In this post, I’m going to show you exactly the 4 bitcoin savings account to earn interest in 2020.
In fact, these are some of the bitcoin savings platforms with the best interest rates.
So, if you are looking for the best bitcoin savings account in 2020, then you’ll love this new tutorial.
Let’s get started…
Bitcoin saving account overview
A bitcoin savings account which is similar to a regular savings account, allows you to deposit assets effectively as it becomes the property of a third party.
You transfer bitcoin into a wallet controlled by the savings account provider and surrender control of your private keys to the account provider.
In exchange, the account provider pays you interest for the use of your bitcoin.
Bitcoin savings account providers lend out the bitcoin that you deposit to cryptocurrency marketplaces or brokers and charge them interest.
A part of the profit earned through these practices is passed on to you as the depositor in the form of interest.
The primary advantage of holding bitcoin in bitcoin savings account rather than a bitcoin wallet is that your bitcoin is invested and earns interest on an ongoing basis.
You earn returns in bitcoin with little involvement on your part, making this a passive form of bitcoin investment.
Another advantage is that losses incurred through investments made by account providers do not affect your account.
Barring severe losses or the failure of your account provider, your account balance is always available to you and you can withdraw your bitcoin at any time.
To get started with bitcoin saving account, you will need to first have some bitcoin which you will deposit to start earning interest.
Theft is a risk you may encounter when you entrust your bitcoins to another party.
Even reputable account providers are vulnerable to electronic theft, and a high concentration of bitcoin on a platform makes it a prime target for hacking attempts.
That is why it is good advice to only invest in bitcoin savings accounts if you have high-risk tolerance and risk capacity.
Here is the 4 best bitcoin saving account to earn interest in 2020.
BlockFi is a financial management platform.
The platform focuses on cryptocurrency assets.
For the most part, these assets include Litecoin, Bitcoin, and Ethereum.
Some BlockFi assets also include USD-based stablecoins such as GUSD or USDC.
Overall, the main appeal to BlockFi is that they offer a very simple, easy to use the platform and very competitive interest rates.
This is arguably a good thing, as it focuses on what matters – the financial products and the returns they give you.
The two main services that BlockFi provides are interest accounts and crypto loans.
To put it simply, BlockFi makes it possible for users to earn interest on their cryptocurrency and also to gain USD without needing to sell that currency through collateralized loans.
BlockFi Interest Accounts
BlockFi’s interest account makes it possible for users to take full advantage of their bitcoin by lending it to BlockFi at a fixed yearly rate.
Users who have been holding their bitcoin for quite some time with no interest in selling their funds in the near future could find some benefit to this, as it could generate additional interest.
BlockFi offers competitive interest rates, which is yet another reason why it’s gaining so much traction.
The annual percentage yield (APY) for BlockFi are as follows:
|BTC(Tier 1)||0 – 5||6%|
Interest is compounding and paid monthly.
BlockFi withdrawal limits
As with any custodial institution, there are limits to how much you can withdrawal at a time.
Thankfully, BlockFi is pretty generous with this.
As of the time of this writing, you can withdrawal 100 BTC per week.
For almost all users, this will be more than they will ever need to withdrawal no matter the time limit.
However, for whale users, this may be of interest to them.
For BTC savings, you can withdraw up to 100 BTC per 7-day period with a fee of 0.0025 BTC.
Is BlockFi Insured?
BlockFi is not insured in the traditional sense, but their custody provider is Gemini.
This means that your cryptocurrency assets are not stored with BlockFi, but rather Gemini.
While BlockFi works with some of the best crypto security in the world (Gemini Custody), BlockFi is not insured.
In fact, their website actually states that “your Crypto Interest Account is not a checking or savings account, and it is not covered by insurance against losses.”
This alone could mean there are significant risks associated with the products that BlockFi offers.
Before diving into this company, I recommend doing your research on platforms similar to this platform that do offer insurance in some form.
This may not be an issue for you if you’re not particularly pressed about traditional insurance– after all, we’re dealing with a pretty non-traditional industry.
Nexo is backed and operated by Credissimo, an experienced company that has been helping millions of customers lend and borrow money since 2007.
Nexo has the largest network in the cryptocurrency space, it is one of the most advanced instant crypto lending providers on a global scale.
Since they service 45+ currencies across more than 200 jurisdictions, including all the laws that go into making a financial service legal and operable in those jurisdictions.
Earning Interest With Nexo
Nexo lets you earn up to 4% per year.
Through the Nexo platform, lenders can earn interest on their bitcoin.
After setting up a Nexo Wallet, you can deposit bitcoin, stablecoins (DAI, PAX, USDC, USDT & TUSD) or fiat currencies (USD, EUR, GBP).
This earns you compounding interest paid out daily.
It’s a fully automated process available for all Nexo Wallets with no minimum amounts and no fee restrictions.
Is Nexo Insured?
All the deposits are insured up to $100M.
You don’t even need to lock up your money for a fixed period.
You are free to add and withdraw funds at any time with no fees and commissions.
Nexo is using Onfido to adhere to KYC and AML standards.
Remember, Onfido is also trusted by Coinbase, Revolut, HSBC, Nationwide, TransferWise, and Bittrex.
So if you use one of these other services — then your trust in them may match your trust in Nexo.
If you are looking for a platform that is regulated and secured in which you can earn interest on your deposit, I will recommend Nexo.
Binance savings lets you easily grow your crypto wealth by accruing interest on your funds.
Essentially, you’re lending your assets to margin traders on the platform, and they pay interest to you in return for borrowing your funds.
You can choose from a wide variety of options, including Bitcoin (BTC), Ethereum (ETH), Binance USD (BUSD), Tether (USDT), and many more.
There are basically 2 types of lending products on Binance Lending:
Fixed Deposits and Flexible Deposits.
Fixed Deposits mean that you subscribe (lock) your funds for a predetermined amount of time and interest.
In contrast, Flexible Deposits allow you to withdraw your funds at any time, and the interest rate changes over time.
Since you have the flexibility to access your funds, the interest rates will subsequently be lower for Flexible Deposit products.
On Binance, lending works with a first-come, first-served basis, meaning that whoever gets their funds subscribed to a product first gets to earn the interest.
The interest is distributed every day for Flexible Deposits, or on the redemption date for Fixed Deposits.
Binance savings is continuously evaluating new crypto assets to support as lending products.
The platform follows strict selection criteria, but generally, legitimate products that have demand and deliver the best value to users will likely be supported.
Overall, Binance savings is an utterly simple way to earn rewards with your cryptocurrency, ideal for beginners and long-term veterans alike.
Subscribe your funds to either of the available lending products and start earning interest on your bitcoin assets the very next day!
To cap it all, with the introduction of Binance Savings and other financial products, Binance has cemented itself as more than just the world’s most popular cryptocurrency exchange
Earn interest with Binance
Binance lets you earn up to 0.78% interest on the flexible saving plan.
Flexible Savings accounts earn interest daily.
Subscribed users are able to withdraw their holdings at any time without penalty.
The interest rate is calculated using the 7-day estimated annual yield trend.
This means that your interest changes from time to time depending on the price of bitcoin.
You can also earn interest by depositing ADA, BUSD, USDT, and over 20+ cryptocurrencies.
Is Binance Insured?
Funds on Binance savings are not covered by any traditional insurance policies.
Instead, Binance uses 10% of Binance exchange fees to provide users with emergency insurance.
#4. Celsius Network
Celsius Network is a crypto lending app available on Android and iOS devices.
It is a peer to peer crypto lending company facilitating borrowing and lending for the people who needs it the most.
For borrowers, there are low-interest rates, whereas, for the lender, there is a fair share of the income distribution.
Similar to putting money in a savings account, storing cryptocurrency funds in Celsius earns you interest on your holdings each week.
Earning interest with Celsius Network
It couldn’t be much easier earning interest on your bitcoin with Celsius.
All you need to do is deposit your crypto assets into the relevant Celsius Network wallet and it’ll start earning interest, immediately.
Celsius Network pays interest every week and you can withdraw anytime.
When you deposit bitcoin into the Celsius app.
The company then loans those funds out to retail and institutional borrowers.
Every Monday, you receive a payment from the revenue that Celsius gains from those loans and other activities.
Celsius Network shares at least 4.03% of its revenues with the Celsius community in the form of weekly interest payments.
You can potentially earn up to 6.20% when you deposit bitcoin.
Unlike many of their competitors, Celsius Network doesn’t charge withdrawal fees, termination fees, or default fees.
They claim not to charge any fees at all, which is quite rare.
The functionality of the Celsius Network app expands far beyond simple interest payments, though.
On the other side of lending, loans are available through Celsius, as well.
By putting up cryptocurrency as collateral, you can take out cash (or stablecoin) loans at a range of different terms.
Compared to most traditional loan services, Celsius loans don’t require a credit check and typically grant you an approval in minutes.
Celsius Network claims its platform is driven by the mission to do what is best for its community.
That means offering the highest earning potential to everyone, equally.
They are also said to be committed to sharing up to 80% of their income with its users.
Although, the biggest drawback from Celsius Network is the fact that they require you to stake their CEL tokens in order to get their advertised interest rates.
Their advertised interest rates are based on their ‘Platinum’ loyalty scheme which requires more than 15% of your portfolio to be in CEL tokens.
For those of you who are interested in high-interest rates but not CEL tokens, I highly recommend you look elsewhere.
Can Celsius Network be trusted?
Celsius Network can be trusted to pay you interest and give you loans, so long as you’re aware of their staking system.
Celsius Network is relatively safe to use, though it’s worth noting that they no longer offer third party custody with BitGo and are no longer insured.
Anything I Missed?
Did I miss anything?
Let me know.
Were your favorite bitcoin savings account for earning interest not included here?
Leave a comment below and I’ll add it ASAP.
Name: Amaechi Patrick
A writer and content marketer for Uranuscrypto.com, who loves sharing his knowledge and experience in digital marketing, personal development, and cryptocurrency education.
Bio link: https://uranuscrypto.com
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