Introduction to Staking ETH via Coinbase
Before we get into staking ETH on Coinbase, let's first understand what is a centralized exchange. A centralized exchange (CEX) is a trading platform that lets you swap cryptocurrencies at any time of the day.
While CEXs are primarily used to swap tokens, they also offer a range of other services such as staking. Staking is one the easiest ways to earn passive income in crypto. It essentially allows users to lock up their tokens to help secure the Ethereum network. In return, they earn staking rewards, typically paid out in the same native token they’ve staked (in this case, $ETH).
Today’s write up is going to be focused on staking via Coinbase. Exchanges such as Coinbase, Gemini, OKX & Crypto.com provide support for $ETH staking. This straightforward process takes just a few clicks and allows you to start earning rewards on your $ETH instantly.
Pros and Cons of Staking via Coinbase
Pros
- Very simple and takes just a few clicks
- Provides simple, easy-to-understand tax reporting
- Available to US residents (excluding CA, MD, NJ, WI, NY)
Cons
- Coinbase stores your crypto in their proprietary wallets – you no longer directly control your crypto
- If the company experiences a hack or goes out of business, your crypto may be at risk
- May not be available to use in your jurisdiction
Who Should Consider Staking on Coinbase?
There are multiple ways to stake your ETH, but Coinbase may be the best option for you if you:
- Are a beginner seeking a user-friendly platform to start staking and earning rewards.
- Are an investor who wants passive income with minimal setup. (You don't need to create a wallet)
- Don't mind waiting a a few minutes to a few hours for your KYC documents to be approved
- Are a crypto user who wishes to stake multiple assets on one platform
Fortunately, there's no minimum balance to stake your ETH on Coinbase. So if you want to experiment with staking on Coinbase, you only need a cents worth of $ETH to get started.
How to stake Ethereum on Coinbase: Step by Step
Step 1: To get started, visit Coinbase to open an account if you don’t have one already. You’ll need to complete identity verification.
Step 2: If you don’t already have $ETH in your Coinbase account, you’ll need to either buy some or send some from another wallet.
Both can be done easily through the options in the top toolbar.
Step 3: Under “My assets,” click on your Ethereum balance.
Step 4: Scroll down and click “Stake ETH”.
Step 5: Follow a series of prompts (acknowledging the risks associated with staking and selecting your desired amount to stake) and then click “Stake Now” after confirming your details on Coinbase.
P.S.:Notice that I was able to stake just $5.00 worth of $ETH for this example, proving that staking really is available to anyone!
How to pick a Centralized Exchange
Trusting an exchange with your crypto can be stressful, so it’s important to be confident in its security before using it. Big names like Coinbase are strong options, backed by long-standing reputations in the crypto space.
Aside from security, the other major factor when choosing a cryptocurrency exchange for staking is the reward rate (APY) it offers. While Ethereum has an official staking reward rate that applies to all stakers, some platforms provide bigger rewards in an attempt to gain market share. However, be careful of unknown platforms offering staking rewards with exceptionally high APY rates that sound too good to be true — they often are.
CEX Staking Alternatives
Below, is a comparison of 3 centralized exchanges:
*all figures below are as of April 22nd, 2025
| Typical Staking APY | Note | |
|---|---|---|
| Coinbase | 2% - 3% | Receive $cbETH as a liquid staking token |
| Gemini | Up to 3.64% | No liquid staking token provided |
| Crypto.com | 3% - 5% | Get higher APY if you stake $CRO |
| OKX | 3.8% - 4.2% | Receive $BETH as a liquid staking token |
To Sum it up
Staking ETH on a centralized exchange is one of the simplest ways to earn rewards on your Ethereum tokens. You simply earn staking rewards by securing the Ethereum network.
If you're based in the U.S., we prefer staking ETH on Coinbase as it's one of the most trusted and widely recognized cryptocurrency exchanges out there.
Frequently Asked Questions
Investors can earn anything between 2% - 3% while staking their ETH on Coinbase. While there are other exchanges that might provide higher APY, we prefer to use Coinbase as it's one of the most trusted crypto exchanges.
Yes, you can lose your ETH through something called slashing. If the validator you're using (in this case, Coinbase) acts maliciously, you can lose a portion of your staked ETH.
When you stake ETH on Coinbase, you receive a liquid staking token called $cbETH. You can then sell (or do whatever you wish) with your $cbETH.
Yes, typically all gains made via staking is subject to capital gains tax. Check with your local tax professional in your jurisdiction
If you're holding your crypto for the long-term, staking can be extremely profitable. It provides a way to earn rewards on your crypto even when markets are down or moving sideways.
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