How to Earn Interest on Crypto – Beginners Guide 2024

There are various ways to earn interest on crypto, ensuring that tokens do not sit idle in private wallets or exchanges. Examples include crypto savings accounts, staking, and yield farming.

In this guide, we explore the different ways to earn interest on crypto and which platforms to consider for this purpose.

How to Earn Interest on Cryptocurrency – Step by Step

Let’s get straight into it – here’s an overview of how to earn interest on

  • Step 1: Open a AccountVisit the website and open an account. This is required to buy crypto and earn interest on the purchase.
  • Step 2: Deposit Funds – Before buying crypto and earning interest, the investor will need to make a deposit.
  • Step 3: Buy Staking Coins – To earn interest on, the investor will need to buy a staking coin. In doing so, interest will be earned automatically.
  • Step 4: Earn Interest on Crypto – There are three holding term options including flexible, 1-month, and 3-month fixed terms. Users can also benefit from better annual rewards when they stake CRO (’s native token).

Read on for a more comprehensive guide on how to earn interest on crypto.

Where to Earn Interest on Crypto

In this section, we discuss where to earn interest on crypto. We review eleven top-rated places, each offering a different way to earn interest on Bitcoin and other digital tokens.

1. Bitcoin ETF Token – Best Way to Earn Interest on Crypto, Get 1,870% Staking APYs 

One of the best ways to earn interest on your crypto holdings is via Bitcoin ETF Token ($BTCETF). This new ERC-20 token allows token holders to stake $BTCETF, and earn huge staking rewards. 

Bitcoin ETF Token presale

Bitcoin ETF Token speculates on the imminent arrival of a Bitcoin ETF – and will also conduct token-burning events in correlation to the Bitcoin ETF’s progress. For instance, Bitcoin ETF Token will burn 5% of its supply when the SEC approves the first Bitcoin ETF. 

In total, 25% of the token supply will be burned. To reward investors, Bitcoin ETF Token has set aside 25% of its 2.1 billion token supply for staking rewards. These staking rewards will be distributed across a 5-year period. 

To generate passive income, $BTCETF token holders can directly stake their holdings on the Ethereum-powered smart contract – which has been verified by Coinsult. At the time of writing, Bitcoin ETF Token offers 1,870% in staking APYs (Annual Percentage Yields). 

Over 16 million tokens have already been staked on the smart contract. According to the Bitcoin ETF Token whitepaper, the staking APYs will decrease as more tokens are staked on the contract. To start staking your tokens, you can purchase $BTCETF through the ongoing presale. 

Bitcoin ETF Token staking

The presale consists of ten rounds – each allocating 84 million tokens. Currently, $BTCETF is priced at just $0.005 per token. By the final stage, the price will increase to $0.0068 per token. So far, the presale has raised more than $120K in a few days. 

As more tokens are locked on the staking contract, the decrease in the circulating supply can also help make $BTCETF a more scarce investment. Thus, it could be the next top long-term token to hold right now. Join the Bitcoin ETF Token Telegram channel to stay updated with this cryptocurrency. 

Platform Interest-Bearing Coins Interest Rates Key Terms
Bitcoin ETF Token $BTCETF 1,870% at the time of writing
Deflationary cryptocurrency, token burning events, staking rewards

What We Like

  • Over 1,800% in staking APYs
  • Deflationary cryptocurrency
  • Smart contract is verified
  • Available to buy during the first presale stage

2. Bitcoin Minetrix – Stake-to-Mine Crypto Offering 2,563% APYs and Three ROI Vectors

Bitcoin Minetrix ($BTCMTX) is a new stake-to-mine cryptocurrency that offers high APYs.  

This APY is coming down quickly but will remain high for the foreseeable future, probably stabilizing around double digits, as is typical with many of these presales. 

Aside from APY, Bitcoin Minetrix offers the potential for upside due to its unique concept. It is the world’s first stake-to-mine model where users stake their ERC20 tokens, are granted BTC cloud mining credits, and burn them for BTC.

All of this takes place on an Ethereum network that is far more eco-friendly than Bitcoin’s destructive proof-of-work blockchain. 

This is an idea that could prove to be very popular among the masses, as Bitcoin mining is dominated by a small group of rich, technically sophisticated mining companies. It is too costly and challenging for ordinary individuals to compete. 

Bitcoin Minetrix makes it not only affordable (with just a $10 investment) but very simple. Users have their own dashboard where they can view how the mining operation is going.

They can choose to withdraw, burn, or stake their tokens. A mobile application is set to be released and no software is needed, with the exception of MetaMask or a similar Web3 wallet for presale purchase. 

Users can stake their tokens, burn for BTC rewards, or benefit from straight price appreciation. The price per $BTCMTX is $0.011 in the first stage but will finish at $0.0119 in the final stage (stage 10) So there is a definite benefit in early investment, in terms of both APY rewards and price. 

The hard cap for this project is $32 million and there is a total of 2.8 billion made available in presale.

Twitter and Telegram should be joined for alerts and updates, and the Whitepaper should be read prior to financial allocation. 

Platform Interest-Bearing Coins Interest Rates Key Terms
Bitcoin Minetrix $BTCMTX 2,563% at the present time, down from over 100,000%
BTC cloud mining, world-first stake-to-mine.

What We Like

  • Giant staking rewards of 2,563%
  • Quick selling presale of $100k within hours
  • Smart contract audit
  • Powerful price appreciation potential
  • New model of BTC cloud mining
  • $10 upfront investment

3. Meme Kombat – Earn 112% APYs and Wager Tokens on a Battle Arena with this Exciting Meme Cryptocurrency 

Although Meme Kombat is a new meme cryptocurrency – it is offering exciting income-earning opportunities to token holders from the get-go. $MK, the native cryptocurrency, is available to buy on presale for only $0.1667 per token. 

According to the Meme Kombat whitepaper – the ecosystem will feature an AI-driven Battle arena. On this platform, users can engage in Player vs Player and Player vs Game battles with virtual meme coin avatars. 

To profit from the battles, users can bet on the fight results by wagering $MK tokens. Players can bet on the final result of the battles, or the first moves their opponents will use. Thus, this is an added incentive for you to hold the $MK token. 

Most importantly, Meme Kombat is offering passive income-earning opportunities through its staking mechanism. At press time, users can buy and stake $MK to earn an APY (Annual Percentage Yield) as high as 112%. This is far higher than the APYs provided by top crypto exchanges. 

Currently, $MK can be purchased for $0.1667 on presale. Once you buy tokens, your holdings will be automatically locked in the staking contract. To receive the staking APYs, token holders need to re-stake their holdings for 1 lock-up period (14 days) post the presale. 

Meme Kombat avatars

Since users can battle with their favorite meme coin avatars and earn several rewards on Meme Kombat, this cryptocurrency has the potential to soar in the coming years. In a few weeks, the presale has raised more than $730K. Meme Kombat aims to raise $10 million through the presale. 

Join the Meme Kombat Telegram channel to stay updated with this new project. 

Hard Cap $10,000,000
Total Tokens 12,000,000
Tokens available in presale 6,000,000
Blockchain Ethereum Network
Token type ERC-20
Minimum Purchase $5
Purchase with USDT, ETH, BNB

4. Wall Street Memes – Great Place To Earn Crypto With Double Digit APY, $25 Million Raised in Presale, Available on Exchanges

Wall Street Memes ($WSM) is an Ethereum-based project and a top place to earn interest on your crypto, for reasons that are self-evident. The total amount raised and the social following on this presale is unrivaled elsewhere. The now sold-out presale raised more than $25 million in a few months. 

Wall Street Memes token home

It also has a 1 million strong online presence on social media, across multiple channels. Few projects have a presence anywhere near this number. To top it all off, the project has seen interaction from Elon Musk on Twitter. 

Such a project could easily be unable to fulfill its promises. Wall Street Memes, on the other hand, has powerful financial and social media backing, which can help it to stick around for quite some time, and deliver on its promises. 

Currently, the ERC20 token allows for a generous APY yield of 68%, with a total of about 293,350,640 staked $WSM.

A large staking pool like this can reduce APY for individuals but help to stabilize the wider ecosystem – ideally, it is better to have a large and diverse pool of stakers as opposed to a small number of centralized actors.

On 26 September 2023, the $WSM token was launched on OKX and Huobi – some of the largest crypto exchanges in the world. This can help the token attract high trading volumes, potentially making $WSM a valuable asset to hold in the long-term.


For more info, make sure to read the whitepaper and join the socials – Telegram as well as Twitter.

You will also want to read up on the tokenomics and staking rewards system so you know how it all fits together.

Platform Interest-Bearing Coins Interest Rates Key Terms
Wall Street Memes $WSM 68% at the present time Rewards calculated based on percentage of $WSM staking pool and APY

What We Like

  • The project has a large social following over 1 million.
  • Large funding raise of over $25 million.
  • Coin demonstrates strong potential for price appreciation.
  • Easy and quick to stake and claim tokens.
  • No sign up process for token staking.
  • No KYC registration process for easy and quick staking

5. eTukTuk – Earn More than 30,000% in APYs By Staking this Presale Crypto, Make Payments on EV Charging Stations with $TUK

Another way to earn interest on crypto is by purchasing and staking $TUK – the native cryptocurrency of eTukTuk. This sustainable cryptocurrency platform has been created to promote electric vehicle adoption among TukTuks in developing countries. 

TUK $50k raised

eTukTuk will be setting up EVSEs (Electric Vehicle Supply Equipment) across developing countries such as Sri Lanka. These will be set up with the help of local territory partners. This will help the platform save a fortune in costs. 

The goal is to create affordable EV charging stations, promoting EV adoption among TukTuk drivers. The drivers can make payments using $TUK through an upcoming driver’s app. The payments will be seamless and instant. The territory partners will collect rewards on the platform whenever a driver charges their vehicle. 

However, eTukTuk is also a great investment to earn high interest. Token holders can stake the $TUK token into power nodes. This will help run the EVSEs and maintain the network. The staked token holders will be rewarded with passive income for their efforts. Currently, the APY (Annual Percentage Yield) is more than 34,535%. 

eTukTuk features

As the number of EVSEs increases and the transactions go up, the staking returns will also go up. Therefore, this can be a valuable investment for the long run. Currently, investors can get in early by purchasing $TUK through the ongoing presale. $TUK is priced at only $0.024 per token. 

The presale has already raised more than $50K. Stay updated with this cryptocurrency by reading the eTukTuk whitepaper and joining the Telegram channel to learn more about this project. 

Platform Interest-Bearing Coins Interest Rates Key Terms
eTukTuk $TUK 34,535% N/A

What We Like

  • Huge staking reward of 34,535%
  • Building EV charging stations in developing countries
  • Rewards for territory partners and staked token holders
  • Offering crypto transactions on charging stations

6. – Earn Interest via Flexible and Fixed Savings Accounts – one of the best crypto exchanges in the market, offers various savings accounts. Put simply, investors can deposit their tokens into a savings account and earn interest. In order to earn interest all of the time, investors should consider looking for highly rated savings accounts. savings accounts are available on some of the most popular cryptos to buy today. This includes Bitcoin, Ethereum, Cardano, Polygon, Polkadot, Solana, and Fantom. We also like that supports stablecoins, including Tether, Dai, Pax Dollar, and USD Coin.

The best DeFi interest rates will vary depending on several factors. For example, offers three lock-up terms on its savings accounts – flexible, one-month, and three-month. The longer the term the higher the interest rates. Moreover, higher interest rates are offered when staking CRO tokens. This is the native token fueling the ecosystem. The more CRO staked the higher the rewards. This is broken down into three tiers; under $4,000, between $4,000 and $40,000, and over $40,000. review

For instance, investors can earn 6.5% on USD Coin deposits when locking the tokens for three months and staking at least $40,000 worth of CRO. This is reduced to 4.5% when CRO isn’t staked. The main drawback with is that interest rates on flexible accounts are minute. For example, pays Bitcoin interest rates of just 0.1%. This is also the case with flexible accounts on Ethereum, Algorand, and BNB.

Therefore, is better suited to investors that are comfortable locking their tokens for three months or more. In addition to savings accounts, also offers a fully-fledged exchange and NFT marketplace. It also offers. DeFi wallet, crypto loans, and a prepaid debit card. Finally, is considered a safe platform that is used by over 70 million clients.

Platform Interest-Bearing Coins Interest Rates Key Terms 21+ coins, including Bitcoin, Ethereum, BNB, Cardano, Solana, and several stablecoins. Up to 12.5%
The highest rates are offered on three-month lock-up terms and require at least $40,000 worth of CRO tokens to be staked.

What We Like

  • Earn interest on 21+ crypto tokens
  • Top-tier rate of 12.5%
  • Choose from flexible or fixed terms
  • Interest rewards are paid weekly
  • Also offers an exchange, NFT marketplace, loans, and other crypto services

7. Binance – One-Stop Shop for Savings Accounts, Staking, and Yield Farming

Binance – the world’s largest crypto exchange, offers many different ways to earn interest on crypto. First, there is the ‘Simple Earn’ feature, which functions as a crypto savings account. Dozens of cryptos are supported, and interest rates are competitive. For example, investors can earn up to 49% on a 120-day lock-up period when depositing Ape Coin. Axie Infinity – which is one of the best crypto games, attracts interest of 37.9% on a 90-day term.

Those preferring flexible savings accounts might consider Ethereum or Tether, paying up to 4.08% and 2.41% respectively. These rates are subject to change. Another option at Binance is staking, 14 tokens are supported, including Litecoin, XRP, Ethereum, AAVE, and BNB. The best rate available is offered on XVS tokens at an APY of 6%. We also found that Binance is one of the best yield farming crypto platforms.

Earn interest on Binance

For example, farming IDEX/USDT or IDEX/BNB will yield an estimated APY of 174% and 156% respectively. While BEL/USDT and STX/USDT will yield 32% and 25%. Another way to earn interest on crypto at Binance is via its dual investment tool. This combines the fruits of options-style trading and interest accounts. Put simply, rewards are paid based on the closing price of the chosen cryptos on a specific date. For example, if Bitcoin closes above $29,000 in the following month, Binance will pay an APY of 32.61%.

Although Binance is one of the best places to earn interest on crypto, there are some drawbacks to consider. First, Binance’s regulator status still remains unclear. This is why investors in some countries, such as the UK, will often see Binance’s fiat payment facility suspended. Additionally, Binance is more suited to experienced investors. Many of its interest-bearing tools are complex and come with complicated terms. Therefore, beginners might want to consider other options.

Platform Interest-Bearing Coins Interest Rates Key Terms
Binance Hundreds of coins – including micro, small, medium, and large-cap tokens Depends on the interest-bearing tool. For instance, up to 49.9% on savings accounts and 174% on yield farming. Withdrawal terms depend on the selected period. This ranges from flexible to 120 days. Some savings accounts come with limits. After the limit has been reached, a much lower interest rate is offered.

What We Like

  • Supports savings accounts, staking, and yield farming
  • Also supports dual investment products
  • Huge interest rates are available
  • Backed by the world’s largest crypto exchange

8. OKX DEX – Decentralized Web3 Aggregator With Industry-Leading Yields

OKX is a popular crypto exchange ranked in the top 10 for daily trading volume. The exchange has since launched a decentralized web3 aggregator platform that allows investors to earn interest without going through a third party. As an aggregator, this means that OKX connects to dozens of other exchanges and platforms to source the best yields for its clients. In fact, OKX also has the capacity to support multiple blockchain standards, including Ethereum, BNB Chain, Fantom, and Polygon.

This means that investors can earn interest on thousands of different cryptos. For example, when we searched for Tether, OKX ranks each supported exchange by the APY. OKX informs us that an APY of 9.05% can be earned via AAVE V3. Crucially, there is no requirement to open an account with AAVE V3 or any other supported platform. Instead, all interest-bearing activities go through OKX.

OKX DEX yields

Other popular cryptos with competitive interest rates include USD Coin, BNB, and Dai, currently paying 4.8%, 4.8%, and 3.9% respectively. Another top-rated feature at OKX is that tokens can be swapped instantly and without an intermediary. For example, an investor holding Ethereum might wish to swap the tokens for Ape Coin to earn over 50% in interest. As a decentralized aggregator, investors are not required to provide any personal information or KYC documents. Instead, investors simply need to connect their wallet and choose which coins to earn interest on.

Platform Interest-Bearing Coins Interest Rates Key Terms
OKX DEX Thousands of tokens across multiple blockchain standards. Supports dozens of third-party exchanges and platforms via an aggregator tool. Varies widely depending on the chosen token. Examples include Tether (9.05%), USD Coin (4.08%, and Ape Coin (50.5%). As an aggregator, terms will depend on the third-party exchange that is offering the interest-bearing product. Investors should check the specific terms before proceeding.

What We Like

  •  Decentralized aggregator that supports dozens of third-party exchanges
  • Earn interest on thousands of tokens via a single platform
  • Wide variety of interest-bearing tools – including savings accounts and yield farming
  • No requirement to provide personal information or KYC

9. Coinbase – Earn Interest on Nearly 120 Cryptos via a User-Friendly Exchange 

Coinbase – a user-friendly crypto exchange that is now listed on the NASDAQ, enables users to earn interest on over 120 cryptos. This includes the vast majority of the top 25 cryptos, so diversification can be achieved via one Coinbase account. For example, Ethereum, Cardano, and Solana are currently yielding 3.8%, 2%, and 2.4% respectively. Cosmos, Polkadot, and USD Coin are yielding 6.1%, 14.2%, and 1.5%.

Those looking to earn interest on crypto at even higher APYs will likely be interested in Decimal and DODO. These emerging tokens are currently yielding 109% and 58% respectively. The terms surrounding each interest agreement on Coinbase will vary depending on the token and blockchain network. Coinbase notes that minimum terms range from a few minutes to several weeks. As such, checking the finer details is crucial before proceeding.

Coinbase Earn yields

There are no issues with safety when opting for Coinbase. In addition to being a public company, Coinbase was founded in 2012 and is now used by over 110 million clients. Many of which are based in the US. There are two options to start earning interest on Coinbase. First, investors can transfer their tokens from a private wallet into their Coinbase account. Alternatively, investors can buy their chosen token on Coinbase with a debit/credit card or bank wire.

Platform Interest-Bearing Coins Interest Rates Key Terms
Coinbase 119 tokens, covering a blend of large-cap and emerging cryptos. Depends on the chosen token. Some small-cap tokens yield an APY of over 100%. Each token comes with its own terms. Coinbase notes that withdrawal lock-up terms range from a few minutes to several weeks.

What We Like

  • Safe and user-friendly crypto exchange for earning interest
  • Supports nearly 120 cryptos via DeFi yields and staking
  • Great option for beginners learning how to earn interest on crypto for the first time
  • Accepts debit/credit cards and bank wires

How Does Earning Interest on Crypto Work?

Put simply, investing in crypto is no longer just about price appreciation. Instead, investors can now earn interest on their idle crypto tokens across various methods. This includes savings accounts, staking, and yield farming.

In this section, let's explore the most popular ways to earn interest on crypto. This will enable investors to choose the most suitable method for their goals and risk tolerance.

Savings Accounts

Crypto savings accounts work much like certificates of deposits (CDs). In a nutshell, the investor will deposit tokens into a crypto interest account and earn a yield. Savings accounts are usually offered by crypto exchanges, including, OKX, and Binance.

There are various terms associated with crypto savings accounts and this will impact the interest offered. For example, higher rates are usually offered on longer lock-up terms. While lower rates are offered on flexible accounts.

  • When opting for a lock-up term (e.g. three months), the crypto tokens cannot be withdrawn until the respective maturity date.  This is why interest rates are higher.
  • When opting for a flexible term, the crypto tokens can be withdrawn at any time. This is why lower interest rates are offered.

When depositing crypto tokens into a savings account, the platform will often use the funds for third-party loans. This enables the platform to pay interest to the investor. But do remember that people can default on loans, which means savings accounts are not free of risk.


One of the best ways to earn interest on crypto is via staking. The traditional method of staking consists of crypto tokens being deposited into a blockchain network. The network must use the proof-of-stake consensus mechanism. Examples include Ethereum and Cardano.

When the tokens are locked in the blockchain, they help keep the network safe. In turn, the blockchain will reward stakers for as long as the tokens are locked. This makes staking a less risky option than savings accounts.  However, this also means that interest rates are generally lower.

The best place to earn interest on crypto via staking is

 You should consider whether you can afford to take the high risk of losing your money.

Yield Farming

Another option to consider when learning how to earn interest on Bitcoin is yield farming. This method will see investors lend tokens to a crypto exchange for liquidity purposes. Unlike savings accounts and staking, yield farming requires investors to lend two different tokens.

This is because yield farming provides liquidity for a tradable pair. Moreover, an equal amount of each token must be provided, in terms of the current market value.

For example:

  • Suppose an investor wishes to provide liquidity for BTC/USDT
  • We’ll say that BTC/USDT is currently trading at $25,000
  • If the investor deposits 1 BTC, they also need to add $25,000 worth of USDT via the best yield farming crypto platforms
  • This takes the total investment to $50,000

Now, yield farming comes with both pros and cons. On the one hand, yield farming can generate significant returns. However, it is also fraught with risk. In particular, when the value of the two tokens diverts from one another, this can result in impermanent loss.

In simple terms, this means that the investor would have made more had they opted to leave the tokens in a private wallet. Hence, an opportunity cost has arisen.

Is Crypto Interest Worth it?

By leaving crypto tokens in a private wallet or exchange, investors are losing out on an additional revenue source – interest. As such, it makes sense to earn interest on crypto investments to maximize potential returns.

Crucially, this concept is not exclusive to cryptocurrencies. On the contrary, leaving money in a bank account also comes at a cost. After all, the money could be invested elsewhere to maximize long-term growth.

Maximizing Growth

To illustrate the benefits of earning interest on crypto, let's look at an example.

  • First, let's say that an investor buys one Bitcoin when it was worth $10,000
  • Three years later, Bitcoin is worth $30,000
  • This means the investor has made capital gains of $20,000
  • Now let's say that the investor deposited their one Bitcoin into a savings account from day one. The savings account paid an average annualized yield of 5%
  • We'll say that over the course of three years, Bitcoin averaged a market value of $20,000
  • This means in addition to $20,000 in capital gains, the investor made an additional $1,000 each year, or $3,000 in total.

As per the above, the investor made an additional 15% on their investment. In contrast, had the investor kept their one Bitcoin in a private wallet, they would have missed out on these additional gains. Hence, this is an opportunity cost.

Compounding Growth

Another benefit of earning interest on crypto is that it facilitates compound growth.

Put simply, compound growth means the investor immediately reinvests their crypto interest. The interest reinvested will subsequently earn additional interest – amplifying growth over time.

The benefits of compound growth should not be understated, as we highlight in the example below:

  • Let's say a $10,000 investment is made in Ethereum
  • The investor deposits the Ethereum tokens into a staking pool that pays 10% annually
  • At the end of year one, the investor receives $1,000 in staking rewards. The investor reinvests the $1,000 back into the same staking pool.
  • At the end of year two, the investor makes $1,100 in staking rewards. This is because they now have $11,000 deposited.
  • This will continue each and every year, with the interest earned increasing after each reinvestment.

Now check out the chart below which further supports the above example.

Compound interest calculator

By reinvesting the 10% rewards each year, the original $10,000 is worth almost $26,000 after a decade. Moreover, this doesn't take into account the value of the respective crypto token. Any price appreciation is in addition to the interest earned.

In contrast, by withdrawing the interest each year, the investment remains at $10,000. This is why electing to earn interest on crypto remains a smart investment strategy.

Consider the Risks 

Like all investment products, earning interest on crypto isn't without its risks. After all, the interest has to come from somewhere.

For example, we mentioned earlier that crypto savings accounts allow exchanges to offer loans to third parties. In other words, the exchange uses deposited crypto tokens and lends them to other people who pay interest. If a large number of defaults occur, the investor is at risk of losing some or even all of their cryptos.

In the case of yield farming, the overarching risk is impermanent loss. This happens when the value of the two tokens being deposited changes exponentially, resulting in an imbalance of liquidity. In turn, the investor can get back less than they originally invested.

Another risk to consider is that interest-earning products come with lock-up terms. During this period, the tokens cannot be withdrawn. This can be problematic if the token goes through a significant price increase which is short-lived. As the tokens were locked, the investor would have missed out on sizable gains.

How Much Interest Can You Earn on Cryptocurrency?

The amount of interest that can be earned on crypto will depend on many different factors. For example,  the best crypto interest rates are usually offered on small and emerging tokens. This is because the tokens are riskier than established cryptos, so platforms will pay higher rates.

At the other end of the scale, large-cap tokens with a trusted reputation will come with the lowest rates. For example, the best Bitcoin interest rate on is just 1.5%. And, to get this rate, the investor must:

  • Agree to a three-month lock-up term
  • Stake at least $40,000 worth of CRO tokens

Let's say the investor instead wants a flexible savings account on Bitcoin without staking CRO. This will reduce the interest rate to just 0.1%. Crucially, the amount of interest available is determined by the amount of risk undertaken. The more risk that investors are willing to take - the higher the interest rates.

Another option to consider is to earn interest on stablecoins, such as Tether, USD Coin, or Pax Dollar. This will remove the volatility aspect associated with cryptocurrencies, as stablecoins are pegged to a major fiat currency.

Ultimately, investors will need to shop around to find the ideal crypto-interest product. An informed decision will need to be made based on the investor's financial objectives and tolerance for risk.

Crypto Interest vs Staking

The terms 'crypto interest' and 'staking' are often used interchangeably. However, they can refer to different outcomes.

For example, there are many different ways to earn crypto interest - and this includes staking alongside savings accounts and yield farming.

In some circles, crypto interest is exclusively associated with savings accounts. This is because the deposited tokens are lent to others via an exchange. And in turn, the investor is paid interest on the borrowed funds. However, just like staking, savings accounts generate interest in crypto tokens.

The key difference is in how the interest is generated. For instance, staking generates rewards via a proof-of-stake blockchain. This means that the rewards are derived from the blockchain itself, rather than a third party.

Another thing to remember is that both the best crypto interest accounts and staking can come with flexible or fixed terms. In the case of the latter, the tokens cannot be withdrawn until the term has passed.

Crypto Interest Fees

Whether or not crypto interest products attract fees will depend on the chosen platform.

In most cases, the platform will make money in addition to the interest rates it displays. For example, let’s suppose an exchange is offering savings accounts with an APY of 10%. In this instance, the exchange might charge borrowers an APR of 13% – pocketing the 3% difference.

Those looking to earn interest on crypto via yield farming will also need to consider fees. For example, the exchange will usually offer a 'share' of trading fees it collects on the pair the investor has provided liquidity for. However, this might only amount to a small percentage of the collected fees. Rarely will exchanges publish a full breakdown of their profit-sharing agreement on yield farming.

Do You Pay Tax on Crypto Interest?

Other than a few very small exceptions, most countries require investors to pay tax on crypto interest. Unlike price appreciation, crypto interest is generally viewed as income. This means tax will be due in the year it is received.

The specific tax implications of crypto interest are complex. Oftentimes, tax authorities require investors to declare crypto interest amounts based on the value when received. Consider that some crypto interest platforms make daily or weekly payments.

This means that every time interest is received, the investor needs to log the value of the token within 24 hours. This figure will then be added to the investor's income for the year. This means that the interest can increase the investor's tax band.

Moreover, the tax will need to be paid even if the original investment is currently at a loss. This is because capital gains and losses are not realized until the crypto tokens are sold.

For further insight, check out our comprehensive guide on how to avoid crypto taxes.


Earning interest on crypto is a great way to maximize returns. Not only will investors generate passive income but they will still benefit if the crypto increases in value.

To start earning crypto interest today, check out Bitcoin ETF Token. Firstly, Bitcoin ETF Token will offer 25% of its 2.1 billion token supply as staking rewards.

Furthermore, investors can stake their $BTCETF holdings on a smart contract and generate APYs higher than 1,800%.


Is it worth earning interest on crypto?

How do I earn interest on cryptocurrency?

Which crypto pays the most interest?

How do you earn interest on crypto on Coinbase?

Kane Pepi
Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…