Last Updated on June 13, 2022
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.
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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.
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*all trading involves risk
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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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.
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.
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.
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.