Investing in cryptocurrencies and cryptoassets is high risk. Do not invest unless you are prepared to lose all your invested money. This is a high-risk investment and you should not expect to be protected if something goes wrong.Investing in cryptocurrencies and cryptoassets is high risk. Do not invest unless you are prepared to lose all your invested money. This is a high-risk investment and you should not expect to be protected if something goes wrong.
Cryptocurrency savings and high-yield accounts remain very popular due to their ease of use while still having real crypto exposure.
Cryptocurrency savings accounts can be a way to dramatically increase your rate of return.
But these accounts don't have the same security as a savings account at a bank or credit union. Before you decide to invest, it's important to understand how cryptocurrency savings accounts work and their pros and cons.
Once you understand how these accounts work, you'll also want to know where you can get the best yield. In this guide, we answer your most burning questions about crypto-based savings accounts and introduce you to our top picks for 2024.
What are the top cryptocurrency savings accounts?
Below you'll see the top crypto-based savings accounts and their advertised highest yields for various cryptocurrencies. Read a little more to learn more about each company (including some limitations).
Note: Yields shown are as of March 29, 2024. The University Investor Team updates this information regularly (usually Monday through Friday). Prices may have changed since last updated and may vary by region for some products.
These yields are subject to change at any time. If you notice any differences, please let us know in the comments.
Kucoin
KuCoin is one of the most popular cryptocurrency exchanges and has a great savings product called Earn KuCoin. Earn cryptocurrencies at high APY by storing, staking, or taking advantage of promotional offers.
KuCoin Earn has more assets to earn than most other companies on this list. Currently, you can earn 7.48% APY on USDC and 0.04% APY on BTC. They also have other assets with much higher APYs.
Read the full KuCoin review here.
Get started with KuCoin here >>
To support
Uphold has been a solid cryptocurrency exchange for a few years now, and they also offer great staking rewards that you can earn with cryptocurrencies. They also make a point of saying, “They will never lend you your money.” This is a nod to some crazy things that happened with some cryptocurrency savings accounts.
You can currently earn up to 14% APY on your crypto assets. However, the assets from which you can earn income are different.
Note: Uphold no longer supports staking for US-based customers.
Read the full Uphold review here.
Get started with Uphold here >>
nexo
Nexo boasts minimal lock-up times (less than 24 hours) and third-party guarantees on your crypto assets. This makes it an attractive option with very high yields on USD and the best interest rates on cryptocurrencies. Currently, you can earn up to 8% on stablecoins and up to 3% on Bitcoin.
However, it is not clearly disclosed how much investment is required to achieve the highest rate of return.
Additionally, you can currently earn a $25 BTC bonus when you open a new account, complete advanced verification, and deposit at least $100 in supported assets onto the platform. Nexo balances must be maintained for at least 30 days.
Note: Nexo has suspended its Earn Interest product for new US-based customers. Existing customers can still earn and withdraw, but cannot add further deposits.
Read the full Nexo review here.
Get started with Nexo here >>
coinbase
Coinbase is best known as a digital wallet. But for some customers, it also functions as a digital cryptocurrency savings account. Eligible US-based customers can earn up to 5.05% APY on USD Coin (USDC).
Unlike other companies on this list, Coinbase does not lend to USDC. Instead, this is a way to earn a small amount of interest while waiting to trade your cryptocurrencies. Additionally, when opening a new account as a new customer, he can earn his BTC bonus of $10 the first time he deposits $100.
Read the full Coinbase review here.
Get started with Coinbase here >>
Crypto.com
Crypto.com advertises the highest interest rates on the market. However, the conditions for obtaining these rates are very specific. Investors who own small amounts of cryptocurrencies may find better yields outside of Crypto.com.
The platform pays interest on 15 traditional cryptocurrencies and 8 stablecoins. Yield is based on daily simple interest. And to get the best yield, you need to stay invested for at least 3 months.
Read the full Crypto.com review here.
Get started with Crypto.com here >>
you hodler
YouHodler's crypto-based savings account has a high yield and appears to offer a lot of protection to investors. Currently not available in the US, but available in the UK, EU, Eastern Europe, and Asia (China, Japan, and South Korea).
The company allows savers to withdraw from the platform at any time. However, the minimum investment amount is 100 USD.
Read the full YouHodler review here.
Get started with YouHodler here >>
Reddon
Ledn is a crypto lending platform that brands itself as a cryptocurrency savings account. There are several different options for earning interest on cryptocurrencies, with some promising rates available.
Currently, you can earn up to 10.00% on USDC and up to 3% on BTC.
USDC has two tiers.
- 0-100,000 earn 8.5%
- Over 100,000 get 11%
BTC has two tiers.
- 0 – 2 BTC earn 1.00%
- Earn 3% on 2 BTC or more
Read the full Ledn review here.
Get started with Ledn here >>
Crypto Savings Account vs. Savings Account
What are the main differences between a cryptocurrency-based savings account and a regular savings account? Here are some points that distinguish them.
FDIC insurance
Your bank savings account is FDIC insured for $250,000. There are also ways to get more insurance.
However, no federal insurance will be provided for cryptocurrency-based savings accounts.you can You lose the money (or cryptocurrency) in this savings account. Therefore, you should think of it as an investment rather than a savings.
key access
With a savings account, your money is completely yours. In a crypto-based savings account, your crypto keys are lent to others who can use your crypto for a set period of time. In return, the borrower promises to pay interest on the cryptocurrency you lend.
yield
Cryptocurrency yields range from around 4% to over 8%. This is significantly higher than the yield on traditional savings accounts.
This is because crypto banks cannot “create money supply” and therefore need to attract investors with high yields. The demand and supply of cryptocurrency loans determine interest rates.
Withdrawal restrictions
Traditional savings accounts allow you to withdraw your money up to six times per month without penalty. However, cryptocurrency savings accounts may have stricter limits on the frequency and amount of withdrawals. Unfortunately, there is no standardized guidance regarding withdrawal limits, so it is difficult to generalize in this regard.
compound interest
One strange aspect of certain crypto-based savings accounts is that the interest may not compound. This means that your initial deposit grows over time, but the interest on that growth is not compounded. You basically have to pay interest or trade to realize a profit.
related: How does compound interest work?
Crypto Savings Account vs. Cryptocurrency Wallet
How are crypto-based savings accounts different from crypto wallets? These are the biggest differences you'll want to be aware of.
interest
If you have Bitcoin or other forms of cryptocurrency in your wallet, the number of coins you own will not change over time. In a crypto-based savings account, the number of coins you own increases over time (unless the crypto bank fails).
Key ownership
Often with cryptocurrency savings accounts, depositing coins means giving up access to your keys. This allows the exchange to lend your crypto to other individuals. Some crypto investors find this unacceptable and choose to avoid savings accounts altogether.
safety
This is a matter of debate among crypto investors, with some believing that crypto wallets are a very weak form of security. If you lose your phone, you can lose all your money. Even if you have multi-factor authentication set up on your wallet, you can still lose everything.
In contrast, crypto banks have built-in redundancy to protect their cryptographic keys. These institutions are taking bank-level security to the next level.
Want to make money with a cryptocurrency savings account?
When you deposit your money in a crypto-based savings account, you can expect to earn interest, but the yield will be in the cryptocurrency of your choice. If your goal is to earn USD, you may not get the results you want.
Of course, some large crypto banks are offering great yields (as high as 8.6%) on USDC coins, which are very close to the US dollar. That said, sudden fluctuations in the demand for USDC (especially a drop in demand) can ruin your initial investment and subsequent returns.
Some cryptocurrency savings accounts (such as Linus and Outlet Finance) do not require users to have any cryptocurrency. Instead, investors deposit US dollars and receive interest in dollars. However, these accounts have the same risk profile as other cryptocurrency accounts. Investors are still exposed to volatile crypto markets.
After all, cryptocurrencies have risk characteristics that government-backed money doesn't have. While the returns may be impressive, they are not guaranteed. However, if you already own (or want to own) cryptocurrencies, I think a cryptocurrency savings account is worth it.
Why should you trust us?
We've been writing and covering various aspects of the cryptocurrency space since 2016. We have reviewed and personally tested many products and services in the larger cryptocurrency market, including all of the services on this list.
Additionally, our compliance team reviews and checks the accuracy of these rates and services on a weekly basis.
Should you “save” your money in a cryptocurrency savings account?
All these “savings” accounts have something in common. It's actually an investment. While it's exciting to imagine returns in the 4-10% range, these returns are not guaranteed. Each crypto-based savings account is exposed to a highly volatile cryptocurrency investment market.
If you believe in the future of cryptocurrencies, opening a cryptocurrency savings account can be a great way to diversify your investment portfolio. However, if you're looking for an actual FDIC-insured savings account for your emergency fund, these are our favorite high-yield options.
