How To Stake Ethereum On Coinbase?

Coinbase is one of the largest crypto exchange platforms for buying, selling, and storing cryptocurrency. The trusted platform allows people to engage seamlessly and reliably with crypto assets for fast and free global transfers. Staking is one of the most discussed and celebrated advantages of the platform, where people can stake their assets. In this article, we’ll discuss the staking process in Coinbase in detail. 

What Is Staking?

Staking is a process in which holders of various cryptocurrencies stake their assets and earn rewards in exchange for helping to secure the blockchain network. By utilizing Proof of Stake (PoS) consensus, network participants delegate their tokens to validators, who secure the blockchain by validating the transactions. In return, the network participants are rewarded with tokens based on the number of tokens, they staked. The staking rewards are not guaranteed, they are only provided after a successful block creation.

How Does The Staking Process Take Place In Coinbase?

For staking in the platform a person has to meet the minimum balance requirement, once the minimum balance is met, that amount is staked in the network. Though the staking rewards are not guaranteed, the higher the amount staked the higher the chances to earn rewards. If the node adds a block successfully to the network, the validator receives a reward. Any practice that defames the network can result in losing the stakes.

Advantages Of Staking In Coinbase

• Coinbase is a trusted and reliable crypto exchange platform, allowing holders to stake their assets confidently. 
• The platform allows individuals to stake their assets and earn rewards without managing the nodes independently. 
• Being a user-friendly platform, a person with no technical expertise or prior knowledge can stake in the platform effortlessly.
• Coinbase utilizes a robust security system and transparent customer support to prevent the chances of hacks and scams.
• Coinbase supports a large number of cryptocurrencies, and most of them can be staked in the platform. 

How To Stake Ethereum In Coinbase? A Step-By-Step Guide

Staking Ethereum in Coinbase is simple and secure. Follow the below steps to start the staking journey in the Coinbase. 

Step1: Create a Coinbase account

By filling in the required information and choosing a strong password, create a Coinbase account. 

Step 2: Verify identity

Click on ‘Buy and Sell’ which will prompt a pop-up. Fill in the information required and your identity will be verified. 

Step 3: Deposit the Cryptocurrency

To stake, an account must have a certain minimum balance. If you already have the required minimum continue the next step, or else transfer the fund to your wallet and follow the next step. 

Step 4: Choose the staking coin

From the ‘my asset’ tab, choose the crypto you want to stake, in this case, it is Ethereum. You will be then navigated to Ethereum’s page.

Step 5: Choose the amount to stake

A user can choose the amount he intends to stake. If staking the entire balance, choose ‘max’. 

Step 6: Confirm stake

Select ‘preview’, review the details, and then click on ‘stake now’. A confirmation email will be received in your mail. The staking process is completed and after certain days, the coins will be rewarded into your wallet. 

Eligibility Criteria For Staking In Coinbase

• A person should have the minimum balance in the account to be eligible for the Coinbase staking process. 
• To receive the staking rewards one must verify their identity. Identity verification includes filling in the necessary information the platform asks for. 
• Be a resident of the country Coinbase staking is eligible. 

Countries Eligible For Coinbase Staking

United States, Canada, Lithuania, Denmark, South Africa, South Korea, Hong Kong, Lebanon, Australia, Argentina, and the Czech Republic are some of the countries in which Coinbase staking is eligible. Check your individual Coinbase account to verify if the staking option is available in your region. 

Coins Eligible For Staking In Coinbase

Ethereum (ETH), Solana (SOL), Cardano (ADA), Tezoz (XTZ), and Cosmos (ATOM) are the popular coins that can be staked in the Coinbase platform. However, more crypto coins can be staked in the future. 

Coinbase Staking Rewards

The rewards on staking can vary depending on the amount of coins you staked. The amount is determined by the protocol and can change over time depending on the inflation and saving rates set by the platform. 

Limitations Of Staking In Coinbase

• Once staked, the assets can’t be traded or transferred before completing the unstaking process. 
• Coinbase follows a waiting period for earning rewards and unstaking. Only after completing the waiting period, a person becomes eligible for earning the rewards and unstaking. 
• Failure of protocols or validators may risk the staked assets. 
• Coinbase regularly evaluates the staking eligibility and unstacks an individual’s assets if their eligibility status changes. 
• The unstaking process is time-consuming, it may take hours or days, making the trade difficult. 

Final Thoughts

Coinbase is a well-known and trusted crypto exchange platform where people can buy and sell their assets. The platform enables staking, in which people are rewarded with tokens in exchange for the staked assets. However, the staked assets can’t be traded or transferred until it is unstaked and the unstaking period tends to increase sometimes, limiting the utility of the platform.