Coinbase offers a variety of opportunities to boost your balance by earning crypto, often free from any risk.
This is a great way for those who are fearful of losing their money to gently enter the crypto space. In fact, you could gain some knowledge in the process with the learn and earn program offered.
Below I have detailed the various ways to earn crypto for free at Coinbase.
Also consider: Reading my in-depth Coinbase Review
5 ways you can earn crypto on Coinbase
- Earn while you learn – Access educational resources, and be rewarded with free crypto
- Referral program – Receive crypto by inviting others to Coinbase
- Staking – ‘Lock away’ some of your crypto holdings to earn rewards
- Holding stablecoins – Hold digital currencies whose value is pegged 1:1 to the value of a fiat currency
- Lend your crypto – Deposit your coins in order for them to be lent out to borrowers and earn interest
Content is for informational purposes and is not investment advice. Past performance is not indicative of future results. Investing in cryptocurrency comes with risk.
1. Earn while you learn
Want to expand your knowledge of crypto? By entering Learning rewards you can access educational resources, and be rewarded with free crypto*.
How does it work? You will first be asked to watch a few short videos about crypto, after which you will be required to complete a quick quiz relating to the information you learnt in the videos.
By answering quiz questions, you can earn crypto into your Coinbase account.
This is available to all UK residents who have verified their account although only certain currencies apply at any given time, including The Graph (GRT), Amp (AMP), SHPING, and NEAR Protocol (NEAR).
The amount of crypto you earn will depend on the USD spot price of the crypto at the time you earned it but will amount to the value of $25, this is subject to change. Since the launch of this initiative, Coinbase has paid out a total of $100 million in free crypto to its users.
2. Referral program
Give your cryptocurrency a boost by inviting others to Coinbase. Simply share your referral link with your friends and family and earn $10 in crypto for each friend who accepts your invite, opens an account with Coinbase, and makes an eligible crypto trade.
The bonus amount can vary and your friend will also earn crypto when they use your link. You can find your referral link in your Coinbase mobile app or by visiting the Invite page on Coinbase.com.
If you are in a position to ‘lock away’ some of your crypto holdings for a specific timeframe, then you can earn rewards in doing so.
By locking some of your crypto holdings into a staking pool, you are contributing to the network’s security. This is how decentralised networks ensure all transactions are verified without the use of a bank.
The amount you earn will depend on the type of asset you stake. Assets include Tezos, Cosmos, or ETH with Cosmos earning 6.12% APY at the time of writing.
There are considerations to take into account before you commit to staking. Firstly you should be aware that during the staking period, you won’t have access to your crypto assets, which includes trading or transferring those assets. The time period can be a few hours or even a few days.
Another consideration is that your rewards are paid to you in native cryptocurrency, which can be subject to volatility in value.
4. Holding stablecoins
One of the issues of staking your crypto is that you are still exposed to volatile fluctuations in the value of cryptocurrencies. However, one of the ways around this is to hold stablecoins instead.
Stablecoins are digital currencies whose value is pegged to 1:1 to the value of a fiat currency. This can protect you from volatile swings in value should you wish to stake your crypto assets. However, it is important to consider that there is a period of time whereby you will be unable to access your staked stablecoin and therefore you cannot trade or transfer should the price begin to shift.
5. Lend your crypto
Lending crypto involves depositing your coins in order for them to be lent out to borrowers in return for interest.
This can generate a higher yield than the interest earned in a regular savings account. However, the interest you receive will fluctuate in value according to the value of the cryptocurrency. You will also need to remember that the interest paid will be in the cryptocurrency that has been lent.
There are two main options for lending your crypto, each with its own rewards and risks.
Decentralized Finance (DeFi) lending or DeFi rewards involves lending to third-party DeFi protocols (at Coinbase the DeFi protocol is Compound Finance). This is available on a select number of currencies which at the time of writing includes Dai and Tether.
The rewards you get are variable depending on market conditions however they have historically ranged between 2% – 10%.
If DeFi feels a little too risky for you, there is also the option to lend your stablecoin with CeFi. Whilst the rewards may not be as great, this is a safer option as it involves using a centralized exchange or institution that offers a yield in return for your coins, in this case, Coinbase.
What is DeFi?
DeFi stands for decentralised finance. It refers to a variety of financial marketplaces that facilitate peer-to-peer digital exchanges. The advantage of being decentralised is that in removing third parties, bank fees are eliminated. Instead, individuals will hold their assets in a crypto wallet or digital wallet.
Of course, being decentralised, the risk will be greater, as will the potential rewards. Therefore you should ensure that you understand how much risk you are assuming and never lend out more than you can afford to lose.
Coinbase has a DeFi browser built into their wallet, making this an easy place to earn free crypto by DeFi lending.
What is a centralized finance (CeFi) product?
CeFi provides scope to lend, earn interest on, buy, and sell cryptocurrencies using the security of a centralised institution. These centralised institutions or exchanges, such as you would find at Coinbase, offer protection for client funds and often implement KYC for added security.
Using CeFi crypto exchanges offers many advantages, including faster transactions, simpler transactions, customer support, liquidity, and security.
However, transaction costs will naturally be higher in CeFi which is why more and more users are turning to DeFi.
What is Coinbase?
Coinbase is a leading crypto exchange with an easy-to-use platform for buying crypto, selling crypto, spending crypto, and saving crypto. They also provide ample opportunity for earning free crypto and a crypto wallet for secure storage of assets.
Coinbase will also award all new accounts with £5 in Bitcoin when they sign up and conduct their first trade*1, which is another easy way to earn free cryptocurrency on the platform.
Coinbase has provided a number of useful tools for crypto trading in addition to some useful learning resources. This includes recurring buys that can be scheduled daily, weekly, or monthly in order to invest in cryptocurrency slowly over time.
It’s important to remember that whilst there is ample opportunity to earn free crypto on Coinbase, the value of your cryptocurrency is subject to market volatility and therefore could go up, or down, in value.
Capital may lose all value. Not regulated in the UK. Subject to CGT.
*Limited while supplies last and amounts offered for each quiz may vary. You must verify ID to be eligible and complete a quiz to earn. Users may only earn once per quiz. Coinbase reserves the right to cancel the Earn offer at any time.
*1 After your first trade, BTC will be added to your portfolio. Limited time offer. Offer available to new users who have not previously made a crypto purchase on Coinbase. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time.
All crypto staking reward rates are subject to change. Auto-enrollment in staking is available only in eligible jurisdictions and for eligible networks. Staking on some networks, including Ethereum, may require affirmative opt-in. Your ability to trade, send, sell or otherwise use your staked assets may be limited and subject to network unbonding periods. You’ll be unable to trade, send, or sell the ETH you’ve staked, including any rewards earned, if and until the Ethereum upgrade occurs and withdrawals are enabled.