Coinbase is one of the most popular Crypto exchange platforms worldwide. This platform is steadily working to improve itself and is succeeding in doing the same. Recently the platform even added a few more cryptocurrencies in which the investors could be able to stake. There was a lot of demand by the investors that the platform should add Cardano (ADA) in the stake section. And fortunately, the platform has now added the same. Here we will be discussing the Cardano coin in detail and how to stake Cardano on Coinbase.
About Cardano (ADA)
Cardano is one of the most traded cryptocurrencies all over the world. It is currently under the list of the top ten cryptocurrencies regarding total market capitalization value. The best part is that the Cardano coin uses the Ethereum network, which makes it even more stable and flexible for people who want to invest or hold some Cardanos for them.
The main objective of this coin is to allow companies to have smart contracts. The companies which will be coming under this category will either be game developers or NFT developers.
Along with that, this coin even expanded its focus to the DeFi applications, because of which many cryptocurrency exchanges have started launching this coin on their platform. Its market capitalization value has increased significantly over the past few years because people also understood the coin’s potential.
This can also be a major reason why Coinbase introduced this coin under the stake section of their platform. But the process of staking Cardano has been difficult in recent times. So, this problem has even been solved by the developers of Coinbase.
Benefits of Staking on Coinbase
Let us now look at some benefits the users would get when they Cardano on Coinbase. Here we will be looking at the benefits the users would get upon betting on the Cardano coin. These benefits are as follows-
- Rewards- The first benefit which the users would receive is in the form of rewards. Investors can earn rewards with ease by staking their Cardano on the platform. Currently, the platform provides around 3.75% of APY, which means investors can gain huge rewards by betting on Cardano on Coinbase. There is an initial holding period that the investors should maintain. When it has been completed, they will receive the tips.
- Control- The best part is that all the control would be given to the investors. This means that the cryptocurrency (Cardano) would remain in their account, and they’ll receive interest depending on the time until they keep their coin in their Coinbase wallet.
How to Stake Cardano on Coinbase? (Steps)
The users need to know how to stake cardano on coinbase. The steps which they should follow for the same are-
- First of all, the users must have their account on Coinbase. They can easily download the application from the App Store or Play Store and create their account.
- When they have created their account, they must complete their verification process to ensure that their account has been activated.
- After that, the users have to deposit Cardano to their Coinbase wallet. They can do it either by buying Cardano on the platform or by depositing Cardano through the external wallets which they have.
- As the users have deposited Cardano in their wallet, they would instantly start earning rewards through the same.
This is how the users could start making their stake on Cardano on Coinbase. The platform has made it easier for all Cardano holders to ensure that they can easily stake their coins. But before that, the users must look at the eligibility criteria as the platform even follows the same. If the users have fulfilled the same, they could stake their Cardano without issues.
Is it worth staking Cardano Coins?
This is probably the biggest question on the minds of all investors. Many other coins are present in the Crypto market, but staking in Cardano has been unique for a long time. The major reason behind the same is the return on investment provided by the coin. For example, if someone staked a total of 100 thousand Cardano, they would receive a 30% return on the same in the next five years. But this value is subject to change depending on market conditions. Because of this reason, staking in Cardano is not very popular in the crypto market.
Can Beginners Start Staking in Cardano?
Coinbase has made it easier for the beginners to start investing and staking in Cardano. As we all know, this platform has specially been made for beginners because staking in the same had been made easier. Although Cardano is not the best option to stake in cryptocurrency, it is a better return-providing option than most.
Anna Smith is a blockchain expert and crypto enthusiast with over 5 years of experience in the industry. She is the author of the best-selling book "Cryptocurrency for Beginners" and a regular contributor to leading industry publications. In her free time, Anna enjoys staying up-to-date with the latest developments in the crypto world and participating in online forums and communities. She is also an avid supporter of cryptocurrency adoption and believes in the power of decentralization to shape the future of finance.