calculated
Because Auto Earn combines both Flex Staking and Lending, some of your crypto-assets may be eligible for both reward types. When this happens, Bitvavo automatically applies the higher of the two available rates, so you receive the best possible reward.
Your rewards are calculated daily based on a few simple criteria:
- Your balance: We look at the lowest amount of the asset you held in your wallet each day, including any crypto-assets tied up in open orders.
- Time: Rewards depend on how long your crypto-assets remain in your account. You stop earning rewards the moment you sell or withdraw the asset.
- Market and network conditions: Reward rates are dynamic. They can change over time based on the blockchain network's rules or shifts in market supply and demand. You can always view the current rates on the Bitvavo Earn page.
FAQ
When do I receive my rewards?
Your Auto Earn rewards are calculated daily and paid out weekly. You’ll receive them in your Bitvavo account every Monday before 23:59 CE(S)T. Rewards are paid in the same digital asset you’re holding.
Are there any fees?
When you generate rewards through Auto Earn, Bitvavo takes a commission. This covers the network transaction fees and the costs of providing the service securely.
This commission is already included in the reward rates shown in your account, so the rate you see is the rate you get. Bitvavo does not charge any additional or hidden fees directly from your crypto-assets.
Are there tax implications for Auto Earn?
Rewards earned from your crypto-assets may be taxable, for example as income tax or capital gains tax. Tax rules differ by country, so we recommend checking with a tax professional to understand what applies to you.
To help with your tax reporting, you can export your Bitvavo transaction history and tax statements through CoinTracking. We have a dedicated support article to help you connect your account to CoinTracking.
What are the risks?
Auto Earn rates are variable. They may go up or down based on the asset, network conditions, or lending demand.
Staking and lending carry general risks. We cover slashing costs and work with trusted validators, but borrowers may still default, meaning you could lose part of your crypto-assets or rewards.
Want to learn more?
For more detailed information on each specific feature, rewards, and the associated risks, check out these related articles:
- What is Fixed Staking at Bitvavo?
- What is Lending at Bitvavo?
- Auto Earn rewards, fees, and taxes
- Staking risks and security
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