If you want to know the best way to earn interest on Ethereum you’ve landed in the right place. Investors have two main options to earn interest on Ethereum: through staking and high-yield savings accounts. Both methods can dramatically increase the overall value of an investor’s digital asset account over time.
Many of today’s largest and most influential Cryptocurrency exchanges offer their customers opportunities to earn interest on Ethereum. Names like Crypto.com, BlockFi, and Coinbase offer APY rates ranging from 3.5% to 6.5%. Keep reading to see how earning interest on Ethereum can quickly to grow your digital asset stake.
Why Get Involved In Ethereum?
Before consigning a considerable amount of funds to a long-term savings plan, it can be helpul to understand why it might be a wise choice to invest in Ethereum in the first place.
Ethereum (soon to be Etheruem 2.0) is one of the most widely used digital assets today. Ether is more than just a digital asset, however. Built using blockchain, Ethereum is essentially an open-source program that provides many benefits to investors, software engineers, and an entire network of merchants.
Ethereum is a self-run, self-governed platform upon which developers can create dapps and smarts contracts to run on the Ehereum network. The result is a worldwide network of Ethereum-based transactions and tokens that is not controlled by any one person or group.
So, why get involved with Ethereum? In short, we will continue to see the Ethereum network grow, and the value of ether will most likely increase as a result. Creating an investment plan centered on one of the world’s most prevalent digital currencies makes a lot of sense.
Earning Interest On BlockFi With Ethereum
One of the more popular places to earn interest on Ethereum is on BlockFi. Unlike many of the other options available that involve staking, accounts are BlockFi are set up specifically to be interest-bearing accounts. Investors can open an account with BlockFi very easily and the interest begins accruing immediately.
The Ethereum based interest accounts at BlockFi operate on a tier system. Each tier pays out a different amount of interest depending on the amount of ETH in the savings account. Accounts with lower amounts of ETH earn the higher interest rates.
- Less than 15 ETH = 4.5%
- From 15 ETH to 1000 ETH = 2%
- Greater than 1000 ETH = 0.5%
|· Secure platform |
· User Friendly
· Interest is calculated daily
· Funds are Insured
|Lower rates for greater amounts of ETH held in interest account|
Earning Interest On Coinbase With Ethereum
Another popular choice for increasing your Ethereum holdings over time is Coinbase. Like many other exchanges, Coinbase allows investors to stake their ETH holdings for any length of time. While the money is held in the staking account, an interest rate is paid out to the investor in regular intervals.
How to Stake Ethereum on Coinbase
To stake Ethereum on Coinbase, there are a few things that users should do. The first thing to do is to check whether they live in a supported region. At the time of this writing, Ethereum on Coinbase is only available to U.S. customers.
Next, users should create or open an Ethereum wallet on the Coinbase platform. Within the ETH wallet, there are further instructions.
Depending on a number of factors – including place of residence, previous waitlist placement, and ID verification status – some users will be able to take advantage of Coinbase staking right away. Others will have to sign up for the waitlist and wait their turn.
Why Stake ETH on Coinbase?
There are two main benefits to staking ETH on Coinbase: an APY interest rate of 6%, paid out in ETH; and participating in Ethereum’s transition from Ethereum to Ethereum 2.0, also known as ETH2.
|· Industry leading software |
· Good education
· Accessible for investors of all kinds
|· ETH staking rewards are only available in the U.S. |
· Most users must join a waitlist before gaining access to ETH staking
Earning Interest On Crypto.com With Ethereum
Crypto.com also has some interesting options for earning interest on Ethereum. The Crypto.com Earn program is the most notable.
On Crypto.com, staking Ethereum is similar in some ways to BlockFi. However, there are some differences. One of the most important things to consider when staking Ethereum on Crypto.com is that investors must also stake CRO – the exchange’s own cryptocurrency.
Users can earn up to 7.5% on their Ethereum savings and the interest is paid out on a daily basis. However, to reach that 7.5% number there are several conditions that should be met first.
Ethereum Staking Conditions on Crypto.com
Investors wishing to stake ETH on Crypto.com will receive an annual percentage yield on their investment (staked Ethereum) that is based on number of ETH staked, duration, and number of CRO staked. Users on Crypto.com will already know that staking CRO on the platform is central to nearly all of the platform’s services, and for staking Ethereum that is no different.
Here is a breakdown of what Crypto.com users can expect from their staked ETH, given the available variables.
All calculations assume that an investor wishes to stake $10000 worth of ETH.
- Flexible Term ETH stake + CRO stake ($400 or less) = 2.5% interest ($250 per year)
- 1-month ETH stake + CRO stake ($400 or less) = 3.5% interest ($350 per year)
- 3-month ETH stake + CRO stake ($400 or less) = 4.5% interest ($450 per year)
- Flexible Term ETH stake + CRO stake ($4,000) = 3.5% interest ($350 per year)
- 1-month ETH stake + CRO stake ($4,000) = 4.5% interest ($450 per year)
- 3-month ETH stake + CRO stake ($4,000) = 5.5% interest ($550 per year)
- Flexible Term ETH stake + CRO stake ($40,000 or more) = 3.5% interest ($350 per year)
- 1-month ETH stake + CRO stake ($40,000 or more) = 6.5% interest ($650 per year)
- 3-month ETH stake + CRO stake ($40,000 or more) = 7.5% interest ($750 per year)
Pros & Cons
|· High earning potential |
· Secure platform
· Global availability
|· Additional CRO stake is necessary |
· Must stake considerable sums to take advantage of highest rates
If you were looking for the best way to earn interest on Ethereum we hope this helped you out. For most of us, the idea of free money is always an attractive one. And, with traditional fiat banks offering ‘high yield’ interest accounts paying out sub-1% rates, it makes perfect sense to look elsewhere for opportunities that really pay.
Fortunately, the digital asset space provides ample opportunity to make your crypto work for you. The high interest rates are paid out on a regular basis and the interest compounds, sweetening the pot even more.
With so many good options for earning interest on Ethereum, selecting the best one for your needs likely comes down to the platform that you prefer.