BEFORE I start going into this in-depth analysis of the best crypto platforms to earn interest on your crypto, I want to clarify the differences between earning interest and the concept of staking. Both can earn yield on your cryptocurrency but are fundamentally different. Earning interest on your cryptocurrency essentially lets you lend your assets through the platform or service you use and allows that exchange to lend it out at a higher interest rate. Staking however, involves you committing your cryptocurrency to a blockchain as a validator of sorts for blockchain transactions, and throughout this, you are unable to withdraw from your staked crypto. For this post, I will only be talking about platforms that allows you to earn interest on your crypto.
Personally, I have tested out and used many different crypto platforms but I will mention my top 5 that I think are worth mentioning due to their advantages as well as their unique niche that makes them stand out from the others. While one platform may be more applicable and useful to you, it could also be less appealing and unattractive to someone else that has a different investments strategy. To this day I use Gemini, Celsius, BlockFi, Voyager, and Nexo to earn interest on my crypto. I will talk about each platform's pros and cons and my general advice on how to fully utilize it to the fullest to make the most out of your crypto. Additionally, I will post my referral code next to each platform and I ask humbly if you are new to these platforms and want to try them out for yourself, feel free to use my link and earn a little crypto for free. It helps me out, it helps you out, and I humbly thank you if you choose to support me through my referral. Let's get right into it!
Gemini: (Use this link or my code: 77lmnd62p)
Gemini was founded in 2014 by the twins, Cameron and Tyler Winklevoss, and had a very strict and security-first mindset. Although at first it may seem not all that impressive, Gemini is by far the most secure and safest platform to invest your crypto in, with some of the highest standards found in the crypto world today. While I know some of you may not find security all that important, many of Gemini's users are felt secured through it's security, especially after news such as the recent hacking of Axie Infinity. Some of its secure functions is storing most of its users' cryptocurrency in cold storage, unlike most cryptocurrency exchanges. They also have something called a Bug Bounty Program which is a program that allows users to contribute potential security vulnerabilities to be addressed immediately. In this world of scams and rug pulls, Gemini offers its users some of the highest degrees of security and can be the deal breaker for choosing a platform to invest in.
PROS:
- high security and compliance
- low or no fees (up to 10 free withdrawals a month and free deposits except debit card transfers)
- relatively high interest rates
CONS:
- low interest rates on popular coins
- standard $0.99 deposit fee
- manual transfer to earn account
Now to make things clear, Gemini offers some of the lowest interest rates for the more popular coins out there, such as Bitcoin (1.01%) and Ethereum (1.26%). HOWEVER, Gemini offers a very large selection of cryptocurrency that have some coins that do earn a high rate, such as the Gemini dollar (6.9%), 1inch (8.05%), and Axie Infinity (6.83%). Additionally, Gemini has much lower fees than some of platforms out there, such as the notorious Coinbase with its ridiculously high fees. Another thing that may be confusing for new users is its trade balance and earn balance accounts. When you deposit certain amount of money into your account and purchase a coin, such as Bitcoin, it doesn't immediately start earning interest but only after you select the amount of Bitcoin you want to have earn interest and transfer it to your earn balance account from your trade balance. And sometimes this transfer isn't instantaneous, it can take around a couple of minutes to 2 days to actually start earning interest. Not a really big deal for some users, but for those that want to earn large amounts of interest on popular coins without the hassle of transferring and waiting, Gemini may not really be for you. While not being the best platform to earn the most interest on popular coins such as Bitcoin and Ether that some people might be looking for, it does offer a high rate for other less popular cryptocurrencies. Additionally, the fees are extremely low compared to other high fee platforms, such as Coinbase, making this platform a good start for beginner investors in my opinion. For those that are looking to make smaller and more frequent transactions of their crypto but not be restricted by heavy fees or a small selection of options, Gemini is a great choice to start with.
OVERALL RATING: 3.5/5
Celsius: (Use this link or my code: 11974541ec)
Unlike Gemini, which offers extremely low APY for popular cryptos, Celsius is a crypto platform that offers some of the highest interest rates on Bitcoin (5.00%) and Ethereum (5.35%) and has very low fees. With a large array of cryptos to choose from as well as a loan program integrated into the mobile app, Celsius offers a loyalty program, similar to Voyager which I'll talk about later. This loyalty program can help you earn additional boosts to your already high interest rates. It works by calculating the amount of Celsius coins you own in your account which places you into the 4 tiers in its loyalty program. At the highest platinum tier, you can earn an additional 30% boost to your APY earnings as well as get a 25% discount on your loans if you choose to borrow.
PROS:
- free withdrawals
- low deposit fees
CONS:
- centralization
- US resident restriction/difficulty
Unfortunately, Celsius has made it's stance pretty clear in its terms of use: "If third parties make claims on your Celsius Account, or if we receive conflicting instructions from you, or if we become involved in or concerned about a dispute between you and any third part, we reserve the right to react in ways that we believe in good faith to be appropriate, including by closing, suspending or freezing your Celsius Account, delivering the Digital Assets available therein to you or to any third party, or interpleading assets to court, all as we reasonably deem appropriate under the circumstances. You are liable for all expenses and fees we incur for such conflicts or disputes, including internal costs and attorney's fees, and we may charge or deduct them directly from your Celsius Account balance". In short, this basically means at the end of the day, its Celsius that is able to make the ultimate decision on what to do with your account in what they reasonably deem appropriate. This might not affect many users, and for those they just want high interest rates, this really isn't that big of a deal. However a big issue when it comes to Celsius and its loyalty program is its native token Celsius and the problems with acquiring it. If you are a new investor, it may be difficult for you to acquire some Celsius into your account because currently, Celsius is not available to US residents and you are unable to buy it through Celsius or other platforms. For accredited investors and those with experience, there are other alternatives and processes to get Celsius but it is an additional complex process that you must do yourself to be able to apart of Celsius' loyalty program.
OVERALL RATING: 4/5
BlockFi is a platform that I personally think is the best when it comes to automatic credit card rewards, and although it offers lower than average interest rates on its crypto, it does have some advantages that other platforms do not have. BlockFi has one of the best credit card called the BlockFi Rewards Visa Signature Credit Card that gives you back Bitcoin back instead of traditional cashback on your purchases. Although there are other crypto credit cards out there such as Coinbase and Crypto.com, I think BlockFi has more appeal compared to them. Here are some of the card's main benefits: 3.5% bitcoin back on all purchases made during your first 3 months, 1.5% bitcoin back on all purchases that is deposited automatically to your account, 2% bitcoin back on all purchases made over $50,000 annually, plus more. The biggest takeaway from the BlockFi card is simplicity. Your everyday purchases are automatically deposited to your account monthly and can be a big time saver as well as being a fee-saver. Some may argue that using a traditional credit card with cashback rewards and purchasing crypto with those better rates but they don't account for the time saved in having to deal with purchasing those crypto, depositing it to your account, and dealing with fees on the whole way. For BlockFi, there are no fees when you are getting your Bitcoin deposited to your account. Gemini also offers its own credit card but you will have to wait on a waitlist while for BlockFi, you can start instantly. Additionally, if you prefer using debit cards instead of credit cards, Voyager has its own debit card program that I'll talk more about later.
PROS:
- high yields for Bitcoin for its cashback credit card program
- generally decent rates for its wide selection of crypto
CONS:
- only some cryptos have 1 free withdrawal per month, after that fees are very expensive
- low interest rates
- minimal selection of cryptocurrencies
While BlockFi does offer an advantageous credit card program, there are now several other platforms that have rolled out their own credit cards that do competes with its crypto yield. Furthermore, BlockFi has been steadily dropping its interest rate over the years and has very severe cutoffs for each tier you go down. For example, 0-0.10 BTC you own gives you a 4.5% APY but drops to 1.0% (0.10-0.35 BTC) and to 0.1% (0.35-1.0 BTC) quite drastically. Still, BlockFi does over great cashback on your everyday purchases which you could potentially use your 1 free withdrawal per month to transfer your Bitcoin to a higher interest yielding account.
OVERALL RATING: 3/5
One of the most popular crypto platforms out there, Voyager is actually the only publicly-traded company out of the platforms I have mentioned, giving Voyager a credible sense of legitimacy and regulation. I believe Voyager is the best platform for recurring purchases and it offers a very high interest rate for users that are involved in its loyalty program. Similar to Celsius, Voyager awards its users with benefits if they hold a certain amount of Voyager tokens (VGX). The chart below shows all the benefits you can get just from holding VGX.
Some of the program's rewards I want to highlight is its interest booster, giving you an additional boost to Voyager's already high rates. For example, Bitcoin currently gives you a yield of 5.75% as its base rate. Being an Adventurer increases that to 6.25% and if you become the highest tier of Navigator, you can earn up to 7.25% yield which is massive. Voyager has obviously some of the best interest rates amongst all crypto currency platforms and makes this stands out significantly. Back to its recurring buy advantage, Voyager allows users to make easy recurring purchases on daily, weekly, monthly, or first-and-fifteenth basis. Other platforms such as Celsius doesn't support this and while platforms such as BlockFi does, it doesn't directly pull money from your bank account and in which you would have to make an ACH transfer into BlockFi and then the platform buys the crypto for you.
PROS:
- high interest rates (even higher rates in loyalty program)
- recurring buys made easy, good for dollar cost averaging
CONS:
- waitlist to have account approved
- very high withdrawal fees
While Voyager is amazing for long-term yield for your cryptocurrency, its fees can be a real downer for some of its users. Unlike some platforms like Celsius and BlockFi which do give you a freebie withdrawal once a month, Voyager makes a strict, expensive withdrawal fee that does vary from each coin. Bitcoin right now has a withdrawal fee of 0.0005 BTC which at the time of writing is $23.28. Polygon (MATIC) has a even higher fee of $43.68 (25.105 MATIC). Additionally, to earn interest on your crypto, you must hold a minimum amount of that account on a monthly basis. For example, you must hold at least 0.01 BTC ($466.40) every month to be able to earn interest on your Bitcoin. Ethereum is even higher, needing a 0.5 ETH ($1,739.38) every month to be able to earn interest. So while Voyager has great interest rates and perks that the loyalty program gives, it is countered by its extremely high fees and minimum balance needed to be able to earn that high interest. While this may not be that big of a deal for long-term HODLers that are able to pour large amounts of money into their accounts, this may not be all that appealing for investors that have smaller pockets.
OVERALL RATING: 4.5/5
Nexo:
Nexo is a crypto platform that is pioneering a new digital financial system that stands out from other platforms through its lending program. This is not referring to Nexo loaning your crypto and giving you interest but allowing you to borrow against your crypto to get money. While other platforms such as Celsius and BlockFi do have their own loan programs, Nexo incorporates a flexible and unique lending process. You can borrow money and pay it back in your own way, as there are no monthly payments, unlike Celsius and BlockFi, which already has a predetermined monthly payment. It also does offer a loyalty program that is more confusing than the others, but you need to be able to full advantage of it to be able to get the most out of Nexo. Similar to Voyager and Celsius requiring you to buy a certain amount of its native token, Nexo required your portfolio to hold a certain percentage.
Unlike Voyager and Celsius, you need to have a certain percentage of your portfolio invested with Nexo Tokens, not a certain amount. So if you held 100$ worth of Nexo and 900$ of Ethereum in your account, you would be in the Platinum tier because you have at least 10% Nexo in your portfolio. But what happens when you decide to invest 900$ more of Ethereum into your portfolio? Well, now your Nexo percentage would drop to around 5% leaving you stuck in the Gold tier. Nexo's loyalty program works in a different format than Voyager and in my opinion, quite inferior. Once you own a certain amount of VGX in your portfolio, you're good! You don't have to worry about purchasing more VGX in the future or worry about your loyalty tier dropping. With Nexo however, you always have to maintain your position and make sure you still are in the tier you want.
PROS:
- great loan program
- earn interest on cryptos that other platforms don't
CONS:
- confusing loyalty program
- difficult for beginners to navigate and understand
- risk of loss in lending
OVERALL RATING: 4/5
Well there you have it! My top 5 crypto platforms that I recommend on using. Based on your current financial position or investment strategy, some of these platforms may be more appealing to you then the others. I personally use Gemini and Celsius the most, I just find them the most convenient and effective for myself. The combination of their UI, overall system, and benefits draws me to their platform more than others. However you may find that other platforms are better fitted for you. I hope that my guide has given you some insight on what platform to choose and invest your crypto in. Happy HODLing and thanks for reading!
