Last Updated on 8 April 2024 by CryptoTips.eu
5 Best Platforms to Earn Interest on Bitcoin in 2024
Today, we have several platforms that offer different ways to earn cryptocurrencies. One of the most popular forms of earning Bitcoins is through interests. Even though cryptocurrency lending platforms are still at their early stages, they’ve given birth to various measuring metrics, including interest rates.
Keep in mind that these platforms are relatively new and still have to prove themselves. It’s not wise to assign your full portfolio to one platform. It’s better to spread the risks and only invest a small percentage of your portfolio into Bitcoin lending.
This scheme has the potential of encouraging users to adopt cryptocurrencies and move their capital from storage to the markets. That said, who offer the best interest rates in the market? Well, this article will help you decide on the ideal platform for you. And before we go deep into discussing each website, let’s first understand the principles governing Bitcoin lending.
What is Bitcoin lending?
In simple terms, Bitcoin lending is the process of loaning out your Bitcoin for a specific time. The result is that you will earn interest for lending your BTC. Typically, Bitcoin lending involves a borrower and a lender. In general, these platforms brings both parties together for a small fee. In other words, cryptocurrency lending is holding your cryptocurrencies in an interest account, with the intent of making an interest within a specific period.
Most of the cryptocurrency lending industries offer up to 12% interest on stablecoins and up to 6% interest in popular cryptocurrencies such as Bitcoin and Ethereum. Thankfully, we’ve separated the best companies that offer interest rates to their clients.
With that in mind, let’s take a look at the top 5 best platforms to earn an interest rate on Bitcoin.
Summary top 5 Bitcoin lending platforms
- BlockFi: Up to 8.6% interest on your Bitcoin.
- Binance: 6% for Bitcoin lending.
- Crypto.com: 6.5% for lending BTC (and 2% bonus if you hold a certain amount of CRO).
- Celcius Network: Up to 6.2 APY on Bitcoin.
- Nexo: Lend your Bitcoin easily with Nexo.
#1 BlockFi
BlockFi is a well-known crypto banking company. That’s all thanks to their incredible features and easy to use interface. BlockFi is based in New York, and this platform offers two primary crypto banking solutions: crypto interests and crypto loans. On BlockFi, an investor can open an interest account and earn up to 8.6% per annum of their investment through interests offered by the company.
Without a doubt, BlockFi is one of the most trusted crypto-interest companies in the world. That’s because the site sticks to its word, and you will get what you deserve.
Features of BlockFi
Other specific features that make BlockFi an unique platform includes:
- Up to 250 USD welcome bonus for new users.
- The site has multiple licenses.
- Withdraw your funds at any time.
- You will get compound interest savings.
- BlockFi offers one free withdrawal every month.
BlockFi is available in most countries in the world except for a few. Your deposits are also secured using the Gemini trusted custodial. Gemini is an exchange and offers security to several platforms. To be more specific, Gemini uses cold storage protocols, 2FA, and other security measures to ensure your funds are safe from hacks.
Generally, BlockFi generates income by lending its funds to favored corporate borrowers and institutions. To make sure that their clients will pay at the end of the day, they always over-collateralize. That typically means that the pledged assets exceed the value of the loan. The best part about BlockFi is that they don’t require a minimum deposit on the crypto assets. Additionally, the platform supports BTC, GUSD, ETH, USDC, PAX.
Unfortunately, the withdrawal process on this site can take a while. That’s because the withdrawal process is manual. The withdrawal time on BlockFi is 7-days, but in some cases, it can take as little as 24-hours.
#2 Binance
Binance is also another exchange that offers crypto lending services. The Binance company has crypto savings accounts that you can use to get interests on Bitcoin. Binance is known as one of the leading cryptocurrency exchanges in the world. Therefore, it’s the ideal place to lend your cryptos.
With the Binance Earn features, you can earn interests of your digital assets by lending them out to other traders, and in turn, the margin trader will give you an interest rate for borrowing your funds. Through Binance, you can grow your funds by lending them to the platform. There’s a wide range of options that you can lend, for instance, Bitcoin, Binance USD, and Tether.
There are different contracts of lending, that is: Flexible deposits and Fixed deposits. Typically, Fixed deposits mean that your funds are locked for a specific time, and you can only withdraw once the time is over. More importantly, in Fixed deposits, the interest rate remains the same.
On the other hand, Flexible deposits grant you the opportunity to withdraw your funds at any time. The interest rate changes over time, but it’s lower than in Fixed deposits. Unfortunately, Binance works on a first-time basis.
Features of Binance Earn
- Binance offers interest on a lot of cryptocurrencies.
- This platform has both Fixed and Flexible deposit contracts
- Fixed deposits can go for as low as 7-days before you can withdraw.
#3 Crypto.com
Crypto.com is a platform that offers several different crypto payment services. The best part is that the user interface is quite simple, that even a newbie can understand what is happening. Using the Crypto.com lending platform, you can earn interest by staking your coins. What’s more, this app approves all users from all over the world, except citizens in Malta, Switzerland, or Hong Kong.
Typically, Crypto.com will hold your funds for one or three months, and you will get an interest for that. More importantly, you can also stake your BTC on this platform. Through Crypto.com, you can also build a cryptocurrency portfolio that you can easily track. You will get up to 6.5% interest in crypto.com. Additionally, Crypto.com private members enjoy an additional 2% on their funds.
The app also allows more than one deposit at a time, and you can deposit several cryptos in different terms.
However, flexible contracts have a much lower interest. The deals will also pause if the deposit is below a certain amount. Thankfully, once your deposit increases, the contract will continue.
Features of Crypto.com
- You will receive an accumulative interest every 7-days and higher rates when you use CRO.
- The interests are deposited in your wallet, and they are available for use almost immediately.
- The platform is easy to use and understand.
- Crypto.com offers more than lending contracts, like a crypto debit card.
#4 Celsius Network
Another platform that’s worth your time is Celsius Network. This app is unique. That’s because it lets you earn interest on your crypto while at the same time borrow using your coins as collateral. On Celsius Network, you can earn up to 6.2% interest per year for Bitcoin. Each cryptocurrency has a different interest rate.
However, if you’d like to make more, all you have to do is join their platinum level. All you have to do is buy into their token, CEL Tokens, and use it to earn higher interests. Additionally, with CEL Tokens, you can get lower rates on your loans.
CEL Tokens offer you up to a 30% interest rate on any deposits. Celsius Network also offers rewards of up to $20 worth of BTC on new registrations. What else would you ask for? Celsius Network provides a range of financial services that are otherwise not available in traditional banking institutions.
Features of Celsius Network
- Celsius Network offers up to 6.2% annually for Bitcoin and 12% on stablecoins.
- You can earn interest while, at the same time, use the coins as collateral.
- Celsius Network is easily accessible through your smartphone.
- The app offers free transfers for your funds.
- There’s no minimum balance required.
#5 Nexo
Nexo was formed back in 2017 by Nexo Capital to offer several financial services to its users. Not only does Nexo offer P2P contracts, but also it has interests and collateralized loans. As we speak, Nexo services over 2-million customers. What’s more, the platform also supports close to 45 fiat currencies.
On Nexo, you can earn interest from different cryptocurrencies, including Bitcoin. All you need to do is transfer your funds to the company, and you’ll earn a passive income.
The interest rates on Nexo for cryptos start from 8% and up to 12% for most of the stablecoins. You also get daily payouts. The best part about Nexo is that it doesn’t have any limit on the deposits.
Nexo is also licensed by the EU and regulated by financial institutions. That means your funds are safe in this platform. To this very day, Nexo has over one million clients worldwide.
Nexo also offers a free Nexo Card to its retail users, and you can use the card to make daily transactions.
Features of Nexo
- The site offers more than crypto lending services.
- You can earn up to 12% interest when you lend your cryptos
- The platform doesn’t have any hidden fees.
- Your funds are safe on this platform.
In Summary
There are several ways to build a passive income in the cryptocurrency world, and lending is one. With the top 5 Bitcoin lending platforms, you can increase your capital. The most exciting part about lending is that you don’t have to worry about losses.
Thankfully, with the right site, there’s no way you can make a loss when lending your money since you will always earn an interest. However, when lending your funds, you put your trust in one or more companies. They can theoretically go bankrupt or do an exit scam. Always keep that in mind.
Lending Bitcoin and earning money is also a slow process compared to cryptocurrency trading.
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