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Earning on Coinbase review
Our guide to earning on Coinbase has information on Coinbase Learn, staking and DeFi.
Coinbase is the largest cryptocurrency exchange in the US and has been operating since June 2012. Coinbase was created with the mission statement of “building the crypto economy – a more fair, accessible, efficient and transparent financial system enabled by crypto.” Since its launch, Coinbase has grown to encompass over 73 million users in over 100 countries and now offers over 100 cryptocurrencies on the platform. It has not only grown its user base but has expanded its offerings beyond a simple exchange for cryptocurrencies. Today there are numerous ways users can earn on their assets on Coinbase.
Staking on Coinbase
Staking is an earning tool that allows users to passively grow their crypto holdings. Staking is done through blockchains that use proof of stake as their consensus mechanism. Proof of stake is a reference to the method in which the next block in the blockchain is added. Bitcoin famously utilizes the proof of work protocol. Coinbase has created the ability for anyone to easily “stake” their assets on the platform, without having to learn and understand the technical details of staking.
What tokens can be staked on Coinbase and their rates?
Currently users can take advantage of staking Algorand (ALGO), Cosmos (ATOM), Ethereum (ETH) and Tezos (XTZ). Interest rates on the different cryptocurrencies vary but at the time of writing each was between 4% and 5% APY.
|Asset||Rate (% APY)|
Disclaimer: When staking Ethereum (ETH) users will be rewarded in ETH2 coins. The price of ETH2 coins is identical to ETH. ETH2 will only become available once the Ethereum network transitions to ETH2.0.
How to stake cryptocurrency on Coinbase
Tezos, Algorand, Cosmos
For staking Algorand (ALGO), Cosmos (ATOM) or Tezos (XTZ) users can access staking options easily through the following methods:
- On web: Go to Settings and select Financial Services. From there, you can toggle the Staking Rewards icon on to opt in.
- On mobile: Go to Settings on the iOS or Android app and select Financial Services. From there, you can toggle the Staking Rewards icon on to opt in.
Users will need to ensure they have the minimum balance in their wallet before they will be allowed to stake.
Where Ethereum’s staking rewards differ from the other staking options, the set-up is slightly different and not available to all users depending on their country.
To access Ethereum staking rewards on either web browser or mobile, users will need to:
- Go to the Ethereum asset page under your Portfolio and follow the respective prompts to start staking.
- Make sure to have some ETH in your wallet (no minimum balance needed).
Rewards for staking Ethereum will be credited in a user’s ETH2 wallet and are reflected in their lifetime rewards section. The first reward payment when staking Ethereum is paid after 2 weeks. After that, users will receive their Ethereum rewards on a daily basis.
Earning on Coinbase Learn
One of the biggest hurdles for people new to blockchain technology is the immense volume of information to take in. Once people understand the basics behind blockchain technology it can seem daunting to try and find a starting point for new information. Coinbase understands this dynamic and offers a deep library of content for users to learn about various cryptocurrencies. Additionally, it also gives the ability to earn cryptocurrency on the blockchain projects they are learning about.
What is Coinbase Learn?
Coinbase Learn is an interactive learning tool offered by Coinbase where users can earn cryptocurrency on the projects they are learning about. Users either read a short article or watch a video. After getting an idea of what the project is about, users are then given a short, simple quiz. Users are rewarded for correct answers in the native token of the project. The different rewards offered rotate and are limited while supply lasts. Typically, users can earn anywhere from $3-$10 for each completed quiz.
What cryptocurrencies can be earned on Coinbase Learn?
Currently, Coinbase is offering earn and learn rewards on:
- Stellar Lumens (XLM)
- The Graph (GRT)
- Enzyme (MLN)
- Compound (COMP)
- BarnBridge (BOND)
- Balancer (BAL)
- Ampleforth Governance Token (FORTH)
- Polygon (MATIC)
- SKALE (SKL)
- NUCypher (NU)
- CELO (CGLD)
- Universal Market Access (UMA)
- Numeraire (NMR)
- Band Protocol (BAND)
- Maker (MKR)
- Filecoin (FIL)
- Algorand (ALGO)
- Zcash (ZEC)
- EOS (EOS)
- Orchid (OXT)
- Kyber Network (KNC)
- Tezos (XTZ)
- Dai (DAI)
- Basic Attention Token (BAT)
- Ox (ZRX)
While Coinbase is most popular in the US, it does offer earning tools that are unavailable to US customers. DeFi (decentralized finance) yield is one such option. DeFi yield launched on Coinbase on December 9, 2021. The platform allows users to lend out their DAI stablecoin to other users through a third-party DeFi protocol called Compound Finance. DeFi yield on Coinbase allows users to become lenders and earn interest on loans to other people. Users can access the DeFi yield option through the DAI asset page where they can choose the DeFi Yield tab.
DeFi is at the forefront of finance technology based on blockchain. It allows users additional financing options without the need for a centralized third-party intermediary service safely and securely. Users can earn passive APY interest on their stablecoin assets with no fees, lock-ups, or set-up hassle. When users opt to take advantage of the DeFi yield within Coinbase, they still have access to their DAI to trade and spend as usual. Coinbase additionally covers the gas fees for moving DAI onto the Compound Finance protocol, further incentivizing lenders to lend their DAI through Coinbase.
The offered APY interest rates are based on the rates offered by Compound Finance and automatically reflect changes in the market. For context, in October 2021 APY rates fluctuated between 2.83% and 5.39%.
Disclaimer: DeFi yield is not available in every country, check yours for availability.
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