In this article, we list the best Solana SOL interest rate so you can earn the highest ROI on your SOL holdings.
Solana is a very promising proof-of-stake network where a lot of applications are being built on.
It´s very important to get the best interest rate on your SOL since this will have large impact on your long term holdings. Also, don´t forget to check out all opportunities to earn crypto passive income if you hold more cryptocurrencies than SOL.
Here, we will list all the best possibilities to earn Solana SOL interest and passive income. However, if you are interested in the fundamentals about crypto passive income, you might want to read our guide on how to earn interest on cryptocurrency 2021.
No Financial Advice, Information only. Do your own research
List: the Best Solana SOL interest rates
In the list below, you can see the best Solana SOL interest rate from Binance and MyCointainer.
Binance is the largest crypto exchange with many different products, including Binance Earn, where you can earn interest rate on your crypto holdings.
MyCointainer is mainly a staking service but it also has other features, like an exchange and aidrops.
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Binance - Best Solana SOL interest rate
Binance is offering the best Solana SOL interest rate, 9.9%. To get this interest rate on your SOL coins you need to lock them for 60 days in the Binance Earn locked staking section.
As you can see in the table below, you can get other Solana SOL interest rates on Binance if you don’t like to lock your funds for a certain period of time.
Binance Earn Pros and Cons
- Binance has the best Solana SOL interest rate among many other great interest rates for other cryptocurrencies
- Binance is the worlds largest crypto exchange
- You will have to lock you funds for 60 days to receive the best Solana SOL interest rate
Binance Earn with the best interest rates
Kraken Solana SOL staking interest rates
It´s possible to stake your Solana SOL on Kraken to earn an interest of 6.5%.
Kraken is among the largest regulated crypto exchanges on the market. Also, they have lower fees and better interest rates and staking rewards than Coinbase. On top of that, they also have more alternatives than Coinbase.
If you are interested in earning staking rewards with Kraken, go ahead and read about the best Polkadot DOT interest rates at Kraken.
Also, yo can read more about Kraken in our Kraken review.
Earn Solana SOL interest with MyCointainer
With MyCointainer, you can get a good interest rate on your Solana SOL holdings of 7.2%.
There are no lock up periods on MyCointainer.
MyCointainer is an automatic staking and masternode staking platform for users to generate staking rewards in the form of tokens.
With MyCoinTainer you can stake multiple Proof-of-Stake crypto assets in one single place.
In addition, MyCoinTainer is offering additional services to it´s customers
- They have a built-in exchange
- Give the possibility to earning with community initiatives by assisting in developing the platform;
- They inform customers about giveaways
- They share the latest insights into the world of crypto
MyCointainer OU is an Estonian company supported by the Ministry of Economic Affairs and Communication.
It is also regulated by the Financial Intelligence Unit (FIU) and possesses a license for providing exchanging services and wallet management. The platform is available in 8 languages and supports mobile staking – crypto enthusiasts can track their rewards in the applications both on Android and iOS devices.
MyCoinTainer has the best Terra LUNA interest rate and staking rewards.
What are the risks with Solana Sol interest rates?
As for any investments, investment in cryptocurrencies involve a certain risk. On top of that, invest cryptocurrencies in yield products, like interest accounts or staking, adds another layer of risk.
Always weigh the risk versus the rewards before you invest in something.
Never invest what you can´t afford to lose.
Let´s summarize some of the risks you faces with Solana SOL interest products:
- The company you deposit into can go bankrupt
- The company you deposit into can be hacked
- The cryptocurrency you own can loose in value (Also, some of the above companies have lock up periods and you might not be able to sell in time)
How to minimize the risks?
One important thing to handle is risk diversification.
Some examples of risk diversification are
- Limit you crypto exposure risk by not invest all your savings into cryptocurrencies
- Invest in more than only 1 cryptocurrency
- Do not invest all your cryptocurrencies into the same exchange or interest saving account
Read more about crypto risk management.
Where to buy or sell Solana SOL?
Now, when you are ready to earn the best Solana SOL interest rates you probably ask yourself how to buy SOL?
Well, there are two great crypto exchanges for buying SOL
- 1 for non US residents
- 1 for US residents
Best place to buy Solana SOL for non US residents
It´s easy to find the best place to buy or sell Solana SOL cryptocurrency. Follow these steps
Best place to buy Solana SOL for US residents
You will also find Coinbase Exhcnage in the screenshot below. Coinbase is the worlds largest regulated crypto exchange and a great way to buy Solana SOL.
You also might want to check Kraken exchange if you are US resident.
What is Solana?
Solana is the fastest blockchain in the world and the fastest growing ecosystem in crypto, with over 400 projects spanning DeFi, NFTs, Web3 and more.
Is Solana infliationary? Solana Tokenomics
It´s very important to understand the inflationary rate and the basic tokenomics for a cryptocurrency or a token before you can decide, whether or not, the interest rate is good.
Simply, because if the inflationary rate is higher than the interest rate you actually lose your total ownership of the market value over time.
Make sure you interest rate exceeds or equals the inflationary rate of the cryptocurrency.
Solana’s initial inflation rate is 8% annually, decreasing by 15% year-over-year, reaching a long-term fixed inflation rate of 1.5% annually.
This is very important to understand, especially when you compare how much you can earn between different cryptocurrency projects. Some might have a very good yields which will give you a great ROI in the number of coins. However, if the inflation rate exceeds the interest payouts your investment might lose in value over time.
For more information regarding Solana and it´s tokenomics, see the video below published by CoinBureau.
How to Pay tax on Solana SOL interest earnings?
Yes, you have to pay tax on your Solana SOL interest earnings. However, its not obvious how you should report tax on your interest earnings.
Luckliy, this is an easy procedure with one of the best crypto tax software out there. We recommend Koinly simply because is the most use friendly interface we have tested. In addition, they support 20+ countries and basically all exchanges and wallets out there.
In addition, there free version is one of the best we have seen.