This article discusses finding the best Solana APY interest rate and staking rewards.
- List of the best places to deposit Solana SOL for interest rates and rewards
- Review and summary of each interest-earning opportunity
- Risks and strategies for earning interest
- Where to buy Solana SOL?
No Financial Advice, Information only. Do your own research
List: the Best Solana SOL APY 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 an interest rate on your crypto holdings.
MyCointainer is mainly a staking service, but it also has other features, like an exchange and airdrops.
We believe depositing into crypto interest accounts is the best crypto HODL long-term investment strategy for beginners.
*Sign up bonus with terms and conditions
**Reduction in fees
Solana SOL Interest APY VS Staking Rewards
It’s very important to understand the Solana SOL interest APY and Solana staking rewards.
- Solana SOL interest APY is earned by depositing your cryptocurrencies into a 3rd party company. This company now has custodial over your Solana SOL coins and can lend them or stake them to earn interest or rewards to pay the agreed interest rate to your account
- Solana SOL staking rewards are earned when you secure the network by staking your cryptocurrencies. Staking can be done directly on-chain or via a 3rd party.
YouHodler Solana Lending Rate 10%
- Basic: 4%
- Jumpstart: 8%
- Silver: 9%
- Gold: 10%
- Platinum: 11%
- Diamond: 12%
- VIP: 13%
Binance Earn – The best Solana SOL interest rate
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.
In addition to great interest rates, Binance offers among the lowest trading fees and the best cashback for a Binance VISA debit card.
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 world’s largest crypto exchange
- You will have to lock your funds for 60 days to receive the best Solana SOL interest rate.
Binance Earn Solana SOL Locked Staking Periods, APY and Quota
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, better interest rates, and staking rewards than Coinbase. On top of that, they also have more alternatives than Coinbase. See full review, Kraken staking rates VS Coinbase staking rates.
Also, you can read more about Kraken in our Kraken USA crypto exchange review.
Kraken Pros and Cons
- Good staking rewards
- Among the lowest fiat EUR and USD withdrawal fees and exchange fees
- Regulated and licensed US crypto exchange
- Polkadot DOT parachain auctions listed
- Few cryptocurrencies available for staking rewards
Earn Solana SOL interest with MyCointainer
With MyCointainer, you can get a reasonable interest rate on your Solana SOL holdings of 7.2%.
In addition, there are no lock-up periods on MyCointainer.
MyCointainer is 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 its 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.
Crypto.com App Solana SOL interest Rates
With the Earn feature in the Crypto.com app, you can interest rate on your Solana SOL holdings.
How much interest you earn on your Solana SOL depends on two things.
- How much CRO have you staked
- For how long do you lock your funds (flexible, one month, three months)
Crypto.com Earn Pros and Cons
- Great sign-up bonus of $25
- High-interest rates (If you stake CRO and lock your funds)
- User-friendly app
- Crypto.com Supercharger CRO staking feature
- Many cryptocurrencies
- Crypto.com is offering the best Crypto debit VISA card cashback and rewards.
- You have to stake CRO and lock your funds to receive the best interest rates.
Crypto.com SignUp Bonus
When you signup with Crypto.com via our referral link and stake CRO for a Ruby metal VISA card ($400) you will get $25 in a welcome bonus. The ruby card will give you 2% cashback on all purchases and 100% back on Spotify.
NEXO Wallet Solana Interest Rates APY
NEXO has among the best Solana SOL interest rate APY. You can earn up to 8% yearly interest on your SOL deposits here. In addition, NEXO is a relatively safe, regulated, licensed crypto interest account company.
The base interest rate is 4%, but there is a possibility to reach up to 8% by making these three bullet points
- 1-10% of all holdings in the NEXO token
- Chose to receive all interest payouts in the NEXO token
- Lock your funds (Usually for one month at a time)
NEXO Wallet Pros and Cons
- High crypto and stablecoin interest rates
- Daily compound interest payouts
- Great app and desktop interface
- Exchange feature
- Good fiat on-ramp possibilities
- High fiat interest rates
- NEXO crypto Mastercard
- High requirements to receive the best interest rate (Read more in our linked NEXO wallet review above)
What are the risks with Solana Sol interest rates?
As for any investments, investments in cryptocurrencies involve a specific risk. On top of that, investing 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 face 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 lose in value (Also, some of the above companies have a lock-up period, and you might not be able to sell in time)
How to minimize the risks?
One crucial thing to handle is risk diversification.
Some examples of risk diversification are
- Limit your crypto exposure risk by not investing all your savings into cryptocurrencies
- Invest in more than only one cryptocurrency
- Do not invest all your cryptocurrencies into the same exchange or interest-saving account.
Read more about crypto risk management.
Solana SOL Investment Strategy 2023 – HODL
Cryptocoinzone is about HODL your cryptocurrencies to earn interest or staking rewards on them.
There is no best investment strategy that applies to everyone. However, HODL is probably on the table as an alternative for everyone since it is a passive form of investment and doesn’t require a lot of time.
Some pros of HODL
- HODL doesn’t create taxable events
- HODL decreases the volatility in your portfolio (compared to trading)
- HODL decreases how feelings can affect your portfolio (compared to trading)
- While you HODL you can earn interest on your cryptocurrencies
Read more about HODL as the best crypto investment strategy in 2022.
Where to buy or sell Solana SOL?
When you are ready to earn the best Solana SOL interest rates, you probably ask yourself how to buy SOL.
Well, there are three great crypto exchanges for buying SOL
- 1 for non-US residents
- 2 for US residents and non-US residents
*Reduction in fees
**Available sign up bonuses
Best place to buy Solana SOL for non-US residents
Finding the best place to buy or sell Solana SOL cryptocurrency is easy. Follow these steps
Best place to buy Solana SOL for US residents
You will also find Coinbase Exchange in the screenshot below. Coinbase is the world’s largest regulated crypto exchange and a great way to buy Solana SOL.
You also might want to check Kraken exchange if you are a US resident.
What is Solana?
Solana is the fastest blockchain globally and the fastest-growing ecosystem in crypto, with over 400 projects spanning Defi, NFTs, Web3, and more.
Is Solana inflationary? Solana Tokenomics
Understanding the inflationary rate and the basic tokenomics for a cryptocurrency or a token is essential before deciding whether the interest rate is reasonable.
If the inflationary rate exceeds the interest rate, you lose your total ownership of the market value over time.
Ensure your 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 important to understand, especially when comparing how much you can earn between cryptocurrency projects. Some might have an excellent yield, giving you a great ROI in the number of coins. However, your investment might lose value if the inflation rate exceeds the interest payouts.
Solana SOL VS Ethereum ETH
What is the difference between Solana SOL and Ethereum ETH?
- Ethereum is older and more decentralized than Solana
- Ethereum is more secure than Solana
- Solana is faster than Ethereum
- Ethereum used to be proof-of-work but is transitioning into proof-of-stake, similar to Solana.
- Solana is cheaper than Bitcoin
Read about the best Ethereum ETH interest rates and staking rewards.
Solana SOL VS Bitcoin BTC
What is the difference between Solana SOL and Bitcoin BTC?
- Solana is a proof-of-stake network, while Bitcoin is a proof-of-work network.
- Solana is much faster and more scalable than Bitcoin.
- Bitcoin is way more decentralized than Solana
- Bitcoin is far more secure than Solana because it’s more decentralized and because of the proof-of-work network.
- Solana has lower fees than Bitcoin
- Solana has more inflation than Bitcoin
How to Pay tax on Solana SOL interest earnings?
Yes, you have to pay tax on your Solana SOL interest earnings. However, how you should report tax on your interest earnings is not obvious.
Luckily, this procedure is straightforward with one of the best crypto tax software. We recommend Cointracking or Koinly because they have the most user-friendly interfaces we tested. In addition, they support 20+ countries and all exchanges and wallets out there.
In addition, they both have a free version.