Platforms that pay compound interest on crypto

An alternative to current bank savings accounts is the crypto savings account. These crypto savings accounts contain crypto assets that pay interest over time. While the process of lending crypto is similar to a traditional savings account. A crypto savings account shares little similarity with a standard bank account. Savings accounts typically generate simple interest. However, some crypto savings accounts work a little bit differently. Instead of simple interest paid annually, they offer compounded interest, calculated yearly and paid per day, week or month. Some cryptocurrency savings accounts do simple interest as opposed to compound interest. Here, we'll look at the differences and see what's better for your crypto assets.

Simple vs. Compound Interest Accounts

Compound interest accounts are the standard for crypto assets. However, this isn't true for many traditional savings accounts. Many banks only offer simple interest accounts for their clients. Simple interest is calculated annually, at a specific rate, and doesn't offer the account owner to earn interest of any significant amount. If someone wants to earn interest, they need to look at crypto investments.

Compounding interest allows an initial investment to "snowball" over time. As a result, the holder can earn interest over time, compounded daily, weekly, or monthly, depending on the account they choose. Currently, there are several companies offering crypto interest accounts at competitive interest rates. If you're looking at getting the most out of your crypto assets, this might be the best opportunity to do so. A crypto interest account can accrue a significant amount of income over time.

Learn more about the differences between APR and APY

Daily, Weekly, or Monthly Compounded Interest

When a crypto savings account offers compounded interest, they usually do so at daily, weekly, or monthly periods. Daily compounding calculates the interest rate daily on your account. However, it's possible that this compounded interest isn't added to your account until the end of the week or month, or even year. In a daily compounded account, the account provider will calculate the amount they'll pay you daily but only pay it out when a specific time frame is reached.

For monthly and weekly compounded interest, the bank or account provider calculates the amount paid once during the period. Occasionally, the account provider will also pay out the amount owed for that day.

If you have money in an account that calculates compound interest and starts moving money in and out of the account, how does it know which balance to use? They use whatever balance is currently in the account for daily compounded accounts. However, for weekly or monthly accounts, they would use the balance in the account on the day that interest is calculated.

Learn more about crypto compounding interest

Top Compound Interest Crypto Lending Platforms

Exactly how do crypto investors earn interest on their crypto over time? The answer lies in a savings account that offers competitive interest rates on crypto deposits. Where exactly are the best crypto interest accounts located? Here, we look at the top crypto interest platforms to give you as much information as possible and help you make the best possible decision.

CoinLoan

CoinLoan supports many crypto assets, covering 27 crypto, fiat, and stablecoins for trading or simply putting money in to earn interest. With a CoinLoan account, depositors can expect their interest compounded monthly and paid daily. The standard interest rates for some of the digital assets that CoinLoan offers accounts are:

CoinLoan Savings Accounts
Best CoinLoan Savings AccountsInterest Rate (APY)Advertising Policy
Up to
10.3–12.3%
Go
Up to
5.2–7.2%
Go
Up to
10.3–12.3%
Go
XRP (XRP)

CoinLoan

Up to
5.2–7.2%
Go

Monthly compounding means that the account will start seeing significant gains over time from its deposits after a few months.

BlockFi

A BlockFi interest account is one of the most well-known ways to earn interest on crypto assets. BlockFi calculates their interest on accounts monthly and pays monthly to those accounts as well. There's no need to worry about interest being locked up and unpaid to accounts that have earned it.

BlockFi's interest accounts offer some competitive rates. Among the interest rates that a person can get when they deposit funds include:

BlockFi Savings Accounts
Best BlockFi Savings AccountsInterest Rate (APY)Advertising Policy
Up to
7%
Go
Up to
3%
Go
Up to
7%
Go
Up to
3.25%
Go

A crypto interest account with a BlockFi interest account is a lot easier to open than a traditional savings account. In addition to competitive interest rates for cryptocurrencies, it also offers 7.25% interest on stablecoins. BlockFi's accounts are simple to use, and they don't have a minimum balance requirement. The interest earned on a BlockFi account would eventually snowball from month to month, leading to significant earnings on the deposit.

Hodlnaut

Hodlnaut is a crypto platform that is only just getting started. As one of the emerging platforms, it doesn't offer a whole lot in terms of services to crypto investors. Interest on a Hodlnaut account is compounded and paid weekly. This approach gives account holders the benefit of weekly income.

Hodlnaut does offer savings accounts with some relatively reasonable interest rates, such as:

Hodlnaut Savings Accounts
Best Hodlnaut Savings AccountsInterest Rate (APY)Advertising Policy
Up to
9.4%
Go
Up to
9.4%
Go
Up to
5.3%
Go
Up to
5.4%
Go

Hodlnaut wants to offer clients a way to earn interest that they can depend on. The weekly compounding interest can lead to massive growth with enough patience.

Celsius Network

Celsius Network is another one of the well-known places for digital asset investors to get decent interest rates for their cryptocurrency. With a Celsius Network savings account, interest is paid weekly and compounded weekly. This approach limits the exposure for the company while still offering decent returns on a deposit.

Celsius Network also deals with a significant amount of coins, including more than 52 cryptocurrencies, including one gold token (PAXG), and more than 10 stablecoins. Some of the interest rates investors can expect on Celsius Network include:

Celsius Network Savings Accounts
Best Celsius Network Savings AccountsInterest Rate (APY)Advertising Policy
Up to
6.3%
Go
Up to
6.86%
Go
Up to
6.86%
Go
Up to
5.36%
Go

The sheer amount of coins that Celsius deals with makes it impossible to summarize in such a short space. We've covered their interest rates in detail elsewhere. A crypto interest account like those hosted by Celsius is perfect for investors looking to earn interest on their savings at competitive rates. Users can easily keep track of their deposits and withdrawals on the Celsius Network. Celsius Network also offers a tiered system for their depositors. The four tiers are:

  1. Bronze Tier holders will get 10% interest rates on their CEL (Celsius Network's native token) and a further 5% bonus rewards.
  2. Silver Tier holders will get 15% interest rates on their CEL and earn 10% bonus rewards from the platform.
  3. Gold Tier holders benefit from 15-20% earnings on their CEL and earn 20% bonus rewards.
  4. Platinum Tier holders get 20% CEL and a further 30% bonus rewards.

Celsius Network is a viable method for growing compound interest investments in the crypto space. The weekly compounding sets up an account to earn a substantial amount in a short range of time, thanks to their competitive interest rates.

Nexo

Nexo’s was one of the first to offer interest rates for crypto deposits and set the stage for most other companies to follow in their footsteps. Nexo even offers its own wallet service, accessible from both iOS and Android devices. A user can easily and quickly log in to their Nexo account and store Nexo-approved digital assets in the wallet. Nexo's savings accounts pay interest daily and compound the principal daily as well.

The interest rates Nexo offers on its deposits are pretty attractive:

Nexo Savings Accounts
Best Nexo Savings AccountsInterest Rate (APY)Advertising Policy
Up to
12%
Go
Up to
8%
Go
Up to
12%
Go
Up to
16%
Go
Up to
12%
Go

Nexo operates like a traditional bank in many ways, offering savings accounts in USD, GBP, Euros, and more. A daily compounded account offers some of the best potential for earning from a deposit.

Crypto.com

While this platform offers some competitive interest rates, it's important to underline that their accounts are simple interest accounts, and they don't offer compound interest on deposits.

Crypto.com remains an option for individuals who want the benefits of great interest rates while still ensuring that they have access to their funds. Crypto.com gives its users a debit card allowing them to spend the funds in their crypto interest account like if they're spending from a standard savings account. As an incentive for using the card, the company's native token (Cronos) offers cash back on purchases. The interest rates on the savings accounts are impressive:

Crypto.com Savings Accounts
Best Crypto.com Savings AccountsInterest Rate (APY)Advertising Policy
USD Coin (USDC)

Crypto.com

Up to
1.5%
Go
TrueGBP (TGBP)

Crypto.com

Up to
1.5%
Go
Tether (USDT)

Crypto.com

Up to
1.5%
Go
Bitcoin (BTC)

Crypto.com

Up to
0.5%
Go

Just like Nexo, Crypto.com allows users to access fiat currencies alongside their digital assets. The downfall of this platform is the lack of compounding. Deposits in these accounts will grow faster than those in traditional banks but much slower than other crypto savings accounts that offer compound interest.

YouHodler

YouHodler is another lending platform that has shifted into offering crypto interest accounts. These accounts are both compounded and paid weekly. YouHodler's accounts were designed to allow users to borrow against their deposits.

Interest rates on YouHodler accounts are on par with most of the industry:

YouHodler Savings Accounts
Best YouHodler Savings AccountsInterest Rate (APY)Advertising Policy
Up to
11.33%
Go
Bitcoin (BTC)

YouHodler

Up to
6.58%
Go
Tether (USDT)

YouHodler

Up to
11.6%
Go
Up to
6.3%
Go

YouHodler is a decent option for investors earning from their crypto deposits. The weekly compounding interest makes for a faster-growing account than those compounded monthly but slower than those with daily compounding.

Ledn

Ledn offers high-interest savings accounts in partnership with Genesis Capital. They also partner with BitGo, the noted digital asset trust enterprise, and security business. Their collaborations have enabled them to become a competitor in the crypto space. Ledn interest accounts are paid daily and compounded monthly.

Interest rates that Ledn offers are somewhat competitive:

Ledn Savings Accounts
Best Ledn Savings AccountsInterest Rate (APY)Advertising Policy
Up to
7.5%
Go
Up to
5.25%
Go

While the interest rates are comparable to others in the space, there's much to be desired from the deposit account choices. An investor could earn decent returns from Ledn, but it's probably not worth investing if you don't have the coin options their deposit accounts cover.

What's the Best Option to Earn Interest?

The crypto space is very competitive, and earning interest on digital assets seems to be the most stable way to use these investments as passive income. When looking at the offers in the space, the crypto interest rates are pretty constant across many of the exchanges that deal with savings accounts. Each of these interest savings accounts has its own pros and cons. To determine the best crypto interest accounts, you'll have to see what you prefer your crypto account offers you regarding withdrawal fees and access to fiat currency.

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