Certain platforms and exchanges such as Coinbase allow users to stake cryptocurrency to earn additional crypto rewards. But how does it all work?
At its core, staking is similar to cryptocurrency mining as it involves users validating other people's transactions on proof-of-stake blockchain networks. Users with the minimum required balance can easily stake cryptocurrencies by validating other transactions and earning staking rewards in the form of crypto tokens.
With the new ethereum merge coming closer than ever, the blockchain's transition to PoS is all set to introduce a staking element, which will play an instrumental role in making the blockchain more sustainable than ever.
Coinbase is one such leading platform that allows users to stake their cryptocurrency and earn additional rewards. Here's how to can stake cryptocurrency in Coinbase.
How To Stake Cryptocurrency In Coinbase?
To stake cryptocurrency in Coinbase, you should follow the following steps.
- Create an Account on Coinbase.
- Purchase the relevant proof-of-stake cryptocurrency you intend to stake on Coinbase.
- A user after registering must purchase proof of stake cryptocurrencies that are available on Coinbase for staking purposes
- Stake the purchased cryptocurrency by depositing the tokens purchased on Coinbase.
- Once a user has deposited the required amount of cryptocurrency, the exchange automatically begins the staking, and will send rewards to your wallet when available.
Read More: Ethereum Triple Halving: What is the Triple Halving and how will it affect ETH
What Cryptocurrency Can You Stake On Coinbase?
Coinbase supports the following cryptocurrencies for staking purposes.
Cryptocurrency | Minimum Balance Requirement | Rewards Payout |
|---|---|---|
Algorand (ALGO) | 0.01 ALGO | Quarterly |
Cosmos (ATOM) | 0.0001 ATOM | Weekly |
Ethereum (ETH) | No minimum balance | Daily |
Tezos (XTZ) | 0.0001 XTZ | 3 Days |
Cardano | $1 worth of ADA | 5 Days |
Solana | $1 worth of SOL | 7 Days |
Coinbase Staking Requirements
There are no particular requirements for staking via coinbase. A user must have enough funds to lock in for a particular period to accrue rewards for prescribed durations.
For example, to stake ETH on Coinbase, a user must:
- Hold ETH in the coinbase wallet
- Live in a Jurisdiction eligible for ETH staking
- Complete his or her ID verification
- Complete ID document verification
- Read and understand the terms and conditions associated with ETH staking
Read More: Cardano Staking: How Does It Work?
[Image by Jeremy Bezanger Via Unsplash]