Staking crypto is one of the easiest ways to earn passive income on your digital assets, and Coinbase is a popular platform to get started.
As a well-known cryptocurrency exchange, Coinbase offers a simple and secure way to stake various cryptocurrencies, including Ethereum (ETH) and stablecoins like USD Coin (USDC). In this guide we’ll walk you through the process of how to stake crypto on Coinbase, explain the rewards you can earn, and explore alternative methods for even higher yields.
So what is crypto staking? Crypto staking is a way to earn rewards by helping secure blockchain networks, especially those that use a Proof of Stake (PoS) consensus mechanism. When you stake your crypto, you essentially "lock" it into the network to support activities like validating transactions and maintaining the blockchain. In return, the network rewards you with additional crypto. For example, when you stake Ethereum (ETH), you help secure the network and earn ETH rewards in return for the Ethereum staking process.
Ethereum is one of the most popular cryptocurrencies for staking, especially after the network transitioned from Proof of Work (PoW) to Proof of Stake (PoS). Coinbase allows you to stake ETH easily with just a few clicks, and earn rewards without needing to run your own validator node (which would require 32 ETH). This makes it accessible for beginners and experienced users alike.
Stablecoin staking is another option on Coinbase, particularly with USD Coin (USDC), which is pegged to the US dollar. Unlike ETH, USDC is not used to secure a blockchain, but you can still earn interest by staking it on Coinbase. The platform offers competitive rates, allowing you to earn passive income on a stable asset that doesn’t experience the same volatility as other cryptocurrencies.
On Coinbase, the stablecoin staking rate for USDC is usually lower than for cryptocurrencies like ETH, but it provides a safer option for users who prefer stable returns. Coinbase regularly updates its APYs for stablecoins, so it’s a good idea to check the platform for current rates.
Coinbase recently expanded staking options to Base, an Ethereum Layer 2 network. Base offers even more opportunities for users to stake crypto and earn higher rewards. Here’s how you can start staking crypto on Base:
Before you can stake crypto, you'll need to buy the cryptocurrency you seek to stake. Coinbase makes it easy to purchase popular staking assets like ETH or stablecoins like USDC.
Simply create an account on Coinbase, connect your bank account or credit card, and purchase the crypto of your choice. ETH is one of the most common options for staking, but stablecoins like USDC can also be used if you're looking for a lower-risk option.
Once you’ve purchased your crypto, you can stake it directly on Coinbase. Just navigate to the “Earn” section on the Coinbase app or website and select the asset and amount you want to stake:
For ETH, you’ll earn rewards based on the staking APY, which fluctuates depending on network conditions. Currently, when you stake crypto on Coinbase you’ll earn 2.57% for Ethereum, and varying rates for other assets:
As of now, Coinbase also charges a fee for staking services, usually around 25% of your staking rewards. Despite the fee, the convenience of staking on Coinbase makes it a popular choice for those who prefer a simple, hands-off approach.
After staking your crypto, you can easily monitor your earnings directly within the Coinbase app. Coinbase provides regular updates on how much you’ve earned, as well as the current APY for your staked assets.
While staking rewards are automatically added to your account, it’s important to keep track of them to make sure you’re maximizing your returns.
For those looking to earn even higher yields from ETH staking, you can stake your crypto on-chain using Coinbase Wallet, which is one of the most popular crypto wallets. If you’re holding ETH, you can send it to your Coinbase Wallet on the Base network and swap it for Super OETH.
Super OETH offers higher yields than traditional ETH staking on Coinbase, thanks to advanced DeFi strategies that generate additional returns. To get started, just visit the Origin Protocol Dapp and follow the instructions to swap your ETH for Super OETH:
With APYs often higher than traditional staking options, this method is ideal for those looking to maximize their earnings with ETH staking. For example, Super OETH offers an 10.5% trailing 7-day APY as of writing.
While staking on Coinbase is convenient and easy, it’s not the only option available. Staking in decentralized finance (DeFi) platforms like Origin Protocol or other DeFi staking pools can offer higher yields. For example, Super OETH on the Base network provides leveraged yield opportunities, meaning you can earn more than the standard rates offered by simply holding the token or using Coinbase.
However, staking in DeFi requires more effort, including managing crypto wallets, understanding smart contracts, and staying updated on market conditions. For beginners or those who prefer simplicity, staking on Coinbase might be the best choice. But for more advanced users who want to maximize returns, exploring DeFi options is worth considering.
Staking crypto on Coinbase is definitely worth it if you’re looking for an easy and secure way to earn passive income on your assets. The platform’s user-friendly interface makes it simple to stake ETH, USDC, and other supported cryptocurrencies. While Coinbase does take a fee for staking services, the convenience and security it offers can outweigh the costs for many users.
For those looking for higher yields, platforms like Super OETH on Base offer more advanced opportunities for earning staking rewards. Whether you choose to stake on Coinbase or explore DeFi, staking is a great way to put your crypto to work and earn passive income over the long term.
On Coinbase, you can stake popular cryptocurrencies like Ethereum (ETH), USD Coin (USDC), and a few others. The platform provides easy staking options, allowing you to earn rewards without needing to run your own validator node.
Yes, some cryptocurrencies on Coinbase, like Ethereum (ETH), may have a lockup period when staked. This lockup time varies depending on the network and can limit access to your funds while they are being staked.
Coinbase has no minimum staking requirements for most assets, making it accessible to users with any amount of crypto. You can stake even small amounts of Ethereum (ETH) or USD Coin (USDC) and start earning rewards immediately.
