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    How To Earn Interest On Bitcoin 2022 - 5 Best Bitcoin Interest Accounts

    Updated: Sep 13th, 2022
    Kevin Groves
    Kevin Groves
    How To Earn Interest On Bitcoin 2022 - 5 Best Bitcoin Interest Accounts

    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.

    Best Platforms To Earn Interest on Bitcoin in 2022

    These are the best places to earn interest on Bitcoin based on our research:

    This post contains affiliate links with our partners who may compensate us. Read our disclaimer for further information.

    Bitcoin Interest Rate Comparisons

    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.

    PlatformBitcoin Interest RateRequirementsBest For
    NexoUp to 8% APYMust stake NEXO for highest rateNo minimum redemption period
    BlockFiUp to 3% APY5% APY (on first 1 BTC) then reduced 1.5%Great for investing smaller amounts
    BinanceUp to 5% APY5% APY (on first 0.01 BTC) then reduced to 0.1%Flexible Bitcoin interest account
    CelsiusUp to 18% APY5% APY (on first 1 BTC) then 1.5%Instant loan approvals available
    Crypto.comUp to 4% APYMust stake CRO for highest rateCrypto loans and credit cards available too

    How To Earn Interest On Bitcoin - Quick Guide

    To begin earning interest on Bitcoin, follow these simple steps.

    1. Compare and select a Bitcoin interest platform
    2. Create an account and complete verification
    3. Deposit or purchase Bitcoin
    4. Begin earning interest on BTC

    Where to Earn Interest on Bitcoin: 2022 Reviews

    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.

    Process to earn interest on Bitcoin using NexoProcess to earn interest on Bitcoin using NexoProcess to earn interest on Bitcoin using Nexo.

    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 ProsNexo Cons
    Zero commissions and deposit/withdrawal feesMust hold NEXO for higher interest rate
    Bitcoin covered by 375 million insurance policyPrice volatility can be an issue
    Earn up to 8% annual interest on BitcoinInterest 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.

    Blockfi interest rates for BitcoinBlockfi interest rates for BitcoinBlockfi interest rates for Bitcoin.

    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 ProsBlockFi Cons
    No commission or monthly feesLimited interest account withdrawals
    U.S.-based and regulated companyNo insurance coverage for deposits
    No minimum balanceInterest account not available for US investors
    Suitable for small BTC investmentsLow 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.

    Binance interest rates for BitcoinBinance interest rates for BitcoinBinance interest rates for Bitcoin.

    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 ProsBinance Cons
    Flexible interest account for BitcoinOnly the first 0.01 BTC earns a 5% interest
    Up to 5% APY for BTCBitcoin interest rates can fluctuate
    Reputation for high safety and securityPlatform 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.

    Update: Celsius suspended withdrawals on June 13, 2022, due to market volatility. For more information, read their blog post.

    Bitcoin interest rates on CelsiusBitcoin interest rates on CelsiusBitcoin interest rates on Celsius.

    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 ProsCelsius Cons
    Perks for using CEL tokenHighly centralized
    No deposit or withdrawal feesNo owned exchange
    No fees for minimum balancesU.S. residents don’t have access to the CEL token
    Customer service available via phoneNo 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.

    Earn up to 6% APY interest on Bitcoin with Crypto.comEarn up to 6% APY interest on Bitcoin with Crypto.comEarn up to 6% APY interest on Bitcoin with Crypto.com.

    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 ProsCrypto.com Cons
    Large selection of cryptocurrenciesRequired to stake CRO for best interest
    Earn up to 6% pa on BTCHigher debit or credit card fees
    Easy to use mobile app to earn interestHigher Bitcoin APYs available on other platforms

    Top Bitcoin Interest Platforms Compared

    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.

    ExchangeCrypto AssetsTrading FeesRatingPromotionWebsiteReview
    nexo

    Nexo

    40+None
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.7/5
    StarStarStarStarEmpty Star
    $25 Bitcoin for >$100 depositVisit NexoNexo Review
    blockfi

    BlockFi

    13None
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.6/5
    StarStarStarStarEmpty Star
    Get up to $250 Bonus in BitcoinVisit BlockFiBlockFi Review
    binance

    Binance Earn

    3970.1%
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.5/5
    StarStarStarStarEmpty Star
    Up to $100 welcome bonusVisit Binance EarnBinance Earn Review
    Crypto.com

    Crypto.com

    250+None (3.5% surcharge for credit card)
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.5/5
    StarStarStarStarEmpty Star
    None available at this timeVisit Crypto.comCrypto.com Review
    celsius networkcelsius network

    Celsius

    50N/A
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.2/5
    StarStarStarStarEmpty Star
    None available at this timeVisit CelsiusCelsius Review

    Should You Earn Interest on Bitcoin?

    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.

    Is Earning Interest on Bitcoin Worth It?

    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.

    Trade Bitcoin vs. Earn Interest on Bitcoin

    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.

    What Are The Risks of Earning Interest on Bitcoin?

    Earning interest in Bitcoin is considered to be a smart 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. The other risk is the occurrence of DeFi hacks that can result in total loss of funds.

    Earning Interest on Bitcoin - Full Guide

    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.

    Creating an account with NexoCreating an account with NexoCreating an account with Nexo.

    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.

    Depositing Bitcoin to NexoDepositing Bitcoin to NexoDepositing Bitcoin to Nexo.

    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.

    Frequently Asked Questions

    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.

    Conclusion

    To conclude this article on the best platforms for earning interest on Bitcoin, it is recommended to 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.

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    Kevin GrovesKevin GrovesKevin Groves

    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.

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