Cardano is a popular cryptocurrency on the blockchain platform. Cardano has also incorporated the proof of stake, making them eligible for staking. Even more interesting is that coinbase has added Cardano to their staking list. This article will guide you to stake Cardano(ADA) on coinbase and get additional rewards.
What is Cardano Staking?
Cardano staking is just like every other cryptocurrency staking. It is an additional way of making your ADA token work for you. When you stake your Cardano coins, you will get even more rewards. Most investors stake their Cardano token to earn rewards because extra cash and rewards don’t hurt.
Cardano is one of the blockchain projects aimed at providing a more sustainable ecosystem for cryptocurrencies. Cardano was founded by Charles Hoskinson, a co-founder of Ethereum.
Can you stake Cardano on coinbase?
Yes, you can stake Cardano on coinbase. Coinbase is constantly making it possible for users to gain more rewards. March 2022 witnessed the addition of Cardano to the staking offer of coinbase. ADA is the fifth coin added to the coinbase staking offer. Before March 2022, individuals were staking Cardano independently, while some used other delegated staking services. Some found these processes complicated.
With the new Coinbase launch, it is now possible for you to stake your Cardano. Coinbase has made it easy and secure for retail users to participate in staking Cardano and, in turn, earn rewards.
Why should you stake Cardano on Coinbase?
- Coinbase offers an easy and secure way to stake your Cardano.
- Coinbase estimates an annual return of 3.75%APY.
- Immediately you complete the 20-25% holding period, you will receive your rewards. This reward comes to your account every 5-7 days.
- You will always be in charge of your Cardano. The Cardano coin is always in your account, and you can wish to unstake it when you want.
How to Stake Cardano on coinbase
Here is a step by step guide on How to stake Cardano on Coinbase
1. Get your coinbase account:
Creating your account on coinbase is one of the easiest things to do. In a few seconds, enter your name, email, and password. Then proceed to verify your identity. This identity verification will help for tax purposes. You need some documents like your driver’s license, the last four digits of your social security number, and your date of birth for confirmation.
2. Deposit your Cardano on Coinbase:
If you already have some Cardano on other exchanges, then transfer them to your coinbase wallet. Alternatively, you can purchase Cardano directly on Coinbase.
3. Ensure you are eligible:
Once you qualify and have the minimum amount required for staking, coinbase will automatically enroll you for staking.
Although eligible users are automatically enrolled by coinbase, you will need to check if you need to do that yourself manually. An instance where you will need manual enrolment is when you don’t have enough assets at the time of the enrolment. If this happens, open your coinbase account, and click on the Asset tab. Then proceed to the Earn interest module on the right rail and click on get started. Then follow other procedures accordingly.
Staking Cardano on coinbase is straightforward. The primary thing required of you is to have your ADA token deposited into your coinbase account. Once Coinbase gets the token, the staking will be done on your behalf by them.
Additionally, coinbase connects eligible customers to the various platforms to earn a reward. The amount of reward you will get depends on the number of ADA tokens you are holding and the frequency of blocks produced by Cardano networks.
It is popularly believed that having your Ethereum assets work for you is better than just holding them. Ethereum is an excellent way to have an increased return on investment. Just look out for when Ethereum stays constant and rises, then you can go ahead and stake.
However, although staking Ethereum is profitable, it still has some risks. ETH staking is an experimental process involving some risks and possible failures. One of these risks could be losing your staked assets due to slashing. Slashing is enforced as a penalty at the protocol level due to validator or network failure.
Therefore, before going ahead to stake, do your research and understand all the related risks.
Coinbase Cardano staking rewards
You will earn your reward every 5-7 days once you complete your 20-25% holding period. With coinbase, you will make an annual return of 3.75% APY
What are the eligibility requirements for staking Cardano on Coinbase?
- You have to verify your identity.
- Ensure that you have the minimum balance required to stake your ADA. The minimum amount is $1
- Also, ensure that you maintain the minimum amount on your coinbase wallet
- Ensure that your region is eligible to stake
Best cryptocurrency exchanges to stake Cardano on
There are other cryptocurrencies you can stake your coin with on Coinbase. Some of them include:
Binance – The APY of binance is about 21.79%. binance has a locking period of 15 days before you earn your reward.
Kraken– When you stake your coin on Kraken, you can earn a reward twice a week. It is estimated that you will get a yearly reward of 4-6%
crypto.com – this is another good exchange for staking your ADA.
Yoroi wallet – staking your ADA with the Yoroi wallet will earn you 4.62% APY
Exodus wallet – when you stake your Cardano on Exodus Wallet, you will earn up to 5% APY.
Pros and Cons of staking Cardano
We have established that staking is highly profitable and it is a perfect way of earning additional rewards. Nevertheless, is staking completely good?
Pros of staking Cardano
If you have an ADA token in your possession for the long term, staking it will give you more rewards. That is obviously better than just having it there.
Staking your Cardano token makes you contribute to securing crypto networks. What is even better? You are doing this with minimum energy consumption.
You can fully control whatever risk associated with Cardano staking. The only thing you might consider risky is holding your ADA token in your wallet. However, the primary issue arises when you misplace or lose the key to your wallet. Losing the key to your wallet is a common risk with all cryptocurrencies, so you have to be careful not to misplace your key.
To avoid such risks, ensure that you stake with a reputable wallet that gives a separate key for your spending and staking.
Also, you may have to pay staking fees. To decrease the staking fees, you will have to pay, you can decide to have your stakes divided among different pools. Doing this will also help you diversify your portfolio.
You should also bear in mind that ADA is very much volatile and, to some extent, unpredictable.
You can make your ADA yield additional rewards like other cryptocurrencies by staking it. This is even the best time to do it, as Coinbase already added ADA to their staking list. Before now, people who staked Cardano did that as an individual node. It was challenging and complicated then. Now that Coinbase has already added it, you can enjoy the ease of staking Cardano. Decide how much you want to stake and get started.