So what`s the catch?

As always, though, there’s a trade-off when it comes to claiming something for free on the web. In the case of Coinbase Earn, you are required to register an account and verify your identity. This means supplying a driving license, passport or national ID card

It is for you to decide whether that is a price worth paying just to get your hands on $100 or so of free cryptocurrency.

Because Coinbase has applied for an IPO, and operates in the US, whose cryptocurrency industry is tightly regulated, it is obliged to comply with all official requests for user data.

58%
Increase in aggregate rewards from Coinbase Earn 
across all campaigns

You might have heard about a controversial proposal by the Financial Crimes Enforcement Network (FinCEN) proposing that cryptocurrency wallets be linked to verified identities in the US. If this rule passes, it could mean that any cryptocurrency you withdraw from Coinbase Earn would have to be sent to a personal wallet that is linked with your Coinbase verified identity, which isn’t ideal from a privacy perspective.

This law may not pass, or may be watered so that it doesn’t cover low-value customer withdrawals, but it’s something you should be aware of. In the meantime, if you’re considering using Coinbase Earn, be mindful of the privacy trade-offs it carries, and may carry in the future.

The approach taken by Coinbase has been replicated with varying success. Coinmarketcap for example hastily put together a similar program, but the rewards were very small by comparison and the program poorly implemented.