Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
As long as you’re eligible and hold the minimum balance of a stakeable crypto, Coinbase can stake for you (no work necessary on your end).
You retain full ownership of your crypto, but you’re delegating your staking power to Coinbase
You must be opted in to staking for that crypto (we automatically opt you in if you’re eligible). To view our Terms and Conditions for staking on Coinbase, please view our User Agreement.
Can I opt out?
Yes, but you will no longer receive Staking rewards until you opt back in.
To opt out of Staking rewards:
Rewards are calculated by the network. Coinbase receives the rewards from the network on your behalf and then automatically credits them to your crypto wallet.
Will the reward rate always be a fixed percent? Or is there a possibility of an increase?
The reward rate is dependent on multiple factors, primarily determined by the network’s protocol—it’s also influenced by things like baker performance, amounts staked / stakers, etc. There is the potential for the rate to move up or down, dependent on these factors.
Why would estimated rewards differ from actual payout?
The amount shown under Rewards pending is our estimate of the rewards that you could potentially earn when rewards are distributed by the network. Our estimation is based on Coinbase’s prior staking performance for that cryptocurrency.
Is receiving Staking rewards a taxable event for customers?
US customers who are subject to US tax reporting are required to report their earnings from Staking rewards. US customers that earn over $600 in Staking rewards will receive a 1099-MISC from Coinbase. You can learn more about the 1099-MISC on the official website of the IRS.
Where do I find my history of Staking Reward deposits for accounting purposes?
Each reward will populate as a line item in your transaction history report. To download your transaction history, visit our reports page.
Are rewards guaranteed?
Coinbase does not guarantee that you will receive Staking rewards, any specific
reward, or any staking return over time.
Eligible cryptocurrencies for staking
|Cryptocurrency||Minimum Balance Needed|
|Tezos (XTZ)||1 XTZ|
How to start staking XTZ
Beginning on November 6, 2019, eligible customers will have the opportunity to stake on Coinbase
When are Tezos rewards credited?
Tezos rewards will be credited to your wallet and will show up as a recent transaction.
To learn about how staking XTZ on Coinbase works, please feel free to check out our Coinbase Earn: Staking Tezos video.