Earn Interest on Bitcoin: Your Comprehensive Guide

All you need to know to begin earning interest up to 7.2% on Bitcoin.

Bitcoin offers its users numerous advantages compared to fiat money and the traditional banking system. One of the biggest perks of owning Bitcoin is the ease of building wealth over time. While trading Bitcoin is a good investment strategy in and of itself, earning interest in Bitcoin has become one of the fastest and comparatively safer ways to make money.

However, before thinking of how to earn interest on Bitcoin, there are a few things you need to understand. Considering the value of Bitcoin reached USD 65,000 before falling by 30% within hours, it makes sense to question whether it is safe to put your funds into Bitcoin. This article covers all you need to know to begin earning interest on Bitcoin.


Bitcoin was launched in January 2009 by the anonymous Satoshi Nakamoto. It didn't gain much traction for the next couple of years, and its value ranged around USD 1 for quite some time. The price of Bitcoin kept climbing after 2011 and received a drastic spike in 2017 when Bitcoin's prices surged by 1000%, and people finally started considering it as a worthwhile investment.

Bitcoin has long been considered the next big thing in finance, and people have finally caught on to an age-old concept: earn money with money. Initially, people were skeptical of owning digital assets during the early days of Bitcoin. Many people and institutions are slowly coming around to appreciate Bitcoin's role in the financial world.

With the emergence of multiple platforms that offer access to a wide range of tools designed to reduce the need for intermediaries and enhance returns, Bitcoin holders can earn high-interest rates on their assets.

What is a Bitcoin Interest Account?

Bitcoin interest accounts are similar to traditional savings accounts offered by banks. By depositing funds into a traditional account, the bank has permission to lend the funds in the account to a third party for a certain period in exchange for a set interest every year. Similarly, you agree to lend out your Bitcoin in exchange for earning interest that is paid out at regular intervals.

The interest rates on Bitcoin are typically higher than a traditional bank account's. In addition, interest account holders receive weekly payouts on their idle Bitcoin, while traditional investments like FDs and mutual funds net interest over a long period.

Interest accounts are smart investments for Bitcoin owners looking to hold onto their assets for the long haul. These accounts are also great for people who want to earn interest and generate a passive income without going through the hassle of trading Bitcoin.

Furthermore, interest accounts give you a way to save and make money simultaneously.

Bitcoin interest accounts are to be viewed as a financial investment vehicle. If you believe in the prospect of Bitcoin and consider it to be well worth the risk, earning regular yields on Bitcoin is an effective way to gain a steady income.

How to Choose a Bitcoin Savings Account?

There are many platforms available that you can choose to deposit your Bitcoin into, and they offer different interest rates and features that may or may not be what you are looking for.

Some common topics that should help you in choosing a Bitcoin investment platform are:

Interest Rates

The critical factor that influences the choice of platform is the annual percentage yield or APY rates. These interest rates vary from platform to platform and help determine whether a platform is worth investing in. Choose only a platform with the best, realistic interest rate and ensure that it has a track record of paying its users as promised.

Hidden Fees

Ensure your preferred platform does not charge hidden fees. Most investment platforms charge fees on your withdrawals, trades, and even investments as service fees. While some platforms offer free withdrawals once every month, the withdrawal fee could catch you off guard.


Bitcoin investment platforms offer some form of security to safeguard their users' wallets by implementing authentication checks every time one tries to access their wallet or make a trade. These security measures can be in the form of Google's 2FA, fingerprint sensing, face recognition, or even something as simple as a password. The greater the number of security measures, the lesser the chances of your wallet being exposed to hackers.

It's also important to note that most Bitcoin platforms require their user to complete their ID verification before they can access all the features provided by the platform.

Compound Interest

Compared to traditional interest, where your principal remains unchanged even as you earn regular interest, any interest is added to the principal amount you invest in case of compound interest.

Consider this scenario: if you were to invest 1 BTC at 6% per annum, you would gain 0.06 BTC as interest. At the end of the first year, this interest would be credited to your wallet, and the principal would become 1.06 BTC for the next period.

This would net you 0.0636 BTC as the interest for the next term. So, the amount of interest earned increases with compounded interest. Ensure that the platform you choose offers compound interest on your Bitcoin assets.

Steps to Earn Interest on Bitcoin

  1. Create an account. First, you need to create an account on the investment platform of your choice. Most platforms offer mobile apps, so you can sign up by providing your email address and setting up your password. You will be able to access your wallet once you verify your email.

  2. Deposit Bitcoin in your wallet. After setting up your account, the next step is to add your Bitcoin assets to your wallet. There are two ways you can do this: either by transferring your BTC from another wallet or buying Bitcoin and setting up a new portfolio.

If you want to deposit Bitcoin from another wallet, copy your newly created wallet's address. Use it as the withdrawal address on your original wallet, and transfer the amount of Bitcoin you wish to invest.

If you plan to build a new portfolio, platforms such as Matrixport allow you to purchase Bitcoin from the app itself. Otherwise, you need to buy Bitcoin from an external exchange and deposit it into your wallet. Be aware that doing so may incur some transaction fees.

  1. Earn yields. Once your wallet is credited with BTC, you can begin learning interest by using the instruments and services offered by the platform. Some platforms, like Matrixport, provide multiple means to earn interest, each with its own set of pros and cons. One instrument might allow you to acquire higher yields at the cost of locking your Bitcoin for a specific period. In contrast, another tool might allow you to earn comparatively lower profits but allow you to withdraw your assets as you see fit.

Best Platforms for Earning Interest on Bitcoin


YouHodler is an investment platform that offers 3.05% interest on Bitcoin. YouHodler allows you to buy Bitcoin via wire transfer without charging any fees on the transaction.

The Multi HODL service enables you to earn a profit even if the market is in a downtrend. You can also invest your Bitcoin in the Savings account, which offers less risk than Multi HODL.

YouHodler utilizes a mixture of hot and cold wallets and has users' assets stored in Ledger Vault's custody. It is also a member of the Blockchain Association.

How to earn Bitcoin interest on YouHodler?

  1. Download the mobile app from Google Play or App Store, or you can use this link to access YouHodler from a desktop.

  2. Sign up by providing your email address and creating a password.

  3. Verify your email address and phone number to deposit your Bitcoin.


Nexo is a Bitcoin investment platform that allows you to earn interest rates up to 7% APY on Bitcoin, and you can access its features and services from any system, thanks to its web application. It offers zero fees on your transactions and allows you to swap any cryptos in your portfolio for Bitcoin and vice versa with its instant crypto exchange feature.

Nexo features military-grade security and is insured for up to USD 775 million by Bitgo, Ledger, and Bakkt.

Caution: The higher interest rates of 7% APY on Bitcoin are only available for investors who earn interest in Nexo's token cryptocurrency.

How to earn Bitcoin interest on Nexo?

  1. Download the mobile app from Google Play or App Store. Alternatively, you can use the web application.

  2. Sign up by providing your email address and setting a password.

  3. Verify your email address to start adding Bitcoin to your wallet.

  • Bitcoin (BTC)


    7% APY

    Intro offer

    Invite friends and earn up to $1,000, paid out in Bitcoin


    775,000,000 USD for theft, hacking, loss of keys and more

    Worth noting

    Earn 2% more when opting to earn interest in NEXO tokens


CoinLoan is an Estonia-based investment platform that offers solid APY rates of up to 5.2% on your Bitcoin. CoinLoan also features a web application that you can access from any OS and has a convenient mobile app that allows investors to use its services.

CoinLoan does not charge any fee when you deposit or withdraw Bitcoin.

CoinLoan features several security features in the form of SSL with TLS 1.3, DNSSEC, and HSTS encryption standards. It utilizes a Web Application Firewall and DDOS Protection to reduce the risk of external tampering with wallets by hackers.

How to earn Bitcoin interest on CoinLoan?

  1. You can either download the mobile app from Google Play or the App Store or use the web application to sign up.

  2. Register by submitting your email address and a password.

  3. Verify your identity by providing your personal information, ID proof, and a selfie.

  4. That's it. You can now deposit Bitcoin into your CoinLoan wallet and start earning interest.

  • Bitcoin (BTC)


    5.2–7.2% APY

    Intro offer

    No current offers


    $100M insurance included

    Worth noting

    Earn higher interest and pay lower fees when staking their CLT token

Safety Tips When Choosing a Platform


Every platform should have information about its founder(s), where it is based, and the total number of assets it owns. While all this information may seem unnecessary, it goes a long way to prove the legitimacy of a platform.

Also, the platform should be regulated by a license such as the AML (anti-money laundering) license. It should also provide security options to protect its users' wallets from hacking and should provide insurance to its users.

The best way to determine whether a platform is trustworthy is through proper research and customer reviews.

Lock-in Period

Many platforms require you to lock your Bitcoin for a certain period before withdrawing it. If the market were to go on a downswing, the value of your investment would decrease since you couldn't withdraw your assets.

So, keep the lock-in period in mind whenever you invest your Bitcoin.

Pros and Cons


High-Interest Rates

The main benefit of investing in Bitcoin is the extra income compared to earning interest on fiat currencies. The traditional banking system offers as low as 1% interest on savings annually. The rates are five times higher than traditional savings account with a Bitcoin interest account.

Frequent Payouts

Bitcoin investment platforms provide interest at frequent intervals. Platforms such as YouHodler allow you to withdraw your interest as often as every week. Bitcoin payouts are very frequent compared to fiat currency investments that provide payouts after months or even years.


Fluctuating Value

One of the most significant risks associated with Bitcoin is its volatility. Investing in Bitcoin means accepting that there will be a degree of uncertainty in its value.

Although the price of Bitcoin has risen exponentially over the last decade, it has also plummeted plenty of times as the Bitcoin market is prone to a lot of turmoil.


Platforms with weak encryption and poor safety infrastructure can be breached by hackers, which will lead to your assets being stolen. Bitcoin lending platforms operating without a permit are prone to cyberattacks, phishing attacks, and hacks.

Borrowers' Default

Borrowers' defaults are usually dependent on the lending platforms' refusal to verify the authenticity of borrowers before issuing Bitcoin loans. Companies with strict lending requirements and transparent lending standards have lower risk levels. Hence, a prior background check is essential to avoid falling into the borrowers' default pitfall.


Can you earn interest on Bitcoin with Coinbase?

No, Coinbase allows you to earn interest on coins such as Ethereum, Algorand, Cosmos, Tazos, Dai, and USD Coin. However, this is only possible on the Coinbase wallet. You can't earn interest on Bitcoin with any Coinbase product.

Can you earn interest on Bitcoin with Ledger?

No. Since Bitcoin can’t be staked, you can’t earn interest on Bitcoin via Ledger. Furthermore, you can’t lend Bitcoin with Aave or Compound, so lending Bitcoin with Ledger is also not possible.

Can you stake Bitcoin?

No. You can only stake coins that use the proof of stake (POS) mechanism. Bitcoin is based on the proof of work model and hence, does not support staking.


Bitcoin has a lot of potential as an investment. You can generate a steady passive income by using Bitcoin investment accounts. Choosing an investment platform is very important, as is familiarizing yourself with its features and services.

The high interest rates on Bitcoin come with their own set of risks. So, it is essential to evaluate your risks before you dive into the world of Bitcoin lending and savings accounts.


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  • Earn up to 365% interest rate on your crypto

  • Participate in staking with a single coin

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