Blog Crypto Best Crypto Wallets for Earning Interest

Best Crypto Wallets for Earning Interest

date February 1, 2021 time 6 min read 5733 views

Are you storing your crypto assets in a crypto wallet with interest or are they sitting idle on an exchange? You could be earning much more. Read on to discover how you could be making interest rates as high as 10% or more on your Bitcoin and other digital assets by storing your idle crypto in a crypto wallet with interest.

The crypto industry has begun to look a lot more like traditional finance. With the rise of crypto-backed lending, many platforms are letting you earn big interest from loans to other holders. And a growing number of wallets are tapping into these features to get you interest on your crypto at rates as high as 10% or more.

When you compare that to the dismal average of 0.06% interest paid out by U.S. banks, storing your crypto in a crypto wallet with interest is an obvious solution.

Modern blockchain tech lets you earn interest on your crypto, even from your wallet
Modern blockchain tech lets you earn interest on your crypto, even from your wallet

Read on to learn more about how crypto wallets make money and how you can do more with your money with an interest bearing crypto wallet.

What is a crypto wallet with interest and how do crypto wallets make money?

It’s important to note that you sacrifice the security of your assets when you earn interest on your crypto. All investment has inherent risk and there are currently no cold wallets that let you earn interest on your crypto.

There are two primary ways that platforms can pay interest on your deposited crypto: peer-to-peer lending and staking.

Earning interest through lending

A crypto wallet that pays interest via lending works just like a bank. Account-holders like yourself deposit crypto assets into a crypto wallet. The platform then loans out the assets in the account to an individual or institutional borrowers. These loans get paid back with interest and a portion of the interest gets paid back to you. 

Earning interest through staking

Crypto wallets with interest sometimes can also earn money through staking. Staking involves locking your crypto assets (if they are proof of stake coins) in the blockchain network for a set time period. When you stake through a wallet, your funds are sent to a shared node hosted by the wallet. A portion of the staking profits is then paid back to you in the form of commission or interest.

For more information on staking, read our article on ways to earn interest on your crypto today

Now here’s a roundup of the best crypto wallets with interest available based on earning potential and stability.

Which crypto wallets can earn interest?

Earn interest up to 11% on multiple cryptocurrencies when you store your crypto with MyConstant

At MyConstant, you can store over 70 different cryptos and earn interest up to 8% APY on BTC, ETH, and BNB by sourcing your funds to decentralized liquidity pools. And you can earn up to 11% APR if you choose to earn your rewards in our partner crypto, PRV.

We’re designed to be non-custodial, protecting your investments by sending the majority of funds to our U.S.-registered trust partner, Prime Trust. They use a mixture of hot and cold wallets to ensure your crypto is as safe as possible and accessible too.

When you create a MyConstant account you can:

  • Earn compounded interest at 4% APY on deposited stablecoins paid every second.
  • Earn up to 11% on lending BTC, ETH, and BNB, the most competitive rates in the crypto wallet market.
  • Start earning interest the minute you create your account.
  • Withdraw and transfer funds instantly and without a transaction fee.

If you want to gain access to interest rates that are 180x the national average, sign-up for a free account today.

You can earn up to 11% interest on Bitcoin with MyConstant
You can earn up to 11% interest on crypto with MyConstant


BlockFi is a privately owned lending platform backed by Coinbase and other reputable companies in the finance industry.

BlockFi generates interest for account holders by lending assets held in crypto accounts to trusted international and corporate borrowers.

BlockFi’s key features:

  • Earn up to 8.6% interest on stablecoins.
  • Interest is paid out at the beginning of every month.
  • No minimum balance is required to start unlocking interest.
  • You can earn interest in the same cryptocurrency deposited or in a crypto of your choice.
  • Can swap between any crypto that they provide on the platform.

Incognito pDEX

You can earn interest on decentralized exchange (DEX) wallets like Incognito by providing liquidity to their exchange.

Decentralized exchanges are not closely run by any entity and therefore need to source their crypto from “liquidity providers” to meet all orders. In exchange, liquidity providers earn a share of transaction fees on the exchange.

When you deposit crypto assets like Ethereum into the Incognito liquidity pool, you can earn up to 10% APY in their platform cryptocurrency, PRV.
Incognito provides a nice interest-bearing crypto wallet if you’re interested in earning interest in the same place where you can trade your crypto.

You can earn interest on Bitcoin with a crypto wallet with interest
You can earn interest on Bitcoin with a crypto wallet with interest (source:

PointPay Wallet

PointPay is a blockchain-based bank that allows you to earn interest on twelve different coins. PointPay is another example of a crypto wallet that pays interest through crypto lending.

When you deposit crypto into your PointPay wallet, a portion of your funds are collected in a liquidity pool and lent to borrowers.

A portion of the interest that is paid back from these loans is in turn paid to you. 

  • You can earn daily interest with a PointPay wallet.
  • You can earn interest on twelve coins at various rates including 6.2% APR on bitcoin and up to 30% on PointPay’s native coin.
  • You can easily transfer your crypto between accounts.

The interest that is paid out by PointPay in their native coin may be high, but the price is volatile and has dropped drastically since December 2020. Wallet has been rolling out major changes to make the experience of owning a crypto wallet feel like having a real-world bank account. Their central feature is a physical debit card that allows you to spend your crypto anywhere that accepts Visa.

Their crypto wallet earns interest by allowing you to stake your crypto and validate transactions to earn staking rewards.

  • allows you to earn interest on 26 crypto tokens and 8 stablecoins.
  • To access higher interest rates, you must lock up your crypto for longer periods. The highest interest rates require a minimum of 3 months.
  • Interest is not compounded which means it grows at a slower rate.
  • Users can only earn up to 2% on supported coins that are locked up for flexible periods.
  • If you stake less than 2,500 CRO, you can only earn up to 1.5% when you keep your lockup period flexible.
  • Anywhere from 1-8% cashback on purchases depending on how much CRO you hold.

While the wallet still offers significantly better rates than the bank, its main utility is its use as a physical debit card to easily convert your cryptocurrency to cash.

Nexo Wallet

Nexo offers another interest-bearing crypto wallet allowing you to earn interest on your crypto and digital assets through crypto lending. 

When you deposit your assets into a Nexo account, your assets are automatically put into a collateral-backed liquidity pool. A portion of the interest generated from crypto lending is then paid into your account each day. 

  • You can earn up to 8% interest on crypto and up to 12% on stablecoins.
  • Interest is compounded and paid out daily.
  • You can earn interest on 11 cryptocurrencies.

The main drawback of Nexo is that you can only access higher interest rates if at least 10% of your assets are held in their native crypto, NEXO.

How to choose the best crypto wallet with interest

As you can see, storing your assets in a crypto wallet with interest is a fantastic way to earn on your idle crypto.

When choosing a crypto wallet with interest, however, it is not all about who offers the highest interest rates. You should also consider whether these high-interest rates are available to all users or if they require you to lock up your assets for set periods.

It’s also advisable that you check whether you are required to own the native coin, like NEXO, to access better interest rates. While native cryptos can net you gains in the long term, they derive value from the platform. If the platform does poorly, then the value of your coins will too.

One prominent lending platform, Salt Lending, was targeted in 2020 by the SEC over the issuance of their native SALT coin. The ensuing lawsuit caused the price of the coin to plummet and drastically affect the earnings of their customers.

And remember, while interest-earning crypto wallets are a great way to earn extra money you are always trading security for earnings. If security is more important for you, then you should check out our list of the most secure crypto wallets today.

Invest with MyConstant and invest in cryptocurrency the easy way
Invest with MyConstant and invest in cryptocurrency the easy way

Finally, when you store your assets in a MyConstant wallet, you get access to some of the best interest rates simply by creating your account.  There is no lockup period and no minimum balance required. You can start automatically earning interest up to 8% on BTC, ETH, and BNB as soon as you sign up.

Sign-up for a free account today and see how you could be doing more with your money.

Share this article

George Schooling

George Schooling

Borrow against your multi-crypto portfolio in minutes from just 6% APR

Tags: crypto wallet earn interest interest bearing crypto wallet how do crypto wallets make money crypto wallet that pays interest crypto wallet with interest

0 0 vote
Article Rating
Inline Feedbacks
View all comments