In this guide, we’ll break down 10 simple ways to get started making money on Coinbase. By the time you’re finished reading, you’ll be ready to start earning crypto rewards!
1. Invest in cryptocurrency for the long-run
One of the most common ways to make money on Coinbase is simply to buy and hold cryptocurrency for the long-run.
Investing in a successful project early can be a great way to earn a large return on investment. Historically, early investors in cryptocurrencies like Bitcoin and Ethereum have seen massive profits!
It’s important to note that the cryptocurrency market is volatile and has seen periods of rapid growth and large crashes in the past few years. In addition, it can be difficult to tell which cryptocurrencies will gain value in the future.
2. Coinbase sign up rewards
Coinbase offers generous rewards to new users. As of the time of writing, Coinbase offers up to $200 in cryptocurrency as a sign-up bonus!
To receive a sign up reward, you’ll need to create a Coinbase account and buy cryptocurrency.
Once you’ve done this, you’ll be able to spin a wheel to receive sign-up rewards between $3 and $200 in USDC or Bitcoin! According to Coinbase, 89% of users receive between $3-$5, while 11% of users receive between $6-$200.
3. Learn and Earn rewards
Coinbase offers Learn and Earn rewards to investors! After you watch a short module that describes the basics of how a cryptocurrency works, you can take a quiz to earn rewards.
Coinbase partners with small cryptocurrency projects to offer rewards to investors. It’s a win-win for both parties — Coinbase gets to offer free rewards to users, while cryptocurrency projects get the opportunity to reach a bigger audience.
Learn and Earn modules typically don’t offer large sums of cryptocurrency to investors (rewards range from $3-5). However, they can be a great way to earn free coins with minimal effort.
Learn more about Coinbase here.
4. Short-term trades
Some Coinbase users make short-term cryptocurrency trades to make money.
It’s important to remember that short-term cryptocurrency trading can be risky and volatile. If you choose this route, you should be cautious and never trade more than you can afford to lose!
If you choose this route, you may want to use Coinbase Advanced. Coinbase Advanced is free to use for all users and comes with features for professional traders — including lower trading fees than the standard version of the platform and a comprehensive suite of analytic tools!
5. Use Coinbase One
If you’re trading cryptocurrencies frequently, you should consider using Coinbase One.
Coinbase One is a subscription service for advanced traders. The subscription costs $30 a month and offers benefits like phone support, trading with $0 fees, and up to $1 million in account insurance.
If you’re spending more than $30 a month in trading fees, Coinbase One will pay for itself. Typically, you’ll hit this amount if you’re trading more than $800 in cryptocurrency in a month!
6. USDC rewards
Coinbase offers interest rewards to customers who hold USDC — a stablecoin created by Coinbase that is pegged to the U.S. dollar.
At the time of writing, Coinbase offers 4.6% interest rewards on USDC — making it a great way to earn a passive income. The average interest rate for holding your money in a savings account with a bank is 0.42% as of 2023!
According to Coinbase’s website, interest rewards for USDC come out of Coinbase’s own funds and are designed to encourage usage for the stablecoin.
7. Staking
Coinbase does offer the ability to stake certain cryptocurrencies through Coinbase Earn. This allows users to ‘lock up’ their holdings, validate transactions for Proof of Stake blockchains, and earn rewards!
In recent years, regulators have made the argument that staking as a service should be considered an ‘unregistered security’ and that exchanges like Coinbase should not be allowed to offer staking. Because of potential regulatory issues, Coinbase paused offering staking in four U.S. states — California, New Jersey, South Carolina and Wisconsin.
At this time, it’s difficult to tell whether exchanges like Coinbase will be allowed to offer staking services in the future. However, Coinbase has remained vocal that the company is committed to offering staking to customers.
Start staking with Coinbase here.
8. Coinbase affiliate program
Coinbase’s affiliate program allows you to earn money by getting more people to sign up for the platform through your affiliate link!
Coinbase gives users the option to apply for their affiliate program. If you are approved, you can place an affiliate link on your website and in your content. When users sign up through your affiliate link, you’ll earn 50% of their trading fees for the first month.
It’s important to remember that Coinbase’s affiliate program is geared towards content creators who can reach a large audience! If you have a successful business, blog, podcast, YouTube channel, or newsletter, a crypto affiliate program can be a great way to earn money!
9. Earn cash back with the Coinbase Card
Coinbase offers a debit card that allows holders to earn cashback rewards in cryptocurrency!
Currently, Coinbase offers rewards between 1-2% on every purchase. You can choose to receive your rewards in cryptocurrencies like Bitcoin, Ethereum, USD, Dai, and AMP!
There’s no need to spend cryptocurrency to use the Coinbase debit card. The card supports purchases in both U.S. dollars and USDC!
10. Coinbase NFTs
Coinbase NFT is a marketplace that allows investors to buy, sell, and create NFTs.
NFT trading can be a great way to earn money! In the past, NFT projects like Bored Ape Yacht Club have gone up in value significantly by offering exclusive benefits to NFT holders.
It’s important to keep in mind that Coinbase NFT is not nearly as active as other NFT marketplaces. Many NFT traders choose to use alternative marketplaces with more volume such as OpenSea and Blur.
How to sign up for a Coinbase account
Signing up for a Coinbase account is quick and easy. Here’s a step-by-step guide to help you get started. Remember, you’ll need to be at least 18 years old and have a government-issued ID to finish the process!
- Go to Coinbase and click the ‘Sign Up’ button. This should be on the top-right corner of the homepage.
- Next, you’ll need to enter your personal information. This includes your email address, phone number, date of birth, address, and the last four digits of your social security number.
- Verify your email and phone number.
- Upload a photo of your government-issued ID.
Once your information is reviewed and identity is verified, you’ll be able to get started trading on Coinbase! The verification process may take up to 48 hours.
Can I withdraw my money from Coinbase?
Coinbase allows you to withdraw your cryptocurrency to an external wallet or withdraw your fiat currency to a bank account.
In recent years, exchanges like FTX and Voyager have gone bankrupt, leaving investors unable to withdraw their holdings. That makes it important to choose an exchange for a reputation for safety and security. Coinbase is regarded as one of the more secure exchanges to store your cryptocurrency.
If you’re looking for another option to hold your cryptocurrency, you can consider using a software or hardware wallet.
Do I need to report my Coinbase earnings to the IRS?
In the United States, cryptocurrency income is subject to tax. This applies to any ordinary income and capital gains that you earn on Coinbase or other exchanges!
If you earn cryptocurrency rewards — such as referral and Coinbase Earn rewards — you’ll recognize income subject to income tax.
If you dispose of cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
You should keep a complete record of your income and capital gains to report your taxes to the IRS. Alternatively, you can use crypto tax software like CoinLedger to generate a complete tax report with the click of a button!
Get started with a free CoinLedger account today.
