As a cryptocurrency investor, it’s virtually impossible to avoid using Coinbase in some way, shape, or form.
It’s based in the United States, which is a huge plus, and offers a convenient, secure interface that’s used by over 89 million folks.
But Coinbase isn’t perfect. Not all cryptocurrencies are available to buy or sell, and there are limited options when it comes to staking.
For example, investors weren’t able to use Coinbase to earn staking rewards on Cardano (ADA)…
That is, until last week when Coinbase introduced Cardano staking.
Remember that staking is basically like owning a high-growth stock that also pays a fat dividend. It’s a no-brainer in my book.
And staking on Coinbase is relatively easy, so to be able to stake Cardano on the same platform you’re likely already buying it through sounds like a sweet deal.
The news went over well with investors, who were so excited that the price of Cardano surged nearly 9% in the hours following Coinbase’s announcement.
But don’t follow the crowd and start staking your Cardano on Coinbase just yet.
Because in the flurry of excitement, nobody seemed to stop and actually think about whether staking Cardano on Coinbase is a good idea or not.
The Pros and Cons of Staking Cardano on Coinbase
Here’s what you need to know about staking Cardano on Coinbase:
The big takeaway here is that while staking Cardano through Coinbase is easy, and might make sense for investors who have a small position, it’s far from your best option.
There are a number of other ways to stake Cardano for higher rewards – they just take a little bit more effort that will be well worth it in the end.
Until next time,
Chief Crypto Strategist, American Institute for Crypto Investors