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There’s more than one way to earn money through cryptocurrency investing. The easiest and most popular is to pursue gains through old-fashioned appreciation. That’s when you buy a cryptocurrency in the hope that it will grow in value over time and allow you to sell it for more than you bought it. But you can also put your crypto to work earning passive income, which you can collect without ever selling your position, similar to how shareholders receive periodic payments from dividend stocks. By staking crypto, your digital holdings can earn yields just like the money in your savings account earns interest.
Read: Looking To Diversify In A Bear Market? Consider These 6 Alternative Investments
Bitcoin doesn’t allow staking, but Ethereum, the world’s No. 2 cryptocurrency, does. Coinbase is the biggest crypto exchange in America, so if you’re considering putting your crypto to work through staking, the most popular stakeable coin and the biggest exchange in the country are good places to start.
Keep reading to learn how to stake Ethereum on Coinbase.
How Do I Start Staking ETH on Coinbase?
In order to start staking ETH on Coinbase, you’ll have to sign up for a Coinbase account, add Ether (ETH) to your digital wallet and make sure that you meet the exchanges residency requirements.
Signing up with Coinbase is a fairly straightforward process. You’ll need a government-issued ID to prove that you’re at least 18 years old — Coinbase does not accept passport cards. You’ll also need a phone or computer connected to the internet and an active phone number to get started on the six-step signup process:
- Enter your information, read the user agreement and create an account
- Verify your email address
- Verify your phone number
- Add your personal information
- Verify your identity
- Link a payment method like a bank account, debit card, PayPal, Google Pay or Apple Pay
To get started, you’ll need to have Ether in your digital wallet. Ether is the native coin of the Ethereum ecosystem. If you don’t already own ETH, you can keep it simple by purchasing it right there on the Coinbase exchange.
It’s important to note that Coinbase is available in most of America, but the exchange is not yet open to residents of Hawaii. It is available in New York, but residents of that state are forbidden from staking several cryptocurrencies, including ETH.
You can stake ETH on Coinbase everywhere else in the country.
Is Staking Your Ethereum Worth It?
By staking Ethereum, you’…….