Coinbase Staking Review 2025 – What is Coinbase Staking?

Blockchains such as Ethereum and Solana use a mechanism called Proof of Stake (PoS) to validate transactions on the chain. In exchange for staking crypto on these chains, users receive tokens as rewards. Crypto staking has become extremely popular, and platforms like Coinbase make staking easier. In this Coinbase staking review, we’ll examine the ins and outs of staking on this popular cryptocurrency exchange.

We’ll also evaluate yields and alternative platforms. Although Coinbase is a popular platform for staking and trading assets on the cryptocurrency markets, staking services are limited and face some geographic limitations. Let’s get started with some key takeaways before we review Coinbase staking in more detail.

What Cryptocurrencies Can You Stake on Coinbase?

In total, Coinbase supports staking for seven cryptocurrencies. Users can also earn a yield on USDC balances held on Coinbase, although this is a long-running promotional program that may end.

While Coinbase offers fewer yield opportunities than platforms like Binance, it does provide better clarity on how yields are generated. All of the cryptocurrencies currently listed under Coinbase staking earn yields through proof-of-stake protocols. By contrast, assets listed on the Binance Exchange or other platforms may earn fees through other means, such as lending your crypto or deploying your crypto in decentralized finance (DeFi) applications.

Currently, Coinbase supports staking for seven assets, as follows:

• Ethereum (ETH)
• Solana (SOL)
• Cardano (ADA)
• Avalanche (AVAX)
• Polkadot (DOT)
• Polygon (MATIC)
• Cosmos (ATOM)

Coinbase Staking Rates

Proof-of-stake protocols, such as Ethereum, pay staking rewards for “staking” your tokens to secure the blockchain. In effect, your staked cryptocurrency acts as collateral that ensures the validator to which you’ve staked follows protocol rules. These staking rewards can add up over time, building your stack taller if you plan to hold for the long term.

Coinbase simplifies the process of earning rewards by providing an easy way to stake your tokens without leaving the Coinbase app or connecting to often confusing staking contracts with a self-custody wallet. Staking through Coinbase or a similar platform also lowers the minimum staking requirement to make staking more accessible. For example, Ethereum requires validators to stake 32 ETH, which is more than $100,000. Coinbase lets you stake much smaller amounts, sometimes as little as $1.

Similar to other crypto exchanges that offer staking, Coinbase keeps a percentage of the staking rewards. However, Coinbase retains a higher percentage than many other popular platforms. Coinbase One subscribers also enjoy slightly higher staking yields on ADA, ATOM, DOT, and SOL due to a lower commission on Coinbase’s staking products for those subscribed to the service. The commission on these pools is reduced to 26.3% for Coinbase One users.

Coinbase automatically stakes your yields, so yields are reported as an annual percentage yield (APY) rather than a simple interest annual percentage rate (APR). Rates fluctuate based on the amount of supply staked, which is true of similar staking services as well.

How Competitive is Coinbase Staking APY?

The comparatively high commissions for Coinbase staking invite comparisons with other platforms, such as Binance. Although you might find higher yields on similar platforms, Coinbase stands out in its clarity regarding the source of yields. Other platforms may require some investigative work to understand the source of yields and assess its safety.

Let’s compare the current staking yields on Binance versus Coinbase for ETH and SOL.

Binance’s yields are clearly higher for these two assets. However, although Binance offers yield products for the other five assets supported by Coinbase, Binance does not offer pure staking yields for these cryptocurrencies. Instead, Binance provides a nebulous category called Simple Earn, which may include lending, staking, or other activities such as providing liquidity on decentralized platforms.

Binance’s Simple Earn promises to protect users’ capital, which may make it comparable to staking for some investors concerned about risk. Next, we’ll discuss the investment risks associated with staking on Coinbase and similar platforms.

Is Staking on Coinbase Safe?

Staking itself comes with risks, but staking through an exchange introduces some unique risks, such as breaches, hacks, compromised accounts, and even platform insolvency. These aren’t unique to Coinbase, and the odds of some risks affecting users are lower than others. Let’s review a few things to consider before using Coinbase staking services or a similar platform.

Compromised or Frozen Accounts

Staking through a centralized platform like Coinbase secures your account with a username and password. Coinbase also offers two-factor authentication, including alerts sent to your mobile device before withdrawals are approved. However, despite these measures, some users have fallen victim to sim-swap scams that allow bad actors to access users’ Coinbase accounts.

As a centralized exchange, Coinbase can also freeze accounts, denying access to users’ funds, including staked assets. However, according to Coinbase, the practice is rare.

Slashing Risks

Many proof-of-stake protocols use a tool called slashing to enforce protocol rules. If a validator doesn’t follow the rules for verifying transactions or is offline, the protocol may remove the staked cryptocurrency from that validator. This risk can also affect individual stakers because the staked assets are held by a validator node.

Slashing is extremely rare on chains like Ethereum, which has only seen 0.04% of validators slashed since 2020. Notably, Cardano’s proof of stake consensus mechanism does not use slashing.

Platform Risks

Scammers target both users and Coinbase employees. In 2023, a phishing attack helped scammers gain access through a Coinbase employee. Fortunately, the IT security team responded quickly to protect user funds, and nothing was lost in the attack.

However, users have little transparency regarding the financial health of centralized crypto exchanges in general. Although Deloitte periodically audits Coinbase assets, users don’t know whether exchanges have enough crypto on hand to cover all deposits at any given time.

A rush for the exits, such as what occurred during the FTX exchange collapse, could find that some exchanges are less than solvent. Generally, you can mitigate the risk by moving your crypto assets off the platform between trades. However, staking does not provide that option, and in some cases, unstaking an asset can take days.

Price Risk

The delays often associated with unstaking crypto introduce a new concern: price risk. If the market is in freefall and you want to sell before the decline steepens, or if you need access to your staked crypto, you’ll likely have to wait. Waiting times vary by asset type.

Although staking comes with several meaningful risks, the appeal of earning a yield on digital assets you intend to hold can be compelling, and many of the risks associated with staking remain uncommon. Next, in our Coinbase staking review, let’s walk through the steps for staking your crypto assets on the platform.

How to Stake on Coinbase

Coinbase simplifies the complexities that occur behind the scenes when staking crypto. With just a few clicks, you can stake any of the seven assets supported by Coinbase. The staking process is similar, whether using the Coinbase web app or mobile app.

1) Open an Account

If you don’t already have an account, create one on Coinbase. You’ll need to provide Coinbase with your name, address, and phone number. Coinbase also enforces Know Your Customer (KYC) identity verification. To complete KYC, you’ll need to provide a government-issued ID.

2) Connect a Funding Source

Coinbase supports bank deposits and debit card purchases. Purchases made with debit cards can be traded or withdrawn immediately, whereas bank deposits may not be available for immediate withdrawal. However, ACH bank deposits in the US and SWIFT bank deposits in the UK are free. Debit or credit card purchases come with fees as high as 3.84% in the US.

3) Purchase an Eligible Cryptocurrency

Once you’ve connected a funding source, you’ll need to buy an eligible cryptocurrency. Coinbase provides a Simple Trade Widget that lets you buy Ethereum, Cardano, and other cryptocurrencies with a few clicks. To buy with lower fees, you can use the Coinbase Advanced platform, which is accessible by clicking on the logo for your account. On Mobile, you can switch to advanced trading from the hamburger menu on the top left.

4) Stake Your Crypto

Locate the cryptocurrency you purchased in “My Assets.” Select the crypto you want to stake and look for a button labeled “Stake” or “Stake more.” Choose the amount you wish to stake and submit your staking request.

Is Coinbase Staking the Best Crypto Staking Platform?

Coinbase offers one of the easiest staking experiences of any centralized exchange, but other options are emerging that promise to provide more control over your assets and a wider selection of staking options.

Best Wallet, a self-custody crypto wallet app, is rapidly building its features, with staking slated for Phase 3 of the Product Roadmap. This innovative project also has its own token (now in presale), which will offer governance of the app and its features to token holders. This approach differs from Coinbase or Binance, where a management team makes decisions.

In the Phase 3 feature launch, users will see a new browser extension that gives access to all of Best Wallet’s features on Chromium-based browsers or through the mobile app. Other upcoming features include multi-chain support, derivatives trading, and a built-in staking aggregator that allows users to compare staking rates and choose which assets to stake to earn the highest returns.

Best Wallet already supports Ethereum, BNB, and Polygon networks, with planned support for more than 60 blockchains. Expect wide support for the most popular chains with the ability to fund your wallet and trade crypto without ever visiting an exchange. Coins and tokens you purchase are sent directly to your wallet.

Staking on multiple chains, combined with access to new presale tokens via its upcoming tokens feature alongside well-established cryptocurrencies, make innovative apps like Best Wallet a better long-term choice for many users compared to the narrower selection of staking options on Coinbase and similar centralized platforms.

Conclusion

Coinbase staking offers an easy-to-use platform that leaves no doubt about the source and safety of yields. This alone makes it a better choice for newer users staking ETH, SOL, or other supported assets. However, the platform also has some drawbacks, including its higher fees, relatively small token selection, and limited availability in the US.

Best Wallet may provide a better option for users who value a wider range of staking options with the ability to compare yields and stake directly from their own wallet without geographic restrictions.

FAQs

References

• Earn rewards while securing Ethereum (ethereum.org)
• Coinbase pricing and fees disclosures (coinbase.com)
• Phone-based attacks (coinbase.com)
• Coinbase account restrictions (coinbase.com)
• Coinbase Hack Linked to Group Behind Last Year’s Twilio, Cloudflare Attacks (securityweek.com)
• Coinbase Global, Inc. FORM 10-K (sec.gov)
• A timeline of the collapse at FTX (apnews.com)