How To Earn Interest on USDC - 3 Best USDC Interest Accounts
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USDC is one of the most stable "Stablecoins" in the market, having retained its peg with the US dollar even during this volatile crypto ecosystem. Investors are wondering whether there is a way they can earn interest on USDC to earn a passive income. Many crypto lending platforms are delivering this facility. This guide reviews the five best platforms USDC interest platforms that provide the best interest rate on USDC, offer good security, and have the trust of the crypto market.
Best Platforms to Earn Interest on USDC in 2023
Here is the list of the best places to earn interest on USDC at the time of writing:
- Nexo (Overall Best platform to earn Interest on USDC)
- Binance (Offers savings and staking options to earn interest on USDC)
- Crypto.com (User-friendly platform to earn interest on USDC)
USD Coin Interest Rate Comparison
The platforms in this guide offer different interest rates. However, the rates are not the only aspects that the investor must look at. There are other attributes, such as the locking period, the security protocols, and additional features to consider. Keeping them in mind allows investors to wisely choose a platform and stick with it for long-term gains. Here is a brief peek into these platforms' best crypto interest rates.
|Platform||USDC Interest Rate||Requirement||Best For|
|Nexo||Up to 12% APY||Staking NEXO to earn higher interest (10% of portfolio)||No minimum redemption period|
|Binance||Up to 1.2% APY||None||Flexible and fixed interest|
|Crypto.com||Up to 10% APY||Stake more than $40,000 of CRO for highest rate||Earn interest using mobile app|
How to Earn Interest on USDC – Quick Guide
Here are the quick steps that investors must follow to start earning interest on USDC (USD Coin)
- Compare and Select the USDC interest platform
- Create an account and complete verification
- Transfer USD coin or purchase USDC
- Start earning interest on USDC
Where To Earn Interest on USDC
Most cryptocurrency exchanges are now offering ways to earn interest on crypto, especially USDC. Since it is currently the most stable Stablecoins in the market. For instance, the USD coin is the only Stablecoin to have maintained its peg with the US dollar since inflation started to impact the DeFi space. However, users must choose a crypto lending platform that has remained optimistic during this period and continues to add support for the customers. With that in mind, here are the reviews of the best exchanges to earn interest on USDC.
1. Nexo - Overall Best platform to earn Interest on USDC
Nexo is the world's leading crypto lending platform that has maintained an optimistic outlook about the crypto market ecosystem to this day. Not only does Nexo provide the highest Annual Percentage Return (APR) on USDC, it is one of those crypto lending platforms constantly interacting with the customers and answering their questions on social media platforms.
Launched in 2018, Nexo soon became the primary portal to provide investors with crypto loans and savings accounts. It has an accessible UI and provides enough assistance for newcomers to be comfortable account their crypto investments. Nexo has paid out over $200 million in interest till now among the 4 million users it caters to. It supports 33 crypto assets and has over 200 jurisdictions.
At Nexo, investors can earn up to 12% Annual Percentage Returns (APR) on USDC. The platform has kept the procedure extremely simple and accessible. Users only have to log in and top up their accounts with at least 1 USDC. Nexo compounds interest daily, and users can withdraw their earnings anytime they want.
However, earning 12% APR on USDC comes with a caveat. Users must be part of the Platinum Tier Loyalty program and fill their Nexo portfolio up to 10% with NEXO tokens. For investors who are part of the base program – with no NEXO tokens – the USDC interest is 10%. Additionally, if a user chooses to receive their payouts in NEXO tokens, they will get an extra 2%.
Another feature that put Nexo on the top of our list is its zero-fees approach. It doesn't levy additional charges for withdrawing or holding funds. Moreover, to protect investors' assets, Nexo has a $775 million insurance policy in place by BitGo and Ledger.
Nexo is a great platform to earn interest on USDC for newcomers and veterans alike. The user interface is simple, the interest rates are high, and insurance adds another layer of security to its already robust protection format. Considering these factors and that it continues to engage with its community via Twitter, experts believe Nexo is the leading crypto lending platform worldwide. The only downside is that the Nexo account interest is unavailable for US users. But for non-US users, Nexo provides all the required facilities.
- Currently provides the highest interest rate on USDC
- Compounds daily payouts on USDC deposits
- Investors only need to deposit 1 USDC to start earning
- No fees for USDC withdrawal and deposit
- Buying NEXO tokens necessary to earn the highest interest rate
- Interest Account not accessible to US citizens
- Interest rates can change with the overall market conditions
2. Binance - Best For Savings and Staking Options To Earn USDC Interest
Binance is the world's leading crypto platform that provides trading services, crypto loans, interest accounts, NFT marketplaces, Binance Learn and Earn, and Binance Earn, to name a few. Binance Earn is a service that allows investors to earn USDC and other listed crypto assets through staking or interest.
Regarding USDC interest, Binance Earn provides two options flexible savings and flexible DeFi staking. Flexible savings rewards investors with interest on USDC based on two tiers. Below 75000 USDC and above 75000 USDC.
- Tier 1: It applies to USDC savings of up to 75000 USDC and the interest rewards of 1.2%.
- Tier 2: It applies to USDC savings of more than 75000 USDC, and the interest rewards are 0.30%.
Flexible DeFi staking is another way investors earn higher interest on USDC. It is meant for advanced users and allows them to earn up to 2.79% interest. There is no lock-up period involved, but Binance considers it the riskier of the two options available.
Due to the platform's popularity, Binance Earn has generated a lot of interest from the market experts and the investors alike. That being said, many have been critical of Binance's low-interest rates for USDC. Furthermore, the liquidity rewards for USDT also stand at 1.52% at the time of writing.
Binance’s UI has been created with institutional investors in mind. So, newcomers might find it difficult to interact with the platform without training. However, Binance provides a good tutorial video to help novice investors.
Compared to the other listed crypto yield platforms, Binance offers far lower interest rates. However, it makes up for it with a focus on security that involves both standard protection measures and a robust insurance policy. Binance Funds is a $1 billion insurance policy that protects investors' assets in the event that the wallet gets hacked.
- Provides flexible interest and flexible staking options for USDC
- Investors can earn up to 1.20% interest on USD Coin
- Provides high-risk-high-rewards staking options as well
- The world's biggest and most trusted cryptocurrency exchange
- The UI is not newcomer-friendly
- 1.2% interest on USDC is very low
- DeFi staking rewards are lower than other platforms
3. Crypto.com - Best Mobile App To Earn Interest In USDC
Crypto.com is another crypto platform that provides more than trading services. In addition, it offers Crypto credit: a loan service, an NFT marketplace, a Visa Debit card, and one of the most popular facilities, the Crypto Earn. Crypto.com is known as one of the most profitable staking platforms on the market, providing interest-earning opportunities for more than 40 crypto assets. The VISA credit card is Crypto.com's flagship product, allowing users to pay retailers using cryptocurrencies.
With Crypto Earn, investors can earn as high as a 10% Annual Percentage Yield on USDC. Users can choose among three terms when putting their USDC.
- Flexible Term: It allows investors to park their USDC inside their Crypto.com savings account and earn 0.4% APY. They can enhance their APY to 0.55% by staking maximum CRO.
- 1-month term: It allows an investor to lock up their USDC in the savings account for up to one month and earn up to 0.49% APY. They can increase the APY to 6.00% by staking the maximum CRO.
- 3-Month Term: Investors can earn up to 6% APY on USDC by locking their USD coin in the Crypto Savings Account for three months. Staking maximum CRO will allow those investors to earn up to 10% APY on USDC.
Like NEXO, Crypto.com allows users to earn higher yields by staking the native crypto- CRO. Many investors have said that this is its biggest drawback. It is mostly because the CRO might not be feasible for many newcomers who want to earn passing income through their USDC holdings. Despite that requirement, the APY investors can earn 6% interest on their USDC, which is still higher than most crypto lending platforms.
Furthermore, the platform's user interactivity and higher than usual interest rates make it suitable for first-time and long-time crypto investors. Nevertheless, Crypto.com is one of the world's most popular crypto apps, with over 50 million active users and support for over 250 cryptocurrencies. It is also one of the few trading platforms through which users can invest in crypto using debit or credit cards.
- One of the world’s leading cryptocurrency exchanges
- A mobile-first app, allowing users to earn interest on USDC with the Crypto.com wallet
- Provides reasonable high interest rates on USDC
- Multiple security features to keep the investor’s assets safe
- Large CRO staking is required to earn 10% interest on USDC
- The interest rate tiers of Crypto.com are confusing
- Not available to US customers
Top USDC Interest Platforms Compared
Below lies the comparison list of the top USDC interest platform. The concise information provided is good for getting a peek at the major functionalities of the crypto lending portals. However, investors who want to turn their savings account into an instrument for long-term gains should check the complete reviews. They're simple to understand and provide an unbiased view of the platforms.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$25 Bitcoin for >$100 deposit||Visit Nexo||Nexo Review|
|Up to $100 welcome bonus||Visit Binance Earn||Binance Earn Review|
|None available at this time||Visit Crypto.com||Crypto.com Review|
Should You Earn Interest on USDC?
Earning interest on a crypto asset has long been considered the best way to earn passive income through cryptocurrencies. Investors who want to diversify their investments and want to invest in a place where they can get small, but regular returns of up to 12% APY on USDC holdings with little expertise required. Furthermore, USDC is one of the most “stable” stablecoins right now as it is backed by a mix of cash and short-term US treasury bonds. Investors consider USDC the safest Stablecoin due to strong compliance with US regulators.
Is Earning Interest on USDC Worth It?
Yes, earning interest on USDC is a worthwhile investment strategy. The current bear market makes it difficult for people to make any real gains from standard trades. The free-fall scenario of the existing ecosystem doesn't provide many opportunities to earn significant profits. However, with a savings account, investors can earn from 0.10% to 12% interest per annum on USDC.
Additionally, unlike other algorithmic Stablecoins, USDC is backed by a mix of real cash and some US treasury bonds, allowing it to stay pegged to the USD. The fluctuations of the current market haven't hurt the USDC value, even by a little. While it is not a guarantee that it will retain its stability, for now, USDC is presenting a win-win situation to investors. However, with all investments, there are still risks to be aware of.
What Are the Risks of Earning Interest on USDC?
The risks of earning interest on USDC aren't much different from trading or earning interest on any cryptocurrency. No regulation decides the interest rates; the crypto lending platforms set their own. Currently, there are no government safeguards to protect investors. Everything from the security protocols and the insurance policies rests on the crypto interest platforms.
Also, the current crypto conditions aren't considered very optimal. Lending platforms can slash interest rewards and, in extreme cases, stop withdrawals. Recently, Babel Finance and Celsius both suspended withdrawals. These platforms are currently under immense liquidity pressure. In Celsius's case, the issue is much more extreme, and the founder is considering corporate restructuring. BlockFi had issues with liquidity and was bailed out by FTX with a $250 million revolving credit facility.
Trade USDC vs. Earn Interest on USDC?
Both trading and earning interest are ways that users can interact with the crypto ecosystem to earn profits. The former allows investors to buy and sell USDC on a crypto exchange and rapidly react to the market changes to make profits. However, it is risky and recommended for experienced traders only. On the other hand, less experienced investors can earn USDC regularly in small amounts with a savings account. Users can earn up to 12% interest on USDC by starting a savings account. Moreover, interests are compounded daily – making the profits higher.
Earning Interest on USDC – Full Guide
Here is the full tutorial to start earning interest on USDC:
1. Compare and select the USDC interest platform
First, the user must select the right crypto lending platforms that support USDC. The platforms listed in this article provide different interest rates, have other requirements, and take different measures to protect investors' assets. The top listed crypto lending portal, Nexo, provides all these facilities and has the highest interest rate. That is why this full guide explains how to use Nexo to earn interest on USDC.
2. Create an account and complete verification
Visit the official Nexo website and create an account. The process is simple. Users only need to enter their personal details and upload the KYC document. The latter part is important because without providing a government-issued ID, Nexo won’t allow the investor to deposit any crypto.
3. Transfer USD coin or purchase USDC
If the user already has USD Coins in their external crypto wallet, they can transfer the cryptocurrency by sending it to the unique wallet address using the Ethereum or Polygon network. There is an option to top up directly from a Metamask wallet. Otherwise, they can buy USDC from Nexo using one of the supported fiat currencies using a bank transfer. If the user is part of the loyalty tier and has at least 1% of their Nexo portfolio with NEXO token, they can get up to 0.5% cashback.
4. Start earning interest on USDC
Once the Nexo Account is populated with USDC tokens, it will start accruing interest. Users can monitor their earnings through the desktop app or the Nexo Wallet.
Frequently Asked Questions
Nexo rewards the highest interest rate on USDC at 12% per year at the time of writing. Moreover, it accrues interest daily, has no lock-up periods, and users can withdraw from their holdings whenever they want.
The demand for Stablecoins such as USDC is constantly more than the supply. Furthermore, it is the most stable "Stablecoins" in the market. That's why USDC APY is so high.
The easiest way for investors to earn money on USDC is through crypto lending platforms. Users can hold tokens in their crypto savings accounts on those platforms and earn an Annual Percentage Yield (APY) of up to 12%.
USDC is a Stablecoin backed by cash and short-term US government bonds as collateral. For an investor, 1 USDC should always be equivalent to $1.
Earning interest is one of the most efficient ways to profit from USDC holdings. However, because the token is a stable component of the crypto ecosystem that is used to transfer value between crypto-assets. It should be noted that earning interest does come with risks. Most of the regulations provide no safeguards on crypto holdings and the customer has no control over the lending platform's security and safety processes.
That being said, in this volatile crypto market, getting interest on USDC can provide regular and assured returns, making it suitable for newcomers and long-time investors alike.