Coinbase Staking 101: How To Stake on Coinbase
When you put money into a bank, you earn interest and receive rewards after a certain period of time.
Depending on the financial services you choose, the institution will subsequently use your saved money to support their operations.
Thus, it’s a win-win situation for both parties: you earn rewards by receiving an actual payout, and the financial institution supports itself.
This “staking model” can be translated directly into the cryptocurrency world: transaction validation is a fundamental part of the different blockchain and networks that we operate with.
Crypto holdings help to validate transactions through the Proof-of-Stake protocol level, and even if it sounds complicated, Coinbase makes it look really easy.
Don’t know where to get started?
Worry not - in this article, we’ll answer all the questions you have about the following topics:
- What is Coinbase Staking?;
- Can you really earn potential rewards in Coinbase?;
- How to start earning interest by staking in crypto exchanges.
How Does Staking Work on Coinbase?
Before you start earning rewards by staking, there are a couple things that all Coinbase customers need to know.
First, let’s understand the meaning of staking crypto assets.
There are multiple factors that make an asset work as it should.
The Proof-of-Work protocol, used by Bitcoin, requires crypto miners to perform operations in order to provide credibility to a network.
This current mining model has a counterpart: Proof-of-Stake.
Instead of mining, the networks verify transactions through Proof-of-Stake by holding (or staking) certain assets.
No crypto token, coin, or asset works without validating transactions.
That’s why there’s such a thing as rewards on Coinbase and other exchanges: it’s necessary.
Pro Tip: Coinbase is not the only exchange out there eligible for staking.
There are other Coinbase Alternatives where you can Buy Dogecoin, stake ETH, buy USD coin, and more, so don’t hesitate to check them out.
Coinbase Staking Rewards
The rewards on Coinbase highly depend on many factors stated in the official Staking Rewards Website.
Staking requires more advanced knowledge than, for instance, Coinbase Earn.
Coinbase Earn allows users to earn rewards on the Ethereum Network and eligible cryptocurrencies by completing short tasks.
Hence, before someone gets started staking on Coinbase, it’s imperative to perform a deep research of all crypto assets available on the platform.
There’s a minimum balance that can be used for staking purposes.
The more you invest, the more rewards you will receive.
Nonetheless, the estimated rewards differ depending on the crypto you want to stake.
Each reward rate automatically credits to your Coinbase wallet.
Moving funds from your wallet to your bank account is elementary on Coinbase, so that being said, earn staking rewards on Coinbase is easy, efficient, and lucrative.
Note: You can indeed earn rewards from staking on Coinbase, but there are always related risks to staking.
Therefore, this blog post shouldn’t be taken as investment advice.
Besides, all the crypto operations you make will be shown on your transaction history, and all staking operations will count for your tax reports in case you live in the USA.
What Crypto Can I Stake on Coinbase?
The staking rewards you earn depend on the eligible cryptocurrency you are choosing for staking purposes.
There are currently four crypto available for staking on Coinbase, so let’s take a look at them.
Read Also: Are you facing a problem with Coinbase? Coinbase Customer Service will be glad to assist you.
If you want to know how to efficiently contact the support team, then go and give our guide a good read!
Algorant (ALGO)
To receive ALGO rewards, you need to have at least 1 ALGO on your wallet.
If you meet the staking minimum requirement for staking ALGO, the ALGO rewards will be credited to your wallet every 7 days.
Ethereum (ETH)
Staking ETH is the top choice of Coinbase users.
When you get staked ETH, they turn into Ethereum 2.0, or ETH2.
ETH2 Staking Rewards are usually the sweetest, and you can check them on the Ethereum asset page.
Tezos (XTZ)
Staking Tezos is also possible.
You need at least 1 XTZ in your wallet, and you’ll be good to go.
Cosmos (ATOM)
Finally, you need to have a minimum balance of 1 ATOM to earn staking rewards for this crypto.
The rewards received in your wallet can later be managed at your will!
How To Stake on Coinbase
Now that you know what staking is, it’s time to start crypto staking by yourself!
Carefully read the following steps to get started.
Step 1: Log In to Your Coinbase Account
First, log in to your Coinbase account as usual.
It can be both from the app or desktop version of the platform.
Step 2: Verify Your Identity to Start Staking
Completing full identity verification is a must for staking on Coinbase.
If you want to add money on Coinbase, withdraw to your bank, or buy large amounts of crypto, you’ll need to complete the verification process.
So, this step is unavoidable - complete it as soon as you have a chance!
Step 3: Join the Staking Wait List of Eligible Users
Since only eligible customers can stake, you need to join a Staking Wait List on Coinbase.
If your account meets all the requirements, then worry not - you’ll be accepted on the list within a couple of hours.
Step 4: Choose the Staked Crypto and the Staked Funds Amount
What do you want to stake? ETH2, Tezos, Cosmos… the choice is yours.
Remember that you need to comply with the staking requirements, so keep this in mind before choosing an amount of crypto.
Step 5: Earn Rewards from the Coinbase’s Staking Pool!
You are ready to earn rewards from staking!
You’ll probably witness good rewards in the medium and long term, but it will be worth it.
Staking on Coinbase is effortless, but you need to do your own research before putting your money in any kind of asset.
For more Coinbase information, read GrowFollowing constantly!
Coinbase Staking FAQ
Can I Earn Staking Rewards from Europe?
You can, but only from certain countries.
What’s more, some countries can only stake specific coins.
Take a look at the complete Countries and Staking List here.
What Does Annual Percentage Yield Mean?
The APY is the real amount earned after a year of staking a coin.
The APY changes depending on the terms and conditions of each crypto asset on Coinbase.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.