Coinbase have just announced that it has added staking as a feature for crypto holders to make use of when storing their cryptocurrencies on its exchange. And first out for staking at Coinbase is Tezos
This is, of course, happy news for Tezos holders. As the risks of storing your cryptos at any exchange are always present, but at Coinbase it usually feels safer.
This means that crypto holders with Tezos can get staking-interest on their cryptos, with an expected ROI (Return of Investment) being around 5%.
For the time being it is only for US customers, excluding New York and Hawaii, who have completed ID verification. You can find out more about it here.
How staking at Coinbase will work
With staking at Coinbase you can easily opt-in and out at any point. Keeping you at the control of your cryptos at all times. After you have deposited Tezos to your Coinbase account there is a 35–40 days waiting period. And after that, you will receive rewards in your account every 3 days.
Staking and added safety is making crypto exchanges more attractive
For long the risks of storing our cryptos at any exchange have been too high. New reports came out weekly at some point in a cryptocurrency exchange that had been hacked. And another has lost access to all its customer’s funds due to poor practices.
So the advice for any crypto holders was to invest in a safe crypto hardware wallet and make sure you are doing your part for keeping your cryptocurrencies safe from those risks.
But more often than not many crypto holders weren’t bothered or didn’t see the value of it. And understandably due to how we deal with our money in traditional banks it was reasonable to expect a better job by the cryptocurrency exchanges.
And now we are seeing exactly this happening. With Coinbase now adding staking. Similar to how we saw KuCoin add similar features not too far back. Called ‘Soft staking‘. Where users similarly to Tezos holders can now enjoy the benefits of staking their cryptocurrencies at an exchange and get rewards.
This is a great start for Tezos holders. The question is which coins will be added next? Rumours on Reddit a while back that Chainlink could be added to the future (read more here). Even though Chainlink provides a very different form of staking, learn more about it here.
But surely Coinbase will continue to add more coins, it is in their interest as much as it’s in its customers.
Previously Coinbase added staking to their exchange. But this feature was only available for their institutional clients using Coinbase Custody client.
With institutional clients who had used the Custody service and staked Tezos had in total enjoyed rewards to the value of approximately $7,580-$8,324 for the first two months active.
Get started staking at Coinbase
If you don’t have an account with Coinbase then we have created a guide to help you get started here. It won’t take much time to sign up for an account. And with Coinbase you can feel slightly more comfortable as it is one of the safest cryptocurrency exchanges available.
Staking cryptocurrencies is part of Proof of Stake (PoS) blockchains. Where stakers serves an important role similar to miners. Where they help to validate and create new transactions on the blockchain.
With staking now in their roster Coinbase is actively looking at being highly useful for people that want to buy cryptocurrencies easily. And now also use staking easy. As previously staking was also slightly complex with hardware needing to be active at all times and users having to download a version of the blockchain to their computers/hardware. Staking at Coinbase requires nothing of that and users can leave their coins and enjoy staking without any effort.
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier