How to Stake on Coinbase

When it comes to trading volume, Coinbase is easily the largest cryptocurrency exchange platform in the US. If you’re looking to invest some of your money into crypto, it’s important to learn how to stake on Coinbase before joining the platform.

Coinbase staking is done by purchasing a minimum relevant amount of proof-of-stake on one of the platform’s available cryptocurrencies. If the node is chosen to create a new block on the blockchain, the validator will receive a reward in the shape of an annual percentage yield.

Bitcoin and Ethereum coins next to a phone that has Coinbase open

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Besides exchanging money for cryptocurrencies, you can also stake on Coinbase by depositing your existing coins. The platform offers other ways to get rewarded as well, like referring a friend, so

Staking on Coinbase Is Done Through Purchasing Proof-Of-Stake on a Cryptocurrency

If you’re looking to stake on Coinbase, you’ll first have to create a Coinbase account and purchase a minimum relevant amount of proof-of-stake (PoS) on one of the cryptocurrencies available on the platform.

This is done by exchanging a specific amount of USD Coin (1:1 equivalent of USD) for a cryptocurrency, which will then become available on your personal portfolio page. In fact, you automatically start staking by exchanging a relevant amount of coins through the node (your hardware).

The probability of that node being chosen to build the next blockchain is directly proportional to the stake’s size, meaning the more coins you deposit, the better your chances will be. If the block is successfully created, you, the validator, will receive a reward.

You Can Also Stake on Coinbase by Depositing Your Existing Cryptocurrencies

Besides making an exchange on the platform, you can also stake on Coinbase by depositing your existing currencies from an outside wallet. Holding the coins on your account will allow you to participate in network consensus without the need for constant mining.

Since all these transactions rely on the peer-to-peer network, you can easily send the balance you need from an outside wallet or even from another exchange platform. However, in order to keep on staking, these currencies have to stay on the platform, meaning you won’t be able to move them from your account if you want to collect the reward.

Bitcoins in front of a chart

How Do I Earn Rewards for Staking on Coinbase?

To earn staking rewards on Coinbase, you will first have to meet some requirements. Your identity will need to be verified, and you’ll have to sync your hardware to the blockchain by setting up a node and feeding it with enough coins to meet the minimum thresholds.

As I already mentioned, this can be done either by buying cryptocurrency on the platform itself or by transferring your existing coins from an outside wallet. Once you’ve selected your options, the platform will automatically start staking your currencies. It will also validate transactions and add blocks to the chain on your behalf. and reward you for doing so.

The reward’s size is determined by the Annual Percentage Yield (APY), which represents the compound interest you can earn by staking coins on Coinbase. However, since this rate is neither controlled nor influenced by the platform, they are subject to change.

Although the platform takes a commission which is reflected in the APYs, each network sets its own reward rates, which will depend on several factors.

For comparison’s sake, take a look at the minimum threshold needed to get a staking reward for different cryptocurrencies you can find on the platform, as well as their APYs and payout rates.

CryptocurrencyMinimum Balance RequiredAnnual Percent YieldRewards Payout Rate
Ethereum (ETH)Doesn’t exist4.50%*Daily
Algorand (ALGO)0.01 ALGO4.00%Daily
Cosmos (ATOM)0.0001 ATOM5.00%7 days
Tezos (XTZ)0.0001 XTZ4.63%3 days
*Ethereum uses Annual Percentage Rate (APR)

Are There Any Other Ways to Get Rewarded on Coinbase?

There are several other ways to get rewarded on Coinbase besides staking your cryptocurrencies. For starters, setting up a recurring purchase of $50 or more will allow you to make $10 worth of coins on both the 4th and 8th buys.

Inviting a friend to join the platform through a unique link provides both of you with $10 worth of Bitcoin for free whenever they spend $100 on buying or selling cryptocurrencies.

A woman holding a credit card while typing on the phone

Is Staking Cryptocurrencies on Coinbase Profitable?

While there are a number of factors that can affect whether or not staking cryptocurrencies on Coinbase is profitable, it is possible to make a profit on the platform.

In fact, many people have reported making money by staking cryptos on Coinbase. Some report earning over 100% annually, while others claim that they haven’t seen any profits at all. These differences are likely due to varying market conditions and expected returns from crypto staking. However, it is also possible that some people are not accurately reporting how much they are earning.

If you’re new to the whole crypto exchange market, it’s best that you consult with a certified financial planner before engaging in any investing activities. Consulting with a professional who knows the marketplace should help you learn how to increase staking yields on all cryptocurrencies you hold on Coinbase.

What to Consider Before You Start Staking on Coinbase?

While investing your money into cryptocurrencies is often profitable, you shouldn’t pour your hard-earned money into them blindly. With that in mind, the most important things to consider when deciding whether or not to stake cryptos on Coinbase include:

  • The amount of crypto you are staking,
  • The current market conditions,
  • The fees charged by Coinbase,
  • The returns you expect to receive from staking cryptos on Coinbase,
  • Expected inflation rates for each cryptocurrency
A man placing a coin in a jar while calculating

Coinbase Allows You to Complete Crypto Transactions Without Risking Security

Coinbase allows you to complete transactions without any security risks. The site has several safety features you can use, including two-factor authentication and anti-fraud measures. If you’re looking for a safe way to transact online, Coinbase is a great option. Follow the simple steps on the website, and you can be assured that your information will remain confidential.