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[Update May 2022: Bitcoin, the flagship cryptocurrency, is off to a flat start this May and down roughly ~16% MoM as of the time of this update – April 4, 2022 to May 4, 2022.]

If you own some cryptocurrency and are in it for the long haul, then you may be interested in a crypto savings account to give your holdings an added boost in earning power.

These types of “savings accounts” or “interest accounts” are relatively new, as with crypto itself, but the rate of return is eye-catching and certainly puts the top yields issued by FDIC-insured banks to shame.

That said, while these products can be exciting, they do come with underlying risks that typical savings accounts offered by banks or credit unions do not. So, if you’re considering investing in cryptocurrency just for the high yield, then you may want to conduct further research to see if these digital currencies are right for you. But if you already own crypto and want to get a fabulous interest rate on these holdings, continue reading our comprehensive guide below.

Celsius Network – Best Transfer Bonuses

The Celsius Network offers noteworthy yields and even sign up bonuses, however, the very best rates can not be attained by U.S. residents.

Celsius has a loyalty rewards program that pays rewards in tiers with its own native currency (the CEL token). Those in the rewards program have access to Celsius’s highest rate of 17.0% however, the rewards program is not currently offered to U.S. residents. We will update this post when/if that changes.

APYs for U.S. residents range from 0.50% to 18.63% APY.

There are no minimum deposit requirements and interest payments are made weekly.

There’s currently a number of transfer bonuses for new customers that transfer their crypto over to the Celsius network!

Here’s some of the transfer promotions going on in May 2022 to give you an idea (see full list here):

• Transfer $100 or more of any supported assets to your Celsius account and receive $10 in BTC.
• Transfer $400 or more of any supported assets to your Celsius account and receive $50 in BTC.
• Transfer $25,000 or more of any supported assets to your Celsius account and receive $500 in BTC.
• Transfer $250,000 or more of any supported assets to your Celsius account and receive $2,000 in BTC.

Linus – Best for Liquidity

[Update March 2022 – It appears Linus is updating their product and only has an option to join the wait list currently. Use the link below to go to their website and learn more.]

Earn up to 4.5% APY + withdraw funds at any time with Linus.

If you’re looking for a solid rate plus easy access to your funds and limited withdrawal restrictions then Linus might be your best bet.

Many crypto savings accounts come with fees or restrictions when you attempt to withdraw funds prior to a specific date. This is not the case with Linus. Linus differentiates itself by allowing their customers to withdraw funds at any time, penalty free. If you need help, humans are available via online chat.

Linus provides an interest rate of 4.5% APY on your crypto stash. Linus generates interest by lending your assets to borrowers via smart contracts.

Crypto.com – Best for Cryptocurrency Diversity

Earn between 3% and 14.5% APY with Crypto.com.

If you hold some cryptocurrencies that aren’t the major household names and would like to earn interest on your holdings, then Crypto.com might be a good place to look. They currently offer great interest rates on the widest range of cryptocurrencies which currently feature 26 cryptocurrencies and 8 stablecoins.

Here are some of their rates for cornerstone crypto currencies this month:

• Bitcoin – up to 6% APY
• Ethereum – up to 6% APY
• USDC – up to 10.0%

Simple daily interest is applied and deposited into your account weekly. Rates depend on the term of your deposit which can be flexible (you can withdraw anytime) up to 3 months long.

Nexo – Best for Rapid Payments

Earn between 3% and 17% APY (paid daily) with Nexo.

Nexo’s claim to fame is limited lock-up times of just 24 hours or less. That means your interest payments are paid out daily.

Nexo has already racked up over 1 million users since its inception in 2017.

Nexo also has $375 million in insurance on all custodial assets.

There are no monthly fees or minimum deposit requirements to open an account.

Coinbase – Best for Newbies Holding USD Coins

[October 2021 Update: Coinbase dropped their interest rate products.]

Earn up to 4% on USD coins.

Coinbase is one of the most well recognized brand names for holding and trading cryptocurrency.

The coinbase digital wallet lets users earn up to 0.15% on their idle USD coins while you wait to make new trades. You also have less restrictions when it comes to withdrawing funds in your Coinbase digital wallet as Coinbase doesn’t loan your USD coins out to borrowers.

Outlet Finance – Best for Dealing in US Dollars

If you do not study cryptocurrency trends but still want to dabble in the space and earn a handsome return while you do it, then Outlet Finance may be your best option.

You don’t need to know much about Crypto with this platform as they deal with U.S. dollars. Users deposit funds in USD and users earn interest in USD.

How it works: Outlet Finance converts your investment to stablecoin and then connects it with their overcollateralized lending partners, matching it with the highest yield.

Overcollateralized means their partners must put up 120% of their loan request. In the event that they default, this gets liquidated to pay the investor (you) which helps mitigate your risk.

The company advertises APYs up to 9%.

YouHodler – Jack of All Trades

YouHodler is a Swiss company that gets its name from the playful misspelling of the word “HOLD” which later utilized the acronym “Hold On for Dear Life” and was adopted by the investment community as a term to ‘hold’ or not sell your investment.

It makes sense then that YouHodler is designed to help long term crypto holders get additional earnings from their holdings.

YouHodler boasts yields between 3% and 12.3% depending on currency and investors can get started with as little as $100.

We awarded this platform with the Jack of All Trades title because it excels in most categories consumers care about: 1. Access to funds / liquidity. 2. High paying yields. 3. Diversity of coins accepted. Savings accounts and exceptional APYs are offered on 22 cryptocurrencies currently with YouHodler.

Interest payments are paid every week.

Hodlnaut – Runner-up for Liquidity

Hodlnaut is another play on words with the term HODL, which is a common misspelling for HOLD plus the word Astronaut, to get Hodlnaut.

They are based out of Singapore and only accept deposits in 5 cryptocurrencies currently. These are BTC, DAI, ETH, USDC and USDT.

Hodlnaut does not currently hold any regulatory licenses in Singapore but is applying for them under the new regime. Visit their FAQ section to read more.

Interest is paid out weekly, every Monday.

APYs range from 6.2% to 13.86% depending on cryptocurrency.

Gemini – Best for Security

Gemini claims to be operating with a security-first mentality since day 1.

Once you deposit your crypto with Gemini the majority of it is held in their “offline, air-gapped cold storage system” which helps prevent theft by hackers and/or malware. Only a small portion of your deposited crypto will be held in their online “hot wallet” and it is insured. You can get a full rundown of their security measures here.

APYs range from 1.25% to 6.90% depending on currency.

Interest is paid daily.

CoinLoan – Security and Safety Runner-Up

CoinLoan is an Estonian firm that specializes in security and safety like Gemini.

They also do a great job in supporting a wide range of cryptocurrencies, which currently sits at 17.

Their APYs range from 5% to 12.3% depending on cryptocurrency.

There are no minimum deposit requirements and interest is paid monthly.

BlockFi – No Longer Offered to US citizens

📍 Important Note: BlockFI Interest Account (BIA) are no longer offered to new clients who are U.S. Persons or persons located in the United States. Existing clients that are U.S. persons or located in the United States will be unable to transfer new assets to their BIAs.The BIAs have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States, to U.S. persons, for the account or benefit of a U.S. person or in any jurisdiction in which such offer would be prohibited.

With BlockFi you can earn up to 7.25% APY (annual percentage yield) on stablecoins, 4.0% APY on bitcoin and 4.0% APY on Ethereum.

BlockFi is a crypto custodian that was founded in 2017 and just landed $350 million in funding (March 2021) which pegged the company at a $3 billion valuation.

This platform has exploded in growth since their inception and currently offers retail and institutional-facing products.

On the retail side of its platform, people can use its mobile app to earn a yield on their crypto holdings (4.5% on Bitcoin, 9.5% on stablecoins). You can currently earn impressive yields on the following:

• BTC,
• ETH,
• LTC,
• PAXG
• USDC,
• USDT,
• GUSD,
• PAX

The BlockFi interest account features rates up to 7.25% on stablecoins and 4.0% on bitcoin. Sign up here and get the $250 bonus too!

The lowest APY BlockFi offers is just 0.10% for deposits greater than 0.35 BTC. The more Bitcoin you deposit, the less interest you earn with BlockFi.

BlockFi Complete APY Chart (APY = annual percentage yield).

Crytpo	Amount	APY
BTC (Tier 1)	0 – 0.10	4.0%
BTC (Tier 2)	0.1 – 0.35 BTC	1%
BTC (Tier 3)	0.35 BTC +	0.1%
LINK	0 +	2.5%
ETH (Tier 1)	0 – 1.5 ETH	4.0%
ETH (Tier 2)	1.5 – 50 ETH	1.5%
ETH (Tier 3)	50 ETH or more	0.25%
DOGE	no limit	2.0%
ALGO	no limit	2.5%
LTC	0 +	3.5%
USDC	0 +	7.25%
GUSD	0 +	7.25%
PAXG	0 +	3.25%
BUSD	0 +	7.25%

You can learn more about how BlockFi’s interest works on their website, but in a nutshell they generate interest by lending your assets to trusted institutional and corporate borrowers for a certain period of time. They only lend the crypto on over-collateralized terms with an automated risk management system that monitors positions 24/7.

Get a $250 Bonus when you deposit just $100 or more in crypto with BlockFi! Limited time offer.

What are Crypto-Based Savings Accounts

Before you open a crypto-based savings account it is probably a good idea to fully understand what these products are and how they differ from traditional savings accounts.

First, these accounts provide a yield on your crypto holdings, not U.S. dollars. There are several crypto banks offering fantastic APYs (annual percentage yields) on the USDC coin which is pinned to the U.S. dollar and generally trades in parallel, but it is not the actual USD.

In fact, these accounts should be viewed as investments rather than savings accounts, because that is really what they are at their core.

You invest in crypto currency and then lend out your keys to a third party in exchange for interest.

The precise activities going on under the hood with your crypto keys vary depending on which platform and account you choose.

We’ll touch on the mechanics and risks to these investments further on, but first, aside from the high interest rate, let’s look at some of the positive impacts crypto savings accounts are having to the overall cryptocurrency economy.

For starters, it’s an automated way to grow crypto portfolios over time. For example, if you are already fully invested in bitcoin, you can deposit that bitcoin into a crypto savings account and earn additional interest paid in bitcoin.

Also, crypto savings accounts continue to be an on-ramp for getting people to deposit their USD, CAD, AUD, and GBPs and convert them into a crypto savings account. By drawing in more participants to the crypto economy, greater liquidity can be attained leading to eventual price stability for the new asset.

Also, long time holders of crypto are incentivized to move their crypto out of storage and into the markets facilitating adoption and helping innovate new use cases for crypto.

In the end, interest rates are important in financial markets because they fill the gap between people with surplus assets they can’t use and the people who need the assets because they have a productive use. High interest rates being offered can be seen as demand for the underlying crypto assets.

How Much Can You Earn with Crypto-Based Savings Accounts

There are two main factors that are going to affect your overall earnings (or losses) from a crypto-based savings account:

1. The cryptocurrency’s price in U.S. dollars.
2. Interest rate paid on your crypto savings account(s).

The first main factor is likely going to be the biggest variable in determining your overall gains or losses. This becomes a bigger risk if you hold your savings account for a long period of time. 

Cryptocurrencies are highly volatile, un-regulated, risky investments that are not backed by the government like standard currencies are. Therefore, if the cryptocurrency you are holding in your savings account goes down in value while your crypto savings account is active, it is quite possible to lose a portion of your principal.

This is a similar concept we discussed with the inherent risks of foreign currency CDs, where a great interest rate can be negated entirely if the currency you are holding goes down in value against the U.S. dollar.

The second variable is APY paid on your crypto savings. This varies widely on a number of factors.

Currently some of the top crypto banks outlined in this article are paying between 3.2% and 12% APY. To put this in perspective, the average savings account yield sits at just 0.05% APY according to recent FDIC data.

Who are these providers I’m lending my keys out to?

Exchanges and lenders are the businesses who take your keys and lend your crypto assets to others. These institutions will loan out the crypto assets to other borrowers who may be individuals or institutions who need liquidity and don’t want to sell their cryptocurrency. Most traditional banks are unwilling to take crypto assets as collateral for a loan which has opened the door for these exchanges and crypto lenders.

Currently, interest rates are relatively high as users can earn up to 12% in some cases. Additionally, by offering the high yield it helps attract and on-board more people into the crypto economy. This is because in order to earn the high rate of interest, you need to convert your fiat currency over into bitcoin or another cryptocurrency to get started.   

That high rate of return has likely succeeded in attracting more people into the crypto economy. According to Statistia, 20 million bitcoin wallets were created from February 2020 to January 2021. This represents a 43% increase from the number of wallets a year ago.

Why would a business want to borrow at 8-12% annual interest?

It is great that savers like us get to benefit from earning a high interest rate. Who would be willing to pay 8-12% annual to borrow the cryptocurrencies?

Institutions are a large driver of crypto borrowing. If they have a mismatch on the timing of their debits and credits, they can park collateral with the lender, then pull out a short-term crypto loan to fund the mismatch.  

Market makers and crypto dealers are a great example of this. If you make a large buy order of bitcoin, the market maker or dealer probably does not have bitcoin as it is highly unlikely somebody else is selling to them that exact amount at that same time. These market makers want to be neutral and not be exposed to a directional risk in bitcoin.  

Therefore, they will take on a short-term loan of bitcoin until sell orders come in. At that point, they will repay the loan back with their new sell orders from their clients.

As another example, one of the benefits of cryptocurrency investment is the decentralized marketplace. There are many different places you can go to buy, sell, and exchange your crypto.  

As a result, the pricing of bitcoin (and other cryptocurrencies) may not be EXACTLY the same and might vary by 1% or so at each of these venues. Arbitrage traders will look to profit from the difference in pricing from the various locations.  

However, those arbitrage traders might not have the right cryptocurrency located at the venue where the mismatch occurs. Therefore, these traders would take on a short-term loan in their needed cryptocurrency to take advantage of those pricing dislocations.

The amount of interest the arbitrage traders pay in a year might be earned through their business in a few short weeks. Even though 8-12% of interest payable per year sounds like a lot, some business models are happy to pay for it which is to the saver’s benefit!

Lastly, some investors who feel the price appreciation of bitcoin or ethereum will be multiples greater than the 8-10% of interest they pay. As a result, they will consider depositing their crypto as collateral, then taking a US dollar loan out. They will then turn around and buy more crypto with the US dollars lent to them. As you can imagine, that is a risky move as you would be betting on the crypto you are purchasing will be more valuable later when you repay the loan. That is not always going to be the case.

Risks Associated with Crypto Savings Accounts

Though a crypto-based savings account has its benefits, there are risks of loss to investing in it. Let’s explore seven risks associated with these investments.

Exchange Rate Risk

Risk that the value of the underlying crypto goes down relative to your base currency (USD, GBP, etc). The value of a cryptocurrency is not backed by the government and is not legal tender. Additionally, the accounts to where the crypto is placed to earn interest are not subject to FDIC, SIPC, or other guarantees. If something happens to that cryptocurrency that would cause it to lose its underlying value, then you would lose your principal invested amount.

There are several different types of cryptocurrencies to earn interest on. The value of cryptocurrencies like bitcoin and ethereum are volatile and can easily lose their value quickly. Many crypto savings accounts pay their interest in crypto so not only is your underlying principal losing value, but the interest you are earning has less real value too. Of course, the opposite of that is true when you have an appreciating underlying asset.

As a result of volatile valuations, savors like to use stablecoins in their crypto savings accounts.

Risk of the Stablecoin Peg Breaking

Stablecoins are designed to hold a stable relative value to another asset, like the US dollar. If the stablecoin cannot hold its value relative to the assigned asset, then investors would lose trust in the stablecoin causing its value to potentially collapse.

It is important to note that not all stablecoins were created equal. Some stablecoins are centrally managed and promise to have US dollars locked away, in a vault with regular audits completed. 

Other stablecoins are decentralized and are managed by computers and computer code rather than humans. It could be argued that each of these types of stablecoins bears their own unique risks.  

In the former, the central institution could break their promise and mismanage the business causing the peg to the US dollar to break. In the case of the latter, an error in the coding could be discovered in the future that causes a break of the peg against the US dollar.  

In case there is a break in the peg, investment may flee that stablecoin potentially causing loss of principal.

Lock Up Risk

Some crypto savings accounts are very flexible where you can withdraw at any time. Other crypto interest accounts may have lock up periods or additional fees for excessive withdrawal activity. Generally speaking, the more restrictive accounts will offer the higher interest rate while the more flexible accounts tend to offer the lower interest rates. Make sure to ask questions about a lock up period, withdrawal restrictions, and any additional fees before committing.

Pledge Risk

You no longer control the crypto and are pledging it as collateral. For example, when you deposit at a bank you are staking a claim to a bank’s liability. It is a similar situation with the crypto savings account (minus the government protections). If the crypto provider goes under due to a mismanagement of their business or an adverse market event, you will not be able to get your bitcoin or cryptocurrency back. This is because when you deposit the crypto into the savings account, you no longer own the crypto.

Loan Default Risk

If the value of the collateral backing the loan falls and is insufficient to pay back the lender, the load could be defaulted upon. Though this is a real risk, most crypto loans tend to be overcollateralized which greatly reduces the risk.  

In other words, it is common for borrowers to maintain collateral equal to 150% of the loan amount. Therefore, if the value of the collateral decreases due to adverse market conditions, there is typically enough cushion to support the loan. It gives the borrower time to repay the loan or for the loaner to liquidate the position on the open market. The loan default risk could come into play if a rally harsh market correction drove the value of cryptocurrencies very low very fast. In essence, markets would have to crash 50% in a matter of minutes what hasn’t happened…yet.

Risk of Custodian Hack

A large risk factor is if the lending company’s custody provider (where the assets are stored) gets hacked. If you are utilizing an exchange’s crypto savings account, it is possible that a theft could occur due to a hack at their custodian.  

Many people who are new to cryptocurrency are afraid of the blockchain getting hacked. However, the risk of a hack is not actually to the blockchain, but rather the institution’s security (or smart contract, see below) which is different from the blockchain.

It is important to understand that the ‘hack’ risk is increased when you are dealing with a newer institution or an institution whose investment in security is not as strong as others.

Typically, institutions that have been around longer tend to be stronger as they have stood the test of time.

Smart Contract Risk

Decentralized finance (Defi) lenders use automated coding called smart contracts to loan and allocate capital. This coding is viewable by everyone so it is quite transparent. Everyone is incentivized to make sure the coding is solid.  

However, a previously undiscovered error in a smart contract may open the door for a hacker to find their way in. For example, a loophole in the code may cause the lender to lose the funds.

This has some similarities to the custodian hack risk as newer untested lenders may not have had their smart contracts battle tested. Though not exempt from the risk, lenders who have been around longer and whose products have stood the test of time are generally less likely to be exposed.

Crypto Savings VS Traditional Savings

Despite having the name ‘savings account’ in their title, crypto-based savings accounts have some very distinct differences from traditional savings accounts.  

Above, we have touched on some unique qualities and risks to crypto-based savings. Below, we’ve outlined a side-by-side comparison.

	Traditional Savings	Crypto Savings
FDIC Insurance	Yes	No
Withdrawal Allowance	Generally unlimited	Can be Limited
Interest Calculation	Usually Compound	Usually Simple
Interest Deposited Best APY	Monthly ~0.3%	Daily or Weekly ~12.0%

FDIC Insurance

Variable rate deposit accounts including savings accounts, checking accounts and money market accounts opened with traditional banks or credit unions come with FDIC insurance (or NCUA insurance for credit unions) that protect your funds in the case of institutional insolvency while your money is held there.

FDIC and NCUA insurance cover deposits up to $250,000 per individual or $500,000 on joint accounts.

This is not the case with crypto-based savings accounts where it is possible to lose money – both interest and principal. Crypto investments are not covered by government insurance and are not considered legal tender.

However, many crypto institutions will provide insurance for certain risks of loss. Unfortunately, the biggest risk to loss is the exchange rate risk, which is uninsured. The exchange rate risk is why many crypto-based savers utilize stablecoins as they pin the value of the cryptocurrency to a standard fiat based currency (for example – USD, CAD, AUD, GBP).

Withdraw Limits

Per federal regulation D, variable rate deposit accounts at banks and credit unions no longer have limits to the number of transfers as of April 2020. The previous limit of 6 transfers was lifted in April 2020 as Covid-19 caused millions of Americans to lose their jobs, struggle to pay bills and needed to draw upon their savings in a time of crisis. Double check with your institution so you know what their limitations are so as to avoid excess transaction fees.

Crypto savings accounts, on the other hand, can have tighter restrictions on withdrawing funds. Some crypto-based deposits are contractual and you have to keep your deposit on hand for a certain time period limiting your ability to withdraw. Other crypto-based deposits may be flexible, but offer a lower rate of return for that flexibility. Lastly, some institutions charge set up fees too.  

As crypto-based savings accounts are a relatively new product, regulation surrounding them hasn’t been established so check with the institution regarding their limitations and fees before making your deposit.

Interest Calculations and Interest Deposits

Another major difference in these accounts is how interest is calculated and when your interest gets deposited. 

Most banks and credit unions compound interest daily, weekly or monthly on your deposits. Compounding interest allows for the interest you’ve accrued to also earn interest. 

With crypto-based savings accounts however, simple interest is generally applied. That means your initial principal is the amount to which interest calculations are made.  

One interesting advantage to crypto-based savings accounts is that many institutions actually deposit your interest in shorter time increments like daily or weekly rather than one interest deposit per month seen by banks and credit unions. This quicker release of the interest allows you to put it to use more quickly.

Final Thoughts

If you already hold cryptocurrencies, then moving your funds into an interest bearing account is a great strategy to earn while you hold.

That said, if you’re considering investing in cryptocurrency because of the enticing APYs you see on the savings side, be sure you fully understand the inherent risk of these highly volatile digital currencies.

You’ll also want to study each account and crypto bank carefully as terms and conditions, interest rates, minimum deposits, types of cryptocurrencies needed and lock-up periods vary widely from account to account.

If you’re typically a conservative saver that generally invests in traditional CDs, savings accounts, money market accounts and the like, then these accounts probably aren’t going to be for you. They are also not a wise place to stash emergency funds or any funds you may need to convert to cash quickly.

Also keep in mind these are variable rate accounts that are subject to change at any time without notice.

Crypto.com was established in 2016 with a mission to accelerate the world’s transition to cryptocurrency. Crypto.com believes it is your basic human right to control your money, data and identity.  

Crypto.com continues to live up to their mission as they have over 10 million users globally and a staff of 900 employees worldwide. 

Since they are a blockchain-based financial services company, saving your crypto with them to earn interest and spending via a visa card is an important part to their business model.

Crypto.com Features and Benefits

As a blockchain-based financial services firm, Crypto.com is a one stop shop for much of your crypto based needs. They have built their services into a nice app so everything is right at your fingertips.

They also allow you to transfer your crypto between Crypto.com app users free of charge.

However, Crypto.com is best known for their broad range of crypto they service and generous interest rates and crypto rewards programs.

Supported Currencies and Yield

Supported Currencies	U.S. – 50+ Worldwide – 90+
Yield on Crypto	6.5%
Yield on Stablecoins	12.0%

Crytpo.com is regularly adding new supported currencies. Check back for updates as we update this post regularly.

Crypto.com App

The Crypto.com app is one of the fastest growing crypto apps on the market with over 10 million users buying and selling over 100 cryptocurrencies at true cost.

When you log into the app (download here), you’ll find current balances of:

1. your fiat wallet,
2. crypto wallet,
3. crypto EARN deposits and
4. Crypto.com Visa card balance.

The fiat wallet contains the money you have sent to Crypto.com, but have yet to exchange for crypto or to top up the visa card.

The crypto wallet holds the keys to the cryptocurrencies you have purchased with your fiat wallet.

Crypto Earn is where you deposit your crypto to earn interest.

Lastly, the Crypto.com visa card is a debit card that allows you to earn additional crypto rewards such as crypto cash back or crypto reimbursements for services like Netflix and Spotify (among others).

Moving Funds from your Bank to Crypto.com Fiat Wallet

As a blockchain-based financial services firm, it starts with buying crypto. The process to buying crypto includes transferring your fiat currency (ie-USD, EUR, CAD, AUD, etc) to a crypto dealer like Crypto.com.

Depending on your jurisdiction, the method to transfer your fiat currency to Crypto.com may differ. I set up bill pay for Crypto.com in the same way I would pay my electric bill. After confirming a couple of small transactions, the connection between my home bank and Crypto.com is established.

Now, initiate a transfer of your US dollars, Euros, Australian dollars, etc to your Crypto.com wallet. When the funds arrive at Crypto.com, they will deposit them into your fiat digital wallet.

There are two things you can do with the money in the fiat wallet. You can use those funds to buy crypto or you can top up your Crypto.com visa card.

Buying Crypto with your Fiat Wallet

One of the biggest attractions to Crypto.com is their extremely large range of cryptocurrencies you can purchase. At the time of this writing, you can buy more than 100 different cryptocurrencies with them.

When you explore, analyze and research a cryptocurrency project via the app, if it can be purchased with Crypto.com you will find a large BUY button on the page. You can buy with your fiat wallet funds or sell another cryptocurrency to buy the new one.  

Once you have acquired those cryptocurrencies, the next step is to decide where you want to store them. You can pull the crypto offline into your own cold storage or you can keep the private keys with Crypto.com. There are advantages to either situation so it depends on what your goals are with the crypto.

Individuals with the goal of a long-term large investment in crypto, might consider the cold storage route.

If you are ok with exchanges like Crypto.com holding your private keys, then they offer handsome interest rates for lending your crypto out.

How to Earn Interest with Crypto.com

Their interest-bearing program is called “Crypto Earn” and it is VERY easy to get started.

When you click on the “Earn” section within the app you will find options to add deposits or withdraw from the EARN program.

If you want to deposit your Bitcoin or favorite stablecoin to earn interest, simply add it to the program by pressing the plus “+” sign. Then, you will be asked which cryptocurrency you want to deposit. Crypto.com’s Earn program is one of the most diverse interest-bearing programs out there as you can deposit 35 different cryptocurrencies to earn interest.  

Currently, the stablecoins offer the largest interest rate between 6-14% annually. With Bitcoin, you can earn between 1.5% and 8.5% annual.

Once you select the cryptocurrency, you’ll be prompted to enter how much crypto you wish to deposit. Essentially, all you are doing is moving it from your crypto wallet over to the Earn program.

The next prompt is selecting a term of deposit. Crypto.com offers three different terms.

1. Flexible Interest Rates
2. 1 Month Term Deposit
3. 3 Month Term Deposit

Crypto.com Flexible Interest Rate Deposits

These types of deposits are just as they sound, flexible. As a result of this flexibility, these deposits will be earning the lowest interest rates. You can make the deposit today and decide to withdraw the deposit tomorrow and earn one day’s worth of interest in the process. Or, you can keep the deposit as flexible for an indefinite period of time.

Flexible interest rate deposits are desired if you don’t want your crypto needlessly tied up for too long.

For example, let’s assume you want to buy some bitcoin but you are waiting for the price to drop. You can use your fiat wallet to buy some Dai (a stablecoin), then place Dai into a flexible contract earning 6%.  

That way, when the price of bitcoin drops to a level where you want to buy, you can withdraw your Dai immediately from Earn and turn around to buy bitcoin with it. In the meantime, you would have earned a little Dai interest deposited into your crypto wallet.

Crypto.com 1 Month Term Deposit

The 1 Month Term means you are locking up your deposit for 30 days. Once you agree to this term, you will not be able to withdraw the deposit until the term expires.

This option is used when an investor does not have a need for the cryptocurrency for at least a month. Investors will also use this option to help ladder into various expiration dates too.

The interest rate on a 1 month term is better than flexible. As an example, Dai deposited into a 1 month term would earn 8% versus the flexible 6%.

Crypto.com 3 Month Term Deposit

The 3 Month Term brings the largest interest rate, but you will have to lock up your crypto for 90 days. If your time horizon is long term and if you don’t plan on needing to sell the crypto beforehand, then this option is great.  

The interest rate is significantly higher than the flexible term so you get to earn a high rate for a buy and hold strategy.

As an example, an investor that deposits Dai into a 3 month term would see 10% interest annually. Likewise, the 3 month bitcoin rates are near 4.5%.

You can see what the current rates are for your crypto and term.

Fortunately, the app will display the interest rate for each of the terms so it is clear ahead of time what your rate will be. The longer the term, the greater the interest rate.

Generally speaking, the minimum deposit to a contract is around the equivalent of $250. Since the value of cryptocurrencies can fluctuate, the minimum US dollar equivalent will fluctuate as well.

Crypto.com Interest Payment Frequency

Interest within the Crypto.com Earn program is paid once per week. If you start the deposit on Wednesday, then you will receive interest on the next Wednesday.  

When the interest is paid, it will get deposited as the same currency into your crypto wallet. For example, you deposit bitcoin into Earn, then you’ll receive interest paid in bitcoin that will appear in your crypto wallet. It is important to remember this is a simple interest calculation and not compound interest.

In a rising bull market, earning interest in a strengthening currency is a great thing.  This means the value of your investment AND interest are increasing in value.

In a falling bear market, the opposite can happen where the interest you earn is worth less even though the interest rate remains constant.

Increase your Crypto.com Interest Rate Even More with Staking

Crypto.com pays a higher interest rate when you stake their token, CRO. Before explaining the benefits, let’s first dive into staking.

What is staking?

Staking is a “consensus” mechanism for how the blockchain is secured preventing users from printing extra coins they didn’t earn. 

A huge benefit of blockchain is that it can be decentralized. That means everybody can access it but nobody controls it. Since there is not a central authority controlling it, there needs to be a way to ensure proper tracking. Otherwise, people would spend more coins than they earned undermining the entire system. Such a scenario would collapse the coin making it worthless.

When you stake Crypto.com’s native token, CRO, you are essentially putting it on deposit so that you can participate in the network’s validation of new blocks being created. There are rewards associated with newly created blocks and a portion of those rewards get passed along to you.

Therefore, you can simply park your cryptocurrencies into Crypto.com’s Earn program and earn a little interest. Or, you can juice up the interest rate by staking additional funds as CRO.

Earn up to 14% Annual Interest with the Highest Tier of Staking

There are essentially 3 different tiers of staking that affect the interest rate within the Crypto.com Earn program

• 0-49,999 CRO stake
• 50,000-499,999 CRO stake
• 500,000 or greater CRO stake

The greater the stake, the greater the interest rate. Let’s go through a couple examples.

A stake of 50,000 CRO (around $7,500-$15,000 depending on the exchange rate) will open up an increased interest rate for you within the Crypto.com Earn program.  

For stablecoins, that is an increased interest rate of 2% across each of the contract terms. It varies for bitcoin, but could be as much as a 2% increase for the rate. As an example, a 3-month term deposit with a 50,000 CRO stake would yield 6.5% on the bitcoin deposit.

For a stake of 500,000 CRO (around $75,000 – $150,000) the rates move up even higher. A 3 month deposit of stablecoins into the Earn program will yield 14% and bitcoin’s interest rate is 8.5%.

Oh, by the way, when you stake CRO with Crypto.com, you will also earn 6% interest on the staked CRO.

Is Staking Safe?

Cryptocurrency staking is often a more profitable means to earn interest, but with some added risk.

First, Earn deposits are not backed by governments and they are not insured by FDIC and SIPC. Therefore, you won’t have the same level of protections like you would with a bank deposit.

Additionally, the valuation of the underlying cryptocurrency (CRO) could fall diminishing the value of the interest earned.

Also, a minimum 180 days staking period is required (6 months). You will earn interest on the CRO, but that CRO which you lock up is inaccessible for 6 months.

The inflexibility of tying up funds in CRO is a big potential risk. If the value of CRO diminishes, you would not be able to withdraw until the contracts are met.

Additional Ways to Receive Crypto with Crypto.com

Another interesting feature with Crypto.com is that you can utilize them with a visa debit card and earn cash back crypto.  

For example, I can go to the store or a restaurant and pay with this card and the merchant will have no idea it was obtained via a blockchain-based financial firm.

In my case, the merchant will receive US dollars just like if I were paying with my other debit or credit card.

The big benefit of using the card is that cash back rewards are paid in crypto. Cash back rewards start at 1% of the purchase amount, but can range to a high of 8% depending on how much CRO you stake. Additionally, you have the opportunity to receive other staking benefits like Spotify, Netflix, and Amazon Prime membership reimbursements.

Crypto.com Rewards Visa Card

A second way to gain crypto via crypto.com’s financial services is to take advantage of their visa card.

You can grab the visa card and receive 1% cash back on all purchases. 

Or, with your staking above, you can also obtain one of their visa cards.

For example, a 50,000 CRO stake not only provides a higher interest rate for your Earn, but also provides a higher cash back reward.  

Let’s assume an investor stakes 50,000 CRO and grabs a Jade Green Visa card with Crypto.com. The investor could then earn up to 12% annual interest on stablecoins and up to 6.5% on bitcoin through the Earn program. 

The investor would also earn 6% on the CRO staking (about 250 CRO per month).  

Additionally, the card benefits include Spotify and Netflix membership reimbursement. If our investor has $20 of subscriptions in Spotify and Netflix, that means about 117 CRO monthly (at a 0.17 CROUSD exchange rate).  

Lastly, if the investor spends about $500 per month on the card, then 3% rewards would add another 88 CRO.

Our investor would be hauling in about 455 monthly CRO as rewards for staking plus a higher interest rate in their Earn program. This does not include the interest earned on their stablecoins or bitcoin either!

The cross-over of staking to receive a higher interest rate, more rewards with the visa card, plus a broad range of cryptocurrencies to earn interest on explains why Crypto.com has been growing rapidly to more than 10 million users.

Next Steps

Visit Crypto.com to begin the process of creating and setting up your digital wallet – or – read our rundown of the top crypto savings accounts on the market in 2021.

The cryptocurrency industry continues to grow larger despite opposition from skeptics and those more interested in traditional finance. As entities like Tesla add Bitcoin to their balance sheets and payment processing giants like Mastercard signal growing acceptance of the crypto world, many express greater confidence in the ability of virtual currency to serve as a wealth-building tool.

As a result, the rise of crypto-based lending, investing, and borrowing platforms continues to blossom. One example is BlockFi, a wealth management platform based on blockchain technology offering collateralized loans utilizing cryptocurrency.

Launched in August 2017, BlockFi is based in New York and remains the only Bitcoin lending platform offering a crypto deposit account featuring compound interest. BlockFi’s gained immense notoriety in and outside the crypto world due to its rapid growth, large amount of on-platform assets, and a loss rate currently standing at 0%.

Keep reading to learn more about BlockFi, understand the features and infrastructure the platform offers, and gain a greater understanding of how the lending protocol is perceived in the cryptocurrency world.

What Is BlockFi

Founded by Zac Prince and Flori Marquez in 2017, BlockFi was created to provide credit services to markets with limited access to basic financial products, like a savings account.

The platform commenced lending while utilizing digital currency as collateral in January 2018. Several funding rounds across the year with participation from entities like Galaxy Digital Ventures and ConsenSys Ventures helped the team officially launch the BlockFi platform.

BlockFi’s Series A funding netted the company around $18.3 million, while a Series C round added $50 million in cash for operations.

Today, the BlockFi team maintains offices in New York, New Jersey, Poland and Argentina. The platform’s primary custodian, Gemini Trust Company. LLC, is regulated by the New York State Department of Financial Services. BlockFi lenders also benefit from the backing of financial giants like SoFi and Fidelity, meaning a vast majority of products and tools seen as a traditional bank are also accessible to BlockFi users.

BlockFi users can earn interest by lending out Bitcoin and other crypto, secure a cash loan while using crypto as collateral, or perform crypto-to-crypto transactions.

Aside from offering a compound interest-earning crypto deposit account, BlockFi users do not have to hold or stake a native token to use services on the platform, as BlockFi does not currently have a token. Additionally, BlockFi users do not need to carry a minimum balance to be eligible to earn monthly compound interest on funds.

BlockFi Interest Account (BIA) Details and Features

The BIA is one of the most unique BlockFi features, This account lets users deposit crypto and enjoy the benefits of earning interest on deposits and (hopefully) watch the crypto’s value grow at the same time.

BlockFi offers an interest rate on stablecoins of at least 8.6% and up to 6% with Bitcoin depending on the deposit amount. Users can also earn interest with other cryptos like Ethereum and Litecoin.

All a prospective account holder has to do is enter their information, fund an account with virtual currencies, and then simply wait to earn and collect monthly interest in the crypto of choice. BlockFi features an interest calculator so account holders can understand how much money they could earn based on the asset and investment duration.

Users are also eligible to receive one free withdrawal per month with the ability to remove funds at any time. The interest account is available worldwide, other than in nations who are sanctioned or on watchlists. Other account features include:

• Interest Payment Flex: This feature allows users to choose the cryptocurrency they’d like to receive interest in. This allows account holders to diversify their portfolio or choose coins they believe have strong market potential, depending on the time of year and other newsworthy moments related to the project that could drive up the price. Account holders should understand there is a limit to how many hours before the end of the month that they are able to change their preferred interest payment.
• Tiered Interest Structure: Bitcoin fans on BlockFi can take advantage of the platform’s tiered interest structure. For annual deposits under 2.5 BTC, the interest rate rests at anywhere up to 6%. Amounts above that limit lead to a 3% interest rate. This structure incentivizes users to be strategic with their deposits, especially since interest rates have and do change.

Interest Rates Breakdown by Cryptocurrency

As of March 2021, the below interest rates are available for all BIA holders:

Cryptocurrency	Yield
BTC (Tier 1)	2.5% – 6.0%
BTC (Tier 2)	2.5% – 3.0%
LINK	5.5%
ETH	5.25%
LTC	6.5%
USDC	8.6%
GUSD	8.6%
PAX	8.6%
PAXG	5.0%
USDT	9.3%
BUSD	8.6%

You can also find BlockFi’s interest rate table here.

Speed, Security, Insurance

BlockFi users often ask if their funds are insured. While FDIC insurance does not pertain to crypto, BlockFi does use Gemini as its custodial service. Since Gemini does insure its own deposits, BlockFi users do have assurance their funds have some protection. All withdrawal requests take one business day to clear, which means actions on Friday will not process until Monday.

The platform also maintains a number of security standards and best practices to assuage users. BlockFi does not hold the private keys to funds, instead leaving asset management to Gemini (and its cold storage infrastructure). Gemini received a SOC2 Type 1 compliance audit from Deloitte for its custodial infrastructure, and Gemini itself is insured by Aon.

If an account is compromised, the BlockFi team indicates the account is frozen for a one-week period. Next, a videoconference with the individual is conducted to verify the account and its proper owner, allowing the BlockFi team to alter account information so the proper user can regain control.

BlockFi also offers users the ability to utilize two-factor authentication to secure accounts. Instead of relying on text messages and emails, platform users are asked to perform 2FA with the Google Authenticator app that regenerates a code every 30 seconds.

Additionally, BlockFi users can add crypto wallet addresses to a specialized address book – making it easier to transact with frequently used addresses. With the Allow listing feature, users will only be able to withdraw to addresses listed on the address book.

As a result, withdrawals are not possible if the book is empty. This practice lets users add additional security layers to their accounts to prevent hackers from gaining access and then siphoning off funds to external accounts.

According to BlockFi, users also can take advantage of Face ID to login. Facial recognition can take the place of a more traditional email and password login, but users who manually log out will have to input an email and password in order to log back into the platform.

Fees and Access to Funds

Withdrawal limits and settlement speeds depend on the crypto asset users are trying to transact with. For BTC, users can withdraw 100 coins in a 7-day period. The limit jumps to 5,000 for Ethereum, and 10,000 for Litecoin. Stablecoin holders can withdraw up to a million of the crypto asset each week.

Bitcoin withdrawal fees currently sit at 0.00075 BTC. Ethereum’s sit at 0.02 ETH, while Litecoins stand at 0.0025 LTC. Stablecoin withdrawal fees are $10.

Origination fees for crypto-backed loans are 2% regardless of the loan-to-value ratio and the interest rate. LTV is computed by taking the loan amount and dividing it by the value of the loan collateral.

BlockFi Withdrawal Fees per Cryptocurrency

Currency	Withdrawal Limit (in crypto)	Fees
BTC	100	0.00075
ETH	5,000	0.02
LINK	65,000	0.10
LTC	10,000	0.0025
Stablecoins	1,000,000	$10.00 USD
PAXG	500	0.015

Please note that all of the fees and withdrawal limits in the table above pertain to a 7-day period.

How to set up a BlockFi account

1. Referrals:BlockFi is known for a referral program that often incentivizes new users and whoever originally brought them to the platform. Referral benefits have included $10 in BTC to both the new user and referrer once a new account is funded with a set amount of cryptocurrency. Special referral bonuses have let users collect more money. As a result, many prospective BlockFi users often ask friends or families, or do research to see if there are any referral bonuses before making an account. Of course, this step is not required.
2. Registration:New BlockFi users should be careful and ensure they are on the website of the actual BlockFi website, especially if a friend sends them a referral link. On the homepage, a blue ‘Get Started’ button on the right side of the page ushers in the registration process. Those who sign up will need to input their name, email, create a password, and then accept BlockFi’s policies and certify with a check they are over 18. As always, it is smart to review the Terms & Conditions, Terms of Service, and Privacy Policy before passing the CAPTCHA and clicking submit to conclude registration.

If the information passes muster, prompts will ask if the user is creating a personal or business account. One can assume the business account will involve a much more detailed and thorough registration process. For individual users, BlockFi will then inquire about the user’s country and ZIP code, adding in a brief note about what the information is used for (if a user is interested in learning more).

Next, users are asked to input an array of information, including a phone number, birthday, and the source of funds connected to the account. Before inputting a Social Security Number, users should again check to make sure they are on the secure and official BlockFi website. The platform says they are required by the Bank Secrecy Act to verify the identity of eligible users by cross-checking with their Social Security number.

After a user successfully inputs the previous information, they will be asked to verify their phone number by inputting a confirmation code, along with performing a few other tasks. These steps are to satisfy the platform’s KTC ID verification system provided by Persona.

1. Setting Up The Account: Once users see the BlockFi main page, they have the option to set up two-factor authentication. While some see this as unnecessary, 2FA is a smart way to add extra protection to an account, and is already standard practice at many financial institutions and brokerages. As discussed earlier, users can also set up whitelisting, which is of particular importance if a person intends to send money between a bank account and BlockFi or if they are interested in sending cryptos on and off BlockFi.
   
2. Funding The New BlockFi Account: Processes of actually adding funds to a BlockFi account vary based on a number of federal and state regulations. In general, the three main ways to fund a BlockFi account are to connect it to ACH, wire money, or to move money in from an outside crypto account.
   
   ACH is often the slowest method to fund an account, and BlockFi also places limits on the amount of money users can transfer in. There are no limits on wire transfers but fees (depending on the bank) can quickly add up. The speed and cost of transferring crypto will depend on the coin and where the virtual currency is coming from. Users simply must visit their profile settings and find the option to put in a bank account to start an ACH transfer.
   
   Users interested in wiring money to their accounts need to find the code on their profile page and then visit their bank’s website to input the code (in the notes section) and BlockFi’s wire information. 

Finally, users who desire to fund their accounts with crypto can do so on their BlockFi profile by finding the corresponding wallet address and then setting up a transfer from an outside exchange or wallet. Users should be careful to not send crypto into an account that’s for a different virtual currency, as this opens up the potential to lose the entire amount of assets. Depending on where the crypto is coming from, the transfer might be delayed a bit for further review.

After following the above steps, a user now has a fully functioning BlockFi account! It is prudent for users to also test out withdrawing funds from their BlockFi account. Be sure to start with a small amount when you are not in immediate need of the money.

BlockFi Bitcoins Reward Visa Card Features and Details

BlockFi announced details of its Bitcoins Reward Visa Card in December 2020. According to the project team, card holders who are approved can spend their approved limit each month and  not be required to pay interest on the balance (if paid on time).

However, all transactions on the car lead to a 1.5% cash back bonus automatically converted to Bitcoin and deposited into BlockFi each month. This makes the sleek black metal card an alluring way to earn crypto rewards on everyday transactions.

According to BlockFi, the card is the first crypto-focused credit card and marks the first time Bitcoin’s logo is right on a physical card. As of now, the 1.5% stands as the highest Bitcoin rewards rate for any card. Users also can earn a $250 Bitcoin signup bonus if they spend at least $2,000 in the first three months.

Right now, the card is only available in the United States, but those in other parts of the world can add themselves on the waiting list to be the first to know when the card could be available in their area.

BlockFi says they hope the new Bitcoin Rewards Visa Card helps expose more people to Bitcoin and help consumers earn the cryptocurrency while making purchases on everyday items.

BlockFi Customer Sentiment

Unsurprisingly, the wide array of features on BlockFi and the platform’s unique opportunities for those interested in the nexus of traditional finance and crypto, lead to a lot of reviews and customer feedback.

As of early March 2020, BlockFi maintains a 3.5/5 rating on the Apple App Store. While many praise the robust features offered, they also write how BlockFi’s user interface could be updated. One user notes it can be hard to see how much an account has changed in value over time due to the platform’s interface – a feature they say should be a pretty straightforward update to implement.

Others say BlockFi lags behind platforms like Coinbase or Gemini when it comes to the design and user experience. More pessimistic reviews explain how BlockFi’s customer support is superb, but write how they run into issues with username/password resets, basic app crashes and glitches, and other issues with logging in.

On the Google Play story, BlockFi enjoys a 4.4/5 rating. Praise for the app largely focuses on efforts by the development and customer service team to keep things moving and running amid a massive influx of new users. However, the negative reviewers are not shy about documenting problems with fund transfers, a buggy signup process, and a range of fees that can become confusing (and quickly add up).

Final Thoughts

BlockFi is one of the most unique platforms in the crypto world. Allowing users the ability to earn crypto, grow wealth, and participate in an ecosystem where traditional finance merges with virtual currency represents a new economic frontier.

BlockFi’s adherence to security, range of supported cryptos, and innovative products like the Bitcoin Rewards Visa makes the platform enticing for those looking to ‘put their crypto to work’ making money. However, users should understand what they are getting into, especially when it comes to withdrawal times and fees.