How Can You Earn Interest On Your Crypto Investment?

A popular way to earn Bitcoin, Ethereum, or any other digital asset is through interest accounts and loan platforms.

We can consider this modality of earning interest with your crypto to be a great alternative to traditional saving accounts since you manage to protect the value of your capital, having access to it at all times and enhancing the returns on their investments. It’s also way better than just buying dollars as the value of your crypto keeps going up while you earn interest.

More traders are choosing crypto interest accounts as interest rates are higher than traditional markets. For example, the APY —Annual Percentage Yield— from general saving accounts range from 0.55% to 0.70%. Compared to the crypto market, APYs can go from 10% to 15%. You can consider this as a trade-off between risk and reward.

Earning Interest with A Crypto Account

Making your crypto work for you is easier than ever with open interest accounts on crypto exchanges. One way to boost your investment yield is through crypto interest accounts. They work similarly to a savings account, the only difference here is you’re using crypto assets, and market conditions will affect interest.

It’s pretty straightforward —you go to a crypto exchange and open an interest-earning account, deposit Bitcoin (BTC) or any altcoin you wish and earn compound interest. These accounts have no deposit limits or lockup periods, but they have withdrawal fees that vary depending on network congestion. The interest is paid out in cryptocurrency.

As soon as you deposit your funds, you start accruing compound interest. Payments are made daily based on the capital at the beginning of the day. Once your funds are deposited, you’re free to carry out as many operations as you want to start earning interest.

How to Start Earning Crypto Interest?

There are many ways to earn interest with your crypto. Besides HODLing, we can find many yield platforms out there that offer a good ROI on your crypto. Here we lay out the best exchanges to start earning your crypto.

Coinbase

Coinbase currently offers staking for ETH 2.0, the network upgrade for the Ethereum ecosystem. If you already have an account on Coinbase, you can join the waitlist to stake in the upcoming update, which is expected to happen by the end of the year or early 2022. Keep in mind Coinbase takes a 25% cut out of the rewards your ETH generates. It can sound like a lot, but the exchange allows you to stake any amount of ETH you wish, compared to the 32 ETH required originally.

Quantia Capital

We can take Quantia Capital —an US-based crypto hedge fund and digital asset manager. With Quantia Capital, you can earn interest at an annual return of 9.25% in stablecoins, 6.5% in Bitcoin, 4.75% in Ethereum and 2.75% in Litecoin.

BlockFi

Another popular platform is BlockFi —an US-based crypto exchange that allows users to earn interest on their crypto accounts. The exchange is regulated all across the US, and currently offers one of the easiest ways to earn interest in BTC, Altcoins, and stablecoins.

You can sign up for an interest account and deposit the crypto of your choice to start earning compound interest. You can earn interest of up to 8.6% on your initial investment —paid monthly at the beginning of each month.

Adding More Crypto to Your Portfolio

One of the easiest ways is to buy a currency and HODL it. Firms like Binance, Kraken, Coinbase, or Huobi Global allow you to deposit funds using your credit/debit card. Once you deposit your funds, the exchange converts your USD/EUR (or the local fiat currency you used) to USDT or BUSD. You can then exchange this balance for other currencies, such as ADA, DOGE, BTC, ETH, etc.

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