Coinbase Staking lets users earn rewards by locking up their cryptocurrencies to support blockchain networks. This service is available for leading coins like Ethereum (ETH), Solana (SOL), and Cardano (ADA). Depending on the account, you can get APYs from 2% to as high as 6%. Coinbase takes a whopping 25% cut of the staking rewards, risking to wipe out overall profitability. Coinbase Staking provides an easy-to-use platform that’s perfect for beginners. Its custodial and insured model offers an additional layer of security, making it a very appealing option even with the fees.

Coinbase Staking is a locked staking model, so users are unable to trade their staked assets. On May 30th 2025, the platform announced that “Coinbase One” members can now earn boosted ETH rewards. Standard members have access to as much as 10% APY and premium members can earn up to 15% APY. This additional incentive makes staking ETH through Coinbase even more attractive. We think potential users will find the advantages worth the cost, but that depends on the understanding of the platform commission-based cost.

Understanding Coinbase Staking

With Coinbase Staking you can stake your cryptos, for example, Ethereum (ETH) or Solana (SOL). This makes it an effective way to bolster blockchain networks, and in exchange, you gain rewards! Unlike many of its competitors, the platform supports staking for popular crypto assets. This makes it straightforward for users to participate in the validation process of these networks. When users stake their assets, they play a role in the network’s overall stability and security, and they’re rewarded for it.

Coinbase is promoting the convenience and safety of its own staking service. The platform uses a custodial model. This allows Coinbase to hold the staked asset’s private keys and offer associated insurance, thereby mitigating some risks on behalf of users. Further, this structure is extremely enticing to first-timers in crypto staking. By doing so, it lessens the technical barriers usually posed by non-custodial staking, increasing its accessibility.

"Give your $ETH the boost it deserves." - Coinbase

Additionally, the platform’s intuitive interface makes it easy to stake, opening up the process to a wider audience. It’s important to consider the trade-offs. For one, you cannot trade staked assets and you’ll incur a commission on your rewards.

Fee Structures and APY Comparison

Coinbase Staking has APYs ranging from 2% to 6% for assets such as ETH, SOL, and ADA. These rates are very attractive. Coinbase charges a hefty 25% commission on the rewards you earn, which is something that potential stakers should definitely weigh. This commission cuts into your net return, so it’s important to compare Coinbase’s offering with other alternatives.

In addition to Coinbase, there are a plethora of other platforms that provide staking services with different APYs and fee structures. Kraken has an APYs between 4% and 7% with a 15% commission. As an example, Binance currently provides a range of APYs from 3% to 8% while charging fees between 5% and 20%. Lido, the market share leader in ETH staking but supporting multiple other networks, usually gives around 3%-4% APYs with a higher end commission of 10%.

Today, Lido provides one of the most interesting and valuable alternatives to users in DeFi. Its liquid staking allows you to freely transact with your staked ETH. Ultimately, the decision between these platforms will come down to user preference, risk tolerance and how much liquidity matters to you.

Security and Custodial Benefits

Coinbase Staking combines the power of a delegated and decentralized model with the security of a custodial and insured model. With Coinbase, Coinbase actually holds the staked assets on the user’s behalf. This acts as an insurance policy against future loss. The long-tail insurance coverage offers a deeper level of protection. This unique feature is particularly enticing to users who are concerned about the risks of keeping crypto in a wallet.

At the same time, this custodial approach cedes control of users’ private keys to Coinbase. This makes the trading experience much easier, but it adds an element of faith in the security of the exchange’s safeguards. Users must weigh the convenience and security benefits against the potential risks of relying on a third party to manage their assets.

"Staking is about trade-offs" - Ari Paul, CIO of BlockTower Capital.

There are significant trade-offs in using Coinbase Staking that require careful consideration. You have to weigh the platform’s ease of use and robust security measures against the commission platform’s higher fees and lack of asset control.