How to stake VeChain(VET) on Coinbase: 6 key things to know.

Do you know you can stake VeChain, VET on Coinbase and earn staking rewards? Now that you know, you are wondering how it can be achieved? Stick around and read to the end of this article to learn how you can stake and earn.

What is VeChain?

VeChain is a blockchain-based platform for enterprise solutions that aims to improve supply chain management processes by digitizing assets and data. The idea is that businesses will use VeChain to track products across their supply chain (from manufacturer to shipping company to customer) so they can ensure that everything is still in working order when it arrives at its destination.

The company was founded in June 2016 and has offices around the world: Singapore, Hong Kong, France, Vietnam and Australia, among others. It is currently led by CEO Sunny Lu and President Jay Zhang.

VeChain(VET) is an open-source blockchain platform that provides enterprises with solutions to store and manage data securely. The VeChain Thor blockchain network allows companies to create digital assets and smart contracts on the platform. The company’s primary goal is to digitize physical assets, such as luxury goods, collectables and real estate, using a ledger system to ensure transparency.

The VeChain blockchain enables enterprises to trace the origins of a product at every stage of production, from raw materials all the way up to the point of sale. This ensures that there are no counterfeit products and removes third parties from the supply chain process.

The technology behind VeChain has been applied in many industries, including agriculture, automotive, luxury goods, food & beverage and more.

VeChain Staking

VeChain is an exciting cryptocurrency. It is one of the few with a real-world use case, a working product and an actual business model. The price is volatile, and I do not think it is going to go up much more at all in the short term. It is definitely not for day trading or for anyone who does not understand what they are doing. Still, if you have some spare capital that you can afford to lose and want to diversify into altcoins, then I think it is worth getting involved with VeChain staking. There are two ways to stake VET. You can either stake it directly from your wallet or from an exchange (Coinbase). In this guide, I will show you how to stake on Coinbase. 

How to stake VeChain

Read more on cryptocurrency staking here.

You can buy VET through Coinbase and hold it in your Coinbase Wallet. The next step is to consider staking your VET coins so that they generate interest through proof of stake mining (POS).

Staking means locking up coins in order to earn interest on them as they mature over time. You can do this by moving them into an offline wallet like Ledger Nano S or Trezor, which allows you to lock up coins safely without having access to them until they mature, or you can consider staking on Coinbase.

Coinbase and its staking feature: the pros and cons

Coinbase is one of the most popular cryptocurrency exchanges in the world. It was founded in 2012, has more than 20 million users, and is based in San Francisco. Coinbase is a place where you can buy, sell and store your digital coins. You can also use it as a wallet to send, receive and store your digital currencies.

The Coinbase Wallet app offers some exciting features. One of these is the ability to stake your VET tokens. Here are some of the pros and cons of this feature:

Pros

It is easy to set up. Staking VET on Coinbase is very simple. You do not need any special skills or knowledge about cryptocurrencies to get started with it. 

You are able to earn interest in a passive income fashion, which means that it does not require any work from you.

Cons

The fees are pretty high.

If there is an outage or other problem with Coinbase’s service, then you risk losing all of your coins if they are locked up in the staking service.

Six steps to staking VET on Coinbase 

Coinbase staking is pretty straightforward to navigate. Carefully follow the steps below to get your VeChain token, VET staked:

  1. Sign up for a Coinbase account and complete the verification process.
  2. Deposit VET into your Coinbase wallet. You will need to transfer it from an exchange like Kucoin or Binance, where you purchased it, or you can buy some more directly from Coinbase with fiat currency (USD, EUR, GBP).
  3. Click on “Accounts” in the top right corner of your screen and select “Settings” from the dropdown menu.
  4. Scroll down and click on “Coinbase Commerce.” Then click “Enable Staking” under “Digital Currency Options.” It will cost you some amount to enable staking.
  5. After enabling staking on Coinbase Commerce, go back to the “Coinbase Commerce” page and click on “Staking Status” under Coin Selection Options at the top of your screen.
  6. Tap stake on any of the listed tokens that you want to get started with, in this case, VET. You will be prompted to confirm that you agree to “stake” your digital currency for a minimum amount of time. Now all you have to do is sit back and enjoy your staking rewards

Is staking VET on Coinbase worth it?

The answer could be yes, but it is totally up to you. If you are looking to earn some passive income by staking your VET, you can do so on Coinbase if you already have the token there for a very long period. However, keep in mind that the number of rewards you receive will be limited because only a tiny percentage of all transactions are rewarded with VET.

You should also consider that there is no guarantee that you will receive any rewards at all, especially if the VeChain platform becomes more popular and there are more people staking their tokens than there are rewards available.

The reason why staking on Coinbase might not make sense is because they charge fees when making transactions. And these fees are higher than what you would have to pay if you sent your coins to a staking wallet.

Also, returns are not attractive enough as there are very few people who use VET for transactions on Coinbase and therefore, there is no demand for them.

You can also consider to stake on Binance or via the wallet on the VeChain website. 

Leave us a comment below on what you feel about this topic.

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