We all know by now that the cryptocurrency industry is a lucrative venue for disrupting traditional financial markets and bringing economic freedom to your fingertips. As such, what better way to do it if not by using Coinbase, one of the largest digital currency exchanges that caters to both beginners and professional traders and investors?
Do you want to earn crypto rewards and generate passive income? With a Coinbase account, anything could be possible.
And suppose you’ve been in the crypto world long enough. In that case, you probably know that many crypto exchanges and educational platforms offer different ways traders can earn cashback rewards, cryptocurrency rewards, or any other way through an incentive program.
Moreover, based on the latest statistics about Coinbase, the monthly active users (MAU) reached over 8 million in Q1, 2024. Furthermore, they are fully optimized to offer the best possible user experience. As such, Coinbase offers the web version and the mobile app to ensure that frequent traders are always connected, even on the go.
How to make money on Coinbase? Read further and discover 10 ways to earn money on Coinbase. Since we’ll delve into anything you need to know about the Coinbase rewards, save this, as it could be your one-stop solution to earn passive income.
1. Coinbase Learn and Earn Rewards (When Available)
For beginner traders, the Coinbase Learn and Earn Rewards program is a great way to set themselves up for success, as learning and earning go hand in hand. Moreover, we must appreciate Coinbase’s devotion to growing a thriving and skillful community of fellow professional traders through educational content.
To earn crypto rewards, you simply need to watch the educational videos and tutorials on different cryptocurrencies, complete the simple task quiz, and there you have it – your crypto will be allocated to your external wallet or Coinbase wallet in just a few moments.
This is a win-win situation for you as a trader and for new and emerging crypto projects, as you are rewarded for your interest. In contrast, small cryptocurrency projects have the chance to reach a broader audience.
Therefore, Coinbase regularly switches the crypto assets, so it is sometimes different. Their educational tutorials are now about Near Protocol (NEAR), SHPING (SHPING), and others.
So, in general, each tutorial gives rewards paid around $3-5, yet little by little, you can sum up a pretty good passive income with minimal effort.
As last mentioned, ensure your verification process is in place and that you are confirmed eligible.
2. Earn Money Through the Coinbase Affiliate Program
And since you’ve started your journey and earned rewards in the form of different crypto assets, now it’s the time to share the good news with your peers so they can also earn free coins through Coinbase’s Affiliate Program.
What is remarkable about this program is that it gives you the necessary power, and you are in control of your crypto rewards earned through their campaign tracking features, such as the campaign testing feature, performance data, and custom reports, so that you are always in the known.
Additionally, you will benefit from a local payment in your local currency, a 50% referral commission for the first three months, and simply get paid electronically, either in PayPal or directly to your bank account.
How does the Affiliate Program work? Create your Coinbase account, become an affiliate, promote Coinbase through the affiliate link, and earn commissions.
It is essential to understand that Coinbase’s affiliate program is best for content creators, as they reach a larger audience through social media platforms like YouTube, crypto newsletters, and other extensive methods. Yet, no one says you couldn’t test it and see how it goes.
3. Stake with Coinbase Earn
For those interested in staking rewards, the Coinbase Earn Program is here to put your crypto assets to work, whereby locking up your crypto holdings and validating the Coinbase transactions for the Proof-of-Stake blockchain could only bring you one step closer to earning interest rewards. Also, please note that you can unstake your cryptos with no lock-up periods inflicted by Coinbase.
Furthermore, since crypto regulatory bodies have raised concerns regarding the staking services, marking them as unregistered security, Coinbase paused their staking services in certain states, such as California, New Jersey, South Carolina, and Wisconsin.
However, since the Coinbase Earn launch, traders have received more than $100 million in crypto assets, such as the Basic Attention Token, Zcash, Stellar Lumens, EOS, Dai, Tezos, Orchid, Compound, Celo, Nucypher, and the Graph.
Furthermore, Coinbase offers over 100 crypto assets you can choose from, such as Ethereum, Solana, Cardano, Cosmos, and many others.
4. Coinbase One and Saving on Fees
For those who aren’taren’t quite familiar with Coinbase One, this is a $30 subscription service dedicated to advanced traders that offers multiple benefits, such as zero trading fees on hundreds of assets, priority customer phone support, pre-filled tax reporting, to $1 million in account insurance, exclusive prizes like the $10,000 worth of BTC, besides limited-time partner deals.
So, if you’re trading more than $1000 per month, and the fees exceed $30 per month, Coinbase One could be the way to go.
5. The Advantages of Using Stablecoins
Here’s the thing: This exchange offers 5.1% reward rates for holding your USDC, a stablecoin created by Circle, on your Coinbase account. Some of the USDC benefits include its stable value and high volatility times, as USDC was designed to be pegged to the US dollar and redeemable on a 1:1 basis.
Then there’s the aspect of USDC being fully backed by reserved assets, meaning that each USDC is backed by one dollar, held into US-regulated financial accounts.
Additionally, USDC runs on multiple blockchains, such as Ethereum, Solana, Avalanche, Tron, Stellar, and others.
How do you get USDC and earn rewards? Log in your Coinbase account, convert USDC, and earn just by holding the currency into your account.
6. CeFi & DeFi Crypto Lending
If you’re still interested in how to make money on Coinbase, yet none of the options presented until now weren’t your top choice, then you should read further, as CeFi and DeFi lending protocols could be the solution you’ve been waiting for.
In the past years, many CeFi and DeFi products appeared on the market, offering tempting yields for keeping some of your crypto holdings in stablecoin form while offering interest rewards for lending to borrowers. But let’s break it down.
When discussing CeFi, Coinbase offers low-risk investment opportunities, offering rewards of 4.00% APY via USDC. Please note that the FDIC or SIPC doesn’t insure or guarantee crypto deposits.
In contrast, DeFi lending protocols present higher risks for higher returns, and if you want to start small and test this strategy out, you can do it via DeFi apps. Indeed, DeFi protocols enable peer-to-peer lending for higher yields compared to other traditional financial investments, yet it is essential to know the basics before jumping into the waters.
So, find a crypto wallet compatible with DeFi apps, and start with a stablecoin, such as Ave or Compound. Start small, and increase your lending based on your experience.
7. Long-term & Short-term Trading on Coinbase
Just as the name says, long-term and short-term trading refers to the amount of time Coinbase users hold on to that cryptocurrency.
Long-term trading means that the trading horizon is in the spawn of months or years to profit from the assets’ value appreciation. As such, Coinbase users will do less buying and selling, focusing on how the asset performs regarding the crypto market fluctuation.
For example, if you believe that Bitcoin will continue to grow its value over the following months or even years, you buy it and hold onto it.
On the other hand, short-term crypto trading could be riskier, and traders must approach this strategy with caution.
Regardless of your chosen strategy, only invest what you can afford to lose, and be sure to use Coinbase Advanced, which is free of use and offers multiple professional features, such as lower trading fees, compared to the standard version of the exchange.
8. Earning Cash Back with a Coinbase Card
Here’s another way to earn cash back: using the Coinbase Card, a Visa debit card that turns purchases into crypto rewards, such as Bitcoin, Ethereum, and others, through a 1-2% cashback reward on every purchase.
Furthermore, you can use either fiat currency or cryptos anywhere and anytime, as this Visa card is accepted by more than 40M merchants globally. Also, you’ll benefit from no hidden fee and earn cryptocurrency rewards on every purchase, on top of high-security features like 2FA, card freezing, pin management, and others.
The setup is easy to follow, and you can instantly use your card once approved. Easy Coinbase sign up, simply top-up your card and benefit from the 24.7 support if things go south or you need extra reassurance.
9. Take Advantage of the Coinbase NFT Marketplace
For those interested in NFT trading, Coinbase comes into the scene with its NFT marketplace, designed to allow investors to sell, create, and buy NFTs, which could be a great way of earning money.
Indeed, Coinbase NFT may not be as popular as other marketplaces, but it could be worth trying, especially when it offers a creator hub to design, sell, and promote an NFT collection.
10. Day-trading
Indeed, Coinbase is one of the most well-known exchanges within the crypto world, and it seems like a solid choice for traders due to its ease of use and advanced features and products, with high liquidity. However, when it comes to day trading, there might be better solutions to make money on Coinbase.
So, Coinbase Advance, a platform dedicated to advanced traders, could be the way to go for day trading as it has relatively lower transaction fees, up to 0.6%, compared to the Coinbase standard.
FAQ
How Much Does Coinbase Earn Pay?
The Coinbase Earn program rewards you up to 13.25% for Cosmos but varies depending on the chosen cryptocurrency. For example, USDC holds 5.10% APY, Ethereum 2.42%, Solana 4.68%, and Cardano 1.96% APY.
Is Coinbase Earn Legit?
Yes, Coinbase Earn is legit. This cloud-staking solution the exchange offers helps you become a validator and learn how to stake your crypto to earn rewards.
Do I Need to Report My Coinbase Earnings to the IRS?
The truth is that the cryptocurrency industry is rapidly growing, and crypto reporting can be tricky, as gains from certain activities count as ordinary income.
Coinbase reports some of your crypto taxes to the IRS to comply with the regulations, such as the 1099-MISC forms for US traders who earned more than $600 in crypto rewards or staking during a given year.
However, if you buy crypto for $10,000 and sell it for $50,000, you face $40,000 of taxable capital gains.
Conclusion
As you’ve discovered, Coinbase offers a variety of ways to earn money in the crypto world, from beginner-friendly options like learning and earning rewards to advanced strategies like staking and trading.
Whether new to crypto or a seasoned investor, Coinbase can be your one-stop shop to start growing your crypto portfolio. So, open your Coinabse account today and explore the exciting possibilities!
