We explain a Bitcoin interest account and how you can earn a passive income while you HODL.
You might own Bitcoin or thinking of buying it but don’t know what to do with them.
A great alternative is to deposit them into an interest account to earn some passive yield why you hold them.
However, such a deposit comes with certain risks and is not protected by any deposit insurance.
No Financial Advice, Information only. Do your own research
What is a Bitcoin interest Account?

A Bitcoin interest account is where you can deposit and store your Bitcoin to receive interest on a regular basis in a passive manner.
Bitcoin Interest VS Savings Account

A Bitcoin interest account is the same as Bitcoin savings account with interest. However, you can also have Bitcoin savings account with no interest.
If you receive no interest on your Bitcoin savings account, you should consider storing your Bitcoin in the safest account possible. Unfortunately, many people thinnest the way to keep Bitcoin on other cryptocurrencies is on a hardware USB cold wallet.
Bitcoin Interest VS Mining Rewards

A Bitcoin interest account can generate a yield similar to mining, but the funds’ sources are entirely different.
Bitcoin miners receive a reward because they contribute computing power to the network. These funds come from built-in inflation in the Bitcoin system. There is also cloud mining, where you can buy or rent a miner’s share and receive the payout.
Bitcoin Interest Account VS Staking Rewards
Since Bitcoin is a proof-of-work network, there are no staking rewards in the Bitcoin system.
However, for other blockchains like Solana, you can earn passive income by depositing to a Solana interest account or by staking them on-chain.
How much can I earn with a Bitcoin interest account?
There are many different payout models for Bitcoin interest accounts. For example, many companies offer a yield between 3-8% APY for your deposited Bitcoin.
However, remember to compare before you deposit.
To achieve the highest APY, you usually need to reach the highest loyalty level and option to receive the payout in the native token of the platform.
In addition, some platforms with tier levels (BlockFi, YouHodler, Binance ,etc.) have a maximum quota per interest level.
Are there any risks with a Bitcoin interest account?
As for any investment, there are risks associated with a Bitcoin interest account.
When you deposit your Bitcoin into an interest account, you give up the private keys to a 3rd party, and this transaction makes your Bitcoin exposed to that 3rd party and all risks connected to that 3rd party company.
Some of the risks are
- The company can be a fraud or a Ponzi scheme
- The company can run bad business and go bankrupt
- The company can get hacked
- The company might not be able to adopt to the incoming new crypto regulations
Is Bitcoin Interest Account Risk Worth it?
There is no easy answer to such a question because there are too many personal aspects to consider to be able to answer it.
Still, you should always research and be aware of the risks. Several Bitcoin lending platforms have gone bankrupt (CRED, BTCjam, Celsius).
Read more about how to minimize risk and diversidy your investments in our article about crypto risk management.
Best Bitcoin BTC APY Interest accounts
The best Bitcoin APY interest accounts are listed and summarized in the table below.
For the full article, see the best Bitcoin APY interest accounts.
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**Reduction in fees
- Allow US residents to earn interest