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Earning interest on your Bitcoin and other crypto assets


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I have been toying around in the cryptocurrency markets for numerous years now. I have made a lot of mistakes and gambled with a lot of my Bitcoin years ago when the United States government started to make it harder to play online. Casinos quickly popped up that would take Bitcoin. Well those are mistakes of the past and luckily I did not lose it all. 

Over the years it has been fun to watch my cryptocurrency grow in value but I like my assets to also produce income. I am an income oriented investor and cherish cash flow so I set out on a mission to find ways to deploy my cryptocurrency and make some cash at the same time. 

Now keep in mind cryptocurrency is all ready a super risky asset class and by placing your coins on platforms to earn you also take on platform risk. Like what if they go away forever? These things can happen in the wild west of cryptocurrency so remember never to invest more then you can afford to lose. 

Anyways I wanted my crypto to earn while it sat. A few peer to peer market places turned up but turned out to be total garbage. People were not repaying their loans it was horrible. 

Then a couple new sites popped up that let people leverage a certain percentage of their crypto just like using margin in your brokerage account. In there need for liquidity they offered some great interest rates for our cryptocurrency and stable coins (USDC, TUSD, etc.).

I personally store a bit of my cryptocurrency on the following platforms to earn a bit of interest while it sits idle. 



BlockFi allows you to earn up to 8.6% APY on your idle cryptocurrency. They pay interest on Bitcoin, Ether, Litecoin, GUSD, USDT, PAX, USDC, PAXG, Link, and BUSD. I have been with them almost a year now and things have been going well. Then again the cryptocurrency market has been going well too so it is still to early to tell. I do enjoy their service and I feel my cryptocurrency is safe on their platform. 



Nexo is like BlockFi but they lend to more consumer customers where BlockFi seems to be focused on the institutional customer. Nexo allows you to earn up to 12% APY if you jump through some hoops. Their standard rates are comparable to BlockFi. I feel like my cryptocurrency is safe at Nexo and enjoy they are trying to build a decentralized bank. 

I know there are a few other places we can place your BitCoin to earn some interest but I do not think they are available to the USA market. 

What are your favorite sites to use to earn interest income on your cryptocurrency?  

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  • 3 weeks later...

I have been hanging out in the cryptocurrency world for about 7 years or so now. Maybe a bit longer... I have seen plenty of scams in my days of working on the internet. 

I do approach these platforms with a high level of skepticism but do think that the interest numbers being paid to investors is unreasonable when you start comparing to savings accounts and CDs from traditional banks.  

These platforms do not have the same overhead as the traditional banking system. They are also working with the entire world. Where interest rates are different in other places in the world. Really interest rates being as low as they have been is just something we have been witnessing in the past couple decades. Money has been flowing easy for a long time now. 

I do remember when I was a younger child my planning I was doing for earning money via investing was just to toss the cash in a savings account at 6% APY and keep letting that grow. Sounded simple but by time I got into investing that was not possible. 

I do think these crypto banks will go the same way. I think these really are just intro rates and we have seen them lowered a few times over the last couple of years as the platforms get more liquidity to conduct their business. 

I do think these platforms are truly trying to build decentralized banking platforms but there are a lot of risks in that you also have the added cryptocurrency risk. 

So I would still see cryptocurrency as highly skeptical and should be a smaller part of the overall portfolio. Then when you put your cryptocurrency onto a platform you run into platform risk. Such as are they going to be there tomorrow? Will the funds get hacked? Then again the with high levels of risk they are offering a decent reward to park your unused cryptocurrency so it can work for you in the meantime. 

I still have cryptocurrency in cold storage and some on the platforms too so I spread around the love to make sure that in the worst case scenario it all does not get wiped out in one fell swoop. 

Have you taken the plunge and added any crypto to these platforms? 

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  • 1 month later...

I am still very new to crypto so I only know the basics. Same with stocks. I just have a standard wallet on my phone. I am only dipping my toes right now. I don't want to take any huge risks! 

I plan on investing more but not in Bitcoin. I will be looking at options like Cardano, Menaro, and Stellar. 

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