Bitcoin Interest Accounts

I am planning to transfer some of my bitcoins to a website that pays interest for bitcoin balance. Does anyone have an interest bitcoin account and do you need to stake the bitcoins for a specific period of time or can you withdrawal whenever you want?

I also don't understand bitcoin risk. If i open a blockchain interest account that pays 6% interest, does my btc have the same risk as a normal blockchain account that does not earn interest?

Any suggestion on the best website for btc interest would be appreciated.

I have used

Blockfi
Celsius Network
Crypto.com

None of them require a specific period, though Crypto.com enables you to earn more if you are willing to keep it there for 1 month or 3 months.

Blockfi only allows 1 free withdrawal a month.

The risk is that these aren't FDIC insured. Also, the value of your bitcoin can go up or down.

Celsius is the easiest. Download the app. Do the KYC. Deposit. Earn. Withdraw at any time. 6.20% interest on Bitcoin paid weekly (Mondays) for USA.

Nexo also recently added BTC interest.

Voyager app does also.

How safe are these guys? Wherever there is an interest rate, there is also a risk.

So do I have more risk if I transfer btc from a regular blockchain.com account to an interest earning blockchain.com account? I realize blockchain is using my btc to make loans at higher interest rates than what they pay me but I can't see them be able to hold me accountable for a bad loan that they make with my btc?

I reviewed various websites and ratings on the best btc interest accounts. I think Nexo and Celsius Network are best for me. I prefer online computer access to my account rather than phone app access so I am leaning towards Nexo over Celsius. Nexo provides 5% interest paid daily, zero fees, no stake period and has some type of protection if they get hacked. Nexo interest increases to 7% in you allow them to pay the interest in Nexo coin but I think I can sell the Nexo coin interest for btc after it is paid and still keep getting 7%.

Celsius pays 6.2% interest weekly, no fees, no stake period but i think the interest is lower if you have more than 2 btc with them.

BlockFi only allows 1 free withdrawal per month.

Crypto.com requires 1 month to 3 month stake period like a bank CD to earn good btc interest rates.

Please let me know if anyone has a better option for a btc interest account. I plan to open an interest account this week.

Are these interest accounts safe? I doubt.

The ones I like allow transfers out with no holding period. I am not responsible for any bad loans they make with my bitcoins so I think they are just as safe as the non-interest accounts at the same place. For example, i think a blockchain interest account has the same risk as a regular blockchain account but it would be good if someone with more knowledge could confirm if there is any additional risk with an interest account.

I found blockfi to be the least risky because the way they structure their balance sheet. You're right to say that because you're earning interest there is risk.

These companies pay you interest because they turn around and lend it out to someone else at a higher rate. They overcollateralize the loans and you would never be personally liable if the loan they funded with your coins were to default.

That said, there's risk because you're giving then your bitcoin. In return, you get an IOU (and some interest). If the company goes bankrupt, then the legal system will sort out who gets paid (and it could take a while...). Look specifically at the balance sheet of the company and make sure you'll be first in line to get paid if shit goes sideways.

Also, I had a bad experience with Crypto(.)com. You can get a higher rate there for locking up your coins for 1 month or 3 months. But you lose liquidity and you also have to buy and lock up their shitcoin CRO. The company lost a lot of credibility when they cut rates (without warning) on CRO. They also pulled a fast one on anyone who held MCO, which was their original token. Overall, holding with Crypto(.)com feels like it's a ponzi scheme.

At the end of the day, you'll have to decide if 6% interest (or whatever you're getting) is worth the risk of losing your funds. I used to use these accounts, but have now decided against it because I started getting a higher balance in there and it made me uncomfortable to think about losing it all, for just $100 a month or whatever I was earning.

I found Celsius to be the most transparent, and have more there than on Nexo/Blockfi/Crypto.com.

Originally Posted by ClimbSomeRocks

I found blockfi to be the least risky because the way they structure their balance sheet. You're right to say that because you're earning interest there is risk.

These companies pay you interest because they turn around and lend it out to someone else at a higher rate. They overcollateralize the loans and you would never be personally liable if the loan they funded with your coins were to default.

That said, there's risk because you're giving then your bitcoin. In return, you get an IOU (and some interest). If the company goes bankrupt, then the legal system will sort out who gets paid (and it could take a while...). Look specifically at the balance sheet of the company and make sure you'll be first in line to get paid if shit goes sideways.

Also, I had a bad experience with Crypto(.)com. You can get a higher rate there for locking up your coins for 1 month or 3 months. But you lose liquidity and you also have to buy and lock up their shitcoin CRO. The company lost a lot of credibility when they cut rates (without warning) on CRO. They also pulled a fast one on anyone who held MCO, which was their original token. Overall, holding with Crypto(.)com feels like it's a ponzi scheme.

At the end of the day, you'll have to decide if 6% interest (or whatever you're getting) is worth the risk of losing your funds. I used to use these accounts, but have now decided against it because I started getting a higher balance in there and it made me uncomfortable to think about losing it all, for just $100 a month or whatever I was earning.

Blockchain.com offers 6% interest. Do I have more risk if I transfer funds from a regular blockchain.com account to a interest blockchain.com account. Is Blockchain.com the company that could go out of business and if so, wouldn't I be in the same situation if I had a regular account or an interest account?

Youtuber "Aaron Bennett" frequently covers all the players in this arena.

Below, he covers Nexo vs. Celsius (video is 3 days old). I find myself agreeing with him a lot.

Anyone have suggestions on the best BTC & ETH interest earning websites.

I think Celsius is best if you want flexibility and do not want to agree to a fixed hold period. Celsius earns 6.2% for BTC and 5.35% for ETH. But Celsius lowers the rate if over 1BTC or over 100ETH so I want other options.

Crypto.com has better 6.5% interest if you lock it up for 90 days.

I see Haruinvest offers 6% to 15% depending on the fixed term chosen. I like their 10% interest rate for only a 30 day fixed term but I’m not sure if this website is as safe as the others. Anyone have any feedback on Haruinvest?

Are there any websites that give interest without having to provide IDs and go through the whole KYC process?