Make Money With Crypto #1: Crypto Savings Accounts
“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” — T.T. Munger.
In my last article, I wrote about the first time I started transacting with crypto. What I didn’t include in that article was that 2021 was the first time I started earning in crypto.
Every time I was paid, I will instantly convert all my crypto into my local fiat currency and spend nearly everything before I get paid again, leaving me with no savings or nothing to fall back on.
This year, I decided to be more intentional with my finances. I reduced my crazy expenses and started saving a portion of my income. Thanks (but no thanks!) to the rising inflation rates in my country; saving in crypto was much better than saving in my local currency.
At first, it was challenging to find the right crypto savings platform that offered high-interest rates. I was shocked that many crypto exchanges do not provide this service, so I had to look deeper. Eventually, I found one that was right for me, and I have been saving my funds in crypto ever since.
If you are a crypto investor or holder and want to make extra money on your crypto instead of leaving it sitting in your wallet, in this article, I will be listing the top crypto savings platforms and their interest rate.
Ultimately, you will know which crypto savings account is best for you and the best coin to save.
What are Crypto Savings Accounts
Crypto savings accounts are digital accounts that work like various traditional savings accounts.
Instead of saving in fiat, you can save your digital assets in these accounts.
The concept is simple: you deposit your cryptocurrencies into the account, and in return, you earn interest on them.
It’s an absolute win for any crypto holder doing this, as they can potentially see their wealth grow while retaining ownership of their assets.
Currently, hundreds of crypto exchanges offer the savings option. Each platform has unique features, interest rates, fees, and associated risks.
It’s crucial to thoroughly evaluate these platforms before choosing the most suitable platform which meets your needs.
Below are the best crypto savings platforms to consider today!
Best Crypto Savings Accounts With High-Interest Rates
Binance
Binance is the world’s largest cryptocurrency exchange, renowned for its vast trading volume and extensive user base. This crypto exchange allows you to trade over 350 crypto tokens on its platform.
Binance offers an innovative savings account for anyone who wants to save in crypto. This crypto platform allows users to deposit their digital assets, such as Bitcoin, Ethereum, Binance Coin (BNB), and stablecoins, and earn interest on their holdings.
Within the savings account, users can choose between two distinct product options: Flexible Products and Locked Products, each tailored to meet different preferences and objectives.
Interest rate
The interest rate offered by Binance ranges from three different product options:
Flexible Products
APY ranges from 0.67% to 7.49%. Users can subscribe and redeem their assets at any time. Coins available include USDT, BUSD, BTC, ETH, BNB, ADA, DOT, and more.
Locked Products
APY ranges from 5.00% to 40.00%. Users must lock their assets for a fixed term to earn higher rewards. Coins available include USDT, BUSD, BTC, ETH, BNB, ADA, DOT, CAKE, and more.
Defi Staking Products
APY ranges from 3% to 50%. Users can earn interest by locking assets in a smart contract interacting with a DeFi protocol.
Finblox
Finblox is a savings platform offering high returns to its users.
It is designed to help users, especially newbies, build their savings through a steady annual percentage yield (APY).
This exchange allows you to save in over 33 cryptocurrencies.
Interest rate
The interest rates offered by Finblox vary depending on the assets held and the deposit duration.
Users can earn between 0.5% to 31% on their crypto assets, depending on the specific assets they hold.
As of the time of writing, the highest interest rate is on the Axie Infinity token, which stands at 31% APY.
Coinbase
Just like Binance, Coinbase is a leading cryptocurrency exchange platform that allows users to buy, sell, and manage hundreds of digital assets.
Although this platform is used mainly in the US and currently has over 120 crypto tokens listed on it’s platform.
Coinbase offers a savings account that lets users earn interest on their USDC deposits and other crypto assets.
Interest rate
Coinbase offers 4% APY for USDC but provides the highest interest rate of 5% on ATOM.
Kucoin
Kucoin is a crypto exchange that is used worldwide and provides a host of features to its users, like staking, spot trading, margin trading, and a host of other defi options.
Kucoin has up to 400 cryptocurrencies listed on its exchange. Just like Binance, it’s very user-friendly and also provides a savings account for users who want to save their crypto for higher returns.
Interest rate
The interest rate of kucoin ranges from 0.05% to 31% APR, depending on market conditions and the coins the user selects. Some dual investments offer up to 100% APR.
Crypto.com
Crypto.com offers a savings account, which is referred to as “Crypto.com Earn,” and it provides 23 cryptocurrencies in its savings plan.
Some of the cryptocurrencies are location-dependent. USDT, USDC, DAI, and USDP are not available to users in specific locations in the US.
The USDP token is unavailable to Singapore users, and ZIL is unavailable to users based in the US and Canada.
However, this crypto exchange can be used in various countries within Africa, Europe, Asia, US, and Australia.
Interest rate
The interest rate on crypto.com ranges from 0.1% to 12.5%; this is dependent on the type of cryptocurrency selected and the savings plan.
Nexo
Nexo is a crypto trading and lending exchange that allows you to stake, trade, and lend seamlessly.
Just like Crypto.com, Nexo offers a savings wallet for its users, which is called “Nexo Earn Interest Product.”
With the Nexo earn product, you can save over 35 cryptocurrencies, including its native token, NEXO.
Interest rate
The interest rate on Nexo ranges from 0.25% to 16% APR depending on the type of crypto asset selected, duration and saving plan.
YouHodler
YouHodler is a cryptocurrency lending platform and wallet service that allows users to lend, borrow, save, and earn interest on their digital assets.
It provides various financial services tailored for cryptocurrency holders, offering options to put their crypto holdings to work and potentially earn passive income.
Interest rate
The interest rate on YouHodler ranges from 7% to 13% APY, which takes into account compound interest for up to 27 cryptocurrencies, including BTC and ETH.
OKX
OKX is one of the largest and most popular cryptocurrency exchanges in the world, offering a wide range of digital assets for trading and various services to its users.
“OKX Savings” is a value-added service that allows users to deposit their crypto assets to earn market-based interest on an hourly basis and withdraw their investments at any time
They offer three types of earning options: Simple Earn, Structured Earn and On-chain Earn
Interest rate
The interest rate on OKX ranges from 0.82% to 15% APY. However, you can set your own APY.
Gemini
Gemini is a high-value cryptocurrency exchange allowing users to buy, swap, save, and send crypto across various wallets.
It has over 130 crypto tokens listed on its exchange and maintains a highly secure wallet that cannot be easily hacked.
The “Gemini Earn” savings account provides users with an exceptional opportunity to maximize the potential of their crypto assets.
Users of this platform can deposit their digital currencies and earn interest on their holdings. They also provide a staking option for their stablecoin called GUSD (Gemini USD).
Interest rate
Gemini Earn offers competitive interest rates on a range of cryptocurrencies.
The interest rates offered by Gemini Earn vary depending on the coin and the deposit duration. They offer up to 8.79% APY.
Users can earn between 0.5% to 31% on their crypto assets, depending on the specific assets they hold.
As of the time of this writing, the highest interest rate is on the Axie Infinity token, which stands at 31% APY.
How crypto savings accounts pay interest
Crypto savings accounts pay interest by utilizing a lending model, where investors deposit their crypto assets into the platform.
These assets are then lent out to borrowers at predetermined interest rates.
Cryptocurrencies with the highest interest rates
Stablecoins offer the highest interest rates, ranging from 5% to 25% on most exchanges. Bitcoin and Ethereum have lower rates, around 1% to 3% APR.
Nexo provides some of the highest rates, up to 36% APR for Axie Infinity Shards and 17% APR for TerraUSD.
Are crypto savings accounts worth it
Yes, crypto savings accounts are worth it and allow investors to earn higher interest rates on their cryptocurrency holdings than traditional savings accounts.
However, it’s crucial to be aware of the potential risks and drawbacks associated with these accounts.
Here are some pros and cons you should consider before saving in crypto.
Pros
Higher Interest Rates
Crypto savings accounts typically offer higher interest rates than traditional ones, providing the potential for increased earnings on your crypto assets.
Daily Interest Payments
Some platforms provide daily interest payments, enabling users to see the rewards of their investments more frequently.
Diverse Cryptocurrency Options
Users can earn interest on various cryptocurrencies, expanding their earning potential beyond just one asset.
Native Token Rewards
Certain platforms offer rewards and bonuses to users for holding their native tokens, creating additional incentives for investors.
Cons
No Insurance
Unlike traditional savings accounts, crypto savings accounts are not insured by the FDIC.
This means users could lose their initial deposit if the platform faces bankruptcy or is hacked.
Interest Rate Fluctuations
The interest rates offered by crypto savings accounts are subject to market fluctuations and risks, making it essential for users to stay informed and monitor changes.
Minimum Deposit and Withdrawal Fees
Some platforms may have minimum deposit requirements or impose withdrawal fees, which affects how much interest you make on your savings.
Wrapping Up!
Many crypto exchanges offer a savings account or wallet to their users, and above, I have listed the best crypto savings platforms you should try out if you want to save in crypto.
However, the choice of Crypto to save in depends on your risk appetite and savings goals.
As a newbie, it’s advisable to start with stablecoins like USDT, USDC, and so on before moving to high-risk cryptocurrencies like BTC, ETH, and SOL.
Finally, it is advisable to DYOR (do your own research) before saving in any crypto account to avoid loss.
