What is Fixed Staking at Bitvavo?
Summary: This article explains how to earn higher rewards by locking your crypto-assets using our Fixed Staking feature. You will learn the steps to lock your crypto-assets, how to cancel an active term, and what to expect when your staking period ends.
Introduction to Fixed Staking
Fixed Staking lets you earn a higher reward rate on your crypto-assets by locking them up for a set period of 30 days. While your crypto-assets are locked in a Fixed Staking term, you cannot trade or withdraw them.
How to lock your crypto-assets in Fixed Staking
Once Auto Earn Staking is enabled, you can easily set up a Fixed Staking term through the Earn Hub.
- Open the "Earn" section in the Bitvavo app or on the website.
- Select the specific asset you wish to stake.
- Find the Fixed Staking option and click the "Stake" button.
- Review the reward rate (APY), the lock-up duration, and your available balance. If there is a minimum amount required for this asset, it will be displayed here.
- Click "Continue" and enter the amount you want to stake.
- Review the preview screen to see your estimated returns.
- Click "Confirm" to lock your crypto-assets and start earning your higher reward rate.
At the end of the 30 day term your reward is paid out and your crypto-assets are unlocked and returned to your available balance.
How to cancel an active Fixed Staking term
You always retain the right to your crypto-assets. If you need access to your crypto-assets before the fixed period is over, you can cancel your term early.
- Go to "Earn" and select the applicable asset.
- Click the "Manage" button next to your active Fixed Staking term.
- Select "Cancel term".
What happens when the Fixed Staking period ends?
When your set term reaches its end date, no manual action is required from you. Your initially staked crypto-assets and all the earned staking rewards will automatically be added to your available balance in the asset you staked. From there, you can choose to lock them in a new Fixed Staking term or leave them as Auto Earn crypto-assets.
FAQs
When will I receive my rewards?
At the end of the 30-day term your reward is paid out, and your crypto-assets are unlocked and returned to your available balance.
Can I use Fixed Staking without Auto Earn?
No, it is required to have Auto Earn Staking enabled to access Fixed Staking.
Am I allowed to trade Fixed Staking crypto-assets?
Crypto-assets in Fixed Staking cannot be traded or withdrawn while they are locked. You can cancel early, but you will forfeit the rewards for that term.
What are the risks of Fixed Staking?
Fixed Staking has the same general staking risks, such as network, validator, market, and regulatory risks. We cover slashing costs and work with trusted validators to keep your crypto-assets as safe as possible. Your crypto-assets are also locked for the term unless you cancel early.
Are there any fees?
When you generate rewards through Fixed Staking, 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.
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