Coinbase has revolutionized cryptocurrencies by not only making them easily accessible to people but also giving them a chance to make a passive income from them!
This is where Coinbase Staking comes along, as it allows Coinbase users to earn money from their favorite cryptocurrencies while holding them in their accounts for an extended period.
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For US residents only.
What is Staking?
Staking is defined as a process where one holds a certain amount of cryptocurrency in their wallet, and in return, they get money from it as their amount is used to support the operations of a blockchain network.
In a way, staking is similar to depositing money in a savings account at a bank because when you stake your coins, you are essentially lending them to the blockchain network.
The blockchain network uses those coins to verify transactions and create new blocks. In exchange, that blockchain network pays you back “staking rewards,” similar to how a bank gives out interest.
Benefits of Staking
Staking is generally done by long-term holders who are already holding a particular asset for a certain period to earn a long-term reward. For them, staking makes a lot of sense as this allows them to grow their asset further, which they already hold.
Additionally, many users are looking to earn passive income from their crypto assets. By staking them, their passive income is guaranteed, and they can use it either to buy other cryptocurrencies or support their monthly or annual expenses.
Depending on the blockchain and the amount you stake, staking allows some users to participate in the blockchain network so they can make important decisions about it, similar to how the board of directors works.
Eligible cryptocurrencies for Staking
Multiple cryptocurrencies are available on Coinbase, which you can stake. However, it is worth noting that the rewards and benefits differ depending on the coin. There is also a minimum balance that is needed to stake a certain token.
The tokens you can stake on Coinbase at the moment include Cosmos, Ethereum, Tezos, Cardano, Solana, Polkadot, and Polygon Matic. As Coinbase is committed to introducing new tokens for its users, therefore it is wise to review the Eligible Tokens list on Coinbase before staking.
How to Stake on Coinbase
On Coinbase, you can stake directly from your primary balance, but business accounts and funds stored in a vault are not eligible for rewards. The staked balance is reflected in the earnings balance of each respective asset page.
Before you can stake on Coinbase, make sure the following is completed:
- Your identity is verified.
- You live in a jurisdiction where staking is eligible.
- Have the minimum amount to stake a specific crypto.
- Remember that the frequency of payouts differs from protocol to protocol.
- Funds have to be unstaked otherwise, they cannot be traded.
- The unstaking process can take a few hours to even weeks to complete.
Stake on Coinbase using desktop
To stake eligible crypto on the Coinbase desktop, follow these steps:
- Sign in to your Coinbase account or create a new one.
- Select “My Assets” and choose the eligible asset you want to stake.
- Select “Stake.”
- Select “Continue” after reviewing important staking information.
- Enter the amount and select “Preview Stake.”
- Select “Stake Now.”
Stake on Coinbase using App
To stake eligible crypto on the Coinbase app, follow these steps:
- Open the Coinbase app or download it here.
- Tap “My Assets” and choose the eligible asset you want to stake.
- Tap on “Stake.”
- Select “Continue” to acknowledge you have reviewed the terms and conditions.
- Input the amount and select “Preview Stake.”
- Tap “Stake Now.”
Understanding the Risks and Rewards
Some of the risks and rewards of staking cryptocurrencies include:
Rewards of Staking
Staking is only ideal for long-term crypto holders who do not mind their assets working for them by generating rewards or for those users who want to support a particular blockchain’s development.
Risks of Staking
One of the biggest drawbacks of staking is that it requires a particular lock-up period or a “vesting” period where the crypto cannot be used for a certain amount of time. This means you cannot trade your crypto during this period even if you want to, and this can be a deal breaker for many users.
🎁 Bonus time: Earn from Coinbase using Spin the Wheel
If you haven’t created your account on Coinbase yet, what better time to get started after gaining all the knowledge about the platform?
New users on Coinbase now have the chance to earn between $3 to $200 by spinning the Wheel after they have successfully created an account and bought their first cryptocurrency.
However, as of now, this is only available for US residents. Users will receive a reward in either USD or Bitcoin.
To Spin the Wheel:
- Create and verify your Coinbase Account.
- Purchase any crypto.
- Spin the wheel for a chance to win between $3 to $200.