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The Best High-Interest Crypto Accounts for Beginners and Experts

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Apr. 25 2022, Published 9:49 a.m. ET

What if you could get paid for simply holding cryptocurrency? That’s the idea behind high-interest crypto accounts, which are quickly gaining popularity. Which is best for you depends on your preferences.

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An interest-bearing crypto account can be a great way to generate passive income in the crypto market. Many investors are adopting them as they look beyond capital gains for a return on their investments.

How crypto interest accounts work

Crypto interest accounts, also called crypto savings accounts, are similar to bank savings accounts. Some providers have a minimum investment requirement, while others will let you start with any amount you can afford. The provider then lends out the funds you put into the account. Borrowers are required to pay back their loan with interest, and as a compensation for funding the loan, you get a cut of the interest.

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Some programs will earn you interest on a daily basis, whereas others have monthly payout plans. Some accounts may require you to lock in your funds for a fixed period.

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Crypto deposits are also allowed in some accounts. The interest you earn can be in the form of the cryptocurrency you put in or the program’s in-house token. Other programs seek to make it easier for beginners to participate in interest-bearing crypto investments, allowing them to deposit U.S. dollars or other fiat money and invest those funds in crypto products. When it's time for the interest payout, it's paid in the fiat currency you deposited.

What are the best crypto interest accounts?

Crypto savings plans vary by interest offered, cryptocurrencies supported, and lockup requirements. For many investors, the best accounts are those that offer high yields. Some popular interest-bearing crypto savings programs are the following:

  • BlockFi's interest account (on pause in the U.S. because of regulatory issues).

  • Lendingblock.

  • Outlet Finance.

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Store your crypto with BlockFi to earn interest

In addition to letting you trade Bitcoin and a range of other cryptocurrencies, BlockFi lets you earn on your crypto holdings. Its crypto savings account offers interest as high as 10 percent and lets you earn interest on Ethereum, Litecoin, and Bitcoin Cash.

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It also supports Dogecoin, Algorand, Uniswap, and BAT. BlockFi has a monthly payout plan and the interest is compounded. Unfortunately, BlockFi has paused offering its savings product in the U.S. because of regulatory issues.

Lendingblock promises interest as high as 14 percent on savings accounts

Lendingblock provide loans to those in need of it, using the money users deposit into their accounts. When the borrowers pay back with interest, you get a cut of it.

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Lendingblock promises interest as high as 14 percent on its savings accounts, and the rates are even more competitive if you’re staking the platform’s in-house LND token. Lendingblock’s interests are calculated daily. The program accepts Bitcoin, Ethereum, and Tether USDT deposits. Lendingblock offers fixed-term plans that require you to lock in your funds for six months at a time.

Outlet Finance lets you deposit fiat money

If you don’t already have some crypto but would like to participate in an interest-bearing crypto program, Outlet Finance would be a great fit for you. It lets you deposit U.S. dollars and invests the funds you provide into interest-bearing crypto products. You get paid in the U.S. dollar.

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