It would have been difficult to imagine earning interest on crypto currencies in the recent past. However, this is a possibility and many savings accounts are at your service. A crypto currency savings account works like a traditional savings account.
In simple terms, one would deposit cryptocurrencies in the savings accounts, which are then lent out to third parties, who agree to pay interest on the borrowed cryptocurrencies via the savings accounts.
Many crypto lending platforms require collateralization of crypto assets as it reduces the risks associated with handling crypto. It also removes the need to conduct traditional credit appraisals for borrowers.
These savings accounts don’t have FDIC insurance safeguards. Similarly in India, these savings accounts don’t have the Government deposit insurance upto a certain amount.
Following are 10 of the important cryptocurrency savings accounts. Website links are also mentioned to help in further due diligence.
The company was cofounded by Antoni Tenchev. Nexo’s interest payout is high with up to 12% APY on 21 different cryptocurrencies on a daily basis. Nexo loyalty program participants are eligible for the highest rates.
Additionally, there is a requirement of holding Nexo’s native coin. Nexo is available in 200+ jurisdictions. It also has $ 375 million insurance on all custodial assets. One can add or withdraw funds anytime. They boast of military-grade class III vaults.
Cryptocurrencies such as Bitcoin, Ethereum, and Ripple have rates ranging from 4% to 8%. Stablecoins like USDT, USDC, and DAI, as well as cash deposits in USD, GBP, and EUR, can earn between 10% and 12%.
More information about Nexo is available here.
The company is based out of Estonia, Europe in 2016. Coinloan is a legal and regulated cryptocurrency lending and borrowing marketplace . Cryptocurrency interest is calculated daily on the deposit and credited to wallet on the first of each month. Coinloan interest account rates vary, but can reach 12 percent per year.
CoinLoan holds cryptoassets in offline, cold, multi-signature wallets with the digital asset trust custodian BitGo, which is insured by Lloyd’s for $100 million. They have other security features also like vulnerability scans, two factor authentication, account takeover protection etc.
Apple and Android apps can also be downloaded from respective stores.
More information about Coinloan is available here.
BlockFi, is a fully regulated and licenced bank-like supplier of cryptocurrency savings accounts, loans, and exchange services. It was established in 2017. The company has financial licences to operate in 48 U.S. states.
Interest accrues daily and is paid out monthly. It does not have any hidden fees or minimum balance requirements.
One can earn upto 8.25% APY on the crypto savings account. Crypto backed loans are also provided at 4.5% APR. They have launched world’s first Bitcoin rewards credit card
It runs a promotional offer of receiving a $250 crypto bonus with a deposit of $25 or more in crypto.
More information about BlockFi is available here.
The company is registered in Switzerland. They regularly come with offers like trade Crypto and Win Tesla, Vespa or E-bike. It also has an office in Cyprus. It is a European bank-like crypto asset management platform.
The company offers a crypto savings account with APY of up to 12.3%. It also provides crypto based loans with loan-to-value ratios of up to 90%. Minimum investment is $100 USD.
The company supports 39 cryptocurrencies and stablecoins to earn interest on, with BTC paying 4.8 percent, ETH 5.5 percent, LINK 6.2 percent, and stablecoins paying about 12 percent. Good thing is that there are no lock-up periods with Youhodler.
More information about Youholder is available here.
The company was launched in 2017 by serial entrepreneur Alex Mashinsky (one of the VOIP’s inventors). It boasts of over $200 million in funding and 40,000 active wallets. The interest is paid weekly.
There is an option of earning more, when paid in Celsius’ native cryptocurrency CEL. As a promotional offer users can get $40 in free DAI after transferring $200 or more in crypto to their Celsius wallet in one transaction. They also have to hold the crypto in the wallet for 30 days.
More information about Celsius Network is available here
The company is based out of Singapore. They have 10k + users with $ 500 million in held assets. Holdnaught allows only weekly withdrawals to your wallet. The good news is that there are no lock in periods or minimum deposits.
On can earn up to 12.73% on crypto deposits. It supports Bitcoin, Ethereum, DAI, USDC, USDT and WBTC. It gives out loans with LTV ( Loan to value) of 70% or lower to corporate entities with good credit scores. They also have a 24 hour customer support team.
Get a $20 bonus with first deposit of $1000 as a single transaction. Refer and earn 10% commission from referral interest.
More information about Holdnaught is available here.
7. Gemini Earn
Gemini has arrived late to the crypto savings trend. It is a licensed New York Trust company. It is also well known as a cryptocurrency exchange. The savings interest rate mentioned on their website is 8.05% APY. Both cryptos and stable coins can be used to earn interest.
As a company Gemini is also coming up with a crypto credit card soon, where once an earn rewards in crypto.
More information about Gemini Earn is available here.
8. Invictus Capital
It has a cryptocurrency based mutual fund. The company claims that it offers investors the ability to take advantage of the cryptocurrency market’s volatility to earn interest with no anticipated downside risk.
Both cryptocurrencies and stable coins can be used to earn interest via Invictus Margin Lending Fund. The historic returns are above 10%, as mentioned in their website.
More information about Invictus Margin Lending Fund is available here.
Ledn provides Bitcoin based loans and also a savings account. The savings account is provided in collaboration with Genesis Capital with an interest rate of upto 9% APY for USDC. Bitcoin is a lower interest rate upto 6.10 % APY.
The savings interest account supports both Bitcoin and USDC stable coin. There is no minimum balance or lock-in period requirement.
As a downside, the cryptocurrencies held in Ledn savings accounts are not covered by CDIC or other insurance. However, they claim to be working with best-in-class industry partners to minimize the risk of its operations.
More information about Ledn crypto savings account is available here.
10. Binance Earn
Binance Earn is Binance’s one-stop crypto interest earning solution. It has over 60 cryptocurrencies and stablecoins to select from. Both fixed and variable terms are available for earning interest.
Other products like Staking, DeFi solutions, Liquid swaps, Launchpool, Dual investment , BNB vault and ETH 2.0 staking are also available to users. Do go through each product’s own set of risks, terms, and rewards.
More information about Binance savings is available here.
Disclaimer: The above is only an indicative list and may carry inherent risks and hidden clauses. The article is in no way an advice but provides only a list for further due diligence. The information provided above has been collated from various internet blogs and websites. Thus the information mentioned above may vary due to constant upgradation of products. Voittoinsights.in and none of it’s promoters or employees, if any, will be responsible for the authenticity of above provided information as offers and other information is evolving each day. One will also need to follow Income Tax rules for income generated via Cryptocurrency savings accounts. Few offers mentioned above may have changed in due course. Hence, your own due diligence is highly recommended.
Q 1. Which Crypto service provider gives the highest interest on Crypto staking?
Ans. BockFi was giving the highest interest in the industry. Customers were earning upto 15% APY on selected cryptos. On November 28th, 2022 the company has filed for bankruptcy in the US.
Q 2. Is earning interest on crypto safe?
Ans. Earning interest on cryptocurrency is recommended only if you have a high risk appetite and is not considered a safe bet. In 2022 cryptos had a dismal performance with few of them declaring bankruptcy.