With the rising inflation rates in 2022, many investors are looking at options to earn interest on Bitcoin to grow their portfolios. In particular with the current decline in the overall crypto market, earning passive interest on Bitcoin can be a good strategy for long-term holders. This article will review and compare the best Bitcoin interest accounts and provide an example of how to earn Bitcoin interest.
Different crypto lending and savings platforms have varying rates of interest and distinctive features that can influence which is the best option for earning interest on Bitcoin. The table below provides a summary of the interest rates for Bitcoin among the top providers.
|Platform||Bitcoin Interest Rate||Requirements||Best For|
|Nexo||Up to 8% APY||Must stake NEXO for highest rate||No minimum redemption period|
|BlockFi||Up to 3% APY||5% APY (on first 1 BTC) then reduced 1.5%||Great for investing smaller amounts|
|Binance||Up to 5% APY||5% APY (on first 0.01 BTC) then reduced to 0.1%||Flexible Bitcoin interest account|
|Celsius||Up to 18% APY||5% APY (on first 1 BTC) then 1.5%||Instant loan approvals available|
|Crypto.com||Up to 4% APY||Must stake CRO for highest rate||Crypto loans and credit cards available too|
To begin earning interest on Bitcoin, follow these simple steps.
- Compare and select a Bitcoin interest platform
- Create an account and complete verification
- Deposit or purchase Bitcoin
- Begin earning interest on BTC
Once an investor has decided to put their Bitcoins to some good use, by yielding interest on them, it’s time to figure out the right platform to do so. Before determining and narrowing down on a single platform, it is essential to take into consideration a variety of other factors. While the annual interest rate is surely one important factor, it definitely isn’t the only one.
Other factors such as the minimum lock-in period, fees charged by them and how secure the platform is, should also be considered before making the final call. Here is our list of the top platforms to earn interest on Bitcoin.
1. Nexo - Best Platform To Earn Bitcoin Interest
Nexo is a platform that offers loans on cryptocurrencies and enables users to earn interest on Bitcoin. Since 2018, the platform has been working towards improving the inefficiencies in the digital assets lending market by creating innovative solutions for the consumers. Helping customers earn interest using their Bitcoin investments is one of the primary offerings Nexo brings to the table.
Bitcoin investors can start earning interest on Bitcoin using Nexo in two simple steps. Just buy or top up the Nexo account with Bitcoin and that makes an investor eligible to earn interest on their Bitcoin investments using Nexo. No further steps are required. The platform offers up to 8% interest on Bitcoin with compounding daily payouts.
However, the caveat here is that to earn the 8% interest there needs to be an entry into Nexo’s Platinum Loyalty tier clientele, by keeping 10% or more of an investor’s portfolio balance as NEXO tokens. As of now, the platform has paid out $200M+ in interest to its users to almost 4M users across the world. As of now, the platform has paid out more than $200 million in crypto interest to its users to almost 4 million users across the world.
|Nexo Pros||Nexo Cons|
|Zero commissions and deposit/withdrawal fees||Must hold NEXO for higher interest rate|
|Bitcoin covered by 375 million insurance policy||Price volatility can be an issue|
|Earn up to 8% annual interest on Bitcoin||Interest account not available for US investors|
|Compounding daily payouts|
2. BlockFi - Best For No Minimums
BlockFi is a lending platform that offers interest to customers who want to park their cryptocurrencies with them. The organization also offers USD loans against cryptocurrencies as collateral. Founded in 2017, the company has backing from some of the major investors and offers innovative solutions in the digital currency lending space. With over $10 billion+ in assets and 1 million+ clients, BlockFi is one of the most secure and popular platforms to earn interest on Bitcoin investments as of now.
With the BlockFi interest account, investors can earn interest rates Between 0.1% and 3% APY which depend on the amount invested and the account tier. For instance, a Bitcoin rate of 3% is available for the first 0.01 BTC deposited. Tier 2 pays an interest rate of 1% APY for deposits between 0.1 and 0.35 BTC. The interest rate for Tier 3 of greater than 0.35 BTC will yield a return of 0.1% APY.
While the Bitcoin savings account rates for larger amounts are quite low compared to other providers, the interest is accrued daily and credited to the user’s account on a monthly basis, which allows them to earn interest on a monthly basis. Moreover, the platform has an Interest Payment Flex option that enables choosing the currency in which the interest is paid.
BlockFi is a beginner-friendly platform with no thresholds on a maximum or minimum deposit. The highest API on stablecoins available on BlockFi stands at 11% on MATIC.
|BlockFi Pros||BlockFi Cons|
|No commission or monthly fees||Limited interest account withdrawals|
|U.S.-based and regulated company||No insurance coverage for deposits|
|No minimum balance||Interest account not available for US investors|
|Suitable for small BTC investments||Low interest rates above 0.35BTC|
3. Binance - Best For Flexible Bitcoin Terms
Binance is known for its large number of listed cryptocurrencies and some of the best commissions offered. Binance also has the largest amount of trading volume in this space. Binance has always been at the forefront of bringing innovative services and offerings to its users via its platform. Adding to the list of those innovative features is the Binance Savings Account feature for the cryptocurrency holdings. The Binance Savings feature on the platform works in two different ways.
The first option is to earn interest through the Flexible Savings option. This feature allows users to subscribe to their Bitcoin to earn interest, and then redeem the invested amount as and when they want to. The interest in a user’s purchased subscription starts from the very next day of their purchase. The Bitcoin interest rates on Binance use a tiered system as follows:
- 5% APY for deposits of 0 - 0.01 BTC
- 0.8% APY for deposits of 0.01 to 0.5 BTC
- 0.1% APY for deposits above 0.5 BTC.
On the other hand, locked savings doesn’t support BTC as one of the supported currencies for now. Although, one interesting observation is the higher APY offered by Binance on locked savings. In case, an investor has altcoins available with them, which they can keep aside for a fixed period of time, it can help them earn a considerable interest. For instance, AXS (Axie Infinity) allows earning an Annualized Interest Rate of 70% when locked for a period of 15 days.
|Binance Pros||Binance Cons|
|Flexible interest account for Bitcoin||Only the first 0.01 BTC earns a 5% interest|
|Up to 5% APY for BTC||Bitcoin interest rates can fluctuate|
|Reputation for high safety and security||Platform is not very easy to use|
4. Celsius - Best For High Bitcoin Interest Rates
Celsius Network started in 2017 in order to provide services such as fair interest returns, lower rate of interest on loans, zero transaction fees and lightning-quick transactions. The founders of the organization wanted to bring these services back, which were otherwise ignored by the traditional banks.
From that day to now, the Celsius Network has expanded its operations and has served a wide range of customers. With more than $8.20 billion worth of loans processed & 2 million community members, Celsius offers one of the best interest rates on Bitcoin savings accounts.
As per the latest update on 15th April 2022, only accredited US investors are allowed to add deposits and earn rewards on them through the Celsius Network. However, users outside the US can still earn though. Users can earn up to 18.63% APY on the Celsius Network. The platform features and provides interest on Gold tokens, stablecoins and 25+ cryptocurrencies.
The rates on Celsius differ for U.S. users as well as international users. It offers up to 8.53% APY on the first 0.1 BTC. The rate reduces to 1.31% APY for 3 BTC and above. There are no minimum balances or fees to earn on any BTC holdings. The interest rates for Bitcoin above are for customers that hold CEL tokens. The basic rates are slightly lower at 6.5%, 2.5% and 1% APY which is very competitive for a Bitcoin savings account.
|Celsius Pros||Celsius Cons|
|Perks for using CEL token||Highly centralized|
|No deposit or withdrawal fees||No owned exchange|
|No fees for minimum balances||U.S. residents don’t have access to the CEL token|
|Customer service available via phone||No trading or charting features available|
5. Crypto.com - Best App To Earn Interest On Bitcoin
Crypto.com has been one of the most popular crypto exchanges and platforms out there for quite some time now. It has been proactively diversifying its services and offerings on a regular basis. With over 50 million users and a large list of cryptocurrencies listed on its platform, it is one of the top crypto apps for many crypto enthusiasts and experts alike.
It consists of an exchange, a Defi wallet, a full-fledged NFT marketplace a VISA credit card and more available in its roster of services. Adding to that, Crypto.com offers some of the best interest rates on Bitcoin. While the APYs (annual percentage yield) can go up to 14.5% on Crypto.com, the maximum rate of interest on Bitcoin at Crypto.com stands at 6% APY.
In order for a user to earn a 6% interest on any Bitcoin holdings, they will have to lock in their cryptocurrency for a period of three months. Another condition to get that 6% interest rate is that the users will have to stake their CRO tokens to achieve this. Once done, users can achieve interest on Crypto.com on a daily basis. The earnings made through interest are accrued and credited into the customer’s account every 7 days in Bitcoin.
|Crypto.com Pros||Crypto.com Cons|
|Large selection of cryptocurrencies||Required to stake CRO for best interest|
|Earn up to 6% pa on BTC||Higher debit or credit card fees|
|Easy to use mobile app to earn interest||Higher Bitcoin APYs available on other platforms|
The comparison table below lists the top places to earn interest on Bitcoin using trusted and reliable platforms. For more information, read our dedicated reviews on each provider.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$25 Bitcoin for >$100 deposit||Visit Nexo||Nexo Review|
|Get up to $250 Bonus in Bitcoin||Visit BlockFi||BlockFi Review|
|20% off trading fees||Visit Binance Earn||Binance Earn Review|
|250+||None (3.5% surcharge for credit card)|
|None available at this time||Visit Crypto.com||Crypto.com Review|
|None available at this time||Visit Celsius||Celsius Review|
Earning interest on Bitcoin by using a savings account is a feasible option for someone who wants a lesser volatile option with a fixed or flexible rate of return. With interest rates in traditional banking around 1% (or negative in certain countries), depositing Bitcoin to earn compounding yields up to 8% APY is attractive.
Earning interest on idle Bitcoin via an interest-earning account is a feasible method of growing a portfolio. With the rising inflation, it is better to earn regular returns on the cryptocurrencies that are owned by an investor. This can actually help the users to diversify their source of income from a single source. While investors might be able to take advantage of a bullish phase in the market, they also end up earning interest on the original holding.
However, one thing that users should take note of that is many platforms tend to have a lock-in period involved when it comes to earning interest on the Bitcoin savings. In case, the customers want a certain degree of flexibility in terms of their Bitcoin holding down the line, it is recommended to check prior to investing their cryptocurrency.
When it comes to comparing Bitcoin trading vs investing in it, both serve two different purposes. Trading Bitcoin can be a short-term strategy if investors hold Bitcoins and have a high-risk appetite. Trading cryptocurrency might make it lose its value at times due to volatile market conditions.
On the other hand, many investors who hold Bitcoin prefer to invest in Bitcoin and hold it for a longer period of time. For investors holding Bitcoin, using a Bitcoin interest account might be a more suitable strategy considering they can benefit from the long-term compounding growth. Moreover, it can help to minimize the effects of short-term market corrections.
Moreover, as it is held by them, not only does the Bitcoin rise in value, but the investors earn interest over a long period of time too. Hence, out of trading and investing, neither can be termed as better. Both the strategies are suitable depending on one person to another.
Earning interest in Bitcoin is considered to be a smart and safe way to earn a yield on a Bitcoin investment. With every investment involved, there lies a degree of certain risk. One such risk that lies around earning investment is the volatility of the market. For instance, if the interest platform offers a 6% interest rate on Bitcoin but the underlining value of Bitcoin drops by 40%, the overall value of the investment will be at a loss.
For investors who hold Bitcoin and want to earn a return on their BTC investments, depositing funds and earning interest is a viable option. To get started with earning interest on Bitcoin, follow these steps:
1. Compare and select a Bitcoin interest account
The first step to earning compound interest on Bitcoin is to compare and choose a suitable interest platform to use. The list above compares the best lending platforms which we have reviewed and are viable options. For the purpose of this tutorial, we will use Nexo which is a top-rated platform to earn interest on Bitcoin.
2. Create an account and complete verification
Visit the Nexo website and create an account. This is a simple step and can be done by filling out a few columns with details such as name, email ID, and creating a password. Once the details are verified by email, the signup process is completed. There is a mandatory ID verification process called Know-Your-Customer (KYC) before using the earn features on Nexo. To complete this process, basic personal information and a Government-issued ID will need to be provided.
3. Deposit or purchase Bitcoin
Once the interest account is verified, the user can either transfer BTC to the platform or purchase it directly from the Nexo exchange. For existing Bitcoin owners, the process will involve copying the unique BTC address and transferring funds from their wallets. Bitcoin transfers can take between 10 minutes up to 1 hour. To buy Bitcoin, Nexo supports a variety of payment methods such as bank transfers, credit/debit cards, SEPA and Faster Payments.
4. Begin earning interest on Bitcoin
With Nexo, once the Bitcoin wallet is funded with BTC, the account will automatically begin to accrue interest. There is no other action to be taken apart from monitoring the portfolio balance and amount of Bitcoin earned on Nexo.
Some of the best places to earn interest on Bitcoin earnings are BlockFi, Binance, Crypto.com, Nexo and the Celsius Network. Decide any preferred platform to invest in and earn interest on Bitcoin on the basis of the specific requirements.
Earning interest on Bitcoin is a feasible option for investors who want to be invested for a long time period. Investors should certainly consider investing in Bitcoin. It provides a passive income on an already held asset.
Many crypto wallets offer interest-earning options, simply by depositing cryptocurrency into them. Check the preferred platform’s terms and conditions to know more.
Yes, the interest earned on Bitcoin is taxable in most countries.
To conclude this article on the best platforms for earning interest on Bitcoin, it is recommended to the investors figure out their risk-taking appetite and the degree of flexibility before investing. For someone who holds Bitcoin, in a larger number, setting aside some of their holdings into a savings account might be a prudent option. However, it is always recommended to start small and then expand.
Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.