Bitcoin was originally developed as a digital currency for a decentralized payment system. But its capabilities go far beyond the usual currencies that we use for everyday purchases and transfers. Most holders consider cryptocurrency primarily as an asset and buy it for the purpose of investing.
However, with the common BUY & HOLD approach, or, as it is also called, HODL, coins are stored in the wallet like a dead weight. Therefore, many people are interested in the question: are there any methods that allow you to get interest for crypto holdings similar to bank deposits? The answer is: Yes, such services exist. In this article, we will talk about them today, and then compare where it is better to store bitcoin or altcoins that you buy with dollars to get interest. So let’s get started.
A small disclaimer
In this article, we will consider only crypto-credit platforms. In other words, that are platforms that users use to lend cryptocurrency to an exchange, company, or other users. Do not confuse cryptolending with staking (PoS) – a consensus algorithm that is embedded in the source code of the cryptocurrency, where holders who store cryptocurrency on their wallets process transactions and receive a reward in the form of tokens. Before we start, we will warn you that investing and lending are always associated with risks, so use platforms in accordance with your own money management.
Nexo
One of the most popular platforms for cryptocurrency P2P lending. Users provide retail borrowers with crypto loans in digital assets, including stablecoins, secured by cryptocurrency. This platform offers a competing return of 8% per annum. Interest is paid daily. This is a really great alternative to bank deposits. At the same time, the platform provides a 100% security guarantee through the use of collateral. Nexo’s insurance reserve is $100 million, which is provided by the well-known BitGo custodial service. This is how it works: you provide a collateral in cryptocurrency and get a loan in fiat currency instantly and without checking your credit history.
The platform supports more than 45 fiat currencies and cryptocurrencies: BTC, ETH, XRP, USDT and many others.
Binance
Binance crypto exchange is one of the largest and most popular trading platforms in the world. Binance is not limited to just trading services, but has a wide ecosystem that includes its own blockchain, DEX, IEO-launchpad, project lab, mining pool and lending platform. The platform provides the Binance Savings service. Binance offers both unlimited term savings, when you can withdraw the deposit body at any time, and fixed for a certain period: a week, two weeks, 30 and 90 days. The yield depending on the instrument and the selected currency can vary from 0.24% to 6.04% per annum.
Binance Savings supports the following cryptocurrencies:
- BTC;
- BNB;
- USDT;
- BUSD;
- ONE, etc.
BlockFi
As the name suggests, the BlockFi platform is part of the DeFi ecosystem. The service provides holders with tools for effective management of crypto assets. You can become part of the financing pool and earn passive income by opening a crypto-interest account on the site. The main advantage of BlockFi is that you can actively trade coins in the event of a rise/fall in price, thereby increasing your income. The platform offers up to 8.6% per annum and supports cryptocurrencies such as BTC, ETH, USDC, GUSD and others. The accrued interest will depend on the amount being lent.
Crypto.com
Crypto.com is a well-known cryptocurrency wallet that allows you to get up to 8% per annum for storing crypto assets and up to 12% for stablecoins. The amount of interest charged depends on the time for which coins are reserved on the account. You can also buy bitcoin with a credit card for USD or other fiat currency without fees.
Cryptocurrencies supported by the Crypto.com service:
- BTC;
- ETH;
- XRP;
- LTC;
- USDT;
- PAX;
- USDC;
- BNB, MCO, BAT and many others;
Celsius
Another young platform that has quickly gained popularity. Celsius provides crypto loans and allows its users to receive up to 12% per annum for providing crypto loans. Interest is paid on a weekly basis in the same digital currency that was provided to the platform.
Celsius supports a variety of cryptocurrencies, including:
- Bitcoin;
- Ethereum;
- Dashcoin;
- Bitcoin Cash;
- EOS;
- USD Tether;
- Paxos;
- USD Coin, etc.
There is a calculator with which you can choose the deposit period and calculate the return on investment. You can get 35% more revenue if you use CEL tokens – Celsius Network proprietary cryptocurrency.
Comparing platforms
The comparative table shows the services and their offered returns, calculated as a percentage of annual revenue. The yield is compared only for bitcoin. For other cryptocurrencies, it may differ depending on the service.
| Platform | Bitcoin support | Annual interest rate |
| Nexo | Yes | 8% |
| Binance Savings | Yes | 1.02% (may change slightly to the lower or higher side) |
| BlockFi | Yes | Up to 8.6% |
| Crypto.com | Yes | From 4 to 8% |
| Celsius | Yes | From 4.03% to 6.20% depending on the cryptocurrency being paid to the user |
Life hack: how to make money on loans
You can yourself get loan, providing a bitcoin collateral. This way you fix bitcoin. Regardless of where the rate goes afterwards, you will still win. If the price of bitcoin falls, the number of your coins in collateral will not change – you will return exactly the amount that you borrowed in the currency with interest. And if the exchange rate increases, the amount returned will be more, and you can get back a larger amount than you borrowed. This is a great way to insure your assets in case of a fall in the rate of a crypto asset.
How to sell bitcoin with profit
If you want to make a profit and exchange Bitcoin for PayPal USD, the best way to do this is the HiRiBi platform. The service allows you to sell Bitcoin at the highest rate, which is higher than on most exchanges. The exchange takes place automatically: funds will be sent to your account immediately after two confirmations of the Bitcoin network. HiRiBi service is the best bitcoin to PayPal exchange with a profitable affiliate program that allows you to earn up to 2% of the amount exchanged by users you invited.
We have reviewed popular and reliable platforms that allow you to earn passive income for lending cryptocurrencies. The yield may differ depending on the selected crypto asset and the investment period. Therefore, it is best to compare platforms for a specific cryptocurrency that you want to lend.
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