As the leading US-based cryptocurrency exchange Coinbase has been looking for different ways to enable its customers to earn some extra coins through staking, and now you can earn passively from staking Tezos [XTZ].
Staking is a simple way for crypto enthusiasts to participate in the running of a network by keeping a certain amount of the network’s coins locked for a certain period in their wallets.
While the coin’s network benefits from you staking their coin, in return, you get incentives for your effort.
In the end, it’s a win-win situation since both the network and investor gain and now eligible US-based residents who double as Coinbase customers can stake Tezos.
Staking enables the Tezos platform to become more efficient while assets get secured.
Per the blog post on the Coinbase website, users who want to earn passively from their Tezos holding have to either deposit their Tezos into their Coinbase account or buy some.
Deposits can be made via an external wallet. Once done with that, one can proceed to opt into the Tezos staking program. Depending on your lock period, you will earn 5% from your stakes, but once the 35 to 40 days short term lock period comes to an end, you start receiving your reward.
The 5% return rate was set after a thorough evaluation of rewards got within 90 days.
For Coinbase, its work is to distribute rewards to users while retaining its cut. Incentives will reflect at your account in 3 days, but the app is available to check your balances and monitor your earnings.
While the above is all about customers based in the US, Coinbase customers across the globe can also earn some extra coins from the Coinbase Earn Tezos Campaign.
From the campaign, you can receive up to $6 worth of Tezos for learning about the currency and taking quizzes, but that’s not it all. Once you earn the 6 US dollars, Coinbase will stake them for you enabling you to earn more.
The Coinbase Earn Tezos Campaign is open to crypto enthusiasts in countries where Coinbase is supported.
Although anyone can stake Tezos coins on their own, the cumbersomeness and technical bit of the whole process makes it hard. However, through using an exchange such as Coinbase, one is assured of security and proper management.