The Best Cryptos to HODL at Coinbase for Rewards or Passive Income (2021)

02.02.2021, 15:39

You can ‘hodl’ crypto and earn automatic rewards. This is possible thanks to exchanges and custodians like Coinbase and Binance, but you can also hodl them in your own, secure crypto wallet and earn rewards. 



The title of this post could lead into a very deep subject, but we’re keeping things simple, narrowing things down to those projects listed in Coinbase. Most people already have an account here (if not, use our special link), but now it’s time to put it work! 


Indeed, the following projects allow holders of various cryptos to earn automatic rewards simply by keeping them in their Coinbase wallets. You don’t need to do anything: just buy some of the related crypto, sit back and watch the rewards accumulate. As long as the price of the actual crypto stays positive, you’re earning passively. This means you need to buy as low as the market allows, if possible (it may not be the right time to buy into a certain crypto, so try and time the market swings.)


As with Bitcoin, many projects still have huge ‘upside potential’, meaning they could increase dramatically in price. Of course, the opposite is also true, but with crypto currently on the rise and the outlook much rosier this year, blockchain endorsement, regulation and adoption could be closer round the corner than you’d think.


It’s wise not to believe all those scare stories, isolating crypto as the world’s only means of money laundering, or cause for concern!


Why is crypto of such interest? Because crypto doesn’t require a middleman such as Coinbase in fact, or any bank to function or be involved, and most users - it’s predicted - will end up preferring and trusting the use of crypto compared with having to go through, or deal at all, with some bank or custodian.


Some of these payment network alternatives to Bitcoin are becoming used more and more, but require ‘stakers’ to help secure them. Coinbase does the staking for you: you just earn a percentage of the rewards.


So let’s list the cryptocurrencies where you can earn these instant rewards on Coinbase, simply by ‘hodling’ them there. Many believe just owning Bitcoin is enough, but other networks should perhaps not be ignored, and may be used more in the long-term.


1. Ethereum 


Coming soon on 2021… Coinbase will allow you to earn more Ethereum since it will be becoming a staking network. Ethereum is set for big things, as it’s the most decentralised and trusted blockchain where all the hottest developers are working. So this is our choice for hodling in 2021 and beyond, when ETH2 begins to wake up. The time to buy into Ethereum at this stage is now.


2. Tezos


A fast blockchain network with the ability to evolve its own protocol, it is run by its community of stakers who help to secure and govern the network. 


Many partnerships indicate projects are looking to integrate with Tezos and they’ve also been hinted as a potential network to trial an official, digital euro. Learn more about Tezos on the Coinbase blog.


3. Cosmos (ATOM)


Cosmos is a super-fast staking network finding adoption by Binance Smart Chain and blockchain. Hold some ATOM on Coinbase and watch the passive rewards roll in. Learn more about Cosmos on the Coinbase blog.


4. Algorand (ALGO)


Algorand has seen some price growth recently due to some further regulatory clarity for its super-fast blockchain network. Learn more about Algorand on the Coinbase blog.


5. Dai (DAI)


Since crypto can be volatile, this stablecoin (pegged to the price of the US dollar) is always popular as a way to hedge in and out of crypto investing. It’s a safer bet if you’re not willing to lose money in crypto. Users frequently borrow DAI when crypto prices plunge in order to ‘buy the dips’ and accumulate more crypto. This means holding DAI is a good way to earn interest, where rates can rise dramatically when prices plunge, and you can find yourself earning where others are losing money. 


Some would say, it’s always useful holding some profits or some crypto in DAI. Others might say you could be holding other crypto - or Bitcoin - instead, so it’s a matter of making your own decisions, which will depend on wider market conditions. Learn more about earning DAI rewards on Coinbase.


Note: You can also earn rewards for USDC coin, an alternative stablecoin dollar peg, if you’re verified to level 2 on Coinbase.


Note: If you’re a Binance fan, then just holding its BNB token on the Binance exchange, will also enable you to earn attractive rewards including more BNB. 


Hopefully, this post may help those new to crypto understand the benefits of getting involved with a crypto network, its technology and holding long-term for passive income. 


For existing members of Coinbase, you may not have realised you can now earn passively with so many cryptos!


Every little helps, and will bring you round-ups of exciting projects elsewhere online. Get your own dashboard today and start earning points to swap for crypto. 


Contributed by Ade’s Crypto Press (Jan. 2021)
Also find more crypto-tips and NFTs at my site above.


Disclaimer - Always do your own research. This is not professional financial advice so you invest at your own risk. There is always risk with early projects. The cryptocurrency market contains speculative and volatile projects so never invest more than you can expect or afford to lose. 



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