How to Earn rewards on Coinbase Staking
This article will discuss the staking option available on Coinbase and other important aspects of Coinbase staking, countries eligible, staking rewards on Coinbase, and how to start with staking on Coinbase. Before ending this article, we will also go through all cryptocurrencies eligible for staking on Coinbase.
What is coinbase staking?
Some blockchain protocols allow users to earn additional cryptocurrencies by contributing or supporting the network. The rewards can be earned in many different ways, including staking the Capital.
Staking is a process of actively participate in the transaction validation on the Proof of Stake blockchain. Coinbase allows customers to be able to benefit from these protocols. Users can stake their coins on the Coinbase platform, and Coinbase will participate in these networks and distribute the rewards to eligible customers who staked their coins.
How does staking work at Coinbase?
When the user’s cryptocurrency balance of eligible cryptocurrency met with required, a Coinbase’s node deposits that cryptocurrency into the network as a stake. You will retain full ownership of your crypto. The node’s chance to be selected to forge the next block is proportional to the size of the stake done by users. If Coinbase’s node successfully creates a block, the node receives a reward. Coinbase takes its commission from rewards and distributes it among all the stakers. Validators lose part of their stake in case they double sign. While assets are locked at the protocol level, Coinbase may withhold a small amount of that cryptocurrency to assure that all Coinbase customers have enough liquidity and can withdraw their crypto as needed.
Checklist — before staking
Coinbase — Identity verification
You must have minimum eligible cryptocurrency on Coinbase wallet. For example, Coinbase allows staking of Tezos(XTZ), and the minimum required is 1 XTZ. So here, if you want to stake Tezos, you must have a minimum of 1 XTZ in your coinbase wallet.
Start with staking
Eligible users automatically opted in to earn rewards for their crypto. Coinbase automatically opts-in users if they are eligible. Users will receive rewards for storing crypto in their vaults.
If users don’t want to opt-in for staking and don’t want to receive rewards, they can opt-out.
How to opt-out of Coinbase Staking?
Go to settings Select Financial Services Toggle the reward icon off to opt-out.
How does the reward mechanism work at Coinbase?
If you are holding the minimum required eligible crypto on Coinbase, you can earn rewards. Coinbase receives the rewards from the network on behalf of users and automatically credits them into your wallet. Rewards calculation is based on the amount of cryptocurrency held by you in the coinbase wallet. The more you hold, the more Coinbase stake on your behalf and the more rewards you earn. Rewards also depend on how many blocks are produced by Coinbase’s node. The more blocks created by node, the more rewards are received by Coinbase and distributed among all stakers. Coinbase takes a commission on all the rewards received and distributes remaining among all the stakers according to their staked amount.
Eligible cryptocurrencies for staking at Coinbase
Cryptocurrency Minimum balance needed Rewards payout rate Algorand (ALGO) 0.01 ALGO Daily Cosmos (ATOM) 1 ATOM 7 days Ethereum (ETH) No minimum balance Daily Tezos (XTZ) 1 XTZ 3 days
From December 17, 2020, Coinbase allowed eligible users to earn rewards by staking ALGO. To earn rewards, make sure you have at least 0.01 ALGO in your Coinbase wallet. If you are eligible for ALGO rewards, you will automatically opt-in to earn rewards. To turn to stake on or off, go to — Settings > Financial services > Toggle the ALGO reward icon to opt-in or out. Once you are eligible to get rewards for ALGO, the payment of the first reward will be credited after approximately 1 day. You will receive rewards every day till you meet the minimum balance criteria.
From September 30, 2020, Coinbase allowed eligible users to earn rewards by staking ATOM. To earn rewards, make sure you have at least 1 ATOM in your wallet. If you are eligible for ATOM rewards, you will automatically opt-in to earn rewards. To turn to stake on or off, go to — Settings > Financial services > Toggle the ATOM reward icon to opt-in or out. Once you are eligible to get rewards for ATOM, the payment of the first reward will be credited after approximately 7–14 days. You will receive rewards every 7 days till you meet the minimum balance criteria.
Ethereum 2.0 (ETH2)
Ethereum 2.0 (ETH2) is an upgraded version of the ethereum network. This upgrade is aiming to shift the current mining model to a staking model.
ETH2 is the staked ETH. When you staked ETH, it converts to ETH2. Its price is similar to ETH. When the upgrade to the ethereum network is completed, all your ETH2 will convert to ETH.
From April 15, 2021, Coinbase allowed eligible users to earn rewards by staking ETH. To stake your ethereum, go to the Ethereum asset page under your portfolio. If you’re signed in and an eligible user, you will be able to convert your ETH to ETH2 and start staking. If you’re in the waitlist, you’ll need to wait to be removed from it before you can begin to stake ETH. You can earn up to 6% APR (Annual Percentage Rate) on ETH that you stake as a reward for helping secure the network. ETH2 staking rewards will appear in your account under Lifetime Rewards and will be updated regularly.
From November 6, 2019, Coinbase allowed eligible users to earn rewards by staking Tezos. To earn rewards, make sure you have 1 XTZ in your wallet. If you are eligible for XTZ rewards, you will automatically opt-in to earn rewards. To turn to stake on or off, go to — Settings > Financial services > Toggle the XTZ reward icon to opt-in or out. Once you are eligible to get rewards for XTZ, the payment of the first reward will be credited after approximately 35–40 days. You will receive rewards every 3 days till you meet the payment of the first reward minimum balance criteria.
Countries eligible for staking at coinbase
Belgium France Slovakia Spain UK US (Excluding New York for Ethereum, Tezos, and cosmos; and Hawaii residents)
Staking at Coinbase: Conclusion
Staking is a process of actively participate in the transaction validation on the Proof of Stake blockchain. Coinbase staking allows users to get rewards for holding eligible cryptocurrencies (like ATOM, ALGO, XTZ, and ETH) into the Coinbase wallet. Rewards calculation is based on many factors like the amount of cryptocurrency hold by you in the coinbase wallet, the cryptocurrency you staked, Coinbase’s commission, etc.