Looking to earn some passive income by staking? Well, you’re in luck. Coinbase Earn offers users an easy and secure way to earn passive income by staking their crypto and earning rewards of up to 5% APR.
Let’s dive into this beginner’s guide to Coinbase Earn. To help you earn passive income on your crypto and work out if Coinbase is the right platform for staking your crypto assets.
Coinbase Earn: How to Stake Crypto on Coinbase?
Coinbase Earn stakes crypto on behalf of their customers and deposits rewards directly into their wallets. Once the initial holding period completes, users will receive rewards roughly every three days.
What is Coinbase Earn Staking?
Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Essentially, it just means holding onto crypto assets and earning rewards. Similar to having pounds, euros, and US dollars in a savings account and earning interest.
You can stake on your own, but you’d need to run a node on your own hardware, sync it to the blockchain, and then fund the node with enough cryptocurrency to meet minimum thresholds, including providing a sizable deposit and bond. But with it being on Coinbase, they do all this for you. Meaning that they stake, generate and sign blocks on your behalf whilst you retain full ownership of your tokens and earn rewards.
What Tokens can you Stake with Coinbase Earn?
Coinbase Earn allows users to stake six popular cryptocurrencies and state that they’re adding more crypto assets in the future. Depending on your location, you can stake;
|Cryptocurrency||Interest Rate APY|
Who Can Stake on Coinbase?
To be able to stake your crypto on Coinbase, first, you’ll need a Coinbase account. You’ll also need to verify your identity by providing your personal details.
You’ll also need to reside in a supported region. Some regions are not eligible for staking and inflation. If you want to check out which countries/regions support Coinbase staking, you can check out their support article here.
How Often is Coinbase Earn interest Paid Out?
Coinbase Earn interest payout schedule varies depending on the crypto you stake. For more information on the payout schedule, check out the table below:
|DAI||Interest||Daily||Australia, Austria, Belgium, Canada, France, Germany, Ireland, Netherlands, Norway, Slovakia, Spain, the United States (except Hawaii), and the UK.|
|USDC||Interest||Monthly||United States (except Hawaii)|
|ALGO||Inflation||Quarterly||Australia, Austria, Belgium, Canada, France, Germany, Ireland, Netherlands, Norway, Slovakia, Spain, the United States (except Hawaii), and the UK.|
|ATOM||Staking||Every 7 days||United States (except Hawaii & New York), Belgium, France, Slovakia, Spain, the UK, Africa, Asia, Middle East, and South America.|
|ETH 2||Staking||Daily||North America (except Hawaii & New York), South America, Europe, Middle East, Asia, and Africa. Learn more|
|XTZ||Staking||Every 3 days||United States (except Hawaii & New York), Belgium, France, Slovakia, Spain, the UK, Africa, Asia, Middle East, and South America.|
|ADA||Staking||Every 5 days||United States (except Hawaii & New York), Belgium, France, Slovakia, Spain, the UK, Africa, Asia, Middle East, and South America.|
Coinbase Staking Fees
Although there are no additional fees for Staking. Coinbase takes a commission on the rewards they receive, and their customer’s return rate reflects the commission.
If you want to find out more about Coinbase’s commission fees, you can check out their user agreement.
What is ETH 2.0 Staking?
ETH 2.0 is an upgrade to the Ethereum network to help to improve its security and scalability. This process means that Ethereum will move from a “Proof of Work” to a “Proof of Stake” model.
With Proof of Stake, users can stake their ETH and earn rewards for helping to secure the network. The amount of ETH you will get in rewards will depend on how much ETH is validated and the rewards the network offers.
Users can stake on ETH2.0 alone. However, you would need to set up a node, which would need to run on your own hardware, it would need to sync to the blockchain, and you’d need a minimum of 32 ETH.
With Coinbase ETH 2.0 staking, Coinbase takes care of all of this and will stake, product and sign the blocks for you. Also, there are no minimum amounts to start staking.
How To Stake ETH 2.0 with Coinbase?
When you stake your ETH, it will convert to ETH2 on Coinbase. The price of ETH2 is exactly the same as ETH. Then once the upgrade to the Ethereum network is complete, both ETH and ETH2 will merge into one token.
To start staking your ETH in ETH2.0;
- Open an account with Coinbase or Login
- Ensure you meet the requirements (i.e. check your country and verify your identity).
- If you don’t already have some ETH, buy or trade for it.
- From your portfolio, go to the Ethereum page.
- You’ll then see an option to convert your ETH to ETH2
Please note: when your ETH is staked in ETH2.0, you won’t be able to send, sell, or trade it. However, when the ETH2.0 upgrade is complete, you’ll be able to send, sell or trade these as well as your rewards.
What is Tezo Staking?
Tezos or XTZ is a blockchain network linked to a digital token called a Tez or a Tezzie. Unlike bitcoin, Tezos is not based on the mining of Tez. Instead, token holders receive a reward for taking part in the proof-of-stake consensus mechanism.
So Tezos holders who stake their tokens can receive additional Tezos tokens as a reward. And Coinbase stakes Tezos on your behalf and deposits the rewards directly into your accounts.
Once you have Tezos in Coinbase, your Tezos will always stay in your wallet. You just earn rewards while keeping your crypto safely on Coinbase. You can also opt out at any time you want and move your Tezos to another wallet.
The “estimated” rewards rate for staking on Coinbase is 5.00%. However, this rate is only estimated as it will change over time based on the staking rewards distributed by the Tezos network. You’ll see pending rewards in real-time, and once an initial holding period completes, you’ll receive rewards roughly every three days.
How to Stake Tezos with Coinbase?
To get started, you first need to purchase Tezos if you don’t already have some to deposit. It doesn’t matter where you buy your Tezos as long as they’re then held in Coinbase.
How to Earn Tezos with Coinbase?
At this time of writing this blog, you can get $6 of free Tezos with Coinbase Earn by completing a few quizzes. To start, you’ll need to be logged in to your Coinbase account.
Then head across to Coinbase Earn, select Tezos from the list, and “Get Started“.
You can then start watching lessons 1 through 3, answering the questions after each. Once completed, you’ll receive the Tezo/XTC direct into your Coinbase account.
Verdict: Should you stake with Coinbase?
Coinbase Earn makes staking crypto very simple. However, the interest rates Coinbase offers their client are much lower than their competitors. Personally, we wouldn’t use Coinbase Earn to stake our crypto and would look for alternative methods with higher APYs.
Coinbase Earn FAQs
You can earn money on Coinbase using their feature Coinbase Earn. In this way, you earn crypto rewards by staking your crypto. What you do with your rewards is up to you, you can HODL it, exchange it or simply sell it for FIAT or traditional currencies and send it back to your bank account.
Coinbase Earn is for all Coinbase users who have verified their identity and who reside in a supported region.
Coinbase gives out rewards to those who stake (deposit) their crypto on Coinbase for a period of time.
Here are some of our articles you may also find helpful;
- How to Withdraw from Coinbase?
- Coinbase Earn Quiz Answer?
- Coinbase Wallet Review
- How to Delete a Coinbase Account?
- How to Download Coinbase Transaction History?
*After you make a crypto purchase, BTC will be added to your portfolio. Limited time offer. Offer available to new users only. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using the different contact information. Coinbase may update the conditions for eligibility at any time.
“Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.”