This guide provides a clear overview of how Bitvavo structures its fees for trading, deposits, and withdrawals, as well as how it calculates rewards for staking and lending services. The platform emphasizes transparency and fairness in all its financial operations.
Trading Fees Explained
Trading fees on Bitvavo are designed to be straightforward and are based on several key factors.
How Trading Fees Are Calculated
Fees are calculated as a percentage of your total traded volume. The specific rate you receive is not fixed; it varies depending on a few important criteria.
Factors Influencing Your Fee Tier
Your final trading fee depends on:
- The trading pair: Different markets, such as BTC/EUR or ETH/USDC, can have varying fee structures.
- Your role in the trade: Acting as a maker (adding liquidity to the order book) typically incurs a lower fee than acting as a taker (removing liquidity from the order book).
- Your 30-day trading volume: Higher trading volumes over a rolling 30-day period can qualify you for progressively lower fee tiers.
To maintain a robust marketplace, Bitvavo also offers custom market maker arrangements for certain liquidity providers. For a complete and detailed breakdown of all current fee schedules, 👉 view the official fee schedule here.
Deposit and Withdrawal Fees
Moving funds on and off the platform involves clear and disclosed costs.
Fees for Fiat Currencies
Depositing or withdrawing euros (EUR) or other government-issued currencies may incur a fee. This cost can be either a fixed amount or a percentage of the transaction value, and it varies depending on the payment method you choose, such as SEPA transfer or iDEAL.
Fees for Crypto Assets
Withdrawing cryptocurrency to an external wallet incurs a fee. This fee is primarily based on the current network cost of the specific blockchain (e.g., Bitcoin or Ethereum network gas fees). Bitvavo may add a small premium to this base cost to account for security measures and to manage market volatility, ensuring transaction reliability.
Earning Rewards Through Staking
Bitvavo offers users opportunities to earn passive income on their idle crypto assets through its staking services, which come in two primary forms.
How Staking Rewards Work
Users are shown a guaranteed Annual Percentage Yield (APY) for each supported asset. This rate is fixed for the user for the duration of their staking period, even if the rewards generated by the underlying blockchain protocol fluctuate. Rewards are earned continuously from the moment you opt in, simplifying the process compared to direct protocol staking which often involves unbonding periods with no rewards.
Bitvavo charges a service fee for managing the staking process. This fee is deducted from the rewards generated and is reflected in the difference between the protocol's rate and the guaranteed APY offered to you.
Factors Determining Staking APYs
Bitvavo carefully considers multiple variables when setting its guaranteed reward rates:
- The expected rewards from the underlying blockchain protocol.
- Historical and projected volatility of those yields.
- Costs for validator commissions and slashing insurance.
- Operational, security, and custody expenses.
- The liquidity requirements and lock-up periods of the protocol.
- The total amount of user assets committed to staking.
Types of Staking Available
Flexible Staking
This option provides lower potential rewards but offers maximum liquidity. Your assets are not locked, and you can trade or withdraw them at any time. Bitvavo manages the associated liquidity risks on your behalf.
Fixed-Term Staking
By committing your assets for a predetermined period, you can earn a higher yield. This APY is typically closer to the raw rate offered by the on-chain protocol, as the locked duration provides more stability for the network.
To explore strategies for maximizing your staking returns, 👉 discover advanced earning methods here.
Generating Income with Lending
The Bitvavo Lending service allows users to earn interest by lending their digital assets to institutional counterparties.
Key Features of Lending
- Guaranteed Returns: You are shown a guaranteed APY at the time you opt into the service.
- No Fees: There are no entry or exit fees for using the lending service.
- Continuous Rewards: Rewards are paid out based on your opt-in, even if your specific assets are not actively lent out at a given moment.
- Risk Management: Borrowers are required to post collateral. A reserve buffer is also maintained to further mitigate the risk of borrower default.
The interest rates for lending are reviewed on a monthly basis. They are adjusted based on the actual demand from borrowers and the trading fees generated from the lent-out assets.
Commitment to Transparency
Bitvavo prioritizes clarity in all its financial dealings. All fees for trading, deposits, and withdrawals, as well as current reward rates for staking and lending, are publicly listed on its website. The platform commits to informing users of any changes to its pricing policy, except when those changes are more favorable to the user. There are no hidden costs or spreads beyond what is explicitly published.
Frequently Asked Questions
What is the main difference between a maker and a taker?
A maker places an order that is not immediately matched by an existing order, thereby adding liquidity to the market. A taker places an order that immediately matches an existing one, taking liquidity from the market. Maker fees are generally lower than taker fees.
How often are staking rewards distributed?
Rewards for staking are accrued continuously and are typically distributed on a daily basis. This allows your earnings to start compounding quickly after you opt into a staking program.
Is my capital at risk with the Lending service?
While Bitvavo employs risk management measures like borrower collateral and a reserve buffer, lending digital assets to institutional borrowers carries inherent risk, including the potential for borrower default. It is important to review the platform's risk disclosure before participating.
Can I change my staking from flexible to fixed-term?
Typically, moving from flexible to fixed-term staking requires you to first unstake your assets from the flexible program. You can then opt into a fixed-term offer, which may have a different associated APY.
Where can I see my personal 30-day trading volume?
Your 30-day trading volume, which determines your fee tier, is usually displayed within your account section or on the platform's fee schedule page, which updates to reflect your personal level.
Are fiat euro deposits insured?
Fiat currencies held on Bitvavo are not covered by a national deposit guarantee scheme. However, they are held in segregated accounts, separate from the company's operational funds.