Do you own crypto? Are you keeping it stashed away hoping to sell it one day for a larger profit? Well did you know you could be earning interest on your Bitcoin, Ethereum and other cryptocurrencies? In fact you could be earning up to 12% APY.
These are my two favourite tools for earning interest on cryptocurrency.
Youhodler has a savings account for crypto that pays up 12% APY. This is much higher than you can earn from a bank. The amount you’ll earn will depend on the crypto you deposit.
What I like about Youhodler:
- High interest rate – Youhodler has the best interest rate I could find for Stablecoins. The bitcoin rate is a bit less than what you’ll earn on Blockfi.
- Interest Paid Weekly – you’ll see a running count of how much interest you’ve made and how many days until it is paid into your account.
- Solid Business Model – Youhodler is a crypto lending company. They lend crypto to traders, and pass this interest on to you. The lending is 100% backed by crypto assets so loans shouldn’t default.
Is YouHodler Safe?
YouHodler has a $150 million insurance program to cover any potential hacking losses. This is provided by Lloyds of London. YouHodler uses it’s own vault tech to secure crypto in offline wallets. This is similar to Coinbase. Furthermore YouHodler is regulated in the EU. You can find out more about YouHodler’s security here.
Blockfi is one of the most popular and well known crypto lending and savings providers. They pay really good interest rates and are backed by a number of high profile investors.
What I like about Blockfi
- High interest rates – Particularly good interest rates on Bitcoin, not just stablecoins.
- Institutional Lending – Blockfi lends crypto to institutions and corporate borrowers. These are generally lower risk loans and allow them to pay higher interest rates.
- Interest Paid Monthly – You’ll earn interest on a monthly basis. Your investment will compound.
Is Blockfi Safe?
Crypto is stored using Gemini Custody. This is a licensed financial services provider in New York. Unlike regular crypto companies, Gemini must adhere to strict capital requirements and they have insurance to cover losses.
Tip – Get $25 free when you sign up to Blockfi using this link.
Risks of using a Crypto Savings Account
I consider crypto to be a high risk investment. I wouldn’t store my life savings in a crypto savings account, but if you have some crypto that’s just sitting doing nothing, then this might be an option for you. While these companies are legit, there are many companies in the crypto space that are scams. Make sure you do your own research to see how a company is able to pay interest on your investment.