4 Ways to Earn Crypto Rewards with Coinbase in Uganda
Crypto stakers encountered a problem: "If I buy a token and hold it, that investment isn't working for me. So, how do I earn interest on this?". A -basic- investment principle is that you lock money in the expectation of receiving a reward for it. Coinbase solved this fair concern by offering 4 ways of earning crypto rewards:
Coinbase Earn (I)
In exchange for learning the basics about specific cryptocurrencies (usually by watching short videos), you can get some to try for yourself. This is the easiest way to start generating crypto rewards on Coinbase.
Staking your Cryptos (II)
Many cryptocurrencies are used as a "Proof of Stake" consensus mechanism. In plain English, it is a way to ensure their decentralised networks can verify and secure all transactions without a bank or payment processor in the middle. By acquiring and holding such cryptocurrencies, you can earn rewards. When you "lock" a percentage of your holdings into a staking pool for a specific timeframe, you are contributing to the crypto network's security. The network pays you back with rewards in the form of extra tokens. In effect, it works like a fixed-term deposit, where you deposit cash, freeze it for a specific period, and receive your investment plus a reward at the end. This is an excellent option if you plan to hold onto the crypto for a more extended period. Instead of having it sit idle, you can put it to work for you. Via the main Coinbase app or website, eligible users can stake Tezos, Cosmos, or ETH and earn as much as 5% interest (depending on the type of asset being staked) as of June 2021.
CeFi Lending (III)
Stablecoins have made it possible to hold dollar-equivalent cryptos in a traditional savings account and safely earn meaningful yield. A growing number of centralised finance (or CeFi) products have emerged that provide yield for keeping some of your crypto holdings in stable coin form. Coinbase customers looking for a low-risk investment can start earning 4.00% APY via USDC -USD Coin is fully backed by cash and equivalents and short-duration U.S. Treasuries, so that it is always redeemable 1:1 for U.S. dollars-. While crypto deposits aren't currently eligible for any regulator's insurance, all USDC held in your Coinbase account is guaranteed by Coinbase.
DeFi Lending (IV)
If you are comfortable with higher potential risks for higher returns, you can experiment with lending some of your cryptos via DeFi apps. DeFi can enable transparent, peer-to-peer lending for potentially higher yields than traditional financial offerings. Investors who supply their cryptocurrency to DeFi lending protocols receive rewards in the form of interest charged to borrowers. You need a crypto wallet that is compatible with DeFi apps. Coinbase Wallet (a separate product from the main Coinbase app and can be used by anyone, not just Coinbase customers). Via Coinbase Wallet, you can experiment with lending some of your cryptos — the simplest way to start is with a stablecoin — via DeFi protocols such as Compound or Aave. DeFi remains an emerging technology, so make sure not to invest more than you can afford to lose if you decide to experiment with these protocols.
Coinbase is one of the big players in the crypto space. There's so much about Coinbase that we could write an encyclopedia: They have a great selection of tokens, a friendly and neat website/mobile app layout.
Also, they have partnered with many eSports teams and influencers. In our experience, when a trading platform can afford that many sponsorships and partnerships, it is an excellent indicator of their trustworthiness and seriousness in providing high-quality services. However, since nothing can be perfect, we must say a few words about crypto trading. First, you should remember that risks in trading cryptocurrencies are related to their volatility. This means that unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrencies to quickly drop by hundreds, if not thousands of dollars. Also, Cryptos are unregulated by both governments and central banks. So, you won't have any way of claiming or filing a complaint if anything goes wrong.
However, the previous comments won't stop you from starting to trade cryptos; So, if you decide to go ahead, your best chance relies on a powerful trading platform. And that is what Coinbase is.
How to Open an Account with Coinbase
Coinbase is an American company that operates a cryptocurrency exchange platform. As of October 2021, it was the largest cryptocurrency exchange in the United States by trading volume. On April 14, 2021, Coinbase went public on the Nasdaq exchange via a direct listing, making it one of the most reputable crypto trading platforms worldwide. You are probably wondering if this giant is available to local clients. The answer is yes; Coinbase accepts and opens crypto trading accounts to clients based in Uganda. It's one of the only 13 countries in the African continent where Coinbase takes clients.
With almost a decade of experience -The company was founded in 2012-68 million verified users, 9,000 institutions, and 160,000 ecosystem partners in over 100 countries trust Coinbase to invest, spend, save, earn, and use crypto. This is an impressive achievement for a company that operates remote-first and lacks an official physical headquarters.
If we had to choose two words to describe Coinbase, we would pick organised and accessible. This crypto platform is straightforward to navigate, offers a wide range of tokens, and, contrary to many of their competitors, every functionality is accessible in a transparent way. In this article, we refer to the main Coinbase features, capabilities, and opening a crypto wallet from Uganda.
How to Open a Coinbase Account from Uganda
Quickly done in three steps, you just fill in the basic information, and you are ready to start trading cryptos. Note that additional identity checks might take place upon opening your account and/or withdrawing. They try to verify you electronically, but if they aren't able to, you'll need to send proof of identity and address before you can withdraw your funds.
What Type of Wallet Can I Set Up with Coinbase?
A crypto wallet is a place where you can securely keep your crypto; there are a few different types. The most popular ones are the hosted and the non-custodial wallets. Which one is right for you depends on what you want to do with your crypto and what kind of safety net you want to have.
HOSTED WALLETS: The most popular and easy-to-set-up crypto wallet is a hosted wallet. When you buy crypto using an app like Coinbase, your crypto is automatically held in a hosted wallet. It's called hosted because a third party keeps your crypto for you, similar to how a bank saves your money. You may have heard of people "losing their keys" or "losing their USB wallet", but you don't have to worry about any of that with a hosted wallet. Pro: If you forget your password, you won't lose your crypto. Con: You can't access everything crypto has to offer.
NON-CUSTODIAL WALLETS: A non-custodial wallet like Coinbase puts you in complete control of your crypto. They don't rely on a third party — or a "custodian" — to keep your crypto safe. While they provide the software necessary to store your crypto, the responsibility of remembering and safeguarding your password falls entirely on you. If you lose or forget your password — often referred to as a "private key" or "seed phrase" — there's no way to access your crypto. And if someone else discovers your private key, they'll get full access to your assets. Pro: You may access more advanced crypto activities like yield farming, staking, lending, borrowing, and more. Con: Lose your password, and your crypto is gone. If all you want is to buy, sell, send, and receive crypto, a hosted wallet is the easiest solution.
If you're a Coinbase customer, you have your choice of a hosted wallet or a non-custodial wallet. The Coinbase app, where you buy and sell crypto, is a hosted wallet. You can also download the standalone Coinbase Wallet app to take advantage of the benefits of a non-custodial wallet. Some Coinbase customers have both, making it easy to buy crypto and participate in advanced crypto activities. Setting up either wallet is free.
What About the offered Cryptos?
There are plenty of crypto trading platforms out there. Still, only a few of them have impressed asinko.com with the range of tokens and trading functionalities they have to offer. On top of these, navigating around Coinbase never feels like a challenge and finding what you're looking for is relatively easy.
Coinbase offers +4800 tokens ranging from the obvious and top traded ones like Bitcoin, Ether, Ripple, etc., to recently launched ones.
Is it easy to trade with Coinbase?
As mentioned previously, Coinbase allows crypto trading straightforwardly through an optimised trading app, so, yes, it is easy. Its app is designed in a way that you may learn and start quickly, without the need for much prior knowledge. To buy, for example, Bitcoin, or the considerable amount of available altcoins, you have to:
open the trading account as explained before,
Search for "Bitcoin" or "NEO" (Or whichever token you wish to acquire) at the Coinbase trading platform, and
press the "Buy" button.
And, done, you are officially trading crypto assets with Coinbase.
TRADING IN UGANDA WITH COINBASE: TOP US CRYPTO PLATFORM
Coinbase is the easiest place to buy and sell cryptocurrency in Uganda. Sign up and get started today.