The competition among exchanges is heating up as participation in the cryptocurrency market continues apace. As investors increasingly search for the next altcoin gem, trading platforms are battling for the right to hold your crypto. As top exchanges fight for your attention, their offers for interest have increased dramatically. And as Bitcoin (BTC) prepares for its next move, savvy investors are looking for the highest returns on their coveted Satoshis. But how does earning interest on crypto work, anyway? And what are the risks involved? This guide will show you, step by step, how to earn a great return on Bitcoin. NEW! Trade Crypto on Interactive Brokers GET STARTED NEW! Trade Crypto on Interactive Brokers Seamlessly access crypto markets through IBKR's professional-grade desktop platform and intuitive mobile and web platforms. Contents How Does Earning Interest on Crypto Work? Crypto.com Overview Crypto.com: 8.5% Interest on Bitcoin How to Earn Interest on Bitcoin Step 1: Open an online account. Step 2: Purchase cryptocurrency. Step 3: Earn interest on your crypto. Other Platforms to Earn Interest on Bitcoin Risks of Earning Interest on Crypto Is Earning Interest on Cryptocurrency Worth It? How Does Earning Interest on Crypto Work? Earning interest on crypto works a lot like earning interest on fiat. When you store your assets on an exchange, you provide necessary liquidity for the platform. And in return, customers are offered a rate of interest. A number of exchanges are now offering fantastic rates for your Bitcoin. And while new offers are introduced to the public nearly every day, this article compares the best rates the industry has to offer. Crypto.com Overview Crypto.com takes top honors with the best interest rates offered on Bitcoin. But this popular crypto exchange doesn’t stop there. With over 40 cryptocurrencies to choose from, Crypto.com’s Crypto Earn program offers as much as 14.5% interest on your digital assets. From Bitcoin and Ethereum (ETH) to a number of popular stablecoins, Crypto.com’s diverse selection has helped the platform become the industry’s fastest growing exchange. And with incredible rates like this, it’s easy to see why. Crypto.com: 8.5% Interest on Bitcoin Crypto.com is offering 8.5% interest on Bitcoin held with the exchange. But it isn’t the only platform with an interest earning program. Make sure you check the products and offerings on your favorite exchange before making the switch. When compared with other industry leaders, Crypto.com offers the highest yields on Bitcoin — and a number of other cryptocurrencies, too. The following table compares 5 of the top interest rates available on Crypto.com. Bitcoin (BTC) 8.5% Ethereum (ETH) 8.5% Polygon (MATIC) 12% Polkadot (DOT) 12.5% USD Coin (USDC) 14% crypto.com Overall Rating Read Review GET STARTED securely through crypto.com’s website More Details 1 Minute Review Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users. Best For Traders who want access to a secure, low-cost cryptocurrency exchange Passive investors who want to earn interest on their balance without frequent trading Mobile investors who prefer to handle all their crypto needs via their phone or tablet Pros Low fees High security One-stop shop for all your crypto needs (wallet, trading, spending, and more) Lots of ways to earn interest, rewards, and rebates Cons Low privacy Customer service response time could be improved How to Earn Interest on Bitcoin Earning interest on Bitcoin doesn’t have to be any more complicated than earning interest on any other cryptocurrency. When you’ve settled on the exchange you’re most comfortable with, follow these easy steps to start passively earning Bitcoin: Step 1: Open an online account. The first step to earning interest on Bitcoin is opening an account on your chosen exchange. Enter your email into the field when prompted. Make a strong password and store it for future reference. Before you can trade, your account will need to be verified by the exchange. The typical Know Your Customer (KYC) process involves uploading pictures of your identification along with a selfie. When you’ve been granted access to the platform, you’re ready for step 2. Step 2: Purchase cryptocurrency. The next step to earn interest on your Bitcoin is to purchase it on the exchange you’ve just signed up for. But to accomplish this feat, you’ll need to connect your bank account. Be prepared to wait; the ACH process can take a few days, depending on your bank’s policies. Congratulations! With your account connected, you’re ready to earn interest on your Bitcoin. Step 3: Earn interest on your crypto. On Crypto.com, you can start earning interest instantly by depositing your crypto on Crypto Earn. There are flexible 1- and 3-month holding terms available, with varying interest rates for each. And while anyone with an account can take advantage of these terrific offerings, the best rates are reserved for participants that have also staked Crypto.com Coin (CRO). Interest accrues daily and is paid out each week. Minimums and maximums apply, and they vary based on which cryptocurrencies are held on Crypto Earn. Luckily, Crypto.com has made all of this information available on its website. Here’s a tip: You can also earn interest through Crypto.com’s decentralized finance (DeFi) wallet. With no lock-up period and great returns, staking for interest has never been easier. Other Platforms to Earn Interest on Bitcoin Remember, Crypto.com isn’t the only exchange with fantastic rewards. There are a growing number of platforms ready to help you earn interest on your Bitcoin. Other reputable exchanges with high yield offerings include Celsius, BlockFi and Gemini. Each of these top-tier trading platforms are available for U.S. consumers and offer state-of-the-art security to protect your assets. BlockFi Overall Rating Read Review GET STARTED securely through BlockFi’s website More Details 1 Minute Review Maybe you think cryptocurrency is the future, or perhaps you were swept up in the initial waves of Bitcoin. BlockFi may be your next step if you’re ready to evolve as a crypto investor. Whether you’re a native crypto user or curious enough to start investing, BlockFi seeks to bring institutional-grade financial products to crypto markets that often face restricted access. It strives to bring clients low-cost, simple applications designed to maximize the potential of crypto assets. Learn more in our BlockFi review. Best For Crypto native clients. You own Bitcoin now. You’re the friend who fills in the blanks when conversation turns to cryptocurrency, and you devour crypto literacy content like it’s your job (and maybe it is). BlockFi’s platform can help take your crypto assets to the next level. Crypto fringe clients. If you’ve dabbled in buying alternative assets like crypto or know enough to be interested, BlockFi can help you take the next step. Crypto curious clients. If you’re both intrigued by bitcoin and the type of person who obsessively learns everything you can about things you’re new to, BlockFi’s crypto asset platform might be the entry point you’re looking for. Pros Mostly fee-free platform Market-best interest rates Earn interest, trade and borrow from a centralized hub using the BlockFi app Cons Mostly restricted to those with a base knowledge of cryptocurrency No dedicated relationship with an investment advisor, so best for those who have a solid handle on crypto trading Celsius Overall Rating Read Review GET STARTED securely through Celsius’s website More Details 1 Minute Review Celsius Network is a platform that allows you to buy, borrow and pay in more than 30 cryptocurrencies. From a user perspective, it acts as something in-between a savings account and an investment portfolio. Users can also receive undercollateralized loans on their crypto assets thanks to a level of centralization. The risk that usually comes with trading crypto is lower, however, thanks to Celsius’ unique business model. All deposits are insured up to $100 million and there are no withdrawal limitations, fees or lockup periods so you can cash out whenever you need to, as soon as you need to. Overall, Celsius Network offers a lower risk, less complicated way for both beginners and HODLers to buy and hold crypto while earning steady returns on their investments. Best For Passive income Crypto investors Beginners Pros Rewards of up to 15% APY paid out weekly Easy-to-use mobile platform Available in over 100 countries Instant, fee-free payments using CelPay Great loyalty program Cons Minimal educational resources Limited cryptocurrencies Centralized Gemini Crypto Overall Rating Read Review TRY FOR FREE securely through Gemini Crypto’s website More Details 1 Minute Review Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x. Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review. Best For New investors looking for a simple mobile and web app Experienced investors who need a more advanced platform with more tools Users looking for a 1-stop-shop to buy, sell and store all of their coins Pros Easy and quick signups — can get started in as little as a few minutes Multitude of platforms to accommodate traders of all skill levels Hot wallets include insurance to protect your from theft and hacking attempts Cons Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app Risks of Earning Interest on Crypto Before making any decisions with your money, make sure you understand the risks involved. Earning interest on crypto is no exception. Without checking the terms and conditions of an exchange, your holdings could be subject to any number of provisions preventing you from withdrawing your crypto in a timely fashion. It’s also important to remember that digital currencies held on an exchange aren’t treated the same as bank deposits. Because crypto is not considered legal tender, your assets are not insured by the FDIC or any other governmental body. Finally, regulatory changes regarding interest bearing cryptocurrency accounts may adversely affect the performance and availability of these nascent programs. In a changing political landscape, crypto interest accounts face an uncertain future. Is Earning Interest on Cryptocurrency Worth It? Demand for interest bearing cryptocurrency accounts has skyrocketed. For many traders, the rewards and passive earning opportunities offered by today’s crypto trading platforms are just too good to pass by. And as participation heats up in the altcoin market, the competition for your business may increase interest rates further in the months ahead. Still, investing in the cryptocurrency market carries its own set of risks and rewards. And the decision to participate in any cryptocurrency transaction is a personal one. Positioning your assets according to your own comfort level is a great way to manage a secure portfolio. {props.title} TRADE CRYPTO. GET $10 IN BITCOIN. Even more crypto coins mean even more ways to trade with SoFi Invest. Make your first trade of $10 or more to get your bonus.* Disclosure* Terms and conditions apply. To receive the offer, you must: open a new SoFi Digital Assets LLC account and buy at least $10 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts. The offer is limited to one per person. The offer expires on December 31st, 2021. Once conditions are met and the account is opened, you will receive $10 in Bitcoin (BTC) within 7 days. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer, consult your tax advisor to determine applicable tax consequences. SoFi reserves the right to change or terminate the offer at any time without notice. Methodology Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page. Try SoFi SoFi builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy Bitcoin, Ethereum, Cardano, Solana, Chainlink, Uniswap and other DeFi tokens instantly. For a limited time, get a $10 BTC bonus when you make your first trade of $10 or more!