Estimates show that there may be more than 12,000 digital tokens on various crypto exchanges across the world, with that number growing exponentially as crypto gains popularity. Of all the exchanges, Coinbase offers the broadest selection of legitimate cryptocurrencies, with Cardano (ADA) among one of the few cryptos at the top of the list.
But can you stake ADA on Coinbase to earn rewards?
No, you cannot stake Cardano (ADA) on Coinbase. Currently, the only tokens available for staking on Coinbase are Algorand (ALGO), Ethereum (ETH), Tezos (XTZ), and Cosmos (ATOM).
As one of the vanguard tokens of the proof-of-stake protocol, it is a bit of a downer that ADA is not available for staking on Coinbase. However, it is easy to stake any of these other tokens on Coinbase, and there are alternate wallets through which you can stake ADA.
Read on to find out everything you need to know about ADA staking on Coinbase.
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Can You Stake Cardano (ADA) on Coinbase?
No, you cannot stake ADA on Coinbase.
While Coinbase does offer staking rewards for various proof-of-stake tokens listed on its platform, and offers other innovative ways to helps educate its users on the utility of crypto, such as the Coinbase AMP quiz, ADA staking is still not currently available.
As of March 2022, the only cryptocurrencies available for staking on Coinbase are Algorand (ALGO), Ethereum (ETH), Cosmos (ATOM), and Tezos (XTZ).
What Is Staking Crypto?
Staking is a way for blockchains to reward crypto holders for participating in proof-of-stake validation. By lending your crypto to a staking pool, the network is able to use your tokens to help validate transactions on the blockchain and store them in the ledger.
An easy way to think of the rewards garnered through staking is to think of interest at a traditional bank. When you deposit money at a bank, you are essentially lending that money to the bank to put to use for its various banking functions. As a reward for letting it use your money, the bank pays you interest.
Likewise, because you let the blockchain use your crypto, you are given rewards in the same cryptocurrency for your participation in the proof-of-stake network.
It is important to note that not all types of crypto are available for staking. Bitcoin is one of these. It operates on a proof-of-work protocol, which relies on data mining to add ledgers to the blockchain.
It should also be noted that there are a couple of risks to staking and you can in fact lose money from staking crypto. Many blockchains will “lock” staked crypto in the staking pool for a certain period of time for use in validation. If you need your tokens during this period, they would be unavailable to you.
In addition, given the extreme volatility of crypto prices, any rewards you earn may be immediately erased (and then some) due to a drop in that asset’s price.
Overall, though, just like investing your fiat is a great way to put your money to work for you, so too is putting your crypto to work through staking.
What Is Cardano (ADA)?
Cardano is a blockchain, and ADA is the native token to the Cardano blockchain.
ADA is a digital currency that can be used as a secure exchange of value anywhere in the world without the need for a third party for verification, as each transaction is securely stored on the Cardano blockchain.
Cardano is notable as the first proof-of-stake blockchain platform that is backed by peer-reviewed research and developed through evidence-based methods.
Through the proof-of-stake method, the platform uses a consensus mechanism for verifying transactions and creating new blockchain ledgers. This method is thought to be an improvement over proof-of-work protocols, which can be extremely resource and energy intensive.
To help participate in the proof-of-stake network, ADA holders are able to contribute their tokens to staking pools. By loaning their ADA to help the network validate transactions on the blockchains, ADA holders generate rewards in the form of new ADA.
Where Can You Stake Cardano (ADA)?
Unfortunately, Coinbase does not currently offer ADA staking. However, there are several platforms where you can stake ADA. These include:
- Binance Exchange – noted for having the highest returns for ADA staking
- Daedalus Wallet – recognized for being the most secure way to stake ADA
- Yoroi Wallet – easy for mobile ADA staking
- Exodus Wallet
- Kraken Exchange – best ADA staking for beginners
What Coins Can You Stake on Coinbase?
Although Coinbase does not currently offer ADA staking, it has four tokens for which staking is possible. This allows you to put your crypto to work and start generating some rewards for your digital assets.
The tokens that you can currently stake on Coinbase include:
- Algorand (ALGO)
- Cosmos (ATOM)
- Ethereum (ETH)
- Tezos (XTZ)
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How to Stake Crypto on Coinbase?
If you want to stake any of these four tokens on Coinbase, you must understand that staking availability differs widely by region.
For example, although Coinbase offers staking in most of North America, you cannot stake ETH in Canada. You also cannot stake ETH, ATOM, or XTZ in the state of New York.
So it is important to check the Coinbase rewards page to see if your preferred token offers staking in your region.
In addition, you must meet the following requirements to participate in staking on Coinbase:
- You must have your identity verified
- You must have the minimum balance required for staking that particular crypto currency. There is a staking requirement of .01 ALGO and .0001 ATOM and XTZ (ETH does not require a minimum balance)
- You can purchase or maintain the required balance on Coinbase, or you can transfer that balance into the staking pool via an outside wallet or exchange
- You must hold the eligible balance on Coinbase.com (rewards are not available on Coinbase Pro)
If you meet all of these eligibility requirements, you will automatically be opted in and start earning rewards for your crypto.
If you meet all of the eligibility requirements except for the minimum balance, you will need to purchase or transfer in the minimum amount and then manually opt in to start earning staking rewards.
Staking Cardano (ADA) on Coinbase: The Bottom Line
You cannot currently stake Cardano (ADA) on Coinbase. The only tokens available for staking on Coinbase, as of March 2022, are Algorand (ALGO), Ethereum (ETH), Tezos (XTZ), and Cosmos (ATOM).
Any of these tokens are extremely easy to stake on Coinbase. In addition, there are numerous platforms on which you can stake ADA. So put your crypto to work and start earning rewards through staking today!