You can easily earn interest on Bitcoin with nothing more than a bit of BTC and patience. The hard part isn’t earning BTC interest — it’s finding the best Bitcoin interest accounts to use.
Because, after all, if you’re going to put your BTC to work earning interest, you want to get the best returns possible. Use this guide to find the highest interest yields for BTC in 2021 and beyond.
1. Celsius Network (6.2% APY on BTC)
Celsius Network is making Bitcoin interest accounts mainstream with an easy-to-use app that manages your deposits.
To start earning interest on BTC using Celsius, download the app, create an account, then make your first Bitcoin deposit to your unique wallet address. After making your first deposit, Celsius lets you choose between earning interest paid in BTC or CEL. The latter is Celsius Network’s native token and offers a higher APY.
After choosing between BTC and CEL payments, your BTC deposit starts generating interest. You can withdraw your interest or BTC in any amount, any time, without limits.
2. BlockFi (3%-6% APY on BTC)
BlockFi is one of the original names in earning interest on Bitcoin. In a way, they’re the brand that started the trend with their unique Bitcoin Interest Account product.
Using the BlockFi Bitcoin Interest Account is super simple. Just create an account with BlockFi to receive a deposit address. Then, deposit BTC into your Bitcoin Interest Account.
Interest starts accruing immediately and can be withdrawn every month. BlockFi also offers Interest Payment flex – a feature that lets you withdraw your earnings paid out in a different currency.
“For example, if you have BTC or ETH in your interest account, you can choose to receive all your interest in GUSD, ETH or BTC, or if you are holding only GUSD, you can choose to receive all your interest in BTC, ETH or GUSD,” according to BlockFi. “This is a great way to diversify your cryptocurrency portfolio without having to buy any new crypto.”
3. Nexo (6%-8% APY on BTC)
Nexo is all about flexibility when it comes to earning on crypto.
Like Celsius, Nexo’s high-yield crypto savings account gives you the option of earning in-kind or in NEXO token. In-kind means if you deposit Bitcoin, you’ll earn interest in BTC. Going with interest paid in NEXO token means you’ll earn more interest (8% APY).
To start a Nexo high-yield crypto account, create an account, deposit Bitcoin, and immediately generate interest. Rewards are paid out daily.
Best of all, daily withdrawal limits are high at $20,000/day for basic accounts and $500,000/day for advanced accounts.
APY
Up to 16%
Interest Payout
Daily
Assets Accepted
BTC, ETH, NEXO, MATIC, 30+
- Zero fees
- $775M insurance on custodial assets
- Unique daily payout
- Fiat is not insured
APY
Up to 16%
Interest Payout
Daily
Assets Accepted
BTC, ETH, NEXO, MATIC, 30+
- Zero fees
- $775M insurance on custodial assets
- Unique daily payout
- Fiat is not insured
4. CoinLoan (5.2%-7.2% APY on BTC)
CoinLoan is a Bitcoin lending platform quickly making a name for itself with its innovative crypto interest account. After signing up, you’ll see an interest account on the dashboard with a simple deposit tab.
Interest automatically begins accruing after depositing BTC. The exciting bit is how interest is generated. If you go the standard route, expect 5.2% APY on BTC deposits. However, if you hold CLT tokens in your wallet, your Bitcoin interest APY gets bumped up by 2% to 7.2%.
Additionally, CoinLoan lenders aren’t subject to withdrawal fees — a nice touch that lets you keep your earnings intact.
APY
Up to 12.3%
Interest Payout
Monthly
Assets Accepted
LTC, BTC, BCH, XMR, XRP, 10+
- $0 Minimum deposit requirements
- Free unlimited withdrawals
- Funds are stored with BitGo and insured for $100 million
- User reports of difficult account registration
APY
Up to 12.3%
Interest Payout
Monthly
Assets Accepted
LTC, BTC, BCH, XMR, XRP, 10+
- $0 Minimum deposit requirements
- Free unlimited withdrawals
- Funds are stored with BitGo and insured for $100 million
- User reports of difficult account registration
5. YouHodler (4.8% APY on BTC)
YouHodler doesn’t offer the highest interest earnings on Bitcoin, but that is made up for by the ease of using their app.
In fact, of the various options available today, YouHodler’s Bitcoin interest account may be the quickest to get up and running. Jump on the app, create an account, then deposit BTC to begin earning interest immediately.
The straightforward nature of YouHodler pays dividends in other ways. Minimum deposits are low (0.1 BTC), and the platform charges zero withdrawal fees on weekly payouts.
APY
Up to 9.96%
Interest Payout
Interest Payout: Weekly
Assets Accepted
USDT, LTC, USDC, BTC, 50+
- Free withdrawals
- $150M pooled crime insurance by Ledger Vault
- $100 Account minimum required
- Not yet available in the U.S.
APY
Up to 9.96%
Interest Payout
Interest Payout: Weekly
Assets Accepted
USDT, LTC, USDC, BTC, 50+
- Free withdrawals
- $150M pooled crime insurance by Ledger Vault
- $100 Account minimum required
- Not yet available in the U.S.
How Do You Earn Interest on Crypto?
You can easily earn interest on crypto by depositing your cryptocurrency holdings into a high-yield savings account. While some crypto savings accounts go by different names (i.e., Bitcoin interest accounts), they all have the same purpose: to generate interest on deposited assets.
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You’ll be required to provide some basic information to open an account, including your:
- Full name
- Phone number
- Address
- Government-issued I.D., such as a driver’s license
Your I.D. is necessary to complete the KYC (Know Your Customer) verification process required by all financial institutions, including crypto companies and services. Just as you would need to provide a photo I.D. to open a bank account, you’ll need to provide it to open a crypto savings account.
What is the Interest Rate on Bitcoin?
The current going rate for earning Bitcoin interest ranges from 4% to 8% APY and mostly depends on how you choose to be paid.
If you choose to receive interest payments in BTC, you’ll generally earn on the lower end of the range. Choosing payments in CEL, NEXO, or holding CLT bump your earnings to the top of the bracket.
How Often is BlockFi Interest Paid?
BlockFi interest is paid at the beginning of each month. To view your interest payment, log in to your BlockFi Bitcoin Interest Account dashboard, then check your account history.
Is it Smart to Buy Bitcoin?
Buying Bitcoin in 2021 is a smart investment decision from several perspectives. As BTC continues gaining adoption (PayPal recently integrated Bitcoin), it continues to be competitive with gold as a global store of value.
Moreover, countries are increasingly signaling their digital currency transition, a move hastened by the COVID-19 pandemic. Bitcoin is the world’s most well-known digital currency with a significant first-mover advantage, making it a good bet for the future.
We’re obviously BTC fans, but we also don’t provide individual investment advice. The general rule of thumb for a “smart buy” is to buy low and sell high, but all investments come with risk — especially ones with such volatile track records.
What is the Best Crypto Interest Account?
The current best crypto interest account is provided by Celsius Network.
Unlike its competitors, the Celsius App prioritizes flexibility for a new generation of digital assets like Bitcoin. Deposits and withdrawals are fast, unconstrained by limits, and make earning interest on crypto not only easy but fun as well.
Oh, and Celsius also offers the highest Bitcoin interest rates available anywhere — period.
Final Thoughts on Earning Interest on Bitcoin
Holding Bitcoin in a non-interest generating wallet is so old-school.
After all, who wants to let their Bitcoin sit in a wallet while they lose out on free dividends? Probably no one — but then again, not everybody knows how easy it is to earn interest on Bitcoin.
Hopefully, after reading this guide to earning interest on BTC, you’re ready to start putting your crypto to work. HODL is a great investment strategy, but getting paid to HODL is even better.
