Are Crypto Interest Accounts a Safe Choice? Exploring Your Options

These days, it’s possible to earn interest on your cryptocurrency holdings, much like you would with a traditional savings account at a bank. These opportunities are commonly referred to as crypto interest accounts or crypto savings accounts, and they are provided by cryptocurrency platforms. These accounts enable you to generate interest in lending out your digital assets through the platform.

Your crypto is often not insured. You are giving away your crypto for others to invest with. Most often to institutional investors so they can leverage from that. But there is no guarantee to get back your crypto. The business can go bankrupt, and they can invest your money in many bad ways. Remember: not your keys, not your coins. It is advisable to keep on stacking your SATs as it is not risky.

Attractive returns

While these platforms typically offer attractive returns on your cryptocurrency holdings, it’s important to understand the trade-off involved. When you deposit your coins into these platforms, you often surrender your custodial rights over them. This means that in the unfortunate event of the platform facing financial issues, bankruptcy, or any unforeseen circumstances, there’s a significant risk of losing your coins.

As a result, there are many crypto investors who prefer to exercise caution and consider focusing their investments primarily on Bitcoin. By consistently investing in Bitcoin over time, you may even have the opportunity to accumulate enough to achieve Financial Independence, Retire Early (FIRE) by holding on to your sats. This approach minimizes the risk associated with losing access to your digital assets while still allowing you to benefit from the potential growth of the cryptocurrency market.

How Crypto Interest Accounts Work

Crypto interest accounts provide a way to earn passive income with your cryptocurrency holdings. When you deposit your bitcoin in an interest account, it is made available to crypto borrowers who repay it with interest. Interest rates will depend on the specific cryptocurrency you deposit and your choice of provider. Just like with traditional bank accounts, some interest accounts come with lock-up terms while others with flexible withdrawal policies.

Note: The maximum amount we recommend putting in a bitcoin interest account would be 10% of your available funds. You should know that crypto interest accounts are risky. In 2022, many people have lost their life savings on platforms like FTX, Voyager, and Celsius Network.

Crypto Savings Account Risks

Crypto savings accounts represent a relatively new financial product, and they do come with certain risks that warrant consideration before you decide to invest. Here are some of the key risks associated with crypto savings accounts:

  • Volatility: Cryptocurrency values are highly volatile, and as a result, you may experience losses if the price of the cryptocurrency you deposit decreases significantly.
  • Fraud: Unlike traditional banks, cryptocurrency savings accounts are not subject to the same level of regulation, which can increase the risk of fraud or theft.
  • Lack of Liquidity: With some crypto savings accounts, you may encounter difficulties when trying to withdraw your cryptocurrency, as the process may not be as straightforward or swift as you anticipate.
  • Security Risks: The platform where you store your cryptocurrency may not have robust security measures in place, exposing your assets to potential security breaches.
  • Technical Risks: The underlying technology of cryptocurrency carries inherent risks, including the possibility of hacks or vulnerabilities.

It’s crucial to thoroughly assess these risks and conduct due diligence before considering crypto savings accounts as an investment option.

Best Crypto Savings Account to Consider

Numerous platforms provide crypto interest accounts, each offering different interest rates for various cryptocurrencies. Therefore, conducting thorough research to identify the platform that aligns with your requirements is crucial. Additionally, factors such as fund security, available coins, interest rates, and minimum deposit requirements should be taken into account. Here are some of the top crypto interest accounts:

Coinbase Crypto Interest Account

Coinbase put its crypto interest accounts on hold in 2021, but you can still earn passive income through their staking platform. Coinbase supports six tokens for stacking (Ethereum, Cosmos, Algorand, Tezos, USDC, and DAI). Staking on Coinbase requires you to have a verified account with a confirmed Tax Identification Number (TIN). You will need to lock up your crypto tokens for a certain period of time and Coinbase will pay you rewards in form of interest. Cosmos earns an APY of 5%, 4% APY on Ethereum, 4.64% APY on Tezos, 4% APY on Algorand, 2% APY on Dai, and 0.15% APY on USDC. Interest is paid out daily.

Cashaa Crypto Interest Account

Cashaa is a crypto-friendly bank that offers personal accounts that enable users to store, buy, sell, and earn interest on crypto holdings. The Cashaa personal wallet was designed for retail users enabling them to generate best interest rates on fiat, crypto, and stablecoin deposits. Cashaa personal account comprises two modules; Flex Earnings up to 13% interest rate with no locking and Fixed Deposit Earnings up to 24% interest rate with locking periods of between 1 month to 12 months. Interest is paid daily to investors.

Is crypto interest taxable? The answer varies depending on the country. In the US, the Internal Revenue treats cryptocurrency the same as bond, stocks, and other similar assets. Therefore, some of your crypto earnings may be subject to taxation. Crypto Interest Account offers one of the best crypto interest accounts that support dozens of digital tokens including stablecoins, Bitcoin, Ethereum, Litecoin, Stellar, Bitcoin Cash, Cardano, Chainlink, EOS, and more. allows you to earn up to 14% APY on stablecoin deposits and up to 14.5% for non-stablecoins. However, this depends on the term of your deposit and whether you stake your CRO tokens or not. To get maximum benefit for staking, you need to stake at least 40, 000 CRO tokens and lock your funds for a period of 3 months. If you decide not to stake any CRO tokens, the yield is reduced to 6%. crypto interest accounts pay out interest weekly. If you want to benefit from a long-term compounding strategy, you will need to manually reinvest your tokens. You can access your crypto investments anytime you want by withdrawing from an ATM using its crypto debit card. Minimum deposits vary depending on the coin, while the maximum deposit is $500,000 (USD equivalent).

Hodl Hodl Crypti Interest Account

Hodl Hodl is a bitcoin exchange that offers a peer-to-peer bitcoin-backed lending product, Lend at Hodl Hodl. With Lend at Hodl Hodl, you can borrow PAX, USDC, DAI, USDT, and other stablecoins using Bitcoin as collateral. The minimum loan amount is 50 USD equivalent and the loan period ranges from 1 day to 1 year.

Binance Crypto Interest Account

Binance offers one of the best crypto interest accounts in terms of yields and supported coins. However, your yields will depend on your lock-up terms. Binance offers two crypto savings products. One product allows for withdrawals without time constraints with interests of up to 20% while the other product has lock-in periods and up to 25% interest per year. Crypto assets outside the top-10 can earn you huge APYs. For example, Axie Infinity offers 104% on a 90-day lock-up period but is reduced to 25% on a 7-day period. The account offers up to 5% APY on Bitcoin. The Binance crypto interest account is flexible, allowing you to withdraw your BTC tokens at any time, and you can also view the performance of your crypto interest account in real-time. Interest is paid out daily. You can also grow your crypto portfolio by stacking crypto.

Wirex X-Account

Wirex offers high interest crypto savings account called Wirex X-Accounts. It is a crypto savings accounts that allow you to earn up to 16% interest on your crypto savings. Interest is calculated daily and paid weekly. There are no account maintenance fees and no withdrawal fees.

X-Accounts offer compound interest, which means that you earn interest on the interest that you have already earned. This can lead to significant growth over time, even with small amounts of money.

Nebeus Crypto Interest Account

Nebeus is a crypto fintech that offers crypto renting services to crypto investors. Crypto renting works like crypto savings only that with crypto renting, you rent your crypto to Nebeus through a rental agreement, and you earn interest annually. Your interest rate will be based on the prescribed period. Nebeus has two crypto renting programs; Juniper and Sequoia. The Juniper program allows investors to earn 6.45% interest per year with a deposit period of 3 to 36 months. The Sequoia program pays an interest of 8.25% per year if you rent the company a minimum of 0.35 BTC or 18 ETH for more than 3 months. Sequoia program’s deposit period is 6 to 36 months. Interest is paid out to your account monthly, but you can withdraw your earnings every 24 hours. Both programs do not attract any fees.

YouHodler Crypto Interest Account

YouHodler crypto interest accounts support a wide range of cryptocurrencies (about 22 cryptocurrencies). Depending on your choice of cryptocurrency, you can deposit a minimum of $100 to earn interest. YouHodler crypto interest accounts can earn APYs between 3% and 12.7% depending on the crypto asset you deposit. Its interest payments are made every week. YouHodler crypto interest accounts are available in the UK, EU, Asia, and Eastern Europe but not available in the U.S.

Are Crypto Interest Accounts Safe?

Cryptocurrencies are generally risky investments. This means that even the crypto interest accounts used to hold these coins to earn interest are exposed to some degree of risk. It is for this reason that you must do proper research on the available accounts before you make a choice. Some of the core risks to consider include the following:

  • Platform risk. When you deposit your funds into a crypto interest account, you trust the platform to ensure safety of the funds, pay your interest on time, and at the agreed amount. However, all this is not guaranteed.
  • Market crash risk. Most crypto interest platforms require a minimum amount of collateral to facilitate loan requests. This collateral will not be sufficient to pay back the lender in the event that there is a major crypto market crash.
  • Default risk. Just like all loan agreements, Crypto loans have the risk of default. To prevent this, many platforms have a safeguard in place such as collateral. In the event that a borrower defaults on their loan agreement, the collateral is sold to pay the lender.

What to know before investing in bitcoin

  • Bitcoin investment is associated with serious risks that include the risk of total loss of your funds. Especially if you start trading with margin, or if you give away access to your coins. Generally, bitcoin investments have not statutory/voluntary deposit insurance or state protection/supervision. It takes time and effort to find the safest crypto savings account.
  • Don’t trade or invest in bitcoin more than you can afford or willing to lose. We recommend that you invest not more than 10% of your funds into bitcoin.
  • The best way to protect your bitcoin is to “hodl” and only store in non-custodial wallets. Don’t leave your bitcoin on a third party wallet, such as those provided by exchanges. All bitcoin you store elsewhere apart from your personal wallet can be lost of even confiscated. Always have safe backups of your private keys for when your wallet gets lost.

Crypto Savings FAQs

Which crypto earns the most interest ?

The cryptocurrency world offers various options for earning interest, and the most rewarding choice can differ based on the platform and cryptocurrency. Generally, stablecoins, proof-of-stake cryptocurrencies, and DeFi tokens tend to provide higher interest rates.

Stablecoins are valued against traditional currencies, offering stability for interest seekers. Proof-of-stake coins involve staking for transaction validation, leading to interest rewards. DeFi tokens, used in decentralized finance apps, often yield higher interest due to their unique financial services and competitive landscape

Our goal

We want to inform you about the latest banking trends and developments, by providing comprehensive reviews of banks around the world offering virtual banking services and bitcoin based banking.

Our aim is to help you know the best bank accounts, how to open a bank account, best banks to invest and buy bitcoin, how to apply for payment and virtual cards, how to open a non-resident bank account in the US or EU, how to earn a passive income with your crypto, obtain a loan with your crypto deposits, and many other banking-related topics.