How to Earn Compound Interest on Crypto

How to Earn Compound Interest on Crypto

Robert McDougall 

January 8, 2024

Cryptocurrency

Key Takeaways

  • The article discusses various platforms that allow users to invest in cryptocurrencies and earn compound interest. The top platforms discussed are Binance, Bybit, Crypto.com, and Nexo.
  • A comparison table is provided for easy comparison of the platforms. The article provides detailed information on Binance, Bybit, Crypto.com and Nexo, including their pros and cons.
  • Binance offers high compound interest rates when you lock your crypto for a fixed term of 90 or 120 days.
  • Bybit is the best choice if you prefer to keep your coins flexible, and withdraw them at any time.

Earning a passive income by investing in crypto has already become quite popular, and for some people, it is even the main source of income. That is why there are so many platforms that allow you to invest in crypto, so choosing the right platform can be tricky. In this article, we will present you with our top choices when it comes to earning compound interest in crypto.

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.

Binance
Bybit
Crypto.com
Nexo
Where to earn interest
Where to earn interest
Binance
Bybit
Crypto.com
Nexo
Cryptocurrencies
Cryptocurrencies
BTC, ETH, USDT, USDC, SOL, DOT, & 350+ more
BTC, ETH, USDT, USDC, SOL, DOT, & more
BTC, ETH, USDT, USDC, ADA, SOL, DOT, CRO & 10+ more
BTC, ETH, USDT, USDC, ADA, XLM & 25+ more
BTC APY
BTC APY
0.89% (+ 0.25% APY bonus for first 0.01 BTC)
1.8% (60 days fixed)
1% (3 months fixed)
3%
ETH APY
ETH APY
0.62% (+ 0.25% APY bonus for first 0.2 ETH)
1.8% (60 days fixed)
1.5% (3 months fixed)
4%
USDT APY
USDT APY
1.68% (+ 1.5% APY bonus for first 500 USDT)
5.5%
4.5% (3 months fixed)
8%

Best places to earn compound interest on crypto: Individual Breakdowns

#1. Binance - earn compound interest on 350+ coins

Binance is a the best crypto exchange for earning compound interest on crypto. It is the largest platform in terms of trading volume, offers over 600+ different coins to trade, and you can earn interest on more than 350 of them.

The compound interest rates are quite high, particularly when you lock your crypto for extended terms of 90 or 120 days. At the time of writing, you will receive 37.9% APY when staking AXS (locked for 90 days). and 16.9% APY when staking DOT (locked for 120 days).

On Binance's website, you can even calculate your projected compounded interest, based on your initial investment, the cryptocurrency you want to earn, and whether you choose flexible or fixed staking. It is a great way to see how much interest you can receive over a few years.

The main downside of Binance is that it is unavailable to US residents. However, there is a sister site, Binance.US which is available in the USA. You can also earn compound interest when you stake your coins there, but keep in mind there are fewer options.

Pros
  • Buy, sell and trade over 600+ different coins
  • Earn interest on more than 350+ cryptocurrencies
  • High compound interest rates, particularly if you lock for 120 days
  • Largest cryptocurrency trading platform in the world, in terms of trading volume
Cons
  • Not available to USA residents

#2. Bybit - best compound interest rates for flexible staking

If you want to earn compound interest but you don't want to lock your crypto, then Bybit is the best option. While Binance also offers flexible staking, Bybit's interest rates tend to be higher, making it the better choice.

At the time of writing, Bybit offers 2% APY for flexible staking of ADA (Cardano), whereas Binance's flexible interest rate is only 1.12% APY. Similarly when staking DOT (Polkadot), the flexible rate is 3% APY on Bybit, and only 2.21% APY on Binance. 

Bybit also has more choices for you to earn compound interest, like liquidity mining and dual asset mining. The compound interest rates can be as high as 28% for USDT when liquidity mining, and a massive 454% with dual asset mining! Before you decide to jump right in with the prospects of huge returns, you need to understand that there are risks with using these methods. We do not recommend these options for beginners, and you can learn more about dual asset mining here, and liquidity mining here.

Bybit is not allowed in the US, but it is a no KYC exchange, so you can sign up anonymously. The only thing you need to do to use it in the US is install a VPN to bypass the geolocation lock.

Pros
  • Best for flexible staking
  • Earn high compound interest with dual asset mining and liquidity mining
  • Earn interest without providing ID so you can stay anonymous
Cons
  • Cannot access Bybit in the US, except with a VPN

#3. Crypto.com - app for buying crypto and earning compound interest

You might find Crypto.com to be an ideal choice because it supports over 250 different coins that can be purchased easily, and allows you to earn interest on 47 of them. It is convenient and easy to use on your mobile device, and you can easily buy, sell, and swap coins in a few clicks.

A feature that definitely stands out is the Visa debit card that they offer to users. There are several tiers of cards based on how much CRO token you stake, and each tier offers different benefits. For example, each time you make a purchase online or at any store that accepts Visa, you will receive a percentage cashback in their cryptocurrency (CRO). At the highest tier, you will receive 5% cashback each time, but even with the basic card, with staking of just $400 CRO, you get 1% on each purchase which is decent. 

The interest rates available depend on which coin you want to earn interest on, as well as how long you lock your crypto. For example, you will get a 4.5% APY if you lock USDT for 3 months, 3% for one month, and 0.4% if you leave it flexible. You can also increase interest rates based on the amount of CRO you have staked.   

For example, if you have $4,000 CRO staked, you will receive 6.5% interest on stablecoins such as USDT if you lock it for three months.

To sum it all up, Crypto.com offers decent compound interest rates when you lock your coins for three months.

Pros
  • Buy, sell and swap over 250+ different coins
  • Earn interest on 47 cryptocurrencies with the option to lock for 1 or 3 months to access higher rates
  • Visa debit card gives you up to 5% cashback on all your purchases
Cons
  • You will need to lock your crypto for 3 months to gain access to more competitive rates

#4. Nexo - best wallet to earn compound interest on crypto

Nexo is a good platform to start earning compound interest, due to the several benefits that it offers. First, you can buy crypto instantly with your card, and it supports 33 different coins at the time of writing. You also receive FREE $25 of BTC if you sign up with this link and deposit $100 or more.

If you are worried about the safety of your crypto, Nexo has you covered. It has top-notch security, including storage in Class III vaults, top-notch data encryption, and ISO 27001:2013 compliance. With all of these security measures, you won’t have to worry about the safety of your funds. 

Interest rates on Nexo are quite decent, but there are also several ways to increase them. The base interest rate is 8% for stablecoins and for other coins it will vary depending on the asset you choose.

One way to increase the compound interest rate on your crypto is to lock it for one month, which will give you a 1% bonus on non-stablecoins. Another way to increase the rate is to receive interest paid out in NEXO coins, which will gain you an extra 2%. Note that this option is not available in the USA.

Finally, you can increase the interest rate based on your loyalty level, which is measured according to the percentage of NEXO coins you have stored compared to other coins in your wallet. If between 1% and 5% of your wallet is NEXO coins, you will earn 0.25% bonus interest on both stablecoins and other coins. At the highest loyalty level, when more than 10% of your wallet is NEXO coins, the interest rate will increase by 2% for stablecoins and 1% for other cryptos. 

Pros
  • Very safe and secure platform
  • High interest rates of 8% on stablecoins
  • Earn 1% bonus interest for 1-month fixed terms, 2% bonus by earning interest paid in NEXO, and extra interest depending on how much NEXO you have staked
  • You can easily swap your coins within the wallet
  • FREE $25 of BTC if you deposit $100 for at least 30 days
Cons
  • Earning compound interest paid out in NEXO is not available in the USA

How to earn the highest compound interest on my crypto?

To receive the highest rates of compound interest on your crypto, we recommend using Binance. When you lock your crypto for 90 days or 120 days you will receive the highest rewards. If you prefer flexible staking, then Bybit has the highest compound interest rates.

Conclusion

So, which platform to choose to earn compound interest? You can’t go wrong with any of the ones from this list, since we have tested them all, and they are reliable and legitimate sites. If you want the best compound interest rates, Binance is the standout choice, with a huge range of 350+ coins you can stake. If you are a beginner or if you live in the USA, Crypto.com is a great choice; you can easily purchase your crypto and start earning from the same account. 


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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