In this series we will analyse different types of cryptocurrencies and their staking/dividend potentials. All posts in this blog will have a similar setup. Every post will begin with this introduction, so feel free to skip ahead if you have already read this. Second, we will describe the cryptocurrency in a brief overview. This will be done by discussing the essential idea behind the coin and the highs, and lows in the past year and all time. Afterwards an analysis on the dividend distribution will be done which will be followed by several examples. Lastly a conclusion will be given to the cryptocurrency combined with my opinion on whether or not you should hold this coin. From this point forward, all rewards will be addressed as dividends, regardless of their origins.
N.B. This blogpost references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Always do your own research.
Coinbase
I shouldn't have to explain what COINBASE is but I will do it in a few sentences. Coinbase is one of the biggest and most-secure crypto exchanges in the world. They realised this via their compliance with multiple financial watchdogs and a mandatory KYC. Where they lacked in the different amount of tradeable tokens, they started catching up with other exchanges such as BINANCE or OKEx. Moreover, with their Coinbase Earn program users can earn an easy $30( and an additional $50-100) in different cryptocurrencies such as EOS, XLM, COMP, XTZ and DAI.
Now Coinbase is also implementing 'staking' on their platform. By holding DAI in your (non-pro) coinbase wallet you earn a 2.0% APY. It is available for customers from the following countries: United States (except Hawaii), the United Kingdom, Spain, Netherlands, France, and Australia. All you need to do is hold at least 1 DAI and you are automatically enrolled. After a 5 day period, you are paid your DAI on a daily basis.
For US customers(excluding New York and Hawaii) it is also possible to stake XTZ for a 5.0% APY. All you need is to hold your XTZ on Coinbase.
Why should you at least consider it?
- It is a great method to earn at least some extra DAI when you have some stablecoins on the side lines for a correction or when taking profits.
- Moreover, you do not have to enter the DeFi environment to get these (lowered) gains however you don't have to set it up.
- Furthermore, in several cases it is not worth it to store your DAI in a DeFi network due to additional gas fee. These fees are not applicable when staking via Coinbase. This is especially useful for those with low amounts of DAI or for those who want to store it for a short period.
- Finally, even when staking your DAI remains liquid and instantly accessible.
To conclude , staking DAI via Coinbase is a definite go from me if you want to have some DAI. Your DAI is not locked and you have 0 fees connected to it.
