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.
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.
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||Daily|
|Cosmos (ATOM)||0.0001 ATOM||Weekly|
|Ethereum (ETH)||No minimum balance||Daily|
|Tezos (XTZ)||0.0001 XTZ||3 Days|
[Image by Jeremy Bezanger Via Unsplash]