Kraken VS Coinbase Staking Rewards And Opt-in Rates

Kraken VS Coinbase staking rewards for prrof of stake cryptocurrencies

Coinbase VS Kraken Staking Rewards Summary

  • Kraken has more listed cryptocurrencies for staking than Coinbase.
  • Kraken offers higher staking rewards than Coinbase.
  • Kraken lists opt-in rewards for Bitcoin, USDT, and USDC.
  • Coinbase is often considered a more newbie-friendly exchange, but Coinbase also charges higher fees for most services.

Staking is a great way to get crypto passive income, but there are also risks.

However, staking is only possible for specific cryptocurrencies running proof-of-stake (PoS). For example, Bitcoin runs proof-of-work(PoW) and is unavailable for staking.

Kraken Staking Rates VS Coinbase Staking Rates

See the current staking rates from Kraken VS Coinbase in the table.

Crypto

Kraken

Coinbase

Intro – What is staking Proof-of-stake?

When you stake, you actively validate transaction on a proof-of-stake blockchain. Staking can be compared to mining for a proof-of-work blockchain.

For staking on a PoS blockchain, you need a minimum balance to stake into the blockchain for validating transactions and earning staking rewards.

The rationale is that you can lose your staking amount if you misbehave. 

Staking on exchanges like Kraken and Coinbase makes it easier since you don´t need the minimum amount for staking. Coinbase and Kraken pool their users staking deposits and become staking validators.

Kraken Staking VS Coinbase Staking

Below, we have summarized the Kraken vs. Coinbase staking in a bullet list

  • Kraken has more staking alternatives than Coinbase
  • Kraken has better interest rates (staking rewards) than Coinbase
  • Coinbase is a more extensive exchange than Kraken 
  • Coinbase has a more user-friendly interface than Kraken
Also, don´t forget to see alternatives other than Kraken and Coinbase. For example, Binance and NEXO offer great interest rates on the listed cryptocurrencies.
 
Read more in these articles.
  1. Best Ethereum ETH interest rates
  2. Best Algorand ALGO interest rates
  3. Best Cosmos ATOM interest rates
  4. Best Tezos XTZ interest rates
 

Is Staking Crypto On Kraken and Coinbase worth it?

Many people ask themselves if staking cryptocurrencies are worth it.

There is no obvious answer since all investments involve certain risks. You can deposit your cryptocurrencies for staking, but it involves more risk than HODL on a hardware wallet.

Read more about crypto risk management strategies.

Or another way you can look for it is that you lose in value if you don’t stake since the staking rewards are similar to the inflation in the network many times.

So you can earn extra crypto, or protect the value of your portfolio, by staking, and there is no work input that has to be done. 

The only thing you should check is how staking rewards income is taxed in your jurisdiction.

How to stake Crypto on Coinbase?

Coinbase staking rewards all proof of stake cryptocurrencies

Staking with Coinbase is an easy process. We will walk you through how to do this step-by-step.

On Coinbase, you can stake Algorand, Ethereum, Cardano, Solana, Cosmos and Tezos.

1. Create an account with Coinbase and Deposit

First, you must sign up with Coinbase and create an account.

  • The minimum staking balance for Cosmos is 1 ATOM
  • The minimum staking balance for Tezos is 1 XTZ 
You can buy crypto with a credit card on Coinbase, bank transfer, or deposit the crypto.
 

2. Make sure you fulfill the Coinbase staking requirements

First, you must sign up with Coinbase and create an account.

Many countries are eligible for staking at Coinbase, with more being added to the list. For the most recent information, see this link about who is suitable for Coinbase staking.

Also, you must have your identity verified, hold the minimum balance required, and hold them at Coinbase and not Coinbase Pro.

3. How to start staking on Coinbase

Below is a short, step-by-step guide to depositing your Coinbase balance into staking.

Desktop

Login
Go to Settings and select Financial Services
Here, you can toggle the Staking Rewards icon on to opt in or out

Mobile

Login
Go to Settings on the iOS or Android app and select Financial Service
Here, you can toggle the Staking Rewards icon on to opt in or out
If you are interested in other services Coinbase offers, we recommend our Coinbase review.

How to stake Crypto on Kraken?

Kraken Staking in 3 simple steps

With Kraken, you can stake four different cryptocurrencies. Also, Kraken doesn’t have regional restrictions like Coinbase.

1. Create an account with Kraken

First, you must create an account with Kraken.

2. Log in to Kraken and Get staking assets

Log in to your Kraken account and buy or deposit any supported staking coins.

3. Select an asset to Stake

Click on Staking in the header menu.

Now, your screen will look similar to the screenshot below.

Make sure you have a positive balance of any of the staking coins.

Now, click the “+Stake” button in the upper right corner. After this, you enter how much you want to stake. Now you can relax and enjoy your staking returns.
 
If you are interested in other features from the Kraken exchange, we recommend or Kraken USA crypto exchange review.

Should I stake my crypto on Kraken or Coinbase?

Both are great alternatives, but Kraken offers better staking rates and APY for your cryptocurrencies. 

Also, Kraken generally has lower deposits, trading, and withdrawal fees. Therefore, we prefer to stake on Kraken rather than Coinbase between those two alternatives.

Another alternative, if you live outside the US, is Binance. Read more about Binance locked staking review and rewards 2022.

Staking VS Interest Account

There is a difference between staking and earning money on a crypto interest account.

  • The earnings from staking are generated from inflation or/and fees from the network.
  • The earnings from an interesting account can be generated from staking, Defi yield, or used as collateral to create loans and earn interest.
Read more in this post, what is a Bitcoin interest account?
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