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 annualized interest rates of 2.5% for Bitcoin and 10.15% on stablecoins (such as USDC and USDT), your initial investment can increase substantially when compounded over a few years.

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. We 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:

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

Best places to earn interest: Individual Breakdowns

#1. Bybit - Best for flexible staking

Bybit is one of the top crypto exchanges globally, boasting over 60 million users and offering a variety of interest-earning options. These include both fixed-duration and flexible staking, with Bybit particularly excelling in flexible staking. Based on our experience, Bybit provides higher rewards for flexible staking compared to competitors like Binance. For instance, Solana (SOL) earns 1.81% APR on Bybit, outpacing Binance’s 1.59%. Similarly, flexible staking for USDT offers a competitive 5.54% APR—or an exceptional 10.54% APR for holdings under 500 USDT—substantially higher than Binance’s 3.0% APR. This makes Bybit a standout choice for maximizing returns on flexible staking. 

When it comes to fixed-term staking, Bybit's rewards are generally lower compared to Binance. For example, Solana fixed-term staking on Bybit offers 4.00% APR, while Binance provides a significantly higher 9.05%. Additionally, Bybit’s fixed durations are limited to a maximum of 60 days, whereas Binance allows longer locking periods of up to 120 days, making it the better option for maximizing profits from crypto staking.

Bybit does, however, offer advanced earning options such as liquidity mining and dual asset mining, which can yield much higher reward rates. For instance, liquidity mining for USDT can earn between 1.78% and 219.02% APR, while dual asset mining offers rates ranging from 1.17% to an impressive 478.38% APR. These options are best suited for experienced users, as they come with higher risks and require a solid understanding of how the processes work. You can learn more about dual asset mining here and liquidity mining here.

While Bybit is not officially available in the US, it does not require KYC verification, allowing users to sign up anonymously, without providing ID. By using a VPN set to Australia or another supported region, US residents can access Bybit and take advantage of its interest-earning features. This makes it an appealing alternative for US citizens who cannot access platforms like Binance or Bybit directly.

Read full Bybit review

#2. Binance - earn interest on 350+ coins

Binance is the world's largest cryptocurrency exchange by trading volume, offering an impressive selection of over 600+ cryptocurrencies, with interest-earning opportunities available on more than 350 of them. Renowned for its extensive range of coins and advanced trading features, Binance is a favorite among serious traders. Whether you're already a Binance user or planning to diversify your investments across a wide range of cryptocurrencies while earning interest on them, this platform is an excellent choice. For a comprehensive overview of Binance's full range of features, you can read our detailed breakdown here. 

Binance offers competitive interest rates, with the option to lock your cryptocurrency for up to 120 days to maximize yields. For those who prefer shorter durations, Binance also provides locking periods of 90 days, 60 days, 30 days, and, for certain coins, 14 days. If you want to maintain full control of your assets, flexible staking is also available, allowing you to sell, trade, or transfer your crypto anytime.

As an example of current rates, staking SOL on a fixed term offers 9.05% APR for 120 days, which decreases to 3.9% for 60 days, and 1.59% for 14 days. Flexible staking for SOL provides a modest 1.59% APR. Stablecoins like USDC and USDT are also supported for both flexible and locked staking. USDC offers 10.08% APR for flexible staking and 10.66% for 30-day locked terms. Similarly, USDT provides 3% APR for flexible staking and 8.47% for 30-day locked terms.

The main drawback of Binance is it's not available in the US. While Binance.US is an alternative, it has limited features and offers significantly fewer options for earning interest. For US-based users, Crypto.com is a recommended alternative, offering an intuitive app and a wide range of interest-earning opportunities, accessible to US residents.

Read full Binance review

#3. Crypto.com - earn crypto cashback on Visa purchases

Crypto.com is one of the best crypto exchanges and allows users access to buy over 250+ different coins and earn interest on 28 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 5% cashback, but even if you get the basic card (with just $400 staked 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 the coin, for example you can earn 3.73% on POL, 7.13% on SOL and 18.43% on ATOM.

Crypto.com is also a great choice if you frequently use a debit card, 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 32%, and some of the popular coins they have had in the past include: BTC, ETH, AXS, SHIB, DOGE, UNI, LUNA and DOT. If you want to find more about Crypto.com, read our detailed review here.

Read full Crypto.com review

Where can I earn the most interest on my crypto?

The interest rates change all the time, and depend on fixed or flexible options. Bybit and Binance usually have the highest rewards for staking your crypto.

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 minimize 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.

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 250+ different coins that you can buy, and you can start earning interest on 20+ of them straight away from within the mobile app. If you want to read more about Crypto.com, you can have a look at our full review here.

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