5 Best websites to Earn Bitcoin interest: Bitcoin Saving accounts
- GUSD (Gemini Dollar)
Highlights of BlockFi:
- Interest earned is paid out at the beginning of the month.
- Interest earned is compounded monthly.
- You can also trade on the platform. For example: Sell your Bitcoin for USDC when price is high and buy back when the price is low. You will be earning interest in both cases.
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).
Celsius is a platform that offers Interest On Bitcoin and other major cryptocurrencies. The interests are paid out weekly, and if you take an 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
3. Binance Saving account
Binance is the world’s best cryptocurrency exchange and is loved by millions of traders globally. Binance offers a feature called “Binance Savings”, where you can lend your Bitcoin and earn interest on it. The interest rate is flexible, and at the time of writing, they are offering 1.6% Estimated Annual Yield.
To use this feature:
- Head over to Binance
- Click on Finance > Savings
Here you will be able to lend your Bitcoin and start earning interest. You also have an option to auto-subscribe, which will automatically lend your Bitcoin balance at the end of the day. This is idle for traders who are taking a break of a few days, and still want their idle Bitcoin to earn extra income for them.
4. Compound finance
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)
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:
- 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)
I discovered Nexo a few months back and already shared about this with cryptoshrink 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.
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:
- Block Fi and Celsius: The Easiest way to get started with earning Bitcoin interest.
- Binance: 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.
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