With the increasing inflation rates, the global interest rates remain low to earn investors decent returns on their investments. Consequently, many people are looking for an alternative way to grow their wealth. Cryptocurrencies are becoming increasingly popular investment assets with huge gains in recent years on different coins. Another way of building your investment is earning interest on the crypto assets you own. Generally, the annualized interest rates for crypto investments exceed 4% for Bitcoin and 8% for stablecoins. Some altcoins may offer rates as high as 40% APY. Your initial investment can increase even more substantially when compounded over a few years.
How to earn interest on cryptocurrencies?
You can earn interest on your digital currency assets through staking, which is available on specific coins, or lending platforms. Simply put, staking involves locking up digital tokens to be used in validating transactions on a proof-of-stake blockchain network. By supporting the security, integrity, and continuity of a blockchain network, validators (stakers) earn more of the cryptocurrency as a reward.
Lending platforms is another way of warning interest in your cryptocurrency. Such platforms use the investors’ money to lend to other users looking to borrow funds. The interest gained from the borrowers is distributed to the investors (lenders).
Where to earn interest on Crypto?
Many cryptocurrency lending and exchange platforms offer crypto lending services that can earn you a decent income. However, all these platforms may differ in different factors, including interest rates, availability in some locations, minimum lending amount, and the supported coins for lending. With all these factors to note, it can be difficult deciding which platform to use. Additionally, there is the issue of trust – you may not know which site to trust or if the interest rates are misleading.
What to consider when selecting where to earn interest on Crypto?
There are many factors to consider when choosing the best way to earn interest. Here are some questions you should ask:
- The terms of the interest account when it comes to withdrawal of your investment. Dose the platforms require locking up cryptocurrencies for a set period, or you can withdraw them anytime.
- The type of digital token you are planning to invest in; are you planning to earn interest cryptocurrencies (bitcoins and altcoins), stable coins, or both?
- Asset diversification; do you want to invest with many coins or just a few?
- The number of assets you want to earn interest from; a large number of coins may lead to lower interest rates.
- Owning the platform’s native coins, do you want to earn higher interest by owning native coins of the lending platform?
Best Places to Earn Interest on Your Crypto
The two most significant factors you would want to consider when selecting a crypto platform to earn interest are interest rates and security. Hi.com is one of the rare platforms that check both of these boxes. It offers you a chance to earn high interest of up to 5.5% APY on Ethereum and 11% APY on USDT (stable coin). The native token HI earns even higher interest of up to 40% APY (one of the highest in the market).
If you are worried about locking your crypto assets for a specific period, hi.com offers you a chance to invest with no lockup. You can withdraw your funds anytime you want. Additionally, the platform does not require any minimum deposit to begin earning interest. You can sign up anytime, deposit any amount, and start earning interest immediately.
Hi.com interest accounts also allow you to choose between daily and end-of-term payout. End of term payout periods ranges between 7 days and one year. Therefore, you can opt for the period that best suits your plan.
hi super app also offers the world’s most user-friendly and functional that saves you the hustle of learning how to navigate the platforms to use the services. You can sign up in simple steps and begin using the services. If you do not have the digital assets in your wallet, you can easily use the platforms’ exchange to buy the tokens with US dollars and start earning. The process of withdrawing your funds from the interest account is also simple. Once you have the funds, you can sell or trade them within the same application. hi super app combines the functionalities of exchange and a next-generation digital bank, which provides the users with a multifaceted platform for investments, savings, payments, and lifestyle benefits.
The only downside of hi.com is that it only offers 11 different cryptocurrencies for interest. For those with an extensive cryptocurrency portfolio who want to earn interest in all of their cryptocurrencies, this factor may be a slight hindrance. However, for crypto investors who are looking for high returns on BTC, ETH, USDT, BUSD, and BNB, hi.com is the go-to platform.
Below is a synopsis of the pros and cons of the hi.com crypto interest account.
Highest interest of 5.5% APY on Ethereum, 11% APY on USDT, and 40% APY on HI
Only 11 different cryptocurrencies offered
No cryptocurrency lockups; you can withdraw anytime
Interest is paid daily or end-of-term basis
BlockFi provides an easier way to buy, sell, and earn interest on your cryptocurrency within the same platform. Just like the hi.com platform, you need not transfer cryptocurrency into the platform to start earning interest. If you are a newcomer and you have not bought crypto, BlockFi is a good option since you can buy cryptocurrencies and earn interest on them without having to transfer them.
BlockFi, unlike many other platforms, has a unique Interest Flex Payment option, which permits users to choose the cryptocurrency they want to be paid in. For example, if you are earning interest in ETH, BTC, or USDC, instead of receiving interest in those respective digital currencies, you can decide to have all your interests paid in one currency, say BTC. In that case, all your interest will be calculated and paid in one currency. However, BlockFi charges an administration fee of 1% of the interest earned when you are using this feature.
The platform is both user-friendly and safe. It uses the latest security protocol, including two-factor authentication (2FA), to protect data.
The major disadvantage of using BlockFi is that you will not get as high interest as those of the leading platforms will in the industry, such as hi.com. Celsius offers 4.5% interest on Bitcoin. If you have greater than 0.1 BTC, the rate falls to 1%. The rate will fall further to 0.1% if you have 0.35 BTC. This rate is relatively very low compared to those of the platforms such as hi.com, which offers the leading interest rates in the industry.
If you want to enjoy maximum interest rates, then you should prefer platforms such as hi.com.
A comprehensive all-in-one platform that supports buying crypto and earning interest
User-friendly interface, suitable for beginners
Supports only 23 different cryptocurrencies
The Interest Flex payment allows you to earn interest in your cryptocurrency of choice
Nexo is another cryptocurrency wallet that allows users to earn cryptocurrency interest in any of their 22 supported cryptocurrencies. Other services that the platform offers include buying cryptocurrency instantly with a card and swapping between coins. The platform also offers excellent security, with ISO 27001:2013 compliance, storage in Class III vaults, and military-grade 256-bit encryption and biometric-based identity verification.
Nexo offers a decent base interest rate of 8% for stablecoins and 4% for all other cryptocurrencies. These rates can increase in many ways. First, you can lock your non-stablecoins for one month and receive a 1% bonus, meaning you can receive 5% for these tokens. Second, NEXO offers 2% extra in the interest if you choose to receive the interest in Nexo’s own token, NEXO. You can later swap NEXO for other coins. However, this feature is not available to users in the United States due to regulatory restrictions. You can also earn extra interest with Nexo through their loyalty level program. This model is based on the percentage of NEXO tokens you are holding to that of other coins in your Nexo wallet. If you are holding between 1% and 5% NEXO tokens in your wallet, you receive an additional 0.25% on your respective interests for stablecoins and other currencies. More than 10% of the portfolio staked in NEXO attracts an additional 2% in interest for stablecoins and 1% for other coins.
The high base interest of 8% on stablecoins and 4% on other cryptocurrencies
Earning interest in NEXO is not available for users in the United States
Supports swapping of tokens within the wallet
Supports only 22 different cryptocurrencies
Offers bonus interest for locking up tokens for one month fixed terms and for earning interest in NEXO.
Where to Earn the Most Interest in Your Crypto
Hi.com is offering the best interests on both stablecoins (11%) and other cryptocurrencies, 5.5% APY on Ethereum. The native token, HI, earns even higher interests of 40%, making it one of the highest in the entire crypto interest markets. Despite offering fewer tokens compared to other platforms such as Celsius, hi.com still offers interest on some of the major tokens, including ETH, BNB, BUSD, DOGE, and USDT.