What is Bitvavo Convert and how does it work?

Summary

This article explains Bitvavo Convert, a feature that allows you to easily trade one cryptocurrency for another. It details how the process works, including the behind-the-scenes mechanics and transaction fees, and provides step-by-step instructions for using Bitvavo Convert to exchange digital assets efficiently. It also explains an alternative way to trade crypto for USDC directly, without converting to euros first.

What is Bitvavo Convert?

Bitvavo Convert simplifies the process of trading one cryptocurrency for another. With this feature, you can quickly exchange a cryptocurrency like ETH for another one, such as XRP, directly from your dashboard.

How does Bitvavo Convert work?

Behind the scenes, Bitvavo Convert consists of two separate transactions:

• Step 1: The initial cryptocurrency (e.g., ETH) is traded for euros (EUR).
• Step 2: The euros are then automatically used to buy the target cryptocurrency (e.g., XRP).

Since Bitvavo uses EUR as the base currency in trading pairs, this intermediate step is necessary. Consequently, two sets of transaction fees apply: one for converting the initial cryptocurrency to EUR and another for converting EUR to the target cryptocurrency.

Step-by-step guide to using Bitvavo Convert

Follow these steps to use Bitvavo Convert:

1. Find the digital asset to buy - Navigate to the assets list on Bitvavo and select the digital asset to buy.
2. Select the asset to pay with - In the buy module, click the downwards arrow and choose the digital asset from your wallet that you want to use to pay.
3. Enter the amount to pay - Input the amount of the chosen digital asset you want to spend.
4. Confirm the transaction - Click "Buy" to confirm your transaction.

After completing these steps, you will have successfully converted your selected digital asset (A) for another digital asset (B).

Important notes

• Transaction fees: Due to the dual transaction process (crypto to EUR and then EUR to crypto), you will incur transaction fees twice. Be mindful of this when using Bitvavo Convert.
• Efficiency: Bitvavo Convert offers a convenient way to trade cryptocurrencies without manually conducting multiple transactions.

Can I convert crypto directly without going through euros?

Yes, in certain cases you can trade cryptocurrencies directly without converting to euros first. This is possible via Pro Mode by searching for trading pairs that include USDC.

For example, if you're looking to trade ETH directly for USDC, you can do this by selecting the "ETH/USDC" trading pair in Pro Mode. These direct trading pairs allow you to make a one-step crypto-to-crypto trade, which can be more efficient and cost-effective than using Convert.

To access these pairs:

1. Log in to your Bitvavo account
2. Switch to "Pro Mode"
3. Use the search bar to find trading pairs like "ETH/USDC" or "BTC/USDC"
4. Place your trade directly on the order book

Tip: Trading in Pro Mode gives you more control over the trade price and can help reduce fees.

Note: The conversion process via Bitvavo Convert involves selling your initial cryptocurrency for euros before buying the target cryptocurrency. Depending on your location and local tax regulations, this may have tax implications. We recommend consulting a tax professional if needed.