Bitvavo Exchange Launches Updated Staking And Lending Service

The crypto firm Bitvavo has launched a revamped Staking service that gives you more control over how your assets are used. As is always the case with Staking and Lending, some risks are attached to the process. 

Bitvavo is focused on providing streamlined service that rivals other major global exchanges. With its new and improved Staking and Lending services, customers will be able to profit from these unique products. 

What’s changed?

Bitvavo has updated its Staking service to give users more control and flexibility. Instead of a single setting for off-chain and on-chain Staking, you can now specify whether you want to receive rewards for each service separately. This can be done for Staking (formerly on-chain staking), Lending (formerly off-chain staking), or both.

If you have already participated in the exchanges Staking service, we will automatically migrate your current settings to the revamped Staking and Lending structure. You can update the settings at any time. In line with these and other changes, the Bitvavo User Agreement and Risk Disclosure Statement have been updated, so take a look before getting involved. 

Staking With Bitvavo

Staking is a method to earn passive income, where assets are used to strengthen the security of Proof of Stake blockchains. Staked assets remain in custody with Bitvavo and are always available to users. You can find more information about this on their site, where you’ll find a thorough FAQ. To receive Staking rewards, you need to enable Staking. Staking is a less risky process than trading, but you’re still pooling your funds and they are not entirely under your control. 

Learn More About Lending

Lending is a method to earn passive income by lending assets to third parties in exchange for interest. Lent assets can leave Bitvavo's wallets but are always available to users. To receive Lending rewards, you need to enable Lending through the Bitvavo app or via their website. 

Lending partners undergo an extensive screening process and are required to provide collateral. However, there is still a possibility that a Lending partner may default and be unable to fully return the assets. While this is an unlikely outcome, as we’ve seen repeatedly in the crypto market, volatility can result in unfavorable market outcomes.