How to earn interest on your cryptocurrencies? This guide will cover several platforms to earn interest on Bitcoin and other cryptocurrencies, including stablecoins
Imagine if you could not only hodl, but earn an income from crypto, but without trading? Below we will cover a few options to earn interest and income while holding Bitcoin, stablecoins and even fiat in the crypto space.
Alternatives to Just Holding Cryptocurrencies
Everybody knows that cryptocurrencies like Bitcoin and Ethereum are highly volatile. Fortunes have been made and lost just by holding to your favorite crypto. However, as blockchain markets develop, the options to earn money while keeping your coins grow.
Different platforms will now offer interest or other types of income just by parking your crypto with them. Results differ from platform to platform, but below we will list the best sites to earn interest on cryptocurrencies.
Best Platforms to Earn Interest on Crypto (Bitcoin, stablecoins and even Fiat)
In this list below we will briefly analyze some of the best platforms to earn while parking your bitcoin, ethereum, stablecoins and other crypto.
Nexo is one of the fastest growing platforms in which you can both earn interest and also use cryptocurrencies to get loans. Among its advantages is the fact that they have a custodial insurance of $100 million and have a multi signature cold storage.
Currently you can earn interest in stablecoins on Nexo, such as USDT, TUSD, USDC and others. You can also earn interest on EUR and other crypto options such as Bitcoin are to be launched in the platform. You can earn 8% p.a. while parking your EUR and/or Stablecoins on your secure Nexo account.
It is important to add that you can withdraw funds any time you want from Nexo, which is definitely a key advantage. There are also no fees to use the platform, and no minimum deposit requirement.
Coinloan.io is another platform offering the possibility to earn interest on stablecoins and fiat. You can also get fiat loans on Coinloan using cryptocurrencies as a collateral.
On Coinloan the interest earned can be up to 12% p.a. but as of June 2019, the reality is more something like 6.6% for both fiat and stablecoins. Still a fairly good deal if you want to diversify your investments.
BlockFi works in a pretty similar manner as Coinloan and Nexo. It offers both crypto backed loans and also the possibility to earn interest while parking some of your crypto.
The advantage of BlockFi over Coinloan and Nexo is that you can already interest on the two most popular crypto currencies: Bitcoin and Ethereum. You can also deposit the stable coin GUSD. BlockFi claims interest of up to 6.2% p.a. on your deposits.
Celsius Network is yet another option to earn interest on crypto currencies. In fact, it offers some of the highest interests in the industry for some stablecoins.
The diversity of crypto options in which you can earn interest is also the highest on Celsius Network. By the time of this publication, you can earn for example 4.0% per annum on Bitcoin, 3% per annum on ETH. Most of the stablecoins can earn an interest of 6.95%.
Compound is probably the least known option on this list, but yet definitely worth a try. On Compound you can earn 9.89% p.a. on DAI and 6.54% on USDC. Both of this coins are stablecoins, and virtually pegged to the value of the USD.
On Compound Finance you can withdraw at any time, which makes of it a great option to park some stablecoins.
Other options to earn cryptocurrency passively
The number of companies offering ways to earn cryptocurrency passively is booming. From high frequency trading funds to dividend earnings, the options are wide.
However, it is very important to do your due diligence, as the level of risk can be quite high in some of these investments. As they always say, not your keys, not your coins. But as many of these companies are audited and insured, I consider most of these platforms to be a reasonable investment in the crypto space.
Other Crowd Investing Resources
For those looking for other similar investments to earn interest passively, you may want to read some of our other reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.
You can consider some other peer to peer companies checking our Mintos Review and our Grupeer Review. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in one of these cryptoplatforms? Leave your thoughts and questions about this article below.