As the cryptoeconomy expands and changes, there are more opportunities than ever to earn incentives for holding cryptocurrency, learning about it, or interacting with decentralised finance (or DeFi) apps. The most of these options are available directly within the Coinbase app or website, with the exception of the last one, which needs the usage of a wallet with a built-in DeFi browser, such as Coinbase Wallet. We’ll go over some of the most effective strategies to grow your cryptocurrency through rewards right now.
1. Coinbase learning rewards:
Coinbase Earn is the simplest method to get started earning cryptocurrency on Coinbase. In exchange for understanding the fundamentals of particular cryptocurrencies (typically through short videos), you can obtain some to try for yourself.
Since Coinbase Earn’s introduction in 2018, customers have received over $100 million in cryptocurrency, including 0x, Basic Attention Token, Zcash, Stellar Lumens, EOS, Dai, Tezos, Orchid, Compound, Celo, Nucypher, and the Graph.
Stake some of your crypto:
Many cryptocurrencies currently use a “Proof of Stake” consensus method, which allows their decentralised networks to verify and protect all transactions without the involvement of a bank or payment processor.
With such cryptocurrencies, you can receive rewards merely by contributing to the network’s security by “locking” some of your holdings into a staking pool for a set period. In exchange, you will receive incentives. This is a good option if you intend to hang onto the cryptocurrency for a longer period of time rather than sitting idle, you can put it to work for you.
Turn your dollars into stablecoins:
One possible disadvantage of staking incentives is that they are paid in the native coin, which might be volatile. However, you can receive rewards simply by purchasing and storing dollar-pegged stablecoins such as Dai and USD Coin (USDC).
As of June 2021, you can receive 2.00% APY rewards simply by keeping Dai in your Coinbase account. You can also earn 0.15% APY by owning USD Coin – and much more through USDC Lending (see tip #4)
Lend some of your crypto with CeFi:
It might be difficult to earn a decent yield while keeping money in a standard savings account. But stablecoins have enabled a very similar concept. A increasing variety of centralised finance (or CeFi) businesses have arisen, offering a tempting return for maintaining some of your cryptocurrency holdings in stablecoin form. Coinbase clients seeking for a low-risk investment can earn 4.00% APY using USDC. Crypto deposits are neither insured or guaranteed by the FDIC or SIPC.
Lend some of your crypto with DeFi apps:
Lend some of your cryptocurrency with DeFi apps.
If you’re willing to take on more risk in exchange for greater rewards, you might try lending part of your cryptocurrency using DeFi apps. (DeFi is still a new technology, so don’t risk more than you can afford to lose if you decide to experiment with these protocols.)
DeFi allows for transparent, peer-to-peer lending with potentially better yields than standard financial solutions. Investors that contribute cryptocurrencies to DeFi lending protocols earn rewards for lending to borrowers. You’ll need a cryptocurrency wallet that works with DeFi apps. Coinbase Wallet (an independent product from the main Coinbase app that may be used by anyone, not just Coinbase clients).Via Coinbase Wallet,You can try lending to some of your simplified encryption the simplest way to start with Stablecoin via Defi protocols such as the boat or AAVE.
