How to Make Money on Coinbase | Expert Guide 2024

Zac McClure
ByZac McClure, MBAReviewed byAlex MilesUpdated on April 17, 2024 · minute read
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  • Crypto users can leverage Coinbase to diversify their income through various strategies, including long-term crypto investments and crypto staking. Different strategies carry different levels of risk, so always do your own research before delving into any crypto activity.

Cryptocurrency is a revolutionary force in financial markets, and Coinbase stands out as a reliable gateway for both novices and seasoned investors to explore and capitalize on diverse income-generating opportunities.

This comprehensive guide provides insights and strategies to empower users to make informed decisions and maximize their earnings on Coinbase, and shows you how to earn money from Coinbase beginning today.

Best ways to make money on Coinbase

Long-term crypto investments

Investing in cryptocurrencies for the long term has proven to be a lucrative strategy, although of course it comes with significant risks as well, which are important to understand before beginning to do anything in crypto. 

Notably, many early backers of projects like Bitcoin and Ethereum witnessed substantial profits. While the potential returns are enticing, it's crucial to navigate the market's volatility and carefully choose projects with promising futures.

A strategic, patient approach to long-term crypto investments can yield substantial returns. It's essential to consider factors such as a crypto project's fundamentals, development team, and real-world use cases. Building a diversified portfolio with a mix of established and promising projects with smaller market caps can mitigate risks and provide a foundation for long-term success.

Coinbase sign up rewards

Coinbase entices new users with sign-up rewards. Creating an account and making a cryptocurrency purchase can spin a wheel for sign-up bonuses ranging from $3 to $200 in USDC or Bitcoin. This can be a strong incentive, with 89% of users receiving between $3 to $5 and 11% scoring between $6 to $200.

Participating in the sign-up rewards program not only provides an initial boost to your portfolio but also introduces you to the platform's interface and features. As a new user, take the time to explore Coinbase's functionalities, understand market dynamics, and familiarize yourself with the different cryptocurrencies available on the platform.

Learn on Coinbase and earn rewards

Coinbase's Learn and Earn program offers an educational platform for users to enhance their understanding of cryptocurrencies. Upon completing short modules and quizzes, investors are rewarded with cryptocurrency, typically ranging from $3 to $5.

This mutually beneficial system supports small cryptocurrency projects by exposing them to a broader audience while enabling users to earn effortlessly. Engaging with educational content not only adds to your knowledge but also provides an opportunity to explore and invest in lesser-known projects that align with your investment strategy.

Short-term trades on Coinbase

For users seeking quicker returns, short-term trading on Coinbase is an option. However, caution is essential due to inherent risks, extreme market volatility, and tax considerations. Coinbase provides advanced tools and lower trading fees for professional traders, ensuring a comprehensive platform for those engaging in short-term trading.

Short-term trading demands a proactive approach, staying updated on market trends, and utilizing the analytical tools provided by Coinbase. While potential profits can be lucrative, it's crucial to set realistic goals, implement risk management strategies, and continuously refine your trading approach based on market dynamics.

USDC rewards

Holding USDC (Coinbase's stablecoin pegged to the US dollar) can generate passive income. With a 5.1% interest rate at time of writing, this surpasses traditional savings account rates, making it an attractive option for those looking to earn while holding a stable asset.

Consider allocating a portion of your portfolio to USDC to capitalize on the stable interest rewards. This strategy provides a low-risk avenue for earning passive income, especially for investors who prefer stability while participating in the dynamic cryptocurrency market.

Make use of Coinbase One

Frequent traders may find value in Coinbase One, a subscription service costing $30 per month. This service offers benefits such as phone support, fee-free trading, and up to $1 million in account insurance.

For users regularly exceeding $30 in monthly trading fees, Coinbase One becomes a cost-effective solution. Evaluate your trading frequency and preferences to determine if the additional features and benefits offered by Coinbase One align with your trading style and financial goals.

Crypto staking

Coinbase offers crypto staking services through Coinbase Earn, allowing users to “lock” their holdings and earn rewards by validating transactions for Proof of Stake blockchains.

Despite regulatory hurdles, Coinbase remains committed to offering crypto staking services, emphasizing the potential future inclusion of this feature. Staking on Coinbase provides users with an additional, low-risk avenue to earn passive income while participating in the blockchain network.

Coinbase affiliates

Content creators with significant reach can capitalize on Coinbase's crypto affiliate program. By applying and receiving approval, users can place affiliate links on their platforms, earning 50% of the referred users' trading fees for the first month.

This presents an opportunity for influencers and content creators to monetize their reach and benefit from the growth of the Coinbase user base. Explore the affiliate program's terms, create engaging content, and leverage your audience to generate additional income through the referral system.

Coinbase card cash rewards

The Coinbase crypto debit card presents an opportunity to earn cashback rewards in cryptocurrency, ranging from 1-2% on every purchase. Users can opt for rewards in various cryptocurrencies, making it a versatile option for those who prefer to use traditional currencies like USD or stablecoins like USDC.

The ability to earn cryptocurrency rewards on everyday transactions enhances the utility of the Coinbase crypto debit card. Consider integrating the Coinbase card into your daily spending routine to accumulate crypto rewards and diversify your earnings beyond traditional investments.

Exploring Coinbase NFTs

Coinbase NFT is a marketplace where users can buy, sell, and create NFTs. While not as active as other marketplaces, it allows investors to explore the potential of NFT trading.

Delve into the world of non-fungible tokens (NFTs) on Coinbase NFT to discover unique digital assets and engage in the growing trend of digital collectibles. While crypto markets are famously volatile, exploring NFTs provides an opportunity for creative expression, investment diversification, and participation in the evolving landscape of digital ownership.

How to sign up on Coinbase

Getting started on Coinbase is straightforward.

  1. Go to Coinbase and click “Sign Up”.

  2. Enter your personal information, including email address, mailing address, phone number, date of birth, and the last four digits of your social security number.

  3. Verify your phone number and email.

  4. Upload a photo of your government ID.

  5. Once your information is verified, you can trade on Coinbase. The verification process may take up to 48 hours.

Can I withdraw cash from Coinbase?

Yes, Coinbase allows withdrawals from external wallets or fiat currency to bank accounts, emphasizing user safety and security. Coinbase provides clear instructions for withdrawals in their help guides

Always do your own research before undertaking any activity in crypto, and understand the risks involved. Coinbase is a reputable platform that makes it easy and simple to withdraw, but it’s important to understand the process before doing so. And then there are tax considerations.

Are my Coinbase earnings taxable?

With income and capital gains from crypto inevitably come tax consequences, which you’ll need to consider now you know how to use Coinbase to make money in crypto. 

Here is a brief breakdown of some of the critical considerations for Coinbase users come tax time. When in doubt, consult one of our expert crypto tax specialists for guidance concerning Coinbase taxes and all your crypto tax concerns.

Tax obligations for Coinbase users

In the US, cryptocurrency income is subject to taxation both as income and/or as capital gains, depending on how you acquire and dispose of a given crypto. Users must report any ordinary income and capital gains earned on Coinbase or other exchanges. This includes cryptocurrency rewards from referrals and Coinbase Earn.

International taxpayers can refer to our helpful country guides for specifics in their region.

Simplified tax reporting with TokenTax

Now you’ve learned how to make money on Coinbase, to ease the crypto tax reporting burden, leverage crypto tax software like ours at TokenTax. These tools generate comprehensive tax reports, ensuring accuracy and compliance with IRS regulations. If you have questions about crypto taxes, consult one of our crypto tax professionals for guidance.

Schedule a FREE crypto tax consultation

Frequently asked questions about making money with Coinbase

Here are answers to frequently asked questions about how to make money on Coinbase, how to use Coinbase to make money, cashing out of Coinbase, and how to earn money from Coinbase.

What are other ways to make money with crypto?

Beyond Coinbase, numerous platforms and programs offer opportunities for earning with cryptocurrencies. Exploring alternative avenues ensures a diversified income stream. Consider signing up for our affiliate program and make money by sharing TokenTax with fellow crypto enthusiasts.

Does Coinbase pay real money?

Yes, Coinbase allows users to convert their earnings into fiat currency, including the USD, providing tangible, realized income and capital gains from cryptocurrency activities.

How long before I can cash out on Coinbase?

The typical waitlist period for Coinbase ranges from 24 to 72 hours. Users can initiate withdrawals once their accounts are verified and set up for transactions. This flexibility ensures that users can access their funds promptly when needed, providing liquidity for their cryptocurrency holdings.

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Alex Miles
Reviewed byAlex MilesCo-Founder at TokenTax
Prior to TokenTax, Alex worked as a Product Designer at Dropbox and before that Readmill (acquired by Dropbox). He holds a BS in Digital Information Design - Interactive Media from Winthrop University.

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