Does Robinhood Pay Interest on Crypto? Everything You Need To Know

Does Robinhood Pay Interest on Crypto? Everything You Need To Know

Daniel Chan

June 30, 2022

Cryptocurrency

For new crypto traders, Robinhood is a highly appealing option, as it is user-friendly, allows users to buy and sell crypto, and is simple to use and secure.

Unfortunately, Robinhood does not allow you to earn interest on your crypto, a significant feature that traders want to utilize.

If you are keen on getting involved in gaining interest on cryptocurrency, check out some of the excellent options listed below.

Where to earn interestFeaturesScoreSign Up
30% APY on USDC/USDT
Matrixport
Matrixport

☑️ Huge 30% APY available on USDC/USDT for new users, and free $20 USD bonus

☑️ Buy, sell and trade crypto, including leverage trading

☑️ Free Grid Trading bot included

9.8
Sign Up
High interest on 46 coins
Celsius
Celsius

☑️ High interest rates on 46 different coins (6.50% APY for BTC, 7.10% APY for USDT)

☑️ Registered with FinCen in the USA and ISO 27001 certified

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

9.7
Sign Up
High returns
Hodlnaut
Hodlnaut

☑️ High returns for Bitcoin: 5.33% APY

☑️ High returns for USDT & USDC: 9.41% APY 

☑️ FREE 30 USDC sign-up bonus

9.5
Sign Up
Buy, sell and earn interest
BlockFi
BlockFi

☑️ Purchase cryptocurrency easily and earn interest within the same platform (4.5% APY for BTC, 8% APY for USDT)

☑️ User-friendly interface that is perfect for beginners

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

9.4
Sign Up
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, 8% 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

9.2
Sign Up

Best places to earn interest: Individual Breakdowns

#1. Matrixport - Earn 30% APY on USDT & USDC

Matrixport is the #1 choice for investors who want to earn interest on cryptocurrencies. Matrixport offers a unique high-interest signup promotion to attract new customers. If you open an account with this link, you will receive $20 free USD, plus an exclusive introductory rate of 30% APY on USDC and USDT stablecoins

Matrixport also offers crypto interest on coins besides USDC/USDT, but the APY is not as high. For BTC and ETH, the interest rate is 3%, and for other altcoins it is 7%, which is decent. If you are interested in other ways to earn interest, you can take a look at the other investment options available, such as DeFi, Dual Currency, and crypto lending.

Matrixport offers more than interest earning opportunities. You can also use it as a crypto exchange (where you can purchase and sell crypto) or as a trading platform (spot trade with no commission and leverage trade up to 5x). 

Matrixport is a trusted and safe platform for earning crypto interest, and they even have a helpful customer support team, that is always on hand to assist you.

The only thing some users complain about is that Matrixport is only available through a mobile app, and not the desktop site. However, most customers shouldn't find this an issue, as a smartphone is commonplace, and provides additional convenience as you can access it anywhere.

Pros
  • Earn 30% APY on USDT & USDC
  • Signup bonus of $20 free USD
  • Buy, sell and trade cryptocurrencies
  • Leverage trading available (up to 5x leverage)
Cons
  • Can only access the platform through a mobile app

#2. Celsius - earn high interest on 46 coins

Next on this list, we have Celsius, another fantastic choice for earning high interest on your cryptocurrencies. While the interest rates are not quite as high as Hodlnaut’s, there are plenty more coins on offer, 46 to be exact. Celsius is a well-known and popular company, with more than one million users in over 150 different countries. 

They even have a generous welcome offer of $50 FREE Bitcoin if you deposit $400. All you need to do is register using this link.

Another excellent benefit Celsius offers its customers is 24/7 customer service. You can be confident Celsius is a reputable and safe lending platform, too, as it is registered with FinCEN, and has the ISO27001 certification, that only a handful of crypto exchanges and platforms can claim.

Celsius provides 6.50% APY on BTC for any deposits up to 0.1 BTC. For deposits between 0.1 and 3 BTC, that drops to 2.5% APY, and for anything over 3 BTC, that figure changes to 1%. For stablecoins like USDT or USDC, the APY is 7.10% and does not vary regardless of how much is deposited. So if you are planning on investing a large sum of stablecoin, Celsius might be a better option for you than Hodlnaut.

However, one issue with Celsius is that the interest rates vary week on week, depending on its revenue for the previous week. It is worth checking the rates regularly, so you are aware of what you are earning on your crypto.

Pros
  • High interest rates
  • 46 different coins supported
  • Registered with FinCEN in the USA
  • 24/7 Customer Service
  • Security ISO 27001 certified
Cons
  • Interest rates vary from week to week, so you need to keep an eye on them to see if you are getting a good rate

#3. Hodlnaut - high crypto interest rates

When it comes to earning interest on your cryptocurrency, you should definitely consider Hodlnaut. For starters, it offers high returns, not to mention the fact that there is no lock-in period. If that doesn’t sound good enough for you, you’ll be pleased to hear that the interest is paid each week, so you don’t need to wait long periods for a payout.

Hodlnaut has 6 cryptocurrencies for you to choose from (ETH, USDC, BTC, DAI, WBTC, & USDT) and offer an excellent sign-up bonus. If you deposit 1,000 USD or more into your account and leave it there for at least 31 days, then you will get 30 USDC for free.

If you deposit less than 0.1 BTC, Hodlnaut offers 5.33% APY. Suppose you deposit anywhere from 0.1 to 1.5 BTC, the APY changes to 3.04%. For larger amounts, between 1.5-3 BTC, the APY drops to 2.53% and 1.31% for anything over 3 BTC. 

Don’t be disheartened by the interest rates lowering as the volume goes up; that is common. Hodlnaut offers excellent rates at all volumes compared to others. 

Moving away from BTC, if you want to earn interest on up to 100,000 USDT, the APY is 9.41%; 3.04% for anything between 100,000 and 500,000; the rates drop significantly after that. Be sure to check the rates on all 6 coins before you invest, as they are subject to change.

If you have any concerns about your cryptocurrency being stored on Hodlnaut, don’t worry! You have the option of buying Custody Cover, which covers your cryptocurrency if Hodlnaut ever gets hacked and over 10% of your funds are taken.

This option is excellent for any anxious investors, as it offers peace of mind. The only glaring issue with Hodlnaut is the lack of coin options. For traders with much more diverse portfolios, they may need to look at other options. However, for investors of these 6 coins, this lending platform is the best option for you.

Pros
  • High returns of 5.33% APY for BTC and 4.28% for ETH, 9.41% APY for USDT & USDC
  • Cryptocurrency never gets locked in, so you can withdraw your coins when you like
  • Free 30 USDC sign-up bonus
  • Interest paid weekly
  • Optional custody cover by Nexus Mutual
Cons
  • Only 6 different cryptocurrencies supported

#4. BlockFi - buy, sell and earn interest easily

When it comes to ease of trading, BlockFi is an excellent choice. You can buy, sell and earn cryptocurrency on the same platform. Granted, Hodlnaut offers higher interest rates, but it is quite complicated to get started. You have to move cryptocurrency onto the platform to get going. 

BlockFi is excellent for newcomers as it allows you to buy crypto on the platform and begin earning interest straight away.

BlockFi also offers a unique Flex Payment choice for interest, which allows users to pick what cryptocurrency they get paid in. So if you were earning crypto interest on various coins, you could choose to have all of the interest paid in one coin. This is an excellent feature for keeping all your income in one place, although you need to be aware there is an admin fee of 1% of interest earned.

BlockFi is a highly secure and user-friendly platform with two-factor authentication and SSL encryption.

As mentioned, the interest rates on offer are lower than competitors. The APY for Bitcoin is 4.5%, and if you have over 0.1 BTC, that rate plummets to 1%.

Pros
  • Buy crypto and gain interest all on one platform
  • User-friendly interface
  • Interest Flex Payment option to earn interest in your cryptocurrency of choice
  • Over 1 million users worldwide
Cons
  • Low interest rates
  • Only 23 coins supported

#5. Nexo - best wallet for earning crypto interest

When you are choosing a cryptocurrency digital wallet to safely store your coins, one of the best options available to you is Nexo.

You can use Nexo to purchase crypto straight away, switch between crypto coins, and earn interest on each of the 22 available cryptocurrencies. Nexo even has an excellent signup offer of $25 FREE BTC when you sign up with this link, and deposit $100 for 30 days or more.

Nexo is world-class in regard to security. It uses Class III vaults, military-grade 256-bit encryption, and is ISO 27001 compliant.

As for the interest rates on offer, Nexo offers strong base rates that can be increased through several steps. The base rate for crypto coin interest on Nexo is 8% for stablecoins and 4% for other cryptocurrencies. If you instill a one-month lock on either of these options, you will immediately receive a 1% bonus.

You could also choose to receive your interest paid out in Nexo’s own coin (called NEXO), and receive an additional 2% in interest. Note that you will be paid in NEXO and not the base cryptocurrency you have stored.

Finally, you can earn further interest based on your loyalty to Nexo. The more NEXO tokens you stake in comparison to other coins in your wallet, the more interest you can gain.

Pros
  • Purchase, 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
  • Free $25 BTC bonus when you sign up and deposit $100 for 30 days
  • Easily swap your coins within Nexo
Cons
  • Earning interest in NEXO is not available in the USA

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

If you are hunting for a crypto interest option that allows you to earn crypto cashback on Visa purchases, look no further than Crypto.com. It is one of the top crypto exchanges worldwide and offers you the chance to earn interest on 47 of the 250+ coins available on the exchange.

One of the main benefits it offers is its mobile app, which lets you purchase, sell, and swap cryptocurrencies easily.

But what really sets Crypto.com apart is the fact it offers users a Visa debit card. There are different levels of Visa Card on which you load your base fiat currency. You then use your card to make purchases in everyday life, and with each purchase, you get a percentage cashback in CRO coins.

As for interest rates, they vary from coin to coin and increase if you opt to fix it for one month, three months, or more.

Crypto.com is an excellent choice if you frequently use your debit card, as the cashback quickly adds up.

Pros
  • Purchase, 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 to earn as much as 5% cashback
Cons
  • You need to lock in for lengthy periods to access competitive interest rates

#7. Binance - earn interest on the widest range of coins

Binance is the biggest cryptocurrency exchange worldwide if you base that statistic on trading volume, not to mention the fact it offers more than 600+ cryptocurrencies to trade.

From the 600+ on offer, 70+ of them allow you to earn interest on them.

Traders who take the craft seriously love Binance, as it allows for various advanced trading options.

Unfortunately, the interest rates offered on Binance tend to be lower than other options on this list, but they do become more competitive if you lock in for 60 days or more.

For example, the Bitcoin interest rate is just 1.2% APY if you opt to withdraw it anytime. However, if you lock it for 60 days, that rate increases to 8.19% APY.

Pros
  • Over 600+ different coins to buy, sell, or trade
  • More than 70+ cryptocurrencies to earn interest on
  • Higher interest rates are available if you lock in for 60 days or more
  • Biggest cryptocurrency exchange in the world
Cons
  • Earning interest on popular coins is often sold out
  • Not available in the USA

Where to earn the highest crypto interest?

Hodlnaut offers you the highest interest rates on your cryptocurrency, with 5.33% APY on BTC and 4.28% APY on ETH. However, if you want to earn interest on stablecoins, Matrixport has the best yields of 30% APY on USDT and USDC.

Is it safe to earn interest on crypto?

When you look at the high interest rates on offer, earning interest on crypto can seem too good to be true. Many people find themselves questioning what the drawbacks might be and whether it is safe.

As with any investment, there is certainly risk involved. When you earn interest on crypto, you are doing so with coins that are not contained in your personal wallet, so they are out of your control.

How much risk is involved will depend completely on which platform you pick and how you deposit your coins. The most significant risks to be wary of are hacks and borrower defaults. Platforms that don’t offer airtight security are much likelier to get hacked. Borrower defaults are impacted by who your platform lends to. If these relationships are clear and strict requirements are set, the risk is reduced.

Ensure you do research before putting any personal information or money into a platform, and be sure to diversify your portfolio by placing crypto on various platforms.

Do I have to pay tax on crypto interest?

Whether earning crypto is taxable or not depends entirely on what your local laws state. However, in most instances, yes, it is, and you will be required to report your interest earned as a form of income.

In most cases, you should make a note of the market value of your earnings on the date you received them.

Always be sure to talk to a tax accountant or financial expert for professional financial or tax advice.

Where can I buy cryptocurrency?

If you haven’t already purchased cryptocurrency, ensure you choose the right cryptocurrency exchange for you. Some cryptocurrency exchanges even let users earn interest from their trading platform, so you don’t need to worry about withdrawing and depositing your coins in numerous places.

One good example of this is Crypto.com, as it offers more than 250+ coins for you to choose from, and 47 of those coins offer you the opportunity to earn interest as well. Check out the full Crypto.com review here.

Comparison table: Best Places to Earn Crypto Interest 

(Scroll across the table to see all 5)

Matrixport
Celsius
Hodlnaut
BlockFi
Nexo
Where to earn interest
Where to earn interest
Matrixport
Celsius
Hodlnaut
BlockFi
Nexo
Cryptocurrencies
Cryptocurrencies
BTC, ETH, USDT, USDC, SOL, DOT, DOGE & 10+ more
BTC, ETH, USDT, USDC, DOT, LTC & 40 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%
6.50%
5.33%
4.5%
5% (1 month fixed)
ETH APY
ETH APY
3%
6%
4.28%
5%
5% (1 month fixed)
USDT APY
USDT APY
30%
7.10%
9.41%
8%
8% (1 month fixed)

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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