The post How To Earn Interest on Bitcoin & Other Cryptocurrencies ( Practical Guide)
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.
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:
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.
Create a free account on OKEx
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:
Here is the recent interest rate (Supply APR) for all supported cryptocurrencies:
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:
Check out Compound finance
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:
Highlights of BlockFi:
The amount of interest you will earn on crypto lending on BlockFi varies based on the amount you wish to lend. The below chart gives a glimpse of Annual Percentage Yield (APY)* you will be earning:
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).
Create a free account on BlockFi
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:
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:
Highlights of Celsius network:
Create a free account on Celsius
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:
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.
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