Today, we will cover the 10 best crypto interest accounts in 2022, and answer some questions like “Can I earn interest on my crypto?”, “Are crypto interest accounts safe?”, “What crypto has interest?”
Looking to increase your investment income while dabbling with cryptocurrency? Crypto interest accounts might help you significantly enhance your rate of return. However, these accounts do not provide the same level of security as a bank or credit union savings account. Before you decide to invest, you need to understand how crypto savings accounts function and their benefits and drawbacks. You’ll want to know where you can obtain the finest returns after you grasp how these accounts function. In this article, we’ll address your pressing concerns regarding cryptocurrency-based savings accounts and recommend our favorite selections for the 10 best crypto interest accounts in 2022.
10 best crypto interest accounts in 2022
The top crypto-based savings accounts are listed here, along with their top advertised returns on various cryptocurrencies. Continue reading for additional information about each firm as well as some of the limits. These yields might vary at any time.
Hodlnaut
Hodlnaut offers some of the greatest returns for your cryptocurrency. They only allow weekly withdrawals to your wallet, but no lock in periods or minimum amounts are required. You may currently earn up to 13.86 percent on your cryptocurrency. You may now earn a $20 bonus when you deposit at least $1,000.
KuCoin
KuCoin is a renowned cryptocurrency exchange that offers a superb savings product called KuCoin Earn. You may earn high APY on cryptocurrency by saving, staking, or taking advantage of promotional deals. KuCoin Earn additionally has more assets to earn than the majority of the other firms on our list. You can currently earn 6.1 percent APY on USDT and 0.64 percent on BTC. They also have other assets with significantly greater APYs.
Nexo
Nexo has short lock-up times (less than 24 hours) and third-party warranties for its crypto assets. With exceptionally high returns on US dollars and some of the greatest rates on cryptocurrencies, it’s an intriguing proposition. You may now earn up to 7% on stablecoins and 8% on Bitcoin. However, it does not specify how much you must invest to earn the best rates of return.
Furthermore, you may now get a $25 BTC bonus by opening a new account, completing advanced verification, and depositing at least $100 in supported assets onto the platform. You must keep your Nexo balance for at least 30 days. Nexo discontinued its Earn Interest offering for new clients in the United States in February 2022. Existing clients can continue to earn and withdraw, but they can no longer make new deposits.
Gemini
For the past several years, Gemini has been renowned as a reliable option for investing and trading cryptocurrency, and its platform serves as the foundation for numerous others. Gemini was late to the bitcoin savings game. They just introduced Gemini Earn, which allows you to earn income on your cryptocurrency holdings. By moving your cryptocurrency to Gemini Earn, you may earn up to 5.31 percent interest, including 1.01 percent on BTC. Open a new account and receive $25 in BTC for every $100 traded in the first three days.
Coinbase
Coinbase is well recognized for its digital wallet service. However, for some consumers, it also works as a digital crypto savings account. Customers in the United States who are eligible can earn up to 1.00 percent APY on US Dollar Coins. Coinbase, unlike the other firms on this list, does not lend out its USDC. Instead, they earn a tiny bit of income while waiting to make cryptocurrency trades. In addition, if you establish a new account as a new client, you’ll receive a $5 bonus on your first transaction.
Crypto.com
Crypto.com advertises some of the market’s highest interest rates. However, the conditions for obtaining these rates are quite strict. Outside of Crypto.com, investors with lesser quantities of cryptocurrency are likely to discover higher yields. The site offers interest on 15 regular cryptocurrencies as well as eight stablecoins. The yields are calculated using basic daily interest. To achieve the best returns, you must retain your investment for at least three months.
YouHodler
YouHodler‘s crypto-based savings accounts are high-yielding and appear to provide several investor safeguards. They are not currently accessible in the United States, although they are available in the United Kingdom, the European Union, Eastern Europe, and Asia (China, Japan, Korea). Savers can withdraw from the platform at any moment, according to the business. The minimal investment, however, is $100 USD.
Outlet Finance
Because it solely pays interest on US dollars, Outlet Finance does not need an extensive understanding of certain cryptocurrencies. Users deposit money and get money-based interest. The only catch is that your money is being borrowed to purchase Ethereum and other cryptocurrencies. Currently, the organization promises interest rates of up to 5% on US dollars.
Ledn
Ledn is a cryptocurrency lending platform that presents itself as a cryptocurrency savings account. It offers several ways for earning income on your bitcoin, with some intriguing rates. You may currently earn up to 7.50 percent on USDT and 5.25 percent on BTC.
BlockFi
With no account minimums, BlockFi makes high rewards available to a wide range of cryptocurrency investors. For investors with less than 0.10 Bitcoin, the extraordinarily high return on Bitcoin is appealing (which is likely for most investors as even 0.10 Bitcoins is a lot of money). However, investors with more than 0.35 Bitcoin will only get 0.10 percent.
So, sadly, the more you have, the less you make. If you have stablecoins (USDC, BUSD, GUSD), you may earn up to 7.00 percent on your stablecoins up to 20,000, after which the rate declines. You may earn up to 15% APY on specific tokens and coins if you are a non-US consumer. When you make a $25 deposit and keep it for the stipulated term, you will receive a bonus of up to $250.
BlockFI Interest Account (BIA) seems to be no longer available to new clients who are US citizens or residents of the US. Existing customers who are US citizens or are based in the US will be unable to transfer new assets to their BIAs. The BIAs have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States, to US individuals, for the account or benefit of a US citizen, or in any place where such an offer would be illegal.
What crypto has interest?
The interest in crypto is dependent on the crypto interest accounts that you choose. But as a general rule of thumb, bitcoin and other stablecoins (e.g. USDC) will yield returns on most crypto savings accounts. Below are the interest rates advertised for all of the crypto interest accounts that we have chosen.
Company | Stablecoins (e.g. USDC) | Bitcoin |
|---|---|---|
Hodlnaut | Up to 7.25% | Up to 4.08% |
KuCoin | 2.9% | 1.6% |
Nexo | Up to 7% | Up to 5% |
Gemini | Up to 5.31% | 1.01% |
Coinbase | 1.00% | 1.00% |
Crypto.com | 10% | 6% |
YouHodler | Up to 12% | 4.8% |
Outlet Finance | Up to 5% | Not available |
Ledn | 7.5% | 5.25% |
BlockFi | 7.00% | 0.1%-3.0% |
Crypto savings accounts vs. Regular savings accounts
What are the primary distinctions between a crypto-based savings account and a traditional savings account? Here are a few characteristics that distinguish them.
FDIC insurance
FDIC protection of $250,000 is included with your bank savings account. And there are methods to obtain even more insurance. However, no federal insurance will be available through a crypto-based savings account. This savings account has the potential to lose money (or cryptocurrency). As a result, you should consider it an investment rather than a savings account.
Key access
In a traditional savings account, the money is completely yours. Your crypto keys are lent out to other individuals who can utilize the crypto for a set length of time in crypto-based savings accounts. In exchange, the borrower agrees to pay you interest on the cryptocurrency you lend them.
Yields
Cryptocurrency yields range from around 4% to 8% or more. This is much higher than the rates of return on standard savings accounts. This is due to the fact that crypto banks cannot “create the money supply,” thus they must entice investors with high payouts. Interest rates are determined by the supply and demand for crypto funding.
Withdrawal restrictions
A typical savings account allows you to withdraw money up to six times each month without penalty. However, crypto savings accounts may place more stringent limitations on the frequency and quantity of withdrawals. Unfortunately, there is no established guideline regarding withdrawal limits, thus generalization is difficult.
Compound interest
One peculiar feature of certain crypto-based savings accounts is that interest may not compound. That is, your original contribution rises over time, but the interest does not compound. To realize the benefits, you must spend or exchange the interest.
Crypto savings accounts vs. Crypto wallets
How do cryptocurrency-based savings accounts compare to cryptocurrency wallets? These are the most important distinctions to be aware of.
Interest
When you hold Bitcoin or another cryptocurrency in your wallet, the quantity of coins you own does not fluctuate over time. With crypto-based savings accounts, your coin holdings will grow over time, assuming the crypto bank does not fail.
Key Ownership
When you put coins into a crypto savings account, you frequently give up access to your keys. This enables the exchange to lend your cryptocurrency to others. Some cryptocurrency investors find this unsatisfactory, therefore they shun savings accounts entirely.
Are crypto interest accounts safe?
This is a subject of contention among cryptocurrency investors, but some consider crypto wallets to be a very poor type of security. If you lose your phone, you might lose all of your money. Even if your wallet has multi-factor authentication, you might lose everything. Crypto banks, on the other hand, have built-in redundancies to safeguard the crypto keys. These organizations take bank security to the next level.
Can I earn interest on my crypto?
You may expect to receive interest if you put money into a crypto-based savings account, but the yield will be in the crypto-currency of your choice. If your aim is to produce US dollars, you might not achieve the desired results. In fact, several large crypto banks are paying amazing rates (up to 8.6 percent) on the USDC currency, which has extremely close parity to the US dollar. However, abrupt variations in demand for the USDC (particularly declines in demand) might wipe out your initial investment and subsequent earnings.
Some crypto savings accounts (such as Linus and Outlet Finance) do not need consumers to own any coins. Rather, investors deposit US money and get interest in US dollars. These accounts, however, have the same risk characteristics as regular crypto accounts. Investors continue to have a stake in the risky cryptocurrency industry. Finally, cryptocurrencies have a risk profile that government-backed money does not have. It is possible to see tremendous profits, but this is not guaranteed. However, if you already possess (or wish to buy) bitcoin, we see value in crypto savings accounts.
Should You “Save” Money In Crypto Savings Accounts?
One thing all of these “savings” accounts have in common is that they are actually investments. While it is exhilarating to foresee returns of 4-10%, these returns are not assured. Each bitcoin-based savings account exposes you to the risky cryptocurrency investing market. If you believe in cryptocurrency’s future, creating a crypto savings account might be a terrific way to diversify your investment portfolio. However, if you want genuine FDIC-insured savings account for your emergency fund, this is not the way to go.
We hope that you enjoyed this article on the 10 best crypto interest accounts in 2022. If you did, we are sure that you will also enjoy reading our other articles, such as top Web3 crypto coins, or the 10 Best crypto affiliate programs.
