Staking is one of the most popular ways to earn passive income using cryptocurrency but the process may sound a little too confusing to newcomers. Centralized crypto exchanges like Coinbase offer staking services to users that streamline the procedure.
Moreover, Coinbase is one of the world’s largest and most trusted crypto trading platforms. The exchange provides staking on a large selection of tokens that also gives investors rewards.
This article is a guide to everything that you need to know about how to stake cryptocurrencies on Coinbase. Whether you are a beginner or a seasoned crypto trader, this guide will provide you with all the necessary information about staking.
So, without further ado, let’s dive in.
What is Staking?
It was only logical to start with the basics.
Staking can be defined as a process where you promise a certain amount of cryptocurrencies to its native blockchain to support its operations. Crypto investors view staking as a way of putting their assets to work for them.
Stakers also receive rewards for their contributions to the blockchain. The mechanism is a great way of earning extra income through your crypto assets instead of simply keeping them idle in your digital wallet.
Staking essentially involves you lending your tokens to the blockchain, which in turn uses them to verify transactions and create new blocks on the network. In return, you are offered staking rewards in the token you deposited. The mechanism works similarly to the interest you earn on a bank savings account.
Another point to note is that staking is a crucial part of proof-of-stake (PoS) blockchains such as Ethereum (ETH) or Solana (SOL) because they ensure the networks’ much-needed security and efficiency.
On these blockchains, speakers are chosen to validate transactions based on the number of tokens they promised. This means that the more crypto you stake, the higher your chances of being picked as a validator and the more rewards you earn.
You are rewarded when the node that you staked your tokens in successfully creates a block.
What is Different About Staking on Coinbase?
Staking on Coinbase is a rather straightforward process as it does not require you to go through the difficult step of depositing your tokens directly on the blockchain.
To stake on Coinbase what you’ll first need is to hold a cryptocurrency that you wish to deposit in the staking pool. On a side note, make sure that the token is supported by the exchange for staking.
By staking on Coinbase, you can earn rewards without having to go through the hassle of managing your nodes or setting up the complicated staking mechanism. It is also not necessary for you to have any technical knowledge to start staking on the exchange.
The platform is also highly secure and is well-known in the crypto community for its transparency, integrity, and commitment to strengthening customer experiences. Additionally, Coinbase also provides you with clear instructions on how to stake each cryptocurrency it supports, thus making life easy for beginners and experts alike.
What Cryptocurrencies Can Be Staked On Coinbase?
Below is a list of cryptocurrencies that Coinbase offers staking for and details about the minimum balance requirements, commissions, pay-out duration, and their unstaking period.
| Cryptocurrency | Minimum Balance | Coinbase Commission | Reward Pay-Out Duration | Unstaking Period |
| Ethereum (ETH) | None | 25% for normal users 15% for Coinbase One customers | Every 3 days | 2 days |
| Solana (SOL) | $1 worth of SOL | 35% for normal users 26.3% for Coinbase One customers | Every 3 days | 3 days |
| Tezos (XTZ) | 0.0001 XTZ | 25% for normal customers 15% for Coinbase One customers | Every 3 days | 2 days |
| Cardano (ADA) | $1 worth of ADA | 35% for normal customers 26.3% for Coinbase One customers | Every 5 days | 2 days |
| Cosmos (ATOM) | 0.0001 ATOM | 25% for normal customers 15% for Coinbase One customers | Every 7 days | 21 days |
How to Stake Eligible Crypto on Coinbase?
Here are the steps to follow if you wish to stake crypto on Coinbase:
