Coinbase now offers its customers an easy and secure way to earn up to 5% staking rewards with Tezos. Until recently this was only available in the US, but Coinbase has now expanded its Tezo staking service to the UK, France, Spain, and the Netherlands. Coinbase will stake Tezos on behalf of their customers, depositing rewards directly into their accounts. Once the initial holding period completes, you’ll receive rewards roughly every 3 days.
What is Staking?
Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Essentially, it just means holding onto crypto assets and earning rewards. Similar to having pounds, euros, US dollars in a savings account and earning interest.
You can stake on your own, but you’d need to run a node on your own hardware, sync it to the blockchain, and then fund the node with enough cryptocurrency to meet minimum thresholds. Including providing a sizable deposit and bond. But with it being on Coinbase, they do all this for you.
Tezos aren’t the only cryptocurrency getting involved with staking as you’ll also be able to stake with Ethereum 2.0 later this year. However, you’ll need to hold 32 Ethereum as a minimum, and validators must be running a validator node. They estimate that the reward will be around 4-10%
What are Tezos?
Tezos or XTZ is a blockchain network linked to a digital token, which is called a Tez or a Tezzie.
Unlike bitcoin, Tezos is not based on the mining of Tez. Instead, token holders receive a reward for taking part in the proof-of-stake consensus mechanism.
So Tezos holders who stake their tokens can receive additional Tezos tokens as a reward. And Coinbase stakes Tezos on your behalf and deposits the rewards directly into your accounts.
How to Stake Tezos with Coinbase
To get started you first need to purchase Tezos, if you dont already have some to deposit. It doesn’t matter where you buy your Tezos as long as they’re then held in Coinbase.
How to Buy Tezos with Coinbase
To purchase Tezos with Coinbase, simply click on Trade in the top right of the Coinbase screen.
Then select “Tezos” from the Buy dropdown.
Choose you method of payment and then you can “Preview Buy“.
When you are happy you can go ahead and click onto “Buy Now“.
How to Earn Tezos with Coinbase
At this time of writing this blog, you can get $6 of free Tezos with Coinbase Earn by completing a few quizzes. To start you’ll need to be logged into your Coinbase acccount.
Then head across to Coinbase Earn and select Tezos from the list and “Get Started”.
You can then start by watching the lessons 1 through to 3, answering the questions after each. Once completed, you’ll receive the Tezo/XTC direct into your Coinbase account.
How to get Tezo Staking Rewards
Once you have Tezos in Coinase, your Tezos will always stay in your wallet. You just earn rewards, while keeping your crypto safely on Coinbase. You can also opt out at any time you want and move your Tezos to another wallet.
The “estimated” rewards rate for staking on Coinbase is 5.00%. However, this rate is only estimated as it will change over time based on the staking rewards distributed by the Tezos network.
You’ll see pending rewards in real-time and once an initial holding period completes, you’ll receive rewards roughly every ~3 days.
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Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.
After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.