How to Earn Interest on Bitcoin
When I was young I remember looking at my bank book and seeing nice interest payments for cash I had in the bank. Fast forward to today and banks are giving essentially nothing for interest -- your money just sits there collecting dust. In an ideal world you could put it into the stock market but there are always funds that you can't put at risk.
That got me thinking about new and creative ways to earn interest on USD. One idea that came to mind was converting USD to USDC (US Dollar Coin) and using a service to earn interest on it -- some even promised 8%, much more than any bank offers. That also got me to thinking about earning interest on other cryptocurrencies that I've owned for years but have no desire to sell.
I've spent the last few months using three different services for earning interest on cryptocurrencies: Nexo, BlockFi, and Celsius Network. Over that time, I've enjoyed earning thousands of dollars in interest. Let's explore the strengths of each services!
Nexo is the world's largest and most trusted lending institution in the decentralized finance space and has already processed more than $3 billion for 800,000+ clients in 200+ countries.
What I Like:
- Daily payouts -- 6pm is my favorite time of the day!
- Deposit, withdraw, and view holdings with the elegant mobile app or website
- Pays interest on other large cap cryptocurrencies like Ether ($ETH) and Litecoin ($LTC)
- Pays interest on lessor used cryptocurrencies like Stellar ($XLM), Chainlink ($LINK), and more
- $100 million insurance on all custodial assets
- Website and mobile app are both very easy to use
What Could Be Improved:
- The 8% interest rate paid out for stablecoins is less than the 8.6% rate provided by BlockFi and 10.5% at Celsius Network
BlockFi is a US-based firm that provides the wealth management products crypto investors need, all powered by blockchain technology.
What I Like:
- BlockFi's rates for Bitcoin, Litecoin, and Ethereum are excellent
- BlockFi is based in the United States
- Provides a website and mobile app
What Could Be Improved
- Public-facing website looks drab to the point where I question how much I should trust the service
- Interest is paid out at the beginning of each month, so a month goes by with no immediate gratification
- Many popular altcoins aren't supported
Regardless of the service you choose, earning interest on your cryptocurrencies is an opportunity no HOLDER should ignore. If you aren't making interest on your crypto, someone else is!
Note: This blog post uses referral links -- each of them provides free bitcoin to both you and I if you join.