How to Earn Compound Interest on Crypto

How to Earn Compound Interest on Crypto

Robert McDougall 

December 6, 2022

Cryptocurrency

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.

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)

Matrixport
Hodlnaut
BlockFi
Nexo
Where to earn interest
Where to earn interest
Matrixport
Hodlnaut
BlockFi
Nexo
Cryptocurrencies
Cryptocurrencies
BTC, ETH, USDT, USDC, SOL, DOT, DOGE & 10+ more
BTC, ETH, USDT, USDC, DAI, WBTC
BTC, ETH, USDT, USDC, LTC, UNI & 17 more
BTC, ETH, USDT, USDC, ADA, XLM & 16 more
BTC APY
BTC APY
3%
4.08%
3.5%
5% (1 month fixed)
ETH APY
ETH APY
3%
4.60%
5%
5% (1 month fixed)
USDT APY
USDT APY
15%
7.25%
8%
8% (1 month fixed)

Best places to earn compound interest on crypto: Individual Breakdowns

#1. Matrixport - Massive 15% APY on USDT & USDC

Matrixport is our #1 recommendation for those looking to maximize their crypto compound interest. This is because they have an amazing welcome offer for new users. When you sign up using this link, you gain access to a bonus of $15 free USD, on top of the introductory rate of 15% APY on USDC & USDT stablecoins

On their other coins, while the APY is not as high as 15%, it is still reasonable, with 3% APY on BTC and ETH, and 7% on other altcoins. Moreover, if you are interested in other ways to earn interest, you can choose from Matrixport's other investment products such as DeFi, Dual Currency, and crypto lending.

Matrixport is more than just a great place to earn compound interest on your cryptocurrencies. You can also use it to easily purchase and sell crypto, plus you can spot trade (with 0% commission) and margin trade with up to 5x leverage. 

Matrixport is a legitimate and well-established secure place to earn compound interest, and if you ever find yourself in trouble, you can contact their customer support team, which is very responsive and helpful.

One minor drawback of Matrixport is that their platform is only accessible via mobile app, there is no option to log in from your desktop.

Pros
  • Earn 15% APY on USDT and USDC
  • Welcome bonus of $15 free USD
  • Buy, sell and trade cryptocurrencies
  • Leverage trading available (up to 5x leverage)
Cons
  • Can only access the platform using a mobile app

#2. Hodlnaut - high compound interest rates on crypto

Hodlnaut is another top choice for earning compound interest in crypto, due to the numerous benefits that it provides. At first, it offers high returns and doesn’t require locking in for any time period. On top of that, that interest is paid weekly, and the platform offers 6 popular cryptos. Also, if you register, verify your account, and deposit the equivalent of $1,000 USD or more, Hodlnaut will give you a bonus of 30 USDC for free after 31 days! To claim that offer, you need to sign up with this link.

The interest rate obviously depends on the cryptocurrency and on the amount you deposit. For BTC, the interest rate is currently 4.08% if you deposit less than 0.1 BTC, 3.25% for any amount of BTC between 0.1 and 1.0 BTC, 1.61% for any more than 1 BTC.

For stablecoins, such as USDT, Hodlnaut gives 7.25% for amounts up to 100,000 USDT, and the rate drops to 5.23% for amounts between 100,000 to 500,000 USDT. The rates drop dramatically for higher amounts deposited.

When depositing money online, especially cryptocurrency, it is normal to be worried about the security of the platform. In that case, you can buy Custody Cover by Nexus Mutual. It covers you in case Hodlnaut gets hacked and you lose more than 10% of your funds, or if the withdrawals are on halt for over 90 days.

The main downside of Hodlnaut is that you can only earn compound interest on 6 different cryptocurrencies. If you want to earn crypto interest on a wide range of coins, then you will have to look elsewhere. However, if you are looking for a safe and secure platform to earn compound interest on BTC, ETH and stablecoins, Hodlnaut is an excellent choice. 

Pros
  • High returns of 4.08% APY for BTC and 4.60% for ETH, 7.25% APY for USDT & USDC
  • Cryptocurrency is not locked in, you can withdraw any time
  • Free 30 USDC sign-up bonus
  • Interest is paid weekly
  • Optional custody cover by Nexus Mutual
Cons
  • Only 6 different cryptocurrencies supported

#3. BlockFi - buy, sell and earn compound interest

BlockFi is one of the best choices for beginners, and especially those who don't already own any crypto. BlockFi allows users to buy crypto, then earn compound interest easily on the same platform. Many other crypto interest accounts require you to transfer crypto into the platform to start earning interest.

Another interesting feature that BlockFi provides is the Interest Flex Payment, which allows you to choose in which crypto you want the interest to be paid. For example, let’s say that you have invested and are earning interest on multiple different coins. At the end of the month, you can choose to get the total interest from all coins paid out in a single coin, for example, in BTC. That feature comes with a small administration fee of 1%.

A downside of BlockFi is that it offers lower interest rates than its competitors. The compound interest on BTC is 4.5% and it drops to only 1% if you deposit more than 0.1 BTC. The interest drops even further, down to 0.1% for more than 0.35 BTC. So, if you are a beginner, BlockFi is an excellent choice, but if you want to earn high compound interest, it is not the ideal choice.

Pros
  • Buy crypto, then earn compound interest in the same platform
  • A top choice for beginners
  • Interest Flex Payment option - earn interest in the coin of your choice
  • Used by over 1 million+ verified clients and 350 global institutions
Cons
  • Lower interest rates than competitors

#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 22 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 4% for other coins.

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, making the rate 5%. 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, 4% on others
  • 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

#5. 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 the money. For example, you will get a 3% APY if you lock Bitcoin for 3 months, 1.5% for one month, and 0.2% 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 $4000 CRO staked, you will receive 8% interest on stablecoins such as USDT if you lock it for three months.

To sum it all up, Crypto.com offers decent interest rates, but to access more competitive rates, you will need to 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

#6. Binance - earn compound interest on 70+ coins

Binance is a great crypto exchange where you can earn compound interest on crypto if you live outside of the US. It is the largest platform in terms of trading volume, and offers over 600+ different coins to buy, sell and trade! Basically, it’s a good choice if you want to invest in a wide range of coins and earn interest.

Interest rates are quite low if you leave money unlocked, but will significantly increase if you lock the money for 90 days or more. For example, the interest rate on BTC is only 1.2% if the money is flexible, but will increase to 8.19% if you lock the money for 60 days.

You should also know that earning compound interest on popular coins can often be 'sold out', as Binance has a limit on how much they can take for each crypto. This is usually not much of an issue if you want to earn interest on less popular cryptocurrencies. 

Pros
  • Buy, sell and trade over 600+ different coins
  • Earn interest on more than 70+ cryptocurrencies
  • Good interest rates if you lock coins for over 90 days
  • Largest cryptocurrency trading platform in the world, in terms of trading volume
Cons
  • Earning interest on popular coins can often be sold out
  • Not available to USA residents

How to earn the highest compound interest on my crypto?

To receive the highest rates of compound interest on your crypto, we recommend using Hodlnaut. They offer 4.08% APY on BTC, 4.60% on ETH, and 7.25% APY on USDT and USDC. 

Conclusion

So, which platform to choose to earn compound interest? Basically, you can’t go wrong by choosing any of the ones from this list, since they have all been tested and are reliable. If you want the best compound interest rates, Hodlnaut would be the best choice, but it is limited to only 6 coins. If you want to maximise your returns on stablecoins, Matrixport is the clear winner, with 30% APY. If you are a beginner, BlockFi would be a great choice because you can easily purchase your crypto and start earning from the same account. If you want to earn compound interest on a wide range of crypto, Binance would be your best pick.

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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