Best ways/places to earn interest on crypto

Best ways/places to earn interest on crypto

Daniel Chan

November 22, 2021

Cryptocurrency

With global interest rates at all-time lows, many people are looking at alternative ways to grow their wealth. Cryptocurrency has becoming increasingly popular and mainstream, with huge gains in recent years on many different coins. Another way to build your investment is to earn interest on the cryptocurrency you own, especially if you plan on holding it for the long-term. With annualised interest rates exceeding 7% for Bitcoin and over 12% on stablecoins (such as USDC and USDT), your initial investment can increase substantially when compounded over a few years.

Where to earn interestFeaturesScoreSign Up
Highest returns
Hodlnaut
Hodlnaut

☑️ Highest returns for Bitcoin: 7.46% APY

☑️ Highest returns for USDT & USDC: 12.73% APY 

☑️ Earn interest on BTC, ETH, USDC, USDT, DAI & WBTC

9.8
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High interest on 46 coins
Celsius
Celsius

☑️ High interest rates on 46 different coins (6.2% APY for BTC, 10.02% APY for USDT)

☑️ Registered with FinCen in the USA and ISO 27001 certified

☑️ 24/7 Customer Service for over 1 million+ users

9.7
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Buy, sell and earn interest
BlockFi
BlockFi

☑️ Purchase cryptocurrency easily and earn interest within the same platform (4.5% APY for BTC, 9.5% APY for USDT)

☑️ User-friendly interface that is perfect for beginners

☑️ Used by over 1 million+ verified clients and 350 global institutions

9.6
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Best wallet to earn interest
Nexo
Nexo

☑️ Nexo is a wallet where you can buy, store and earn interest on your crypto (5% APY for BTC, 9% APY for USDT when locked for 1 month)

☑️ High base rate of 8% for stablecoins and 4% for other cryptocurrencies

☑️ Receive bonus interest for 1-month fixed terms, choosing to earn interest in NEXO, or having NEXO staked

9.4
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Crypto cashback on Visa
Crypto.com
Crypto.com

☑️ Earn interest on 47 different coins (4.5% APY on BTC, 10% APY on USDT when locked for 3 months)

☑️ Buy, sell and swap over 150+ different cryptocurrencies

☑️ Visa debit card to earn up to 8% cashback on everyday Visa purchases

9.2
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How do I earn interest on my cryptocurrencies?

You can earn interest on your crypto through staking, which is only available on certain coins, or on lending platforms. Staking is the process of setting aside your cryptocurrency which can be used to validate transactions made on the proof-of-stake blockchain. By locking your cryptocurrency, you earn more of that cryptocurrency, as a reward for contributing to the blockchain network. Lending platforms pay you interest on your cryptocurrencies as they use that to loan to others who want to borrow crypto. The borrower is not borrowing directly from you, they are borrowing from the platform and you are lending to the platform.

If you are interested in earning interest on crypto, but you haven't bought any yet, you can find our recommendations on the top crypto exchanges to make an informed decision.

Where do I earn interest on crypto?

There are lots of different cryptocurrency exchanges and lending platforms that you can use to earn interest on your crypto. It can be hard to decide which one to use, because you aren't sure which ones to trust, or if the interest rates are misleading. I have written this article to help you determine which one is best for your needs.

What to consider when choosing where to earn interest on my crypto?

There are many factors to consider when looking to earn interest. Some of the main ones are listed here:

  • Do you want to lock your coins for a set time period, or be able to withdraw at any time?
  • Do you want to earn interest on cryptocurrencies, stable coins, or both?
  • What is the value of your cryptocurrencies? The interest rate may decrease if you have a large amount.
  • Do you want to earn interest on a variety of coins or just a few?
  • Do you want to access a higher interest rate by owning the lending platform's native token?

I have included a quick comparison table of the top 5 places to earn interest on your crypto. For more detailed information on each of them, keep reading below.

(Scroll across the table to see all 5)

Hodlnaut
Celsius
BlockFi
Nexo
Crypto.com
Where to earn interest
Where to earn interest
Hodlnaut
Celsius
BlockFi
Nexo
Crypto.com
Cryptocurrencies
Cryptocurrencies
BTC, ETH, USDT, USDC, DAI, WBTC
BTC, ETH, USDT, USDC, DOT, LTC & 40 more
BTC, ETH, USDT, USDC, LTC, UNI & 7 more
BTC, ETH, USDT, USDC, ADA, XLM & 16 more
BTC, ETH, USDT, USDC, ADA, LTC & 41 more
BTC APY
BTC APY
7.46%
6.2%
4.5%
5% (1 month fixed)
4.5% (3 months fixed)
ETH APY
ETH APY
7.46%
5.35%
5%
5% (1 month fixed)
5.5% (3 months fixed)
USDT APY
USDT APY
12.73%
10.02%
9.5%
9% (1 month fixed)
10% (3 months fixed)

Best places to earn interest: Individual Breakdowns

Hodlnaut - highest interest rates on crypto

Hodlnaut is our #1 choice for the best place to earn interest on your cryptocurrencies, as it offers the highest returns, without the need to lock in for any time period, and interest is paid weekly. Hodlnaut offers 6 different cryptocurrencies: BTC, ETH, USDC, USDT, DAI and WBTC.

Hodlnaut's interest for BTC is 7.46% if you deposit less than 2 BTC. If you want to earn interest on larger amounts of Bitcoin, the interest rate drops to 4.08% for 2-10 BTC, 2.02% for 10-100 BTC and 1% on anything over 100 BTC. It is common for the interest rates to be reduced for larger amounts of BTC, and Hodlnaut has the best rate in comparison to others. The base rate of 7.46% is accessible up to 2 BTC, whereas for other lending platforms, they reduce the interest rate after as little as 0.1 BTC.

If you want to earn interest on USDT, the rate is 12.73% up to 25,000 USDT, 7.25% between 25,000-100,000, USDT, 4.6% from 100,000-500,000 USDT and 3.04% over 500,000 USDT. To see their rates on all 6 coins, click here.

If you are concerned about your cryptocurrency being held on Hodlnaut, you can purchase optional Custody Cover provided by Nexus Mutual. This covers you if Hodlnaut gets hacked and you lose more than 10% of your funds, or if withdrawals from Hodlnaut are halted for over 90 days. This is a good option for those that want additional peace of mind for their cryptocurrency.

The main downside of Hodlnaut is that only 6 different cryptocurrencies are supported. For those that have a very diverse portfolio and want to earn interest on all of their coins, there may be better options. However, for crypto investors that want high returns on BTC, ETH and their stablecoins, Hodlnaut is definitely a platform worth considering.

Pros
  • Highest returns of 7.46% APY for BTC & ETH, 12.73% APY for USDT & USDC
  • Cryptocurrency is not locked in, you can withdraw any time
  • Interest is paid weekly
  • Optional custody cover by Nexus Mutual
Cons
  • Only 6 different cryptocurrencies supported

Celsius - earn high interest on 46 coins

Celsius is another excellent place to earn high interest, and unlike Hodlnaut's limited range of 6 coins, there are 46 cryptocurrencies supported. It is a well-established company with over 1 million users in over 150+ countries, and even has 24/7 customer service. Celsius is registered with FinCEN in the USA and has ISO27001 certification so you know their security is top-notch.

Celsius offers 6.2% APY on Bitcoin if you deposit up to 0.25BTC. Any amount over 0.25 BTC will receive 3.05% interest rate. For stablecoins (USDC and USDT) they offer 10.02% APY with no reduction for depositing large amounts. If you plan on depositing a lot more than 25,000 USDT, Celsius is probably a better choice than Hodlnaut. Hodlnaut gives 12.73% but only up to 25,000 USDT, and then the rate is reduced to 7.25% between 25,000 and 100,000 USDT.

One downside of using Celsius is that their rates are updated weekly, based on their revenue over the previous week. Although they update it weekly, it doesn't mean that the rates you receive will change each week, but it's important to note that it can. It's a good habit to check the rates regularly so you know how much interest you are earning on your crypto.

Pros
  • High interest rates on 46 different coins
  • Registered with FinCEN in the USA
  • 24/7 Customer Service
  • Security ISO 27001 certified
Cons
  • Interest rates are updated weekly, so you need to check you are still getting a good rate

BlockFi - buy, sell and earn interest easily

BlockFi is the easiest way to buy, sell and earn interest on your cryptocurrency, all within the same platform. Although Hodlnaut has higher interest rates, you need to transfer cryptocurrency into the platform to start earning. For newcomers to crypto who have not bought crypto yet, BlockFi is an excellent option because you can purchase coins and then earn interest on them without the hassle of transferring them.

BlockFi has a unique Interest Flex Payment option, which lets users choose what currency their interest is paid in. For example, if you are earning interest on BTC, ETH and USDC, instead of being paid interest in those three different coins, you can elect to have all your interest paid in BTC for example. At the end of each month, if you are opted in for this feature, all the interest will be calculated and paid in the one currency. Note that there is an administration fee to use this, which is 1% of the interest earned.

BlockFi is user-friendly and very safe, with the latest security protocols such as 2FA (two-factor authentication) to ensure your data is protected.

A downside that some users point out is that the interest rates are not as high as their competitors. For example interest on Bitcoin is only 4.5%, and if you have more than 0.1 BTC, the rate drops to just 1%. If you have over 0.35 BTC, the rate dwindles to just 0.1%. (For a full list of the rates for each of the 13 coins, click here.) I agree that if you are a high-volume investor, then Hodlnaut or Celsius are better options. However, if you are a beginner, I think BlockFi is the best choice since it is so simple to buy and earn straight away from within the same platform.

Pros
  • Purchase crypto easily and earn interest on it within the same platform
  • User-friendly interface is excellent for beginners
  • Interest Flex Payment option to earn interest in your cryptocurrency of choice
  • Used by over 1 million+ verified clients and 350 global institutions
Cons
  • Lower interest rates
  • Only 13 different coins supported

Nexo - best wallet for earning crypto interest

Nexo is a cryptocurrency wallet that does so much more than just safely store your coins. You can use it to buy crypto instantly with card, swap between coins, and earn interest on any of their 22 cryptocurrencies. Nexo's security is world-class, with storage in Class III vaults, ISO 27001:2013 compliance, military-grade 256-bit encryption and biometric-based identity verification.

Nexo has decent base rates of interest that can be increased in several ways. The base interest rate for stablecoins is 8% and for all other cryptocurrencies is 4%. The first way you can increase your interest rate is to lock it for 1 month to receive 1% bonus. This means your rate on stablecoins is now 9% and for other coins is 5%.

The second way to increase your interest rate is by receiving your interest in Nexo's own token, called NEXO. If you opt for this option, you receive an extra 2%, but remember you are being paid in NEXO and not in the base currency you have stored (eg: you store BTC but get paid in NEXO). You can always swap NEXO for other coins that you like. This feature is not available to US citizens and residents due to regulatory restrictions.

The final way to earn extra interest is based on your loyalty level. This is based on the percentage of NEXO tokens you have staked compared to other coins in your Nexo wallet. If 1-5% of your wallet is NEXO tokens, then your interest rate on stablecoins is 8.25% and other coins is 4.25%. At the highest loyalty level (if more than 10% of your portfolio is staked NEXO) you will receive 10% on stablecoins and 5% on other coins. Remember you can still enjoy extra interest by locking for 1 month and being paid in NEXO tokens. 

Pros
  • Nexo is a wallet where you can buy, store and earn interest on 22 cryptocurrencies
  • High base interest rate of 8% on stablecoins and 4% on other coins
  • Receive 1% bonus interest for 1-month fixed terms, 2% bonus by earning interest in NEXO, and extra interest depending on how much NEXO you have staked
  • Easily swap your coins within the wallet
Cons
  • Earning interest in NEXO not available for US citizens and residents

Crypto.com - earn crypto cashback on Visa purchases

Crypto.com is one of the best crypto exchanges and allows users access to buy over 150+ different coins and earn interest on 47 of them. It is best used on a mobile device, where you can easily buy, sell and swap your cryptocurrencies. One standout feature of Crypto.com is the Visa debit card they offer to users. There are different tiers of Visa cards (based on how much of their token - CRO - that you stake), which you load up with your base fiat currency and spend at any online or brick and mortar store that accepts Visa. Each time you make a purchase, you will receive a percentage cashback in CRO coins! The highest level is 8% cashback, but even if you get the basic card (with no staking of CRO required), you will earn 1% cashback in CRO for every purchase you make. This is free cryptocurrency that you can stake to earn additional interest, or convert to fiat or another cryptocurrency.

The interest rates you can earn vary depending on each coin, and also if you fix it for 1 month, 3 months, or prefer to leave it flexible. An example is 4.5% APY on Bitcoin if locked for 3 months, 3% if locked for 1 month, or 1.5% if you keep it unlocked. For USDT and USDC it is 10% (3 months), 8% (1 month) or 6% (flexible). If you have a certain amount of CRO coins staked, you can also access higher interest rates. For example, if you have $4000 CRO staked, you can get 12% interest on USDT (locked for 3 months), and if you stake $40,000 CRO, you receive 14% interest on USDT (locked for 3 months).

Crypto.com is a really great choice if you use a debit card a lot, because the cashback on each purchase adds up and further grows your portfolio in addition to the interest you earn on your coins. There is also a Supercharger feature where you can earn interest on your CRO coin. Your interest is paid out in the coin they are offering at the time, which changes every 2 weeks. The estimated APY of the coins can be as high as 28%, and some of the popular coins they have had in the past include: BTC, ETH, AXS, SHIB, DOGE, UNI and DOT. If you want to find more about Crypto.com, read my detailed review here.

Pros
  • Buy, sell and swap over 150+ different coins
  • Earn interest on 47 cryptocurrencies with the option to lock for 1 or 3 months to access higher rates
  • Visa debit card to earn up to 8% cashback on your everyday purchases
  • Supercharger feature to earn new coins
Cons
  • To access competitive interest rates you need to lock your cryptocurrency for 3 months

Binance - earn interest on the widest range of coins

Binance is the largest cryptocurrency exchange in the world based on trading volume, and it offers over 300+ cryptocurrencies, with the ability to earn interest on over 70+ of them. Serious traders love Binance as they offer so many different coins and advanced trading options. If you are already a user of Binance, or if you plan on investing in a wide range of crypto and want to earn interest on many of them, this is a great platform for you. You can read my detailed breakdown of Binance here, if you want more information about their full range of features.

The interest rates on Binance are usually not as high as some other options here, but they get more competitive when locked in for a 90-day period. For example, the interest rate on Bitcoin is only 2.12% if it's flexible (can be withdrawn at any time) but it increases to 7% if locked for 90 days. However, I have noticed that they are often sold out for the popular coins. For example, Bitcoin's flexible and 90 day options were both sold out at the time of writing. 

Another point to note is that Binance is not available in the USA. There is a related exchange called Binance.US but they have limited features, and in terms of earning interest, they only have access to 7 coins: QTUM, EOS, ONE, VET, XTZ, ATOM & ALGO.

Pros
  • Buy, sell and trade over 300+ different coins
  • Earn interest on more than 70+ cryptocurrencies
  • Higher interest rates if you lock coins for 90 days
  • Largest cryptocurrency exchange in the world by trading volume
Cons
  • Earning interest on popular coins is often sold out
  • Not available in the USA

Where can I earn the most interest on my crypto?

You can earn the highest interest on your crypto using Hodlnaut. They offer 7.46% APY on BTC and ETH, and 12.73% APY on USDT and USDC. 

Is earning interest on crypto safe?

With such high interest rates, it can sound too good to be true. What is the catch, what are the drawbacks to earning interest on crypto and is it safe? There is a risk involved when you earn interest on your crypto because your coins are not in your personal wallet and therefore not in your total control. The amount of risk involved is dependant on the site you choose to deposit your coins. The main risks you need to be aware of is hacks and borrower defaults.

Platforms that do not have robust infrastructure or security measures are at greater risk of being hacked. You need to choose a site that has high levels of security to minimise your chances of losing your assets.

In terms of borrower defaults, this is based on who your platform lends to. If they are clear about their lending standards and have stringent requirements for their borrowers, the risk of default is lowered.

Our #1 recommended interest-earning account, Hodlnaut uses Fireblock's multiparty computation wallet infrastructure to keep funds secure, and they even have optional Custody Cover provided by Nexus Mutual. In the unlikely event that Hodlnaut is hacked, you will be covered if you lose over 10% of your assets. It also covers you if Hodlnaut stops withdrawals from their account for more than 90 days.

Remember to do your own research into any platform you decide to use, and weigh up the risks before placing your cryptocurrency into any site to earn interest. It is also a smart idea not to put all of your cryptocurrency in any one platform, in case anything goes wrong.

Is earning interest on crypto taxable?

You need to check your local laws for cryptocurrency and taxation, but in most cases, yes you will need to report any interest earned as income. Generally you need to note the market value of the earnings at the time you receive it. Please note that this is not financial or tax advice, and you should seek the advice of a tax accountant to work out the details for your personal situation based on your geographical location.

Where do I buy cryptocurrency?

If you don't yet own any cryptocurrency, you can purchase it from any of the best cryptocurrency exchanges. Some of the crypto exchanges also allow users to earn interest on their crypto from within their platform, making it easy. For example, Crypto.com offers over 150+ different coins that you can buy, and you can start earning interest on 47 of them straight away from within the mobile app. If you want to read more about Crypto.com, you can have a look at my full review here.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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