While many get into cryptocurrency for the purpose of trading or even simply for the utility and potential these digital tokens could have in the future, there’s no doubt that the world has gone crypto crazy. While there are many ways that an investor can take advantage of this, one particularly promising option for individuals is to store and earn interest on their coins.
If you’re a crypto enthusiast who wants to earn money and still keep hold of their coins, or you’re simply someone looking to get started and want to gain some passive income while you wait for the right time to sell, there are plenty of options out there. Luckily for anyone who’s keen to learn more, we’re here to help you find the best crypto exchange for earning interest on crypto.
Cryptocurrencies are very volatile and overall a risky investment. 69% of investor accounts lose money when trading CFDs
As one of the biggest exchanges in the trading industry, it may not come as a surprise that eToro offers options for individuals who are looking to earn a little spare cash on their stored assets.
Thanks to the staking service that this exchange offers, individuals looking to earn on their digital assets will find that it won’t be too challenging to gain passive income. The process is simple and secure – so it really is worth taking into consideration if you want a safe place to store your crypto tokens.
Benefits of eToro:
Staking your digital coins on eToro is an incredibly simple process. Your rewards will be given to you every month and the crypto assets you store will still be your property
Many users will be glad to hear that when it comes to payment, they won’t have to put in any effort themselves to earn their rewards
eToro also offers free stock and ETF trading, which may be worth looking into
Downsides of eToro:
Some will agree that the customer support could be better
Alongside excellent trading facilities, this platform also makes it incredibly easy and profitable to stake a wide array of cryptocurrencies, from the more popular options to some lesser-known assets, which could be worth looking into.
Benefits of Crypto.com:
With the ability to potentially earn up to 14.5% interest on essentially any asset labeled as a stablecoin, those who are interested in more reliable investments will often benefit from the APY system Crypto.com has in place
Crypto.com also allows users to stake many other large and medium-cap coins too, so you’ll often find that there are plenty of options available to you
Most know Crypto.com for being a safe and secure place to invest in these digital assets, so it’s usually a great choice for whatever you need
Downsides of Crypto.com:
There are several factors that can impact your chances to earn, like the amount you deposit or if you stake CRO tokens (the currency native to the site)
There’s no doubt that a site like Binance will be a good choice for those who are interested in gaining a little extra cash from their digital coins, thanks to the wide variety of assets and features available – including staking, of course.
Benefits of Binance:
Binance makes the staking process fairly simple, perfect for those who don’t want to have to struggle to earn a little interest when storing their coins
Outside of its staking benefits, Binance is well known for being an excellent exchange. If you’re looking for a platform where you can trade without any hassle, this may be the perfect choice for you
Binance aims to help reduce some of the risks of trading, such as returning lost tokens from slashing
Downsides of Binance:
While staking may not be too complex on Binance, most don’t consider it to be a very beginner-friendly site as a whole
There’s a lot more that has made Coinbase a popular choice over the years – and their excellent staking services have only helped to make them an even better platform. There are several reasons why you may want to consider joining Coinbase, but let’s focus on how you could earn interest with this site.
Benefits of Coinbase:
Coinbase does it differently from some of the other platforms out there, simply allowing its users to earn small chunks of cash while they’re waiting to trade
Eligible users of the site can potentially earn up to 4% interest, which is certainly a nice bonus
From providing their users with the opportunity to trade in a wide variety of crypto assets, to the safety and security of the site; there’s simply a lot to love
Downsides of Coinbase:
To maximise your potential, you may want to consider paying for a premium Coinbase Pro account
There’s no doubt that anybody in search of a good platform will be interested in Gemini. As an exchange that has been around for quite some time now, Gemini is a great choice for those in search of a reliable exchange with a great APY, security, asset variety and so much more.
Benefits of Gemini:
The fantastic Gemini Earn feature that was recently launched provides an excellent opportunity to earn on the crypto you store, which is certainly worth looking into
Gemini Earn offers interest on crypto holdings up to 9.4%, which has enticed many investors to transfer their digital coins over
New accounts that trade over $100 in the first few days of activation will receive a reward of $25 in Bitcoin, which you could put to good use with Gemini Earn
Downsides of Gemini:
It doesn’t have the lowest fees around, or as many assets available as some of the other platforms on this list
Another excellent choice for staking is KuCoin. Aside from its popularity and trustworthiness, the KuCoin Earn service is perfect for anybody looking to earn some extra cash on their stored crypto tokens.
Benefits of KuCoin:
Users will get to enjoy an APY of 6.1% when staking stablecoins (ETH, XRP and USDC are all good examples)
Looking into the wide array of assets supported on this site, you’ll notice that there are more options available on KuCoin than the majority of exchanges on the market
Individuals can earn through quite a few methods; saving, staking and promo offers can all be a great way to gain just a little extra cash from your crypto
Downsides of KuCoin:
There are quite a few people who aren’t as satisfied with their experience on the site, with several reviewers being unhappy with the customer service
One of the biggest advantages of using a site like AQRU for crypto staking is that it simply offers so much to make it easier for users to do. Alongside this, AQRU is overall a safe and secure place to do so, allowing you to enjoy the variety of excellent features without having to worry about losing your assets.
Benefits of AQRU
Users get to enjoy a fantastic interest rate on a large number of stablecoins – up to 12% APY in most cases
Interest is paid out daily and there are no lock-in periods, which isn’t something you see on most other sites
It’s incredibly simple to use and prioritises streamlining the process of storing and saving coins, making it a good choice for beginners
Downsides of AQRU:
There aren’t quite as many digital coins as some of the other sites, which may be disappointing to those who are particularly interested in lesser-known cryptos or one particular token that just isn’t supported
If you’re looking for a great site that more or less has it all, BlockFi may just be the best choice. Featuring competitive fees, staking opportunities with incredible rates, crypto loans and simply being a superb exchange service, BlockFi could be the best place to go if you’re looking to get the most out of your digital coins.
Benefits of BlockFi:
With an exceptionally high yield on Bitcoin, some may find that the BlockFi Interest Account (BIA) is the perfect choice for those interested in BTC staking
Even a variety of stablecoins offer high-interest rates, which only helps to make this platform worthwhile for even more individuals
Since there are no account minimums, users get to enjoy the high yields the BIA offers without having to worry about a high barrier to entry
Downsides of BlockFi:
The BlockFi Interest Account isn’t available to new clients in the US, so you may want to consider that if you’re located in the United States
Last but not least on our list of exchanges to consider for staking your coins is Nexo. With a variety of benefits and features to assist those looking to store and earn on their assets, this is a platform that we simply had to bring up.
Benefits of Nexo:
One of the aspects that many individuals will enjoy about Nexo is that the lock-up times are smaller than practically any other site, being less than 24 hours
You can rest assured that your assets are secure, as Nexo has a third-party guaranteeing that the coins you store will be safe
The interest rates are fantastic; with users being able to get up to 19% on certain cryptocurrencies
Downsides of Nexo:
There’s no information on how much you should invest for the highest APY, so you may have to try different things to find out
Where can you get the best interest rates?
When you want to gain passive income for storing your crypto, there’s no doubt that you’re going to want to get the best possible results – and a crucial factor in this is the interest rate.
One of the biggest challenges for many individuals in this position is not knowing where to go, since the rates can often vary quite a bit from one platform to another. When you consider just how much it can differ between assets even, it’s certainly not an easy choice to make.
First of all, it will often be a good idea to consider which currency it is that you want to invest in. One crypto may have far better rates on one site and terrible on another, so it’s usually best to have a strong idea of what you want before looking around for the best exchange for your unique needs.
Some platforms may have better rates overall, which could be worth checking out for those who want to store multiple coins or those who simply aren’t sure about what they want to do. However, those who know what they want and have a specific asset or few coins in mind will often want to do their research.
As mentioned above, earning interest on crypto involves more than just the platform. In most cases, knowing which crypto earns the most interest can be just as (if not more) important if you’re looking to make a profit.
An excellent example of this is BTC, due its popularity. While you can definitely earn interest on Bitcoin, you’ll still find that it’ll vary depending on the site you choose – but the fact that it’s one of the biggest cryptocurrencies that aren’t likely to go anywhere in the near future means that it’ll generally have good rates. In fact, on many sites, Bitcoin can offer some of the highest interest rates of all.
It’s a similar case for most other digital currencies too – the more popular they are, the more likely there is to be support and decent rates. This is why you’ll see most exchanges offering staking options for stablecoins, but rarely as many decent opportunities for lesser-known tokens.
Are there any risks to staking cryptocurrency?
There can be a variety of things to consider if you want to store your digital assets in a savings account to earn some spare cash. Just like with crypto investments in general, there are always going to be some risks, namely the inherent volatility that has helped crypto skyrocket to its current level of popularity.
Outside of the changeable nature of cryptocurrency, you may also need to be wary of the exchanges that you store your money with. Not only are there many scams out there looking to take your coins and disappear, but there have been instances where legitimate platforms have been hacked due to lower levels of security. None of this is going to be good for your investments, so taking the time to do a background check is often a wise idea.
Keep in mind that without a clear concept of what it is that you require, it will be far more challenging to make the right choice when choosing a platform to stake your crypto on. Consider which currencies you’re interested in and what sites have the features and services you need and you should find that picking out the right exchange will be far easier to do. You can use our list of the top 9 to give you a better idea of what some of the best options out there have to offer.
Will you get taxed on crypto interest?
Unfortunately, it’s hard to say whether you will have to pay tax on the interest you earn on your crypto assets, since this largely depends on where you’re located and the rules of your jurisdiction. The best thing you can do if you’re uncertain is to do a little research on your situation and how the different regulations may apply to you based on your area.
What is the best way to start staking your digital coins?
Typically speaking, most individuals will find that putting their money into a more stable currency will be the best solution. When it comes to earning interest and keeping a steady level of growth and profit over time, it’s simply the best option. Alongside this, looking for what rates are available on popular sites could help to give you a better idea of which site will be ideal to start with, which is going to be crucial to the amount you can earn.
Is it safe to use an interest account?
Many of those who are keen to earn some additional cash on their crypto investments should always pay mind to the safety of their data and assets. After all, you won’t want to put your digital coins in the wrong hands. Fortunately, there are many reputable and trustworthy sites on the market. Our list of the different exchanges earlier could be an excellent place to start if you’re looking to avoid the numerous scams and unsecured sites.