How to earn interest on crypto: Your options compared
Your crypto can work while you hold it
You can earn interest on crypto in four main ways: a crypto savings account with a centralised platform, a fixed-term savings product, staking on a proof-of-stake network, or lending through a DeFi protocol.
Each works differently and carries different risks. Interest is usually paid in the same asset you hold, so you earn more crypto rather than more dollars.
You can now earn daily interest on Bitcoin, Ethereum, stablecoins, and other assets while maintaining control over your holdings.
This guide breaks down how earning interest on crypto works, the methods available, and what to consider when choosing where to earn.
Ways to earn interest on crypto compared
Method | How it works | Access to your crypto | Typical rates | What to check |
|---|---|---|---|---|
Crypto savings account (flexible) | Add assets to a platform's savings product and earn interest on your balance | Any time | Lower than fixed-term | The provider: custody, audits, licensing |
Fixed-term Savings | Commit assets for a set term in exchange for a higher rate | Committed for the term (e.g. 1–12 months) | Higher than flexible | The provider; no access until the term ends |
Staking | Network rewards for helping validate a proof-of-stake blockchain (e.g. Ethereum, Solana) | Often an unbonding period | Set by the network | Price risk; slashing; unbonding delays |
DeFi lending | Supply assets to a smart-contract protocol and earn a variable rate | Usually any time | Varies with demand | Smart contract risk; no client care if something breaks |
Liquidity pools | Trading fees from a decentralised exchange | Any time | Highly variable | Impermanent loss; smart contract risk |
For network rewards, see what is crypto staking. For the DeFi side, see what is DeFi.
How does earning interest on crypto work?
When you add crypto to a savings product, you earn interest on your balance at a rate set by the platform. Rates depend on the asset, how long you commit, and on some platforms your loyalty level.
Interest can be paid daily, weekly or monthly. When it's paid daily and added to your balance, it compounds: tomorrow's interest is calculated on today's balance plus the interest you've already earned.
Method 1: Flexible Savings (earn with access)
Flexible Savings on Nexo gives you full access to your funds at any time while earning daily compounded interest that's credited automatically.
There's no lock-up period. Your crypto stays accessible for trading, spending, or even withdrawal, but it earns interest every day it remains in your account.
Who does this work for:
People who might trade occasionally or use crypto for payments and enjoy watching their balance grow daily as interest accumulates automatically.
On Nexo, you can:
- earn up to 5.5% on Bitcoin*
- earn up to 10.5% on stablecoins like USDC*
- earn varying rates on 40+ supported assets
- Interest is paid out automatically every day to your account, credited to your Savings Wallet, where you begin earning on your holdings, plus the accrued interest.
*Interest rates vary by jurisdiction and Loyalty Tier, and are subject to change. To earn interest, you need a portfolio balance of at least $5,000. Interest starts accruing 24 hours after you add assets
Method 2: Fixed-term Savings (higher rates for commitment)
Fixed-term Savings allows you to commit your digital assets for a predefined period to accrue extra interest, with terms typically ranging from one to twelve months.
Who does this work for:
People who think in seasons, not days, and want their savings to compound quietly in the background.
On Nexo, you can:
- Choose 1, 3, or 12-month terms
- Earn higher rates than Flexible Savings
- Auto-renewal option available — your term is prolonged for the same period once the interest payout is completed, so you continue to earn without interruptions
Fixed-term Savings suits assets you don't plan to touch for a while. The trade-off is access: your assets stay committed until the term ends.
Method 3: Stablecoins: earn on assets pegged to the dollar
Stablecoins often earn some of the highest rates in crypto. Because they track the US dollar, the value of your interest is more predictable than with Bitcoin or Ethereum, but a stablecoin can lose its peg.
On Nexo, you can:
- earn up to 10.5% annually on USDC*
- Daily compounding creates steady incremental growth, with each day's interest becoming part of the next day's principal
*Interest rates vary by jurisdiction and Loyalty Tier, and are subject to change.
Method 4: Compounding strategies
Daily compounding is the key — each day's interest becomes part of the next day's principal, creating steady incremental growth.
But you can amplify this effect:
Reinvest interest automatically — With Nexo's auto-renewal option, both principal and earned interest can roll into a new term automatically, ensuring continuous compounding without manual action.
Earn in NEXO Tokens for extra interest — Opt to earn your interest in NEXO Tokens for up to 2% extra interest on top of base rates, depending on your Loyalty Tier.
Combine Flexible and Fixed-term Savings — Many clients combine both — keeping some assets liquid in Flexible Savings while using Fixed-term Savings to boost their overall yield.
To see what your balance could earn, try the crypto interest calculator.
What to know before you start earning
Here's what matters:
Rates are variable: Interest rates can change based on market conditions, asset type, and platform policies. Make sure to always check current rates.
Asset volatility: If the value of your cryptocurrency drops, your overall portfolio value decreases, though you still earn interest based on the amount of crypto you hold, not its value
Choose your provider carefully: check how it holds client assets (for example, with established custodians such as Ledger and Fireblocks), whether it's independently audited, and where it's licensed.
Smart contract risk (DeFi): if the code of a DeFi protocol is exploited, deposited funds can be lost, and there's usually no one to contact.
Tax considerations: Interest earned from a crypto is typically considered taxable income. Consult a tax professional for advice specific to your situation.
Holding Bitcoin? See our dedicated guide to earning interest on Bitcoin. And if you're wondering whether any of this makes sense, read is earning interest on crypto worth it?
Frequently asked questions
1. Is it safe to earn interest on crypto?
Earning interest on crypto carries some risk: the asset's price can fall, rates can change, and in DeFi, smart contract bugs can lead to losses. With a centralised platform, check how it holds client assets, whether it's independently audited, and where it's licensed.
2. What's the difference between Flexible and Fixed-term Savings?
Flexible Savings gives you access to your funds at any time while earning daily interest. Fixed-term Savings let you earn higher rates by committing assets for a set period.
3. Can you earn interest on Bitcoin?
Yes. Platforms like Nexo offer up to 4.5% annual interest on Bitcoin with daily payouts. Rates depend on your Loyalty Tier, jurisdiction, and may change in the future. Interest compounds automatically as long as Bitcoin remains in your account. See how to earn interest on Bitcoin.
4. Which crypto earns the most interest?
Stablecoins typically earn the highest rates. Rates on Bitcoin and Ethereum are lower but still competitive.
5. How often is crypto interest paid?
It depends on the platform. Some pay monthly or weekly. On Nexo, interest is paid daily and added to your balance, so it compounds every day.
6. How is interest on crypto taxed?
Interest earned from crypto is typically considered taxable income. Tax treatment varies by jurisdiction, so consult a tax professional for guidance.
7. Is crypto interest the same as staking?
No. Staking rewards come from a proof-of-stake network for helping validate transactions, and only some assets can be staked. A crypto savings account pays interest at a rate set by the platform, and it's available on assets that can't be staked, such as Bitcoin and stablecoins.
8. Do you need to commit your crypto to earn interest?
No. Flexible Savings lets you earn interest with full access to your funds. Fixed-term Savings offers higher rates if you commit for 1, 3, or 12 months, but it's optional.
These materials are accessible globally, and the availability of this information does not constitute access to the services described, which services may not be available in certain jurisdictions. Rates are subject to change and may vary by region, loyalty tier, and other applicable factors. Always refer to the Nexo app for your applicable rates. These materials are for general information purposes only and not intended as financial, legal, tax, or investment advice, offer, solicitation, recommendation, or endorsement to use any of the Nexo Services and are not personalized, or in any way tailored to reflect particular investment objectives, financial situation or needs. Digital assets are subject to a high degree of risk, including but not limited to volatile market price dynamics, regulatory changes, and technological advancements. The past performance of digital assets is not a reliable indicator of future results. Digital assets are not money or legal tender, are not backed by the government or by a central bank, and most do not have any underlying assets, revenue stream, or other source of value. Independent judgment based on personal circumstances should be exercised, and consultation with a qualified professional is recommended before making any decision.
Interest rates vary by asset and Loyalty Tier and are subject to change. When terms such as "up to" are used to denote limits, achieving these maximum or minimum thresholds may be conditional on additional actions or fulfillment of certain criteria and requirements that may not be attainable by all clients. To start earning interest, clients in certain jurisdictions must proactively opt in for the service in their Nexo account.