Best Cryptocurrency Interest Account 2021: Highest Rates & Best Security
Interest rate accounts in cryptocurrencies are a strong argument against traditional interest rate accounts, as they offer 10 to 64 times the annual return. Platforms like BlockFi and Celsius offer about 8.6-11% interest per year on stable investments, i.e. dollar investments that can now yield 10x to 30x more than their dummy counterparts in the highest yielding savings accounts.
For example, Ally Bank, a leading bank in its sector, offers an APR of 0.5% on deposits. For comparison, someone would earn more interest in 1 month on BlockFi or Celsius (8.6%/12 = 0.71% per month) with a stable like USDC than in a full year on Ally.
If you’re reading this article, you’re probably deciding whether an interest-bearing cryptocurrency account is worth your assets – as it should be. For our crypto-currency fans, crypto interest accounts are more than just interest. For us HODLers, it has historically been the best option to stay put on our digital assets as they fluctuate and fluctuate with the waves of volatility. Fee-based cryptocurrency accounts allow us and new cryptocurrency users to put our assets in a place that generates returns comparable to the S&P 500 (10-11% average since 1926) and real estate (9.4%).
Editor’s comment: Even though high interest rates seem very attractive, don’t rush anything. An interest-bearing cryptocurrency account is much riskier than a savings account, for reasons we’ll explain below. Read more.
In our next review of the best crypto currency interest accounts, we will look at the best crypto currency interest accounts on the market right now:
Are interest-bearing accounts for cryptocurrencies legal? Better yet, are they worth your time?
Let’s take a look at the picks and failures, highest percentage APY crypto currency account and different percentage crypto currency accounts, signup promotions.
Why is this the best paid crypto currency account review online?
Not only have we interviewed the leaders of several of these companies directly (Alexei Mashinskiy, founder of Celsius in 2018 and 2020, BlockFi by proxy in 2019), but we are customers of . ourselves
For an added element of objectivity, we have a community of CoinCentral insiders who have used or regularly use these platforms themselves. To that end, any member of the CoinCentral community can email us or contact us socially if their experience contradicts what we have written.
So can you trust platforms like BlockFi, Celsius, Abra or Crypto.com?
We take into account several basic criteria:
Notable investors and supporting castes. Investors and business partnerships can help circumvent complicated regulations, grow the business sustainably and at least remain solvent.
Steering Committee. Gone are the days when the success of a cryptocurrency project was independent of management. As the cryptocurrency’s ecosystem grows, so does its reputation. Does each platform also have the professional firepower to accomplish its ambitious tasks?
Safety precautions. More importantly, how safe is your money on a crypto-currency interest account platform? What precautions are taken to protect your money?
Before we get into the details, it’s worth understanding how cryptocurrency interest accounts differ from regular savings accounts.
vs.crypto currency savings accounts Regular savings accounts: What You Should Know.
Before transferring a Satoshi or Stablecoin wallet from other wallets and exchanges, you need to clarify some aspects related to crypto currency interest accounts.
Is a crypto currency account risky? No, but not without risk. An interest-bearing cryptocurrency account should be considered an investment account, not a savings account. Non-dollar deposits are not insured by the FDIC, meaning that if something happens to your cryptocurrency, your losses will not be covered by government insurance. Calling them cryptocurrency savings accounts is a mistake: they are investments.
Are cryptocurrency interest rates guaranteed? Not in theory, but in practice interest rates for cryptocurrencies have remained relatively stable between 6% and 12%.
Should I use only one interest-bearing cryptocurrency account? No, since many of these accounts offer similar rates, it may be worth it for some users to keep their cryptocurrency eggs spread across multiple baskets.
How sustainable is the high interest rate on cryptocurrency deposits? Fee-based cryptocurrency account providers, such as BlockFi and Celsius, make their money from user deposits, just like a traditional bank. With this in mind, you can also get crypto-currency loans from any of these providers.
Overview of the crypto-currency account sector
The cryptocurrency industry is relatively new, as is the broader cryptocurrency ecosystem. However, there is both friendly and less friendly competition between companies.
There are some notable leaders:
BlockFi – New York-based BlockFi was founded in 2017 by Zach Prince and Flory Marquez. The company has benefited from an exceptional series of venture capital investments, raising over $158 million from Valar Ventures (backed by Peter Thiel), Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Morgan Creek Digital and others.
You can read our full, high-resolution review of BlockFi here.
You can get up to $250 (of $25) in USDC when you open a new BlockFi account with at least $500.
Percentage in degrees Celsius
Celsius – Celsius was founded in 2017 by Alexey Mashinsky (CEO), a New York-based entrepreneur whose track record includes over $3 billion in exits and two of the best exits since 2000 with venture capital funds. The Celsius money machine was founded on the premise of luring 7.5 billion people from the traditional financial world into the cryptocurrency sphere. The team at Celsius prides itself on the fact that 80% of its revenues flow back to its users.
Read our full review of the Celsius here.
You can earn $ 40 in BTC with your first transfer of $400 or more to Celsius.
Percentage of abra account
Abra – Abra allows users to earn approximately 10% and 4.5% interest on stablecoins and bitcoins respectively, for as little as $5. The best part is that it’s complicated every day.
Read our full review of Abra here.
Crypto.com – The Hong Kong-based website Crypto.com was founded in 2016 and has four co-founders: CEO Chris Marshaleck, CFO Rafael Melo, CTO Gary Ohr and business development manager Bobby Bao. The company offers a Visa debit card, an app exchange, an instant credit product, and a crypto-currency income product.
You can get 25 USD as a bonus for signing up at Crypto.com.
Nexso interest account
Nexo – Nexo offers a high-interest savings account for holders of cryptocurrencies and seems to focus on a European customer base more than its competitors. Nexo uses BitGo as its custodian, a Goldman Sachs-backed company that is CCSS Level 3 and SOC 2 compliant. The Nexo token, NEXO, offers holders a 30% share of the company’s profits.
linus crypto account
Linus – Linus has been doing very well lately. The Linus Interest Account product is unique in this list because it only accepts and allows withdrawals in US dollars, while confusing the cryptocurrency layer for the end user. The account yields 4% to 4.5% on US dollar deposits, which is 64 times more than traditional US dollar savings accounts. It should be noted that deposits are not insured by the FDIC even if they are unclaimed.
Deposit $100 or more into your Linus account and receive $20.
What is the best platform for cryptocurrency interest accounts?
After performing our due diligence on CoinCentral, including using the services itself for an extended period of time, opening customer service requests, and interviewing the company’s teams, we identified the best crypto-currency interest account platform, currently it is BlockFi, with Celsius in second place.
BlockFi wins our best crypto-currency interest account for the following reasons:.
Safety foundation BlockFi uses the cryptocurrency exchange Gemini as its repository. In other words: BlockFi relies on its partner Gemini to ensure the security of its funds. Gemini not only has excellent cooperation with the national and perhaps the most sophisticated financial regulators in New York, but also provides its own deposit insurance. Gemini Digital Assets Insuranceuses third-party insurers to cover losses due to theft or fraudulent transfer.
Comments on BlockFi’s security from the FAQ section of their website.
Business support: BlockFi is a fast-growing cryptocurrency startup backed by many of the world’s leading investment firms. As is typically the case for venture capital-funded FinTech companies, increasing the number of users and reducing the notice period are usually top priorities for these companies. In theory, this should push BlockFi to provide a better user experience (for now) to show investors a favorable growth rate as it tries to raise more money.
List of BlockFi investors, via a screenshot from his website.
User comfort: BlockFi offers both mobile and desktop applications, which sets it apart from competitors who have none. Celsius, for example, has no desktop application. BlockFi is paid monthly and our experience with them is very poor.
BlockFi interest calculator
Wi-Fi Unit vsCelsius: Which one is the best?
BlockFi and Celsius are both good choices for a crypto-currency interest account, and many of our community members with crypto-currency interest accounts usually have both.
Celsius offers several features that BlockFi does not.
Celsius offers weekly payments: BlockFi only pays out once a month, while Celsius users can count on weekly updates on the interest earned on their deposit.
Celsius is more of a core projectWhile BlockFi relies heavily on its venture capital funding, Celsius raised most of its capital through an ICO (one of the few companies to actually do an ICO that led to big profits). She has an active Telegram community of over 17,000 people.
Celsius has Alex Maszynski. We’ve interviewed Alex multiple times, and his personality and vision for the cryptocurrency community match his resume as a successful serial entrepreneur.
Are the interest options on Abra, Crypto.com, Nexo and Linus good in crypto?
The other parties are still decent options for a crypto currency interest account, otherwise they wouldn’t be on this list.
However, leaders BlockFi and Celsius are leading by a wide margin.
Nexo was founded in 2018 and is led by CEO Antony Trenchev.
The site’s communications rely heavily on the credit model; optimistically, this indicates that the company is developing a sustainable, credit-driven business model.
There is an Earn in Nexo option, similar to Celsius (Earn in CEL), which allows users to benefit from an increase of around 2% per asset. Without the Earn option in Nexo, Nexo customers can earn about 10% APY on stalls, which is a higher return than BlockFi but a lower return than Celsius. Nexo also offers an interest-bearing XRP account.
The platform seems to aim its services at the international audience and could be a good option for our readers in Europe.
Crypto.com , seems to be the most insightful in the other category, and would almost be on par with BlockFi and Celsius, but we found the experience of Crypto.com to be very flawed, unnecessarily complex, and undervalued compared to its peers.
In fact, to earn as much as BlockFi or Celsius, you need to buy questionable Crypto.com tokens (at the time of writing we’re down 50%, don’t say we never did anything for you) and lock them in to reach the highest profit level.
The Crypto.com platform is so confusing that we would be doing our readers a favor by explaining it in this article. Not only is the platform very difficult for new users to use, but the prices are not much higher than the industry (if you decide to lock in your funds and their tokens).
To learn more, check out our crypto.com guide.
Abra offers a daily compound interest rate that is unique in the industry. With a 10% interest rate and a very intuitive user interface, this is a solid choice for those who want to start earning interest on their cryptocurrencies.
Linus offers 4% to 4.5% on USD deposits, and allows deposits and withdrawals in USD only. For our readers who are a bit hesitant to get into cryptocurrencies, but still want to enjoy the benefits, Linus is a great option. However, it is not without risk – his deposits are not insured by the FDIC.
The business model is unique: Users deposit dollars with Linus, who converts them into various cryptocurrencies to lend out, and when users want to withdraw money, Linus converts the cryptocurrencies back into fiat. All the end user sees is a dollar, and Linus handles the crypto-currency exchange. This convenience results in approximately 4.6% to 6% less revenue than other competitors, but may be attractive to a certain group of customers who prefer this feature.
What is the highest percentage of APY cryptocurrency accounts?
The crypto currency account with the highest percentage of APY is crypto.com…. But there’s a catch.
Crypto.com offers 12% annual return on deposits if you lock your deposit for three months, buy 25,000 CRO (about $2,000) and offer (lock). This interest rate is also a simple daily interest rate and is not compounded.
Don’t get me wrong, the Crypto.com ecosystem isn’t that bad. It offers a variety of credit cards with CRO lock levels – at 25,000 CRO you get 3% of your spending and a refund (in CRO) for Spotify and Netflix.
However, if we are only talking about copper gloves, crypto.com has a lot more hurdles to overcome than its competitors.
Celsius, for example, offers 10.5% annual return onstalls, paid weekly, with no lock-in period or token requirement. Abra offers 10%.
BlockFi offers 8.6% on stalls, is paid monthly with no lock-in period or tokens.
Abolition of interest-bearing crypto currency accounts
The following crypto interest account shares are active but subject to change. We’ll do our best to update them, but buy them while they’re still hot if you want.
Wi-Fi device: Receive up to $250 (instead of $25) in USDC Bonus Open and open a new BlockFi account with at least $500. Conditions apply.
Celsius: Sign up and earn $35 in BTC on your first transfer of $400 or more!
Crypto.com : Sign up and receive $25 off any subscription to Crypto.com. You may need to raise 2500 CRO (about $200) – the funding is not clear.
Linus: Register, deposit $100 or more and receive $20.
Interest-bearing cryptocurrency accounts FAQ
Are FDIC interest-bearing accounts insured for cryptocurrencies?
While the vast majority of bank accounts in the United States are insured up to $250,000 by the FDIC (Federal Deposit Insurance Corporation), crypto currency accounts are not.
Digital assets like Bitcoin, Ethereum and even stable real-time linked deposits like USDC, GUSD and USDT are not covered by FDIC insurance.
However, some cryptocurrency interest account platforms, such as BlockFi, are protected by private insurance; in BlockFi’s case, because it uses the Gemini cryptocurrency exchange as a depository (BlockFi relies on Gemini to hold and secure its deposits), it is covered by the private insurance that Gemini has pioneered to cover the digital assets on the Gemini platform.
While the platforms described in this article follow extensive security protocols and have never been hacked, we would be doing our readers a disservice if we did not point out the risks involved in entrusting your cryptocurrency to a third party, no matter how small.
Many of these interest-bearing cryptocurrency accounts are often referred to as cryptocurrency savings accounts and should be viewed as investments rather than traditional savings accounts.
Can I trust an interest-bearing cryptocurrency account?
We found all paid cryptocurrency accounts on this list to be safe, but again, don’t invest anything you can’t afford to lose.
How do crypto-currency interest account companies make money?
Most of these companies offer their crypto loans to borrowers at fairly high interest rates. To better understand how cryptocurrency interest companies make money, we need to go back to the onion that actually borrows cryptocurrencies from them. Some people borrow cryptocurrencies to get more leverage on their trades, others prefer the convenience of a one-time cryptocurrency loan over a traditional loan, and still others don’t want to liquidate their cryptocurrency assets (for tax or other reasons) but need capital.
Final thoughts – Are paid accounts for cryptocurrencies worth it?
If you are looking to diversify your portfolio by buying and holding crypto-currencies, we highly recommend you check out paid crypto-currency accounts.
We encourage our readers to always do their own research. Discuss this with your financial advisor, and feel free to send him this article as a basis for discussion. Interest-bearing cryptocurrency accounts like BlockFi and Celsius are actually investments, and their returns are not guaranteed. Our content is intended for educational and informational purposes only. No dollar or bit should leave your portfolio without professional advice.
Nevertheless, we’re a rather paranoid editorial team that recognizes that you are your own bank, not your private keys, not your crypto-currency industry bitcoin ethics.
The best crypto accounts in the world try to ensure user safety, but at the end of the day, every time your funds leave your physical wallets, you are in the hands of the digital world. The risk is yours and yours alone.
Before we let you go, we’ll leave you with this idea: If more digital asset holders feel comfortable holding their funds on a cryptocurrency platform with relatively low risk and decent returns, the volatility of in the long run could decrease.
With digital assets like bitcoin being considered less volatile because fewer people are selling bitcoins, the argument for bringing a company’s equity into the ecosystem becomes much stronger.
We believe that cryptocurrency interest accounts are a small but very important part of the maturity of cryptocurrencies as an asset class.
To better understand why paid crypto-currency accounts are important, rather than just knowing the best ones, we recommend reading this interview with Celsius founder Alexey Mashinsky exclusively on CoinCentral.
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