How To Earn Interest on Bitcoin & Other Cryptocurrencies ( Practical Guide)
Do you want to earn interest on Bitcoin holding?
Do you want to earn interest on other cryptos that you hold?
If your answer is yes to any of these questions, then you have come to the right place. In this resource, you will find some of the best and trustable financial products that let you earn Bitcoin interest or Altcoin interest by just holding them. These financial products use the various mechanism to lend these cryptos to other institutes, margin trading exchanges and other ways to generate a return and thus share the earnings with you.
I have done my best to find all the trustable resources that could be used. Most of them offer interest in Bitcoin and a few are part of Defi (Decentralized finance) which let you earn interest in popular cryptocurrencies. Disclaimer: Even though all these methods work, you should know that lending itself is a risky segment. A few of them have a locking period and based on your risk management, you should pick one. I have also shared a few websites that let you earn interest on Stable coins holding, which is something worth knowing and using in the time of the bear market or when the crypto market is going down.
Best websites to Earn Bitcoin interest & Interest on Cryptocurrencies:
Piggybank by OKEx
If you are someone who is into regular crypto trading and still wish to earn interest on Bitcoin or other crypto holdings, Piggybank by OkEx is worth looking at. OKEx is a top crypto exchange and this is a VAS (Value added service) that enables users to earn OKEx’s income from margin loans.
At the time of writing, following cryptocurrencies are supported by OKEx piggybank:
Highlights of OKEx Piggybank:
- No locking period and you can withdraw fund anytime.
- Interest is paid daily and compounded.
- No minimum deposit
- Instant deposit and withdraw
There are also many notable coins on OKEx, and it’s one of the platforms you should be using. In the below chart, you can see interest earned and 7-day annualized yield. Unlike other platforms listed in this resource, here the interest rate is not fixed. The interest rate is determined by interest accrued from margin trading on OKEx platform. As I said earlier, this is different than other platforms which offer Bitcoin interest, but I believe it’s something many of you would find useful.
Compound finance is at the forefront of decentralized finance where you can lend few of the major cryptocurrencies and interest on them. When you lend cryptocurrencies using Compound, you adding funds to the liquidity pool. You are not directly dealing with borrowers; rather they are borrowing from the market. Interest rates are determined algorithmically (real-time) based on supply and demand.
At the time of writing, you can lend the following cryptocurrencies on Compound finance:
- 0x (Zrx)
- WBTC (This is for lending Bitcoin, and I will cover in-depth in the upcoming guide)
With time, you can expect Compound finance to add more cryptocurrencies. The most common way to access the Compound protocol is by using Metamask. However, for users who are paranoid about security, you should use Defi saver that let you access compound protocol using a hardware wallet such as Ledger Nano X, Ledger Nano S, Trezor, and Fortmatic.
There are two stable coins supported by Compound finance right now:
Highlights of Compound.finance:
- The compound protocol lives on Ethereum blockchain
- There is no locking period. You can withdraw your funds anytime
- Interest rate is not locked and changes based on supply and demand.
- Interest is paid after every ETH block confirmation (every ~15 seconds)
For earning interest in Bitcoin, BlockFi should be your first choice as Bitcoin Lending Platform. They offer interest up to 6.2% Annually on Cryptos. BlockFi supports following Cryptocurrencies:
- GUSD (Gemini Dollar)
Highlights of BlockFi:
- Interest earned is paid out at the beginning of the month.
- Interest earned is compounded monthly.
- Minimum balance to earn interest is 0.5 BTC, 25 ETH, or $2,500 GUSD
The amount of interest you will earn on crypto lending on BlockFi varies based on the amount you wish to lend. Note: The APY is calculated based on monthly compounding. The locking period for Blockfi is one month and the withdrawal requires a manual interview and can take up to 7 days. Do keep a note of fees for withdrawal on BlockFi interest account (BIA).
I discovered Nexo a few months back and already shared about this with CoinSutra users on Telegram and on Twitter. If you are an existing member, you may be aware of Nexo already. This is another high-quality platform that let you earn Interest on Stable coins. You will be earning up to 8% interest, and interest is paid out daily, which automatically start earning high yield Interest.
Supported coins: USD, EUR, GBP, USDT, TUSD, USDC, PAX, DAI
Highlights of Nexo:
- Supports all major stable coins.
- Instant deposit and withdrawal
- No locking period
- 100% asset-backed guarantee
- Custodial insurance of $100 million by BitGo and Lloyd’s of London
- Business audited by Deloitte
- Instant withdrawal from wallet with Zero withdrawal fees
The newest addition is Zero withdrawal fees for any of the cryptocurrencies from the Nexo wallet. They have a web app and mobile wallet, which makes it easy to use the Nexo platform.
Celsius is a platform that offers Interest On Bitcoin and other major cryptocurrencies. The interests are paid out weekly, and if you decide to take interest in the platform token (CEL), your earned interest rate will be higher. At the time of writing, these are the coins supported by Celsius for earning interest:
- Bitcoin – 4.60%
- Ethereum – 3.90%
- Litecoin – 4.50%
- Ripple – 2.50%
- OmiseGo – 4.25%
- Bitcoin cash – 3.75%
Highlights of Celsius network:
- No minimum deposit
- Fee-free withdrawal
- No lock-up period
Conclusion: Best ways to earn interest in bitcoin
As the cryptocurrency and decentralized financial market are increasing, I’m hopeful to see more trustable networks and platforms in the coming days. For now, these are some of the best options for you to earn interest in cryptocurrency and Bitcoin. Depending on how you are using cryptocurrencies, you can pick to earn interest in Bitcoin or in Stable coin.
Here is a summary of the above-listed platforms:
- Compound finance: Most trusted and decentralized.
- Block Fi and Celsius: The Easiest way to get started with earning Bitcoin interest.
- Piggybank by Okex: Best for those who are also into crypto trading. Supports Bitcoin.
It would be nice to know which platform are you using to earn interest in Cryptocurrencies and Bitcoin? After trying any of these above-listed platforms, do come back to share your review and opinion.
Article Produced By
Heiko Closhen, Entrepreneur