If you have dipped your toes in cryptocurrency investing, earning interest on your sitting digital coins is a worthwhile strategy to consider.
Similar to traditional banking, many crypto exchanges are offering interest-paying or savings accounts with relatively high APY as part of their specialized programs. At these platforms, you can generate a consistent passive income with stablecoins as well as substantially compound your profits with regular cryptocurrencies if the market performs favorably.
However, know that the interest rates offered on different cryptocurrencies and across different exchanges can vary greatly. This article will highlight the top 3 cryptocurrency platforms that offer the most compelling interest rates to help you grow your wealth.
Nexo is one of the most prominent exchanges in the industry that incorporates high APY crypto interest accounts.
Established in just 2018, the multi-licensed platform has skyrocketed to success, amassing a user base of over 5 million users from 200 jurisdictions. With a vast selection of financial products at its disposal, the brand supports more than 60 digital coins and a whopping 500+ market exchange pairs. It also offers a comprehensive suite of tools such as the Nexo Card, Nexo Wallet, and borrowing facilities, enabling users to navigate the ever-evolving crypto landscape with ease.
Nexo assimilates a detailed crypto “Earn” program where you can set your idle digital assets to work for you and generate a passive income. The platform settles the interest rates as per a “Loyalty Tier” system – with Platinum being the highest, followed by Gold, Silver, and Base. The tier level is determined by how much of your portfolio is in the NEXO (native) token. In other words, at Nexo, the interest earned not only depends on the type of cryptocurrency held but also on the amount of NEXO Tokens held in the wallet.
When more than 10% of your portfolio is in NEXO tokens (Platinum level), you can earn the highest APYs – up to 36% on standard coins and up to 12% on stablecoins. At the Basic level (when less than 1% of your portfolio is in NEXO), you can earn up to 24% APY on regular cryptocurrencies and up to 8% on stablecoins.
What specifically makes Nexo special is the higher-than-average payout rates and availability of both flexible and fixed terms. Moreover, the interest yields are distributed daily that amplify the earning potential through compounding.
Let us look at a quick example to understand the benefit of Nexo Earn service. At the Basic tier, if you invest 10,000 USDT in the Nexo interest account, your capital will swell to $12,100 after 24 months – a stable profit of $2100 in just 2 years!
YouHolder is another leading cryptocurrency exchange that offers reliable crypto interest accounts with high yields. The platform empowers crypto HODLers to tap into the earning potential of their digital assets beyond just trading or investing, providing them with a steady source of passive income.
It is a regulated EU and Swiss-based brand that welcomes clients from over 100 countries and lists a broad range of cryptocurrencies, including all major tokens.
YouHodler offers a combination of services, including crypto-fiat wallets with integrated exchange and trading options, lending, and crypto-rewards facilities, all supported by traditional payment systems. Moreover, the platform integrates advanced security measures such as Ledger Vault’s custody and Fireblocks security options.
The company’s “Earn” program allows investors to acquire interest on more than 50 coins and get weekly payments. Know that the interest on your crypto is processed on a daily basis, which you can track from the “Earned” counter, but the accumulated amount will only be deposited into your account at the end of each week.
The payout rates at YouHolder vary from one cryptocurrency to the other, with DOT investors receiving the highest APY of 10% followed by AVAX investors who can receive up to 9.5%. At YouHolder, the annual interest rates for some other prominent tokens are:
- BTC: 3%
- USDT: 8%
- XRP: 4%
- USDC: 8%
- SAND: 3%
If you use a YouHolder crypto interest account, a deposit of 10,000 USDT can make you earn 830 USDT annually, 201 USDT in 3 months, and 66 USDT in 1 month.
Known as the world’s leading cryptocurrency exchange, Binance is a household name among crypto enthusiasts. With over $38 billion in average daily volume and 120 million registered users, the exchange holds a prominent place in the cryptocurrency world. At Binance, users can connect with 350+ digital assets as well as many advanced & innovative services.
The platform is especially famous for its abundant suite of products, ranging from the simple exchange and derivatives trading to crypto loans, NFTs, Binance card, P2P trading, and many more. The Binance “Earn” specifically includes a variety of options, such as simple earn, staking, yield farming, and dual investment, to accommodate both novice and professional investors.
With the Binance Simple Earn (protected), you can earn interest on your crypto holdings through the convenience of flexible and fixed-term plans; the fixed-term options generally tag a relatively higher APY than flexible ones. For instance, a 90-days fixed-term AXS investment offers an impressive yield of 45% compared to the 12% of its flexible option. However, note that the earnings on some coins like BUSD, USDT, BTC, and ETHER are only offered on flexible terms.
Besides the protected option, Binance also extends a high-yield earn facility where estimated APRs reach up to 70%. However, high-yield earning involves a correspondingly high level of risk. It’s important to remember to only invest what you can afford to lose, regardless of how attractive the potential returns may be.
That said, to make the savings process easier, the exchange also provides an “Auto-Invest” facility where you can regularly invest in crypto with a pre-decided amount and build up your crypto holdings.
At Binance simple earn (protected), if you invest 10,000 USDT, your total accumulated interest will be nearly 515.76 USDT after 2 years.
Overall, crypto interest accounts effectively blend the advantages of traditional banking with the cutting-edge features of Web 3.0 technology. If you’re considering delving into the world of crypto investments, utilizing high-APY interest accounts can be a smart way to boost your returns.
You may also like: