Coinbase Rewards Guide: How to Make Money on Coinbase

In the crypto community, there has been a lot of discussion about Coinbase rewards. From whether it is possible to make money to questions about how to make money on Coinbase, and how reliable a source it is overall — the questions are endless.

In this blog, we will disclose 5 ways how to make money on Coinbase.

5 Ways How to Make Money on Coinbase

1. Coinbase Learning Rewards
2. Staking Crypto on Coinbase
3. Dollar to Stablecoins
4. CeFi Lending
5. DeFi Lending

Read on to learn more!

1. Coinbase Learning Rewards

Wondering what the easiest answer to - “How to make money on Coinbase?”

Coinbase Earn is the simplest method to begin generating cryptocurrency rewards on Coinbase. You can obtain several cryptocurrencies to try for yourself in return for understanding their fundamentals, often by viewing short videos.

Over $100 million in cryptocurrencies, including Basic Attention Token, 0x, Zcash, Celo, EOS, Tezos, Dai, Orchid, Stellar Lumens, Nucypher, Compound, and the Graph, have been distributed to customers since Coinbase Earn launched in 2018.

2. Staking Crypto on Coinbase

In order for their decentralized networks to guarantee that all transactions are validated and protected without a bank or payment operator in the middle, several cryptocurrencies currently employ a "Proof of Stake" consensus method.

Verified users may utilize staking services to stake their existing Tezos (XTZ) balances to the network and get rewards according to how much they currently possess. For higher stakes, more bitcoin is paid out. Reimbursements are made for payments three days after the first transaction.

If you intended to keep the cryptocurrency for a longer amount of time, this is a great choice since you can put it to use for you instead of letting it sit around doing nothing.

3. Dollar to Stablecoins

The fact that staking incentives are given in the local coin, which might be unstable, is one possible drawback. But by purchasing and holding stablecoins tied to the dollar, such as Dai and USD Coin, you may earn incentives (USDC).

Holding Dai in your Coinbase account will reward you with 2.00% APY as of June 2021.

4. CeFi Lending

It can occasionally be difficult to keep money in a conventional savings account and earn decent interest. However, a very similar idea is now achievable thanks to stablecoins. There are more and more centralized finance (or CeFi) solutions available that offer an attractive income in exchange for maintaining a portion of your cryptocurrency assets in stablecoin form.

Customers of Coinbase who are seeking a low-risk investment opportunity can begin earning USDC at 4.00% APY. The FDIC or SIPC does not provide insurance or guarantees for crypto deposits.

5. DeFi Lending

You can try lending some of your cryptos via DeFi applications if you're comfortable with larger potential risks for bigger profits.

Peer-to-peer lending may be made transparent via DeFi, which may give larger rates than conventional financial products. The interest that is levied to borrowers as compensation for supplying their bitcoin to DeFi lending mechanisms is paid to investors. You require a cryptocurrency wallet that works with DeFi applications. And you can use the Coinbase Wallet.

You may experiment with lending some of your cryptocurrency through Coinbase Wallet using DeFi protocols like Compound or Aave. The easiest place to start is with a stablecoin.

The Bottomline

It's legal to earn additional money using Coinbase Earn. This may be seen as the fundamental truth that, since Coinbase's launch in 2012, its user base has only increased. It is freely disclosed that it gives useful information to the appropriate regulating agencies as a recognized and regulated platform with more than 40 licenses that permit its activities in the US alone.

As a result, it is among the safest cryptocurrency sites to use.

FAQs

1. Is Coinbase good for beginners?

Beginners should start with Coinbase because it's simple to get started with just a $2 account deposit. With the help of the platform's "earn as you learn" initiative, Coinbase encourages novice cryptocurrency traders to learn more about their trades.

2. How do I earn passive income on Coinbase?

You may exchange your ETH for passive income immediately via the mobile app or browser extension after adding it to your Coinbase Wallet. Go to the Assets tab, and select the "Swap" icon. Next, tap on "Choose asset" and click "Passive Income." Enter how much ETH you want to trade for passive income.

3. Can I earn interest on Coinbase?

Put your cryptocurrency to work and profit from it. Check out the new Learning rewards page if you're searching for the former Coinbase Earn learn and earn rewards.