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Top Ten (10) Bitcoin Banks Where You Can Store and Earn Interest on BTC

Interest rates and services offered by traditional banks don’t just cut it. These days, people who own bitcoins and other cryptocurrencies enjoy higher returns by choosing the best Bitcoin banks they can use to earn interest on their BTC.

However, if you’re looking for where to earn interest on your cryptocurrencies and are fearful about choosing the wrong platform, then your fear is justified. No one wants to lose their much-valued bitcoins to fake platforms.

If you’re looking for a reliable bitcoin bank, search no more! This article contains the top ten genuine Bitcoin banks that you can use to store and earn interest on BTC and other crypto assets.

You will also find important information such as the current APY on Bitcoin deposits, features, pros, and cons of these digital banks offering bitcoin and crypto services. But first, let’s learn what Bitcoin banks really are.

What are Bitcoin Banks?

Bitcoin banks are online platforms that offer bank-like services like savings and borrowing of digital assets like bitcoin just like a regular online bank. Users who save crypto with Bitcoin banks earn interest on their assets, while those who borrow funds against their crypto holdings will pay interest to the platform.

Top 10 Bitcoin Banks to Store and Earn Interest

1. Nexo

Nexo Bitcoin Investment Site

Launched in 2018, Nexo allows you to maintain and earn interest in crypto. This bitcoin bank allows its users to borrow loans in over 40 different fiat currencies. Nexo has an essential partnership with a licensed digital custodian, BitGo, who helps in securing the digital assets that users deposit.

Licensed and regulated in Europe, Nexo has a native token called NEXO. When users stake this token, they enjoy discounted interest rates on loans and when they choose to receive interest payouts on them, they enjoy higher interest rates.

Current APY on Bitcoin Deposits in Nexo

The Nexo platform features four divisions that users can choose from., namely:

  • Base Tier
  • Silver Tier
  • Gold Tier
  • Platinum Tier

The amount of interest you earn depends on the Tier you are on and on the type of asset you choose to receive interest with. For example:

Users on the Base Tier and those on the Platinum Tier who choose to receive their interest on the NEXO token will earn a respective 7% and 8% interest.

However, users on that same Base Tier and Platinum Tier who choose to receive their interest in the same assets they’ve stored such as Bitcoin, and not in NEXO, will receive a respective 5% and 6% interest.

Pros

  • Nexo has about two million users in more than 200 countries.
  • Nexo supports about 21 stable coins and cryptocurrencies such as Bitcoin and ETH.
  • Nexo allows users to borrow up to 50% or more of the amount they deposit.
  • There is an in-built exchange service for converting supported cryptocurrencies.
  • The company also has a responsive customer support team and an active community.

Cons

  • Nexo supports fewer fiat currencies.
  • It offers little transparency into its operations.

2. BlockFi

BlockFi Bitcoin Investment

Following its launch in 2019, BlockFi has quickly become one of the most legit Bitcoin banks that crypto enthusiasts use to store and earn interest on their coins. The majority of assets in BlockFi are kept in cold storage wallets, while those in hot wallets have a security rating of FIPs 140-2 Level 3 or even higher.

The US-based online Bitcoin bank also offers an interest-earning account which makes it very easy for investors to gain interest on their assets. All that one is expected to do is store their assets on the so-called BlockFi Interest Account (BIA) and voila! interest starts coming in.

Remember, though, that interest rates tend to fluctuate depending on market value.

BlockFi APY on Bitcoin Deposits

Anyone who deposits between 0 to 0.25 BTC will yield a 4% interest. Those who deposit between 0.25-5 BTC will yield a 1.5% interest. Then investors with more than 5 bitcoin BTC will only gain a 0.25% interest. So the more you have, unfortunately, the less you earn.

Pros

  • BlockFi is open to both accredited and unaccredited investors.
  • Users can gain up to a 4.5% interest rate on ETH and a 6% interest rate on bitcoin depending on the market values for these assets.
  • BlockFi lets its users withdraw their funds at any time they want, although the withdrawal process takes approximately one working day if there are no issues.
  • There are no transaction fees on trades nor are there hidden fees or minimum balance requirements.
  • BlockFi uses a popular regulated crypto custodian, Gemini Custody. Thus, users can trust that their funds are secure at all times against hackers.
  • There is an in-house exchange for exchanging support coins.
  • The platform features an Interest Payment Flex Option that lets its users choose the type of currency they want their interest to be paid in.
  •  Users can borrow up to 50% of the amount they deposit on the platform with an interest rate as low as 4.5% interest rate on the borrowed funds.

Cons

  • To unlock loans, a user needs to have deposited a minimum amount of $10,000.
  • Limited free withdrawals. Only one free crypto withdrawal and one free stable coin withdrawal can be made per month. You’ll have to pay a fee for subsequent withdrawals.
  • For now, BlockFi only supports six cryptocurrencies (BTC, ETH, LINK, LTC, PAX, PAXG) and four stable coins (USDC, DUSG, BUSD, USD).
  • BlockFi’s interest rates are regressive. The more assets you have in their care, the less interest you gain.
  • BlockFi cannot enjoy the same public confidence as traditional financial institutions because it is not insured by the U.S. Federal Deposit Insurance Corporation (FDIC).
  • Withdrawals from BlockFi are not instant and often require a 24-hour waiting period on weekdays or even longer during holidays.

3. Celsius

Celsius Network Bitcoin
Celsius Network is another bitcoin bank that lets you earn interest in cryptocurrencies. It was established in 2017 and is based in the UK. The platform supports 30+ cryptocurrencies and features over forty collateral options with more than seven loan options.

Celsius also has a native token known as “CEL,” which offers its users slightly higher interest than other assets if they choose to get their interest paid in the token. To earn up to 12% annual interest on the platform, all you need to do is deposit any of the supported assets into your Celsius account.

Celsius Network APY on Bitcoin Deposits

Users who deposit 1 or less BTC on Celsius yield a 6.20% interest while users who deposit more than 1 BTC on the platform earn 3.51%.

Pros

  • Easy withdrawals with no extra fees.
  • Supports more than 30 cryptocurrencies.
  • Users can enjoy lower rates by using the project’s token, CEL.

Cons

  • Only accessible via mobile devices
  • The platform isn’t user-friendly for beginners.
  • While the platform does not require the Know Your Customer (KYC) process for account creation, users (especially those in the US) are under compulsion to complete the process.
  • Interest fluctuates depending on the market demand for the asset.

4. YouHodler

YouHodler started functioning in 2019. The Swiss-based platform allows its users to earn a satisfactory interest rate as well as to borrow funds against their asset deposits. It supports several cryptocurrencies such as Bitcoin (BTC), Tether (USDC) amongst others, and also accepts these assets as collateral for fiat loans.

Current APY on Bitcoin Deposits on YouHodler

Investors who deposit Bitcoin on YouHodler would get an annual 4.8% Interest yield.

Pros

  • YouHodler lets customers buy crypto on leverage and use other advanced trading tools.
  • Excellent customer service.
  • YouHodler also uses the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to combat bad actors.

Cons

  • YouHolder services are not available in the U.S. This is because the U.S. has strict rules about leveraged trading options and also because physical addresses of customers are needed. For anyone who chooses to use YouHolder in the U.S., the account could be frozen, which would result in a loss of any returns made on your investments.
  • Minimum investment requirements: Although the minimum amount you can deposit is $5, you must meet a minimum of $100 or more to be able to earn interest.

5. CoinLoan

CoinLoan is a regulated peer-to-peer European crypto lending platform that allows you to earn daily compound interest on your deposited assets. Established in 2017, the platform allows its users to borrow, swap and grow their choice of assets.

It supports cryptocurrencies such as BTC, ETH, BCH, LTC, and several more and also supports some Fiat currencies namely: EUR, USD, RUB, and GBP.

Current APY on Bitcoin Deposits in CoinLoan

For any amount of Bitcoin deposited on CoinLoan, the investor earns a 7.2% interest rate.

Pros

  • CoinLoan provides both fiat and crypto loans to borrowers.
  •  Fees are not charged for deposits/withdrawals.

Cons

  • CoinLoan does not offer options for lender selection.
  • The interest earned by a user will be lower if the user does not use the platform’s native coin called the CLT coin.

6. Ledn

Ledn Bitcoin bank
Ledn is a Bitcoin bank that allows its users to access loans using their Bitcoin as collateral, open a savings account and grow their Bitcoin. Since it started functioning in 2018, Ledn’s current business products aim to provide the best experience for clients interested in bitcoin and stablecoins only.

There is therefore a need for more cryptocurrencies to be added to its operation so as to further strengthen its lead and provide a more competitive advantage in the crypto space.

Current APY on Bitcoin Deposits in Ledn

An annual 6.1% interest rate on Bitcoin deposits.

Pros

  • Ledn publishes regular Proof-of-Reserve attestation, assuring customers that they have enough tokens to back deposit coins.
  • At this time, the platform primarily accepts Bitcoin deposits.
  • Excellent customer service.

Cons

  • Ledn offers limited services as only Bitcoin and a stablecoin, USDC, are in its operations.

7. Luno

Luno Bitcoin

Started operating in 2013, Luno is another platform that provides crypto asset banking services. The platform makes it easy for you to send, receive and earn interest on only two cryptocurrencies, BTC and ETH. Headquartered in the U.K., London, Luno currently manages more than two million customers and its services are available in 40 different countries.

Current APY on Bitcoin Deposits in Luno

You can earn a targeted rate of 4% interest per annum on your deposited bitcoins. It could be less or more than 4%, depending on market conditions.

Pros

  • Customers can easily trade their crypto assets against fiat currencies as well as convert these crypto assets to fiat anytime they want.
  • Luno does not charge fees for crypto email payments from its customers.
  • Withdrawals from Bitcoin and ETH savings accounts are near instant

Cons

  • It only offers interest on two cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).
  • Its services are not available in North America and some countries in Europe.
  • The platform doesn’t allow borrowing against the stored assets.

8. Binance

Binance

Binance launched in 2017 and is currently one of the largest cryptocurrency exchanges in the world that allows its clients to earn interest in cryptocurrencies.

Via its two types of lending products, Fixed Deposit (for long-term Investors) and Flexible Deposit (for short-term Investors), users are able to earn interest on cryptocurrencies including Bitcoin (BTC), Binance USD (BUSD), Tether (USDT), Ether (ETH) and many others.

Current APY on Bitcoin Deposits

Binance offers an APY of 1.20% on its users’ Bitcoin Deposits.

Pros

  • Binance is a fairly reliable crypto platform.
  • There are a variety of savings and lending options for investors to pick from.
  • Binance supports more cryptocurrencies than any other platform reviewed so far.

Cons

  • Users risk a momentary loss when they save assets that offer higher interest gains, but often drop in market value.
  •  It is also compulsory for users to complete Binance’s KYC process before they can use the lending products.

9. Blockchain.com

Blockchain.com is one of the oldest, most popular, and highly rated platforms in the Crypto space that was launched in 2011. Currently based in a European nation, Luxembourg, the platform now has more than 70 million wallets in its custody and supports over forty cryptocurrencies and stable coins.

Current APY on Bitcoin Deposits at Blockchain.com

Users can earn between 6.5%-8.5% consistent interest per annum on any Bitcoin deposit.

Pros

  • Advanced security features.
  • Secret passphrase in case you lose access to your wallet.
  • Blockchain.com is a recognized and popular banking platform in the crypto space.
  • It provides an interest calculator on its easy-to-navigate user page so you know how much interest to expect over a given period.

Cons

  • Blockchain.com makes use of centralized online electronic wallets, which are by nature a little less secure and riskier than cold wallets.
  • Verification processes on the platform can be cumbersome, time-consuming, and tiring.
  • There is a $300 benchmark before you can start earning interest on bitcoin.
  • Its wallets support a limited number of cryptocurrencies, including BTC, ETH, Paxo Standard Stable Coin (PAX), Stellar (XLM), and a few others.

10. BitFinex

Bitfinex withdrawal fee 0.1%

Officially launched in 2012, BitFinex is a Hong Kong-based peer-to-peer crypto banking and lending platform where your deposited assets can yield interest.

As liquidity providers, BitFinex generates interest yields by providing funding to customers who want to trade with leverage and also gives them access to the peer-to-peer lending market. About 99.5% of its clients’ funds are kept in cold storage while the remaining 0.5% of the funds are kept in hot wallets to provide the liquidity needed for the platform.

Current APY on Bitcoin deposits in BitFinex

Users get a 6.2% APY on any amount of Bitcoin deposited

Pros

  • Unlimited maximum withdrawal.
  • The platform makes use of an in-house mobile app.
  • BitFinex offers a variety of payment options.

Cons

  • BitFinex has stopped servicing US clients since 2017 due to the US’s regulatory environment.
  • They lack transparency since not much information is available about their crypto reserves.

Are There Real Bitcoin Banks?

Yes.

The ten above-mentioned Bitcoin banks are better referred to as crypto lending platforms, which means that they offer “bank-like” services, allowing customers to earn interest on crypto and borrow fiat while using their assets as collateral.

With this in mind, Bitcoin banks can therefore also be defined as companies that are focused on serving Bitcoin and other crypto-related companies as well as in holding their cryptocurrencies.

Four of such bitcoin banks are mentioned below:

Bitcoin Suisse

Founded in 2013, Bitcoin Suisse is a regulated shareholder company that provides banking services for more than 40 cryptocurrencies and tokens, including Bitcoin.

Among Bitcoin Suisse’s features is a vault technology solution that offers a well-secured cold storage concept in which all the digital assets in their care are stored and protected from online illegal invasion.

The Switzerland-based bitcoin bank also allows its customers to trade their crypto assets against fiat currencies.

Bitcoin Suisse partners with other crypto service providers such as Worldline Global, CoinRoutes, Ubinetic, and others.

SEBA Bank

SEBA Bank is another Switzerland-based licensed and supervised banking company that allows you to store, trade, and manage your crypto assets comfortably.

The company is one of several Bitcoin banks that focus mainly on building a gateway to facilitate a secure movement of assets and bridge the gap between the cryptocurrency market and traditional financial markets.

SEBA bank features what it calls a 35 Day Notice Account, which is ideal for savings. However, only investors are qualified to open this account, to which they can earn interest on their stored bitcoin as well as on other assets.

Avanti

Formed in 2020, Avanti is a United States-based crypto bank that has not yet been launched. It has however filed an application hoping to become an eligible member bank of the U.S. federal reserve of banks.

Avanti was built so as to offer a superior regulatory structure such that digital assets such as Bitcoin can solve payment inefficiencies faced by business customers, thereby meeting the strictest level of institutional asset custody standards.

After its launch, the bank hopes to provide financial services to digital asset traders as well as to other Bitcoin banks.

Kraken Bank

Headquartered in Wyoming state, Kraken Bank will become the first regulated U.S. digital asset banking company to provide comprehensive deposit-taking, custody, and fiduciary services for digital assets.

Formed about ten years ago, Kraken bank hopes to perform a phased launch soon, only offering services to its already existing customers from its exchanges. These services will be offered only via online and mobile devices.

From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Bank hopes to enable Kraken clients in the U.S. to bank coherently between digital assets and national fiat currencies.

Frequently Asked Questions About Bitcoin Banks

How Many Bitcoin Banks Are There?

Apart from the platforms mentioned in this article, very few Bitcoin banks are left. The ones highlighted above are the most widely used ones in the industry at this time.

Should I Use Bitcoin Banks?

Depositing your bitcoins and other cryptocurrencies to a bitcoin bank allows you to get more than what you will by just leaving the assets in your wallet. However, this comes with the risk of leaving your assets in the custody of the platform, making it likely that you will lose all your money if they go bankrupt or suffer other kinds of security breaches.

Conclusion

We have so far considered major Bitcoin banks that you can consider storing your digital assets on and gaining interest from them.

Interest rates in Bitcoin banks are normally based on the volume of assets invested and prevailing conditions in the money market which are subject to change at any time, whether or not you like it.

Regardless of this major disadvantage, sitting back and watching your assets grow, especially at a bank when traditional bank rates are ridiculous, is one of the most satisfying things a person could ever ask for.


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