In this article, we will compare Kraken staking rates APY VS Coinbase staking rewards
We answer questions like:
- How to stake on Kraken or Coinbase?
- What cryptocurrencies can I stake on Kraken and Coinbase?
- Where can I earn the best interest rates on each cryptocurrency?
Staking is a great way to get crypto passive income.
However, staking is only possible for specific cryptocurrencies running proof-of-stake (PoS). For example, Bitcoin is running proof-of-work(PoW) and is unavailable for staking.
Intro - What is staking Proof-of-stake?
When you stake, you actively participate in transaction validation 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 Rates VS Coinbase Staking Rates
As previously described, you can only stake proof-of-stake cryptocurrencies. In addition, if you are going to stake on an exchange, like Kraken or Coinbase, you are even more limited.
Crypto
APY Kraken
APY Coinbase
- 5-9%
- 9-12%
- 4-6%
- 2.60%
- 4-7%
- 3.28%
- 5-8%
- 4%
- 5%
- 4.63%
- 12-15%
- 5%
- 1-4%
- 5.75%
- 18%
- 4-7%
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
- Best Ethereum ETH interest rates
- Best Algorand ALGO interest rates
- Best Cosmos ATOM interest rates
- 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 just HODL them 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?
Staking crypto on 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
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 adding to the list all the time. 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 you will find 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 offered by Coinbase, we recommend our Coinbase review.
How to stake Crypto on Kraken?
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 of the 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.
- Ethereum 5-7%
- Tezos 5.5%
- Kusama 12%
- Cardano 4-6%
- Solana 6.5%
- Kava 20%
- Cosmos 7%
- Polkadot 12%
- Flow 4.6%
Kraken VS Coinbase Summary
Let’s summarize the Kraken staking rates APY VS Coinbase staking rewards.
- Kraken is offering better staking rates
- Both Kraken and Coinbase are regulated US exchanges
- Both Kraken and Coinbase are serious crypto exchanges with an excellent track record.
- Coinbase’s user interface is a bit more user-friendly than Kraken’s.
- In general, Kraken charges lower exchange fees than Coinbase. Read more: How much does Coinbase charge in exchange fees?
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.
