How to Stake Coins on Coinbase and Earn Interest | Step by Step Guide

Introduction

As with many things in crypto, staking could be a complex or simple concept. It all depends on the level of understanding you wish to gain. It is important for an investor or trader to understand what staking crypto is all about. Staking is a method to earn rewards from hodling certain crypto. It sounds simple, but it is important to learn the staking process to avoid losing money.

If this is your first time looking to stake your money on the Coinbase exchange, this guide is ideal for you. In this article, I’ll describe a three-step process you must follow to stake ADA, or any other coin, on Coinbase.

How To Stake Crypto on Coinbase?

To invest in cryptocurrency on Coinbase follow the steps below:

Create an Account on Coinbase.
Buy the appropriate cryptocurrency you plan to put your money into on Coinbase.
A user who registers must buy evidence of stake cryptos. Which are coins offered on Coinbase for staking
You can take the cryptocurrency purchased by transferring the coins purchased on Coinbase.
The exchange begins the staking automatically after payment. When dividends become available, the exchange pays to your wallet.

I Want to Stake Coins on Coinbase | Which Crypto can I Stake?

You can pick from any of the following when you want to stake coins on Coinbase:

Algorand
Cosmos
Ethereum
Tezox
Cardona
Solana
And lots more

Coinbase Staking Requirements

There are no specific conditions for using Coinbase to stake. The user must have sufficient funds to lock in for a specific period. So that he or she can earn substantial rewards.

For example, to be able to stake ETH with Coinbase users must meet these requirements:

Keep ETH in the coinbase wallet
Living in a jurisdiction that is eligible to stake ETH
Complete their ID verification
Complete ID document verification
Know and accept these terms of service and the conditions that come along with ETH stakes

Risks and Regard of Crypto Staking

Staking cryptocurrency is a rewarding effort. But every trader should be aware of the risk it poses on any platform. So let’s talk more about the advantages and disadvantages of crypto staking.

Advantages of Crypto Staking

Passive income generation

There is nothing wrong with hodling your crypto and hoping for a price increase. Also, swapping one crypto or another is a no-brainer. It depends on what you feel serves you better. However, staking generates more rewards than the usual price increase.

Easy and quick

Staking is a quick and straightforward process. The starting amount can also be relatively small. Especially if a trader enters a staking pool instead of being a sole validator

Disadvantages of Crypto Staking

Crypto prices are highly volatile and price fluctuations could lead to loss of funds. Many investors experienced this when Luna went from $100 to less than a dollar in a week.
The smaller the coin, the higher the volatility.
The staking process requires locking your funds for a certain period. And as such, you have no control over the damage control in case of a market crash

Pro Tips | Stake Coins on Coinbase

Staking is a great way to earn interest on your cryptocurrency assets. There are however a few factors to consider before deciding to place your coins on exchanges.

Coinbase doesn’t charge any fees to secure funds for staking. However, the APYs offered by Coinbase is less than what you get if you stake in the projects’ blockchains.
Like any other activity in crypto, staking is not risk-free. Coinbase is always trying to select excellent projects. But, there is always a chance that something could go wrong with certain projects.
If you cash out your staked coins earlier than the time of lock-up there is no chance to earn any dividends.
It generally takes about a week to redeem your money. Consider this time frame as you stake your coins. Especially if you are concerned about the time of release.
The APYs displayed on the page translate into “annual percentage yield”. That is, it displays the expected annual rate of interest. For a better comparison, we should normalize the numbers and then compare. For instance, taking the value of the asset’s APY as 24%. With an unlocked period of 90 days, this would be equivalent to 9/3=3% per month interest or 9/90=0.1 per day interest.
According to Coinbase, VET, NEO, and ONT differ from different POS tokens. The stake of VET earns VTHO (NEO-GAS and ONT-ONG) which is why the interest is not paid out in a daily manner. Between 00:00 and 04:00 (UTC) on the following day, the staked coins and gas earned are transferred to wallets.
As a great source of information, check out for reference the StakingRewards website. On the site, for each venture, users will see “total staked value in USD” as well as “percentage of tokens being staked“. These are useful metrics to assist you in choosing your strategies for staking.

Conclusion

Before taking any cryptocurrency, always do your background checks, most importantly the fundamental analysis to avoid locking your capital in a project that will crash.

By now, you should have gotten the answer to your search, how to stake coins on Coinbase. Feel free to ask questions and offer suggestions in the comments section.

NOTE: The guidelines shown in this article are strictly for educational purposes. They are not intended to provide any form of financial, investment, or legal advice.

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