The Merge is about to happen any moment now. That is when the Ethereum blockchain switches from the PoW to a PoS consensus mechanism. As a result, staking Ethereum was already popular, and will become more popular. So, various CEXs already offer ETH staking options and Coinbase is one of them.
We expect the demand for staking ETH to increase. Did you know that Coinbase doesn’t let you stake ETH directly on their wallet? They have another option, though. This is with the popular liquid staking option at Lido Finance. For this article, we do assume that you know what staking is. So, let’s have a look at how you can stake ETH in your Coinbase Wallet.
How to Stake Ethereum on Coinbase Wallet
If you want to stake ETH on your Coinbase Wallet, you need this wallet. So, if you already have it, great. However, if not, you will first need to download this wallet. The Coinbase Wallet is a self-custody wallet. In other words, you are in control of your assets.
Ethereum has begun the long-planned transition to a faster, cheaper, and theoretically even more secure Ethereum 2.0 (or ETH2) blockchain. Interested in earning rewards by staking some of your ETH via Coinbase? Sign up for the ETH2 staking waitlist.https://t.co/GrG8ompUeo
— Coinbase (@coinbase) March 4, 2021
So, Lido offers liquid staking. This means that you stake your ETH and you receive another token in return. This is the stETH token. To clarify, stETH lists as 13th on CoinGecko for Market cap. You can now use this token in DeFi and get another set of rewards, on top of staking your ETH. You need to follow these steps:
- Open the Coinbase Wallet app.
- Go to the Browser and go to Lido.fi.
- In the middle of the screen, you will see a menu icon. Tap it.
- Select ‘Stake now‘ and choose ‘Ethereum’ 2.0.
- In a new screen, you can delegate your staking.
- Decide how much ETH you want to stake and check the transaction costs.
- The current APR on ETH is 3.8% on Lido.
- Read the terms and conditions, so you are aware of the staking risks. For example, slashing.
Lido's mission is to make staking simple + secure and to keep Ethereum (and other PoS networks) decentralised and censorship-resistant.
— Lido (@LidoFinance) August 18, 2022
Is It Safe to Stake Ethereum on Coinbase?
In general, it is safe to stake your ETH on Coinbase. However, what you need to be aware of, is the potential for slashing. This means that if a validator fails to fulfill his role, he gets punished. So, if you delegated your stake to that validator, your delegated ETH gets also slashed. In other words, you may lose your staked ETH. It’s important to read the terms and conditions carefully.
Moreover, if you stake ETH on the platform, you have no saying on which validator Coinbase chooses. They do work with reputable validators. However, slashing can be a result of events out of their control.
In case you staked ETH before August 30th, 2021, Coinbase will replace any ETH you may lose by slashing. But, if you staked ETH after that date, you may want to get cbETH. You need to wrap your staked ETH and receive cbETH. Coinbase rolled out this new asset on August 24th, 2022. Some conditions may apply. Read the Coinbase User Agreement.
Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds will be lost.
What is cbETH? Let’s dive in 🧵👇 pic.twitter.com/n3Dp4OA6HO
— Coinbase Assets (@CoinbaseAssets) August 24, 2022
How to Stake Ether on Coinbase UK?
In May 2020, Coinbase introduced staking to their UK customers. Three more countries could now use this option. These were France, Spain, and the Netherlands. Later, they added more countries to this list.
Also, when you stake ETH at Coinbase, there’s no minimum or maximum amount of ETH you can stake. So, staking ETH on the UK platform is no different from staking ETH in another country.
Then, to swap your ETH for ETH 2.0. Coinbase stakes the ETH 2.0 for you. Be aware that you can’t access these staked ETH 2.0 tokens, until The Merge upgrade is complete. However, for staked ETH, you receive now cbETH from Coinbase. This is a liquid representation of your staked ETH on Coinbase.
Can I Stake Ethereum on Coinbase Pro?
Coinbase Pro doesn’t offer staking. It appears that Coinbase is going to combine both platforms in 2022. Nerdwallet reported this recently. On the other hand, Coinbase offers six different coins for staking. Rewards are as high as 5.75%. So, here are the six coins with their APY.
- Algorand (ALGO) — 5.75%
- Cardano (ADA) — 2.60%
- Cosmos (ATOM) — 5.00%
- Ethereum (ETH) — 3.28%
- Solana (SOL) — 4.00%
- Tezos (XTZ) — 4.63%
CoinGecko has the current price for ETH at $1,601.71. That’s 5% up over the last 14 days. However, during the last 24 hours, it is 7.1 down. The market cap is $193 billion. There’s an unlimited supply of ETH, and currently, there is 120.5 million ETH in circulation. The Merge results in ETH becoming deflationary in the future.
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