Why bother putting money in a traditional savings account? At a 2.00% interest rate, you might as well hide it under the mattress even with recent interest rate hikes. But a crypto savings account? You could earn a nice chunk of change fairly quickly.
Of course, rates will vary, but it’s not unusual for crypto interest accounts to generate high yields between 1% to 4%. And they can go much higher. It’s your best chance to increase the overall return on your investment portfolio.
But, before you go all-in with your BTC and ETH, you’ll want to have the information you need to make a good decision. It’s your hard-earned cash, after all. No one knows for sure what the demand will be next month, or tomorrow for that matter. And there are some inherent risks.
Not just any old cryptocurrency account will do. We know you’ll want to be selective and choose the savings account with the best crypto sign up bonus. That’s why we’ve rounded up the best of the best crypto exchanges. Here are our top recommendations.Â
4 Cryptocurrency Savings Accounts to Compare
1. Coinbase – Best for Crypto Beginners
Coinbase has one of the world’s largest cryptocurrency exchanges and one of the best places to buy Bitcoin and cryptocurrency. Its savings account is the new kid on the block. The interest account offers a good selection of currencies with low minimum balances required.
They have an intuitive, top-rated mobile app with advanced functionality. The app features a large selection of beginner guides, crypto tips, and tutorials. You can also earn free crypto by taking certain courses.
The current APY is up to 1.50% compounded monthly on USD coin. All you have to do is hold certain assets, like DAI and USDC, in your Coinbase account and you’ll start earning right away.
Best for:
A large number of beginner guides and intuitive navigation make Coinbase good for novice investors. The robust trading platform is great for advanced traders who want to earn a small amount of interest while waiting to make cryptocurrency trades.
What you should know:
Coinbase’s fee structure is difficult to understand and too expensive for small purchases. Interest is low on most currencies. More experienced traders may want more advanced trading tools and low trade fees.
Bonuses:
You’ll get $10 in free Bitcoin when you buy or sell $100 or more in crypto.
Where to start:
Learn more and earn crypto for your Coinbase account.
Coinbase offers over 25 cryptos to trade, invest, or stake in. If you want to diversify your income sources through cryptocurrencies, Coinbase is an ideal platform to buy, sell, or even build your crypto portfolio.
2. Crypto.com (CRO) – Best for Long-Term Holding
Available in most U.S. states, Crypto.com offers affordability with a large selection of over 60 cryptocurrencies, including its own CRO. Account minimums vary based on the type of currencies and how long you hold them. It’s currently earning up to 3.00% APY on Bitcoin and a high rate on stablecoins of up to 6.50%.
Crypto.com pays interest on 15 traditional cryptocurrencies and 8 stablecoins.
Best for:
Because of the way its incentives work, Crypto.com is well-suited if you plan to hold investments longer than three months or can stake $50,000 in CRO.
What you should know:
The website is hard to navigate and the trading fee structure for Crypto.com is a little complicated. Also, although there are over 100 coins, 40 of them aren’t available in the U.S. and another 35 are not available in all states.
Some users say that customer service isn’t as responsive as they would like.
Bonuses:
None currently.
Where to start:
Calculate your reward potential on Crypto.com.
Buy and sell 90 cryptocurrencies with 20+ fiat currencies using bank transfers or your credit/debit card.
3. Nexo (NEXO) – Best for Daily Interest Checked Card
Nexo, with no account minimums, has no deposit fees and a tiered withdrawal system. You get one to five free withdrawals, based on the percentage of NEXO tokens you have. There is also a Mastercard debit card.
You can deposit 24 cryptocurrencies, stablecoins, and other digital assets in your account. You’ll earn an APY of up to 10% deposited daily on stablecoins and 5.00% on Bitcoin.
NEXO token holders get higher yields on savings. Interest is compounded and deposited daily to your account, so there’s no need to wait a whole month to start earning passive income.Â
Even though the platform offers plenty of functionality, it’s oriented toward beginners. It’s easy to learn and even easier to get started.
Best for:
Beginning crypto investors will enjoy the clean layout and shallow learning curve. Long-term cryptocurrency investors will appreciate the free withdrawals.
What you should know:
If you’re looking to learn more about trading, there are fewer educational resources than some of the competitors.
Bonuses:
N/A
Where to start:
Make your idle cryptocurrencies work for you with Nexo.
Make your idle digital assets work for you with Nexo. Earn daily interest on your crypto and stablecoins. Just top up and start growing your wealth automatically without lifting a finger.
4. YouHodler – Best for Active Earning + Trading
An EU and Swiss-based company, YouHodler offers nearly two dozen coins. There is a minimum $100 USD investment to earn interest. Earn up to 8.32% on stablecoins compounded weekly with no fees on withdrawals.
The platform is simple to use and you can buy crypto with fiat currencies so start-up is easy. There is both email and live chat customer support.
The self-proclaimed crypto-fiat financial service is packed with features. It even has a feature that resembles margin trading tools so you can leverage your assets if you want.
Best for:
YouHodler is great for more sophisticated investors who want to make the most of price fluctuations and HODL (buy and hold) at the same time.
What you should know:
YouHodler is not available in the U.S.
Deposit fees, up to 4%, are high. There are also withdrawal limits.
Bonuses:
None currently.
Where to start:
Boost your crypto earnings each week with YouHodler.
Key Things to Remember about Crypto Savings Accounts
Cryptocurrency savings accounts differ from regular bank high yield savings accounts in many ways. It’s more than a currency and more than a digital asset. While few people understand the nitty-gritty details of blockchain and cryptography, the most important things to remember are pretty simple.
FDIC Insurance
There is none. Although they’re called savings accounts, a crypto account is an investment. There is no guarantee that you’ll recoup your money if the provider goes under or for any other reason. That’s why it’s important to stick with well-established companies.
Private Key
When you deposit into crypto savings, your currency is there for others to borrow for a period of time. You give up your private key to make it available to them. So, unlike a bank savings account, the money isn’t sitting there waiting for you. The borrower pays interest in return for the use of your cryptocurrency.
APY
It is significantly more than you might earn on, say, a credit union savings account. This is simple economics. Regular banks make money by offering to loan the money they store. But, crypto banks don’t have money to lend. They must attract investors like you. In order to do that, they pay more.
Hedge Against Loss
The APY on crypto savings accounts offers an additional benefit: if your currency decreases in value, you’ll continue to earn interest.
Withdrawals
Traditional banks let you withdraw money six times per month. Most crypto banks, however, have restrictions on the number of times you can withdraw. Some allow one free withdrawal, others charge a fee. Remember, crypto accounts are investments.
Compounding
Compounding means that your interest earns interest. Certain crypto savings accounts don’t pay compound interest. All of the platforms listed here compound. Of course, consider the expected APY before you rule out non-compounding accounts.
Interest Earned in Crypto
The money that you deposit into a crypto savings account becomes cryptocurrency. Interest is earned in crypto, as well. If you are more interested in U.S. dollars, you might consider investing in the popular USDC or USDT. They are stablecoins that are pegged to the dollar. You can redeem a $1 USDT for one US dollar. Keep in mind, however, that if demand drops, the USDC will lose value.
Start Earning Passive Income with Cryptocurrency
| Company | Stable Coins (e.g. USDC) | Bitcoin |
|---|---|---|
| Coinbase | 1.50% | N/A |
| Crypto.com | 14.5% | 6.5% |
| YouHodler | Up to 8.32% | 3% |
| Nexo | Up to 10% | Up to 5% |
The most important takeaway is that cryptocurrencies like Bitcoin is an asset class like any other. It comes with a bit of risk. So you should consider how crypto fits into your overall financial plan and whether you can take all of the heart-pounding excitement.
Plenty of investor hacks have made a ton of money by buying the right type of crypto at the right time. But no matter how you invest your money, make sure you’re diversified and know what you’re getting into.
You can do better than wait for your cryptocurrency to go up in value. Deposit your currency in one of these high-yield savings accounts and start earning passive income today.
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