BTC APY – Earn the Best Bitcoin Interest Rate

Bitcoin passive income

BTC APY – Earn Passive Income in Bitcoin

  • NEXO offers the best available Bitcoin BTC interest rate, up to 7%. However, you must reach the top tier Nexo loyalty level to get 7%.
  • YouHodler offers up to 7% on Bitcoin deposits. However, the requirements are stricter than those of Nexo.
  • Kraken is the only company available for US customers to deposit Bitcoin BTC to a crypto interest account.

No Financial Advice, Information only. Do your own research

Best Bitcoin BTC APY Rates

In the table below, we have listed all companies offering the best Bitcoin BTC interest rates with the highest APY.

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Nexo Bitcoin BTC Interest Account

NEXO is a cryptocurrency platform that offers an interest account for Bitcoin. 

The interest rate varies depending on the amount of Bitcoin held, the duration of the investment, and the user’s loyalty tier level. 

NEXO offers two types of interest accounts:

  • Fixed Terms
  • Flexible Terms

Nexo Bitcoin interest rate among some other popular crypto interest rates

The NEXO base Bitcoin interest rate for Bitcoin is 4%.

Nexo Fixed Terms

Fixed Terms are available for 1, 3, 6, or 12 months. The interest rate for Fixed Terms varies depending on the user’s loyalty tier level. For example, if your loyalty tier is Base and the funds are locked in a Fixed Term, your annual interest will be 5% (4% + 1%).

NEXO Flexible Terms 

Flexible Terms allow users to earn interest on their Bitcoin holdings without lock-up periods. The interest rate for Flexible Terms varies depending on the user’s loyalty tier level and the amount of Bitcoin held. 

For example, if you hold less than 1 BTC and your loyalty tier is Base, you will earn an annual interest rate of 4% 2.

NEXO has balance limits in the lower tier loyalty levels for some assets in its Earn Crypto Interest product. This means that for each Loyalty tier for these assets, there are two yields you can earn.

The rate you receive is determined by the USD value of your holdings (balance) in the relevant asset, specifically whether you are above or below the applicable balance limit.

Example: The balance limit for BTC in the Base tier is 25,000 USD. If your Loyalty level is Base and you have 60,000 USD worth of BTC in a Fixed Term, you will be earning 4% annual interest on 25,000 USD, whereas the remaining 35,000 USD (above the balance limit) will earn 2.5% yearly interest.

Read more about Nexo wallet loyalty levels and interest rates in 2023.

Pros

Cons

  • It would be best if you held NEXO tokens, opt-in to receive interest in NEXO tokens and lock your funds for one month to receive the best interest rates.

YouHodler Bitcoin Interest Rate

YouHodler gives up to a 7%  interest rate on the Bitcoin savings account.

Youhodler VIP tier interest rates of popular cryptocurrencies

YouHodler is a cryptocurrency platform that offers an interest account for Bitcoin. The platform offers two types of interest accounts:

  • Fixed Terms
  • Flexible Terms

YouHodler Fixed Terms

Fixed terms are available for 1, 3, 6, or 12 months. The interest rate for Fixed Terms varies depending on the user’s loyalty tier level. For example, if your loyalty tier is Base and the funds are locked in a Fixed Term, your annual interest will be 5% (4% + 1%).

YouHodler Flexible Terms

Flexible terms allow users to earn interest on their Bitcoin holdings without lock-up periods. The interest rate for Flexible Terms varies depending on the user’s loyalty tier level and the amount of Bitcoin held. 

For example, if you hold less than 1 BTC and your loyalty tier is Base, you will earn an annual interest rate of 4%.

YouHodler allows users to borrow against their crypto as collateral with high loan-to-value ratios (LTVs). However, it is essential to note that YouHodler is not available in the U.S. and could be more transparent about its risks, rates, and fees.

YouHodler offers competitive interest rates on crypto deposits. The platform pays around 5% interest on altcoins and around 12% on stablecoins, depending on the currency. Interest compounds weekly and is paid in the same currency. You can withdraw your funds anytime.

YouHodler Pros

  • Earn interest on your crypto
  • Borrow against your crypto
  • Advanced trading tools
  • Strict KYC (“know your customer”) and AML (“anti-money laundering”) processes
  • Good customer service

YouHodler Cons

  • Not available in the U.S.
  • Minimum investment requirements
  • High APRs on loans
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Crypto.com Bitcoin BTC Interest Account and Bonus

Crypto.com App

Crypto.com has an Earn feature in their mobile app, a Bitcoin and crypto interest account. Here, you can deposit your crypto and lock it for different periods:

  • Flexible account
  • One month
  • Three months

The different Bitcoin interest rates are based on the lock-up period and your CRO staking amount.

  • 1.5-4.5 %, if you stake less than $400 in CRO
  • 2-6.5 %, if you stake more than $4.000 in CRO
  • 2-8.5 %, if you stake more than $40.000 in CRO

The CRO staking will also help you get a CRO Visa prepaid card with better rewards.

You can get a $25 bonus when you sign up with the Crypto.com app with our Crypto.com referral code. You must deposit and stake CRO worth $400 to release the bonus.

Crypto.com Exchange

Crypto.com also has a desktop version that offers somewhat different features. Here, you can stake your CRO for a passive income or deposit to Crypto.com Supercharger, which you can read more about in our dedicated article.

You must lock your CRO for six months for the CRO staking in the exchange. After that, you will get lower trading fees and more rewards.

You can get a 2% deposit bonus up to 500 CRO when you sign up via us to the Crypto.com exchange, a web application different from the mobile application.

Crypto.com Pros

– High interest rate on your locked CRO

– Additional benefits like the Crypto.com Supercharger and lower trading fees

Crypto.com Cons

– You have to lock your CRO stake for 180 days, which you can unlock earlier, but then you will not receive any accumulated interest rate

Kraken Bitcoin BTC Interest Rate

Kraken offers two ways to earn rewards on your Bitcoin holdings:

  • On-chain staking
  • Opt-In Rewards

Kraken On-chain Staking

Utilizes blockchain Proof-of-Stake protocol to generate rewards through a process typically called “staking”. 

It allows you to earn rewards instantly without any waiting or bonding periods. Using flexible terms, you can stake your assets in just three clicks from your Kraken balances and un-stake them instantly. 

The rewards rate varies according to the rules of the Ethereum protocol, and Kraken will continue to distribute weekly rewards on a variable rate that reflects what they’ve earned on-chain minus their fee. 

The rewards are not auto-compounded and will be added to your spot balance.

Kraken Opt-In Rewards for Bitcoin, USDT and USDC

Utilizes assets as described in Kraken’s terms of service. It is a separate feature from on-chain staking and is unavailable for all assets. The rewards rate varies depending on the asset held, and the user must opt-in to receive the rewards.

Read Kraken VS Coinbase Staking

What is Bitcoin?

Bitcoin is a decentralized digital currency created in January 2009.

 The white paper from 2009 describes the idea and technical details of Bitcoin.

The title was “Bitcoin: A peer-to-peer electronic cash system,” released by the anonymous and pseudonymous Satoshi Nakamoto.

Bitcoin offers (compared to the traditional currency system)

  • Decentralized Authority (No central authority dictates the protocol)
  • Finite Supply (No more than 21 million Bitcoin will ever be created)
  • Full Transparency (The ledger of all transaction history is publicly available)
  • Fast international transactions for a low cost
  • No restrictions on who can obtain a Bitcoin account (Inclusion into the financial system)
  • No single point of failure (In practice, impossible to hack the system)
See an introduction video about Bitcoin below.

Bitcoin Interest Account and Risks

All investments involve a particular risk. It´s a part of their definition.

However, the difficult part is to identify and quantify the risks. Therefore, we will help you to identify some risks. Still, the quantification is very individual based on factors such as (what time horizon you invest for, how much of your total portfolio you invest, how you diversify your investments, etc.)

These risks are associated with a Bitcoin interest account on a 3rd party account. A 3rd party is an online crypto lending platform or exchange like Binance Earn and NEXO.

  • The 3rd party can go bankrupt. For example, CRED, Celsius, BlockFi, several crypto interest account providers, went bankrupt.
  • The company can be hacked, which has happened to several exchanges, including Binance, Bitfinex, Bitstamp, etc. However, almost all crypto exchanges have managed to refund in different ways after a hack. Mt Gox is an exception.
  • For example, the company can be a scam seen by many cloud mining companies.
  • Custody of keys. Your private keys function as a verification mechanism embedded in your crypto wallet, and you give them up once you deposit them to a 3rd party platform. A famous among cryptocurrency enthusiasts is “Not your keys, not your coins“.

Read our dedicated article about crypto risk management strategies in 2022.

Cryptocurrency Investment Risks

The risks mentioned above are only associated with interest-earning products and the risks that come with investing with them, especially 3rd party investment platforms.

However, you should be aware of certain risks with just investing and holding cryptocurrencies.

Some of these risks are

  • Cryptocurrencies are volatile since it’s still a relatively new investment class.
  • The taxable events of cryptocurrencies are still uncleared for some assets and transactions, even though there are some clarifications for the prominent cryptocurrencies and the major transaction categories.
  • Some people report problems exchanging into fiat currencies and depositing into a traditional bank account. Conventional banks have started to make AML controls harder.
Read more about crypto risk management.

How to pay tax on Bitcoin BTC interest Payouts?

You have to pay tax on your Bitcoin BTC interest payouts. Report crypto tax is a straightforward procedure if you create an account with crypto tax software.

Crypto tax software can help you automatically import all your transactions via an API and categorize them accordingly to the correct tax category.

In addition, you can manually add transactions via a CSV file.

We recommend Koinly and Cointracking as crypto tax software, and they support 20+ countries and offer a free version.

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No Financial Advice, Information only. Do your own research

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