Crypto interest accounts with high rates 2024
Cryptocurrencies have been the rage for quite some time now, with an estimated 420 million crypto users globally as of 2023. With the craze still in full swing, many people are now looking at crypto interest accounts as a way to grow their digital wealth. Crypto interest accounts are accounts where you can earn a passive income by simply holding your crypto assets in an account. The interest rate or Annual Percentage Yield (APY) offered on these accounts can be quite high, so it is important to know which crypto interest accounts offer the highest rates of return. This blog will look at the ten crypto interest accounts with the highest rates in 2023.
How to earn interest on crypto
Crypto staking
In crypto blockchains such as Cardano, Solana and Polkadot, staking is a popular way to earn interest on holdings and also provides security.
Also later this year, Ethereum 2.0 will switch from a proof-of-work to a proof-of-consensus mechanism. Cryptocurrency exchange platforms already allow Ethereum investors to stake their ETH holdings.
In cryptocurrency, staked coins are locked up and pledged to the protocol. Validation nodes are set up by entities staking crypto as a way to gain access to becoming validators.
As a result, validators are chosen from among the eligible nodes to confirm blocks of transactions. New cryptocurrency coins are created and distributed to the block's validator each time a new block of transactions is verified and added to the blockchain.
10 Best Coins to Stake During The Crypto WinterAs soon as you stake crypto, your node will be used to validate transactions and you will get paid for doing so. With more crypto staked, you will be allotted more transactions to validate, and you will receive more payments.
Several crypto exchanges and platforms allow you to stake crypto, including Crypto.com, Binance, ByBit, Kraken, and Coinbase.
It is possible to reap high returns from crypto staking. But how much you make depends on the crypto coin you’re staking and the exchange you use. For example, for a more conservative approach to investing, you might consider staking stablecoins.
Stablecoin prices rarely fluctuate over time. Because cryptocurrencies are tied to stable underlying assets, they reduce volatility.
As of now, investors can earn an annualized yield of 12.3% by staking their Tether coins. There is only a slight difference in yield between Tether and USD Coin: around 12%. With $100,000 invested in either cryptocurrency, passive income could reach $12,000 per year.
However, stablecoins aren't the only option. There are other cryptocurrencies that use the PoS consensus mechanism that offer attractive yields and can appreciate in price as well.
PoS cryptocurrencies like Solana (SOL) are among the most popular. The yield for staking digital tokens can be as high as 15%, although many exchanges offer lower yields.
Staking Cardano (ADA), another top-10 cryptocurrency, can yield up to 11.2%. However, some exchanges do not pay high yields for staking Cardano.
There is even more potential in the up-and-comer Avalanche (AVAX). There is currently a maximum yield of 21.6% for the digital token available. The yield on Terra (LUNA) can reach 24%.
There are also several metaverse cryptocurrencies with high yields. Binance, for instance, offers yields of over 75% for staking Axie Infinity (AXS).
👍 Pros
•Invest in cryptocurrency and earn interest
•Transactions are faster and cheaper
•Savings on energy
•A potential right to vote
👎 Cons
•Term may be fixed
•Risk of slashing penalty
•There may be fees involved
DeFi farming
In the same way you earn interest on money in your savings account, DeFi yield farming allows you to earn interest on your cryptocurrency. To reap the rewards of yield farming, you place your cryptocurrency in a "stake" for a period of time and lock it up for interest.
A traditional loan from a bank is repaid with interest. It's the same concept as yield farming: cryptocurrency is lent out instead of sitting in an account, generating profits for the investor
Crypto lending
Aside from staking and DeFi yield farming, crypto investors can also earn interest by lending their crypto.
An investor can lend crypto through cryptocurrency exchanges or decentralized finance (DeFi) apps that offer crypto interest accounts, which are similar to traditional savings accounts.
As with traditional certificates of deposit (CDs), some lending accounts pay variable crypto interest rates while others pay set crypto interest rates.
TOP 10 best platforms with crypto interest accounts
The crypto industry has no shortage of interest-bearing accounts. According to Traders Union best crypto interest accounts today
ByBit
Cryptohopper
Binance
Crypto.com
OKX
Huobi Global
KuCoin
Coinbase
Kraken
CoinEx
Here is a list of the top 10 crypto interest accounts based on their APY and other features:
ByBit
Launched in 2018, ByBit is a crypto exchange headquartered in Dubai. Thanks to its incredibly fast matching engine, superior customer service, and friendly fee structure, it has become one of the most popular crypto exchanges out there. As of 2021, the platform had well over 10 million users.
ByBit has a savings account that allows investors to earn a significant amount of interest on a variety of coins. With this platform, users can expect yields of up to 180 percent. That's one of the highest APY crypto rates out there. Users can opt between fixed-term and flexible products. Whichever product they choose, competitive APYs are guaranteed.
With ByBit, you also get to earn interest through staking for stablecoins like USDC, USDT, and BUSD. Many of these coins generally offer great interest rates, with ByBit offering a 12 percent rate for USDT.
ByBit Staking GuideCryptohopper
Cryptohopper is one of the crypto industry's leading multipurpose platforms, offering its members copy trading services, hub functions, and investment portfolio management. Users can trade in a large variety of coins and tokens, including Ethereum, Bitcoin, and Litecoin. Users can even access trading bots free of charge and take advantage of the training system the platform provides.
For those who want to earn interest on crypto, Cryptohopper offers both fixed-term and flexible savings plans. The fixed-term savings plan is quite lucrative, offering the best APY crypto rate on this list. With this plan, users can earn up to 999 percent APY.
The flexible savings plan allows one to grow their holdings, giving them to unstake their tokens whenever they wish to. With this plan, you get to stake assets and earn as much as 20 percent APY.
Binance
The leading crypto hub of the world, Binance's daily trading volume is unmatched in the crypto market. The platform offers educational courses, debit cards, and leverage products to enhance user experience. The icing on the cake is its superior crypto interest program that offers plenty of coins as well as attractive yields.
Binance makes it possible for you to earn incredible APYs on cryptocurrencies that don't make it into the top ten by market cap. Currently, you can earn 104 percent on Axie Infinity. Binance also offers an APY of 18 percent on Polkadot and 18 percent on Luna.
Please be mindful that the APYs of the Binance interest account, much like other accounts in the market, are subject to your lock-up terms. For example, with Axie Infinity, you receive a lucrative 104% return on your investment within 90 days. But if that period of time is too long for you, the platform also offers 25% returns in only seven days.
Binance Staking GuideCrypto.com
Crypto.com, one of the top cryptocurrency staking sites, enables users to profit from holding stablecoins for an annual return of up to 14%. At Crypto.com, there are daily rewards, weekly incentives, and monthly rewards available for staking. Users also have the option of individually or collectively staking their currencies.
The platform's user-friendly design makes it simple for you to manage your stake rewards. They offer a mobile app so you can manage your investments while you're on the road. With just a few touches, you can establish a staking time that can be flexible or long-term.
OKX
With over 20 million people on the platform, OKX offers trading on more than 340 of the most popular cryptocurrencies. The OKX crypto interest account yields as much as 300 percent APY. Stablecoins like USD Coin and Tether bring in a steady 10 percent without lock-in periods. The account also offers an APY of 10 percent on ETH and BTC.
With OKX, you can enjoy crypto staking on some of the most renowned digital tokens on the market today. You'll receive lucrative returns of up to 12 percent APY with coins such as Litecoin, Ethereum, Shiba Inu, and Ripple.
Huobi Global
Crypto Interest Accounts at Huobi Global are a great way to earn passive income with cryptocurrency. With products like Huobi Earn, Fixed, and other structured options, you can immediately benefit from interest on your crypto holdings. For instance, you can get up to 3.04% APY of your Huobi Token (HT) deposits using YouHodler.
Huobi users can also take advantage of Huobi Staking, which lets them earn interest on their crypto holdings. This is a great way to save money without relying on traditional banking services.
Is Huobi (Huobi Global) Safe?KuCoin
Founded in 2017, KuCoin is one of the world's most popular crypto trading platforms. Currently, about 25 percent of cryptocurrency holders in over 200 countries use its services. The platform supports well over 600 types of crypto.
The KuCoin platform lets you earn high APY through several methods. For instance, you can earn crypto by saving it or staking it. There are also promotional offers available that allow you to earn extra crypto as well.
Currently, users can earn as much as 2 percent APY on USDC. Similarly, users can earn 0.45 percent on BTC.
KuCoin Fees ReviewCoinbase
Founded in 2012, Coinbase has grown exponentially, boasting 103 million users globally as of 2022. The platform is renowned for its digital wallet, but it also functions as a virtual crypto savings account for certain customers. US-based customers who use Coinbase earn interest of up to 1.50 percent on their US Dollar Coins (USDC).
Unlike other firms in the same space, Coinbase does not provide U.S. customers with USDC loans. Rather, users get an avenue to receive interest while awaiting cryptocurrency trades. If you create an account now as a new customer and deposit your first $100 or more, then you'll be rewarded with a generous $10 BTC bonus.
Coinbase Earn ReviewKraken
With a presence in 190 countries and supporting well over 185 crypto assets, Kraken is undoubtedly a major player in the crypto market. The platform also has a rewards system that allows users to earn up to 24 percent yearly of their deposited crypto as interest.
Kraken is especially popular for supporting crypto futures and spot trading. The platform is excellent for both veteran and new investors who wish to access low fees, a large variety of coins, and high APYs. What's more, their simple sign-up process allows you to start trading within minutes. Currently, their flexible plan allows you to earn interest rewards twice per week. There are no penalties for unstaking.
How to Get Kraken Sign-up Bonus and ReferralsCoinEx
CoinEx was established in 2017 as a platform to offer worldwide crypto trading services, such as margin, spot, and swap. CoinEx offers a variety of cryptocurrencies, including ETH, BTC, DOGE, and EOS.
Traders who want to earn income on their idle accounts can take advantage of the CoineX Financial Account. CoinEx allocates 70 percent of all interest income earned from borrowed coins to users with holdings in the CoinEx Financial Account in accordance with the ratio of their holdings. What's more, you get to withdraw your assets any time you want to.
So, how much can you expect to earn with the CoinEx crypto interest account? According to recent figures, the account yielded as much as 15.79 percent.
How to choose a crypto interest account?
While there are many crypto interest accounts offering great rewards, you should know how to choose the best one for your needs. Here are five tips that can help:
Assess your goals
As with all other investments, having a clear understanding of your goals is the first step when it comes to choosing a crypto interest account. Knowing exactly what you hope to achieve with this type of investment will help you determine which accounts are best suited for your needs.
Are you looking for an account that offers flexible access to your funds? Or would you rather hold on to your investment for the long term? Answering these questions will help you narrow down your search and find the crypto interest account that fits your needs.
Check for interest rate rules
Before signing up for an account, it is important to understand the rules and conditions associated with the interest rate offered. Many crypto accounts have a minimum balance requirement in order for you to be eligible for the highest APYs.
Furthermore, some accounts may also require you to leave your funds untouched in order to be eligible for a higher interest rate. Be sure to read the fine print and make sure you understand all of the rules before committing to an account.
Look into fees and penalties
When choosing a crypto interest account, it's important to consider not only the amount of interest you'll earn but also any fees or penalties that come with it. While some accounts may offer high interest rates, they may also have hidden fees or hefty penalties for early withdrawals.
Make sure you understand all of the fees associated with an account before signing up. That way, you can ensure that you're getting the best value for your money and avoiding any unexpected costs down the line.
Consider security
It is critical to make sure that the platform you are using is secure and reliable. Make sure that the crypto interest account you choose has a good track record when it comes to safety and security.
There are many ways to check for security, including looking into the platform's record of protecting user data and reviewing customer reviews. Make sure that the account you choose is trustworthy and has proven itself secure over time.
Check for support options
Finally, it's important to make sure that the crypto interest account you choose provides good customer service and support. This is especially important if you ever find yourself with a question or issue that needs to be addressed quickly.
Check to see if the platform offers live chat, phone support, or email assistance. That way, you can be sure that you'll have access to help if ever needed.
10 Best Crypto to Buy NowWhat are the best stablecoin interest rates?
Staking stablecoins is a smart move for crypto investors who want to earn a high interest rate while protecting their funds from price volatility. Here's a small table on some of the best stablecoin interest rates on the market today.
| Binance | OKX | ByBit | |
|---|---|---|---|
USDT |
14.8% |
10% |
5.5% |
BUSD |
14.8% |
n/a |
5% |
DAI |
n/a |
n/a |
3% |
What is APY in crypto?
APY refers to the annual percentage yield, which is the measure of the return an investor can expect to earn on a deposit over a one-year period. To calculate the APY using 7-day returns, you need to take the net price difference within the last seven days and today, then generate an annual percentage, i.e: APY = (X − Y − Z) ÷ Y × 365/7. In this formula:
X = the price at the end of the 7-day period
Y = the price at the start of the 7-day period
Z = any fees for the week
APR stands for Annual Percentage Rate, which is the interest rate that crypto investors will earn from the assets they've invested within a year. The figure is usually written as a percentage. The primary difference between APY and APR is that APY accounts for compounding interest, whereas APR does not. Compound interest means that the interest earned on your deposit will accumulate over time, creating an even higher return as more time passes. The higher the APY rate of a crypto account, the better it is for investors.
How to Earn Free CryptoWhat are crypto interest rates accounts risks?
While crypto interest accounts are a fantastic way to earn passive income, there are always risks involved. There are two main types of risk associated with bitcoin interest rate accounts:
The platform may be unreliable
Perhaps the most significant risk of bitcoin interest rate accounts is that the platform may be unreliable. In this case, the account will not return money. That's why it’s important to do your due diligence and thoroughly research the platform before investing. Make sure that the platform has a good reputation and has been around for some time.
Sharp changes in cryptocurrency prices
Another risk associated with bitcoin interest rate accounts is that the price of the cryptocurrency you have "frozen" may change drastically over time. In this case, even the interest payments won't be enough to cover any losses incurred by a sharp decrease in value. As such, it’s important to consider the volatility of bitcoin and other cryptocurrencies when investing.
Summary
There's no shortage of ways to earn money from cryptocurrency, with one of the best being taking advantage of crypto interest rate accounts. These accounts allow you to earn passive income without having to actively trade bitcoin or other cryptocurrencies. However, make sure you do your due diligence first and research the platform carefully. Also, be aware of the risks associated with bitcoin interest rate accounts, such as the potential for unreliable platforms or sharp changes in cryptocurrency values.
FAQ
Which crypto has the highest interest rate?
That depends on the platform and the asset type, but some of the highest APY rates can be found on platforms such as Bybit, Cryptohopper, and Binance.
Where can I still earn interest on crypto?
There's a variety of crypto interest rate platforms available today, including Coinbase, KuCoin, Binance, and OKX.
What is the safest crypto interest account?
Any account that's provided by a reputable platform is generally considered to be safe as long as you carefully research the platform beforehand.
How do I invest in crypto for interest?
Staking and lending are two of the most popular ways to earn interest on crypto.
Methodology for compiling our ratings of crypto exchanges
Traders Union applies a rigorous methodology to evaluate crypto exchanges using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Exchanges are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Exchanges are assessed based on the variety, quality, and features of platforms offered to clients.
Extra services. Unique value propositions and useful features that provide traders with more options for yield generation.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.