What Are Staking Rewards?
Staking involves holding cryptocurrency in your crypto wallet to support blockchain networks—the infrastructure enabling crypto transactions. Unlike mining, staking doesn't require expensive hardware and offers passive income through rewards, typically paid in additional crypto tokens.
Key Disclaimer:
This is not financial advice. Trading cryptocurrencies carries risks and should only involve funds you can afford to lose. Full disclaimer.
How Staking Works
Similar to Bank Interest
Staking rewards resemble earning interest on a savings account but often yield higher returns. However, crypto volatility means asset values can fluctuate or collapse, unlike traditional bank deposits.
Proof-of-Stake (PoS) Requirement
Only PoS-based cryptocurrencies qualify for staking rewards. These tokens validate transactions through stakeholder participation rather than energy-intensive mining.
Benefits of Staking with Bitvavo
- Low Barrier to Entry: No trading expertise or hardware needed.
- Passive Income: Earn rewards without active market monitoring.
- Higher Returns: Outperforms traditional savings accounts.
- Network Stability: Widespread staking enhances token reliability.
Risks to Consider
- High Initial Investment: Significant capital may be needed for meaningful returns.
- Liquidity Lock: Staked assets can’t be sold during the staking period.
- Exchange Dependence: Some tokens require staking via third-party platforms, reducing direct control.
Bitvavo’s Staking Services
Bitvavo supports on-chain (direct blockchain participation) and off-chain (platform-managed) staking. Off-chain options allow trading staked assets anytime—a unique flexibility among exchanges.
Supported Cryptocurrencies
| Token | Symbol | Annual Reward (%) |
|---|---|---|
| ICON | ICX | 7.50 |
| Dai | DAI | 6.10 |
| Tether | USDT | 6.10 |
| Cardano | ADA | 5.00 |
| Bitcoin | BTC | 0.77 |
Table: Top staking rewards on Bitvavo (Feb 2022 data).
FAQs
1. Can I stake non-PoS tokens like Bitcoin on Bitvavo?
Yes! Bitvavo offers off-chain staking for Bitcoin and Ethereum by lending them to third parties, with rewards paid annually.
2. Are staking rewards insured?
No. Crypto brokers like Bitvavo aren’t covered by EU deposit guarantees, meaning rewards carry inherent risk.
3. How often are rewards distributed?
Rewards vary daily. Bitvavo provides real-time percentage updates on their platform.
👉 Explore flexible staking options
Getting Started
Best Tokens to Stake
- High-Yield Picks: ICX, ADA, USDT.
- Stable Choices: DAI, USDC (watch forex fluctuations).
Pro Tips
- Diversify across tokens to mitigate volatility.
- Monitor Bitvavo’s updates for new staking options.
Additional Resources
Note: All external links except OKX have been removed as per guidelines.
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