How to Stake Ethereum on Coinbase

You can now stake Ethereum on Coinbase, letting you earn rewards for helping secure the Ethereum network. Here’s how to get started staking ETH on Coinbase.

1. Create a Coinbase account

To stake ETH on Coinbase, you’ll first need a Coinbase account. Go to coinbase.com and click “Get Started” to sign up. You’ll need to provide your name, email address, and a password. You’ll also need to verify your identity with a government-issued ID as required by regulations.

2. Buy or deposit ETH

Once your account is set up, you’ll need to fund it with ETH to stake. You can do this in two ways:

• Buy ETH directly on Coinbase using a linked bank account or credit/debit card. Go to the “Buy” page, select Ethereum, enter the amount you want to purchase, and complete the transaction.
• Deposit ETH from an external wallet. Go to the “Receive” page and follow the prompts to send ETH from your other wallet to your Coinbase ETH address.

Note: To stake ETH on Coinbase, you’ll need to use the Coinbase website or mobile app, not Coinbase Pro or Coinbase Prime.

3. Go to the Ethereum staking page

Once you have ETH in your Coinbase account, go to the Ethereum asset page. There, you’ll see an option to stake your ETH. Click “Stake” to go to the ETH staking page.

On the staking page, you’ll see the current Ethereum staking reward rate, which is around 4.5% APY as of September 2022. This rate is variable and can change based on the total amount of ETH staked on the network.

4. Choose an amount to stake

Enter the amount of ETH you want to stake in the provided field. The minimum required to stake on Coinbase is 0.1 ETH, but you can stake any amount above that minimum.

Note that staked ETH will be locked until a future Ethereum network upgrade enables withdrawals, expected 6-12 months after The Merge. Staking rewards will accrue daily but also won’t be available for withdrawal until this upgrade.

5. Confirm and start staking

After entering an amount, click “Confirm staking” to complete the process. Your ETH will be deposited into Coinbase’s secure staking wallet and start accruing rewards immediately.

You can view your staked ETH balance, rewards earned, and other staking details on the Ethereum staking page. Payouts occur daily, with a target time of 4-5 pm PST (12-1 am UTC).

Key Takeaways

1. Create a Coinbase account if you don’t already have one. This involves providing personal information and verifying your identity.

2. Buy ETH directly on Coinbase or deposit ETH from an external wallet into your Coinbase account.

3. Go to the Ethereum asset page on Coinbase and select the “Stake” option to get to the staking page.

4. On the staking page, review the current ETH staking reward rate (around 4.5% APY as of Sept 2022).

5. Enter the amount of ETH you want to stake (minimum 0.1 ETH).

6. Confirm to start staking your ETH. It will be locked until future network upgrades allow withdrawals.

7. Your staked ETH will accrue rewards daily that will be paid out around 4-5pm PST. However, you cannot withdraw staking rewards until network upgrades occur (estimated 6-12 months after Ethereum’s “Merge”).

8. You can view your staked ETH, rewards earned, and other details on Coinbase’s staking page.

Frequently Asked Questions

1. What are the risks of staking ETH on Coinbase?

Potential risks could include Coinbase security breaches, regulatory changes affecting staking, or delays/issues with the Ethereum network upgrades required to allow withdrawing staked ETH and rewards.

2. Are there any fees for staking ETH on Coinbase?

The article doesn’t mention any fees, so it seems there may not be extra fees beyond standard Coinbase transaction fees. But it’s worth double checking.

3. Can I unstake or withdraw my ETH early before the network upgrades?

No, it clearly states that staked ETH is locked and cannot be withdrawn until future Ethereum upgrades allow for withdrawals, estimated 6-12 months after the Merge.

4. How is the staking reward rate determined?

The article doesn’t explain this, but the reward rate is likely determined by the total amount of ETH staked across the entire Ethereum network.

5. Are staking rewards taxable income?

The article doesn’t cover tax implications, but in most jurisdictions staking rewards would likely be considered taxable income.

6. Is there any risk of losing my staked ETH entirely?

Major losses seem unlikely given Coinbase’s security, but users may want to understand if there are any exceptional scenarios where funds could be permanently lost.

7. Can I stake ETH that is already in my Coinbase account or do I need to buy/deposit more?

The article doesn’t specify, but you should be able to stake ETH that you already hold in your Coinbase account without needing to purchase or deposit more.

8. How will I be notified about the ability to withdraw my staked ETH after the Ethereum upgrades?

Coinbase will likely notify users via email and in-app/website announcements when withdrawals are enabled, but the exact process isn’t mentioned.

9. What happens if I want to close my Coinbase account while ETH is staked?

This scenario isn’t covered, but staked ETH is likely tied to your Coinbase account. You may need to wait for withdrawals to be enabled before closing your account to access your funds.