Mark Weaden
The announcement will provide UK users with the ability to earn staking rewards with the upgrade version of Ethereum.
Coinbase announced back in February that they were planning to offer Ethereum staking once ETH2 arrived and would set up a waiting list for US users until the release. This is much the case with what we’re now seeing in the UK, a waiting list was launched today ahead of the rollout in the not so distance future.
Staking has become an integral requirement for many crypto enthusiasts, with most exchanges and investment accounts offering a base level of around 5% APR per year. Like all exchanges, Coinbase will have noticed a huge influx in Ether trading, so now with Ethereum 2.0 right around the corner, it’s come at the perfect time.
What will the staking rewards be?
Coinbase users will be able to convert their coins into ETH2 and their assets will then be added to the staking pool, generating rewards in return. All of this will be carried out by the exchange on behalf of customers. Staking has been around for some years now but has taken the industry by storm with Nexo and BlockFi offering some of the most competitive staking rewards on the market.
Staking has evolved and we’re now seeing customers staking portions of their funds, allowing them to convert, stake and earn rewards by splitting their digital assets, opposed to dealing staking the entire balance. These options make the crypto economy a far more expansive and interesting place to be than where it started out.
Why Coinbase is so appealing to users looking to stake Ethereum is that they are making the whole process easier for users. The exchange makes staking easier and more accessible, which is extremely difficult to do individually, which ultimately brings life to the crypto economy and highlights the importance of staking to new and inexperienced users.
With staking set at 5%, it’s going to be an incredibly competitive market. But, Coinbase already boasts a huge community of users and certainly has the potential to be one of the biggest exchanges in the world.
