In this article I will be showcasing a few options you have in case you are looking for ways to earn interest on your crypto in a flexible way.
All of you have heard the phrase before - "not your keys, not your crypto" - and it never hurts repeating it. If you do not hold your crypto on your own wallet, rather on an exchange or other platforms, there is a risk you would be losing it. If you hold everything on your wallet and you are the only one holding the private keys ideally on paper and not digitally, then you can consider yourself safe.
What options do I have for flexible interest?
In case you would still be comfortable enough to risk your crypto for some higher interests, then these are the most popular companies that you could consider:
Blockfi
Blockfi is a crypto lender based in the US. They have recently made some changes on their interest rates and created a tier system based on the amount of crypto you hold with them.
Interest calculation
They calculate your interest daily and pay out once a month.
Interest rates
Currently these rates apply for the crypto you hold with them.
BTC (Tier 1) 0 - 0.5 5% BTC (Tier 2) > 0.5 to 20 BTC 2% BTC (Tier 3) > 20 BTC and above 0.5%
ETH (Tier 1) 0 to 15 ETH 4.5% ETH (Tier 2) > 15 to 1000 ETH 2% ETH (Tier 3) > 1,000 ETH and above 0.5%
You can also store LTC, LINK, USDC, GUSD, PAX, PAXG, USDT and BUSD.
Details: https://blockfi.com/rates/
Deposit methods
You have a couple options to deposit:
- USD wire transfer to a US bank.
- Direct coin transfer - you have your own addresses for each coin
Withdrawal fees
Once a month you can withdraw for free. Otherwise there a certain fee based on the coin (0.02ETC, 0.0075 BTC etc.)
Details: https://blockfi.com/rates/
Summary
In case you have become interested, below is a registration link with which you can earn $10 if you deposit at least $100 or equivalent in crypto and hold it there for 2 months.
Blockfi registration
Celsius network
The Celsius network offers interest on your crypto while it also offers loan options to its customers. Currently only on mobile (iOS and Android) however a web application should be coming online in a few weeks.
Interest calculation
Interest with Celsius has 2 options for any given coin: earn interest in the same crypto as your deposit, or in the native token of Celsius - CEL - that gives extra % on any interest rate.
Interest rates are calculated and paid out weekly.
Interest rates
Coin Earn in kind Earn in CEL BTC 3.51% 4.40% ETH 5.05% 6.35%
US customers can only earn in kind, however for first 2 BTC the interest is 6.2%.
A lot more coins available here, i.e. BCH, Polkadot etc. Details can be found here at the bottom of the page:
https://celsius.network/earn-rewards-on-your-crypto/
Deposit methods
Currently yo ucan only deposit via direct coin transfer to your coin specific Celsius address.
Withdrawal fees
Withdrawal is completely free.
Summary
If you are interested in registering for Celsius, feel free to do so via the below link - with your first 400$ worth of deposit you will also get $40 in BTC.
Sing up for Celsius via your phone
Further promotions are available in Celsius usually, currently you can also add these promo codes after registration:
Promo Name Reward Transfer amount YESPLEASE $20 $200 GOTCRYPTO $500 $25,000 2KSTABLE $2000 $250,000
In my experience so far, these promotion build on each other, first the registration promotion of 400. Then another 200 transfer gives you $20 for YESPLEASE.
Nexo
Nexo similarly to the previous sites is giving loans to customers and also interest for those who hold their crypto or stablecoin/fiat with them. They also have their own token NEXO, if you choose to earn in NEXO they pay 2% higher interest than in the same coin as your deposit.
Interest calculation
Interest is calculated daily and payout is daily.
Interest rates
Interest rates are based on 2 variables:
- you choose to receive earnings in NEXO, that gives you extra 2%
- You hold a certain percent of your portfolio in NEXO to be eligible for higher loyalty tears. The more you hold the higher your earning rate is for other coins:
If you dont hold any NEXO and you want flexible terms for your deposit (withdraw any time) then these are your rates:
Coin Earn in kind Earn in NEXO BTC 4% 6% ETH 4% 6%
If you are fine with 3 month deposits, rates are adjusted to:
Coin Earn in kind Earn in NEXO BTC 5% 7% ETH 5% 7%
These rates can be increased if you get into higher loyalty tear with holding more NEXO in ratio of your total assets.
Details with the list of other available coins:
Deposit methods
You can deposit via direct coin transfer to your con specific address within Nexo
Withdrawal fees
Based on your loyalty tear, at least 1 is free.
Summary
You can sign up via the following link to Nexo:
Conclusion
There are numerous options but everyone should choose the one that fits their investing purposes best. It is also a common practice to use more of these products to diversify the risk in case one of them goes down.
Always remember that your coins are safe only in your wallet and choose these options only if your risk tolerance allows it.
