In the letter

  • Crypto savings accounts work like normal bank savings accounts, only you deposit cryptocurrency instead of fiat money.
  • Account holders receive a small percentage of the interest over time – in exchange for handing over access to their crypto.
  • Some crypto savings accounts have a native token that offers holders better interest rates, among other things.

Most of the cryptocurrency remains in online and offline wallets when purchased. But why should it stay there, sluggish? What if you wanted your cryptocurrency to work for you and earn interest just like fiat money in a bank account?

Good news: there are crypto savings accounts that do just that. So what are they and what accounts are available?

What is a crypto savings account?

Since many fiat savings accounts earn less than 1% interest (or even 0.1%), many investors try to put their money elsewhere. Crypto savings accounts are becoming a popular alternative.

Crypto savings accounts work like regular bank savings accounts. Only you deposit cryptocurrency instead of fiat and earn a small percentage of the interest over time. The companies that offer the accounts make money the same way a bank does. You lend your cryptocurrency to other investors, e.g. B. Trusted institutional and corporate borrowers. These bitcoin lending services have exploded in the last year. The three largest companies increased their inventories by an average of 734%.

Compare the number of users on each bitcoin lending platform. Image: Decrypt.

It is important to note that there are sometimes restrictions or fees associated with withdrawals, with each company having its own set of rules. For example, BlockFi offers a free crypto withdrawal and a free stablecoin withdrawal per month. Fees may apply for later withdrawals. Nexo and Celsius do not charge any fees for withdrawals.

Second, with crypto savings accounts, you need to allow access to the cryptocurrency you hold. Crypto placed on the account must be made available in order to lend it to investors. This distinguishes them from crypto wallets, where the private keys for the cryptocurrency are always under the control of the user. If you are one of the many crypto users who share the philosophy that users “should be their own bank” rather than allowing centralized middlemen to take control of their money, giving control of your keys may not be a sacrifice to that You are ready.


BlockFi is a privately held US credit platform founded by Zac Prince and Flori Marquez in 2017. It provides an easy way to keep a cryptocurrency account and make it easy to get a loan. The company has a qualified team with a mainly financial background.

BlockFi core functions

The BlockFi Interest Account (BIA) offers customers the opportunity to earn up to 8.6% APY with their cryptocurrency. The interest accrues daily and is paid monthly. There are no hidden fees and no minimum balance. In January 2021, the company paid its customers a record $ 28 million in interest.

Another record breaking month of interest payments @BlockFi 🚀

Our customers earned over 28 million interest in January including> 400 #btc,> 4500 #ETH and> 5M in stable coins

We have also increased Litecoin prices for February. Many Thanks!

– Zac Prince (@BlockFiZac) February 1, 2021

The company also offers the BlockFi trading platform, where customers can buy, sell, or exchange cryptocurrencies at competitive prices once a trade is placed.

Unlike some of its competitors, BlockFi doesn’t have its own native crypto token. Instead, the focus is on providing a simple product with easy-to-understand terms.

BlockFi is also preparing to launch its Bitcoin Rewards credit card, which will give account holders 1.5% cashback on every transaction made that is deposited into the holder’s BlockFi account. The card launches in the US with an annual fee of $ 200. A bonus of $ 250 in Bitcoin is available to early adopters who spend over $ 3,000 on the card in the first three months.

BlockFi security

BlockFi used Twins as a custodian to secure funds. It uses two-factor authentication (2FA) to secure accounts.

Withdrawal address Approval list is an optional self-service security function that is available to all BlockFi clients and ensures that the cryptocurrency in a BlockFi account can only be sent to known payout addresses.

Celsius network

Founded in 2018 by Alex Mashinsky and Daniel Leon, the UK-based Celsius Network is a banking and financial services platform for cryptocurrency users, whose platform connects lenders with borrowers. Customers send coins to the platform to lend to others and collect interest. Cryptocurrency can also be used as collateral for loans in US dollars.

Celsius key features

Celsius offers a savings account-style product in which customers invest money. The company uses this product to make loans to others while paying customer interest. The interest rates can be up to 12% for certain cryptocurrencies. Account holders can only deposit $ 5 and earn interest on it. There are no withdrawal fees, so customers can always access money without being penalized.

The company offers dollar-pegged stablecoin loans for crypto holdings in their wallets, with annual interest rates starting at 1%. The minimum borrowing threshold was recently lowered from $ 1,000 to $ 500.

Celsius also offers a product called CelPay that allows customers to send and receive crypto for free.

Celsius CEL token

Celsius has an in-app utility token called CELThis gives users additional benefits such as better interest rates, priority status, and community membership. Users who claim their awards in CEL can receive additional awards up to 30% over non-CEL awards. You will also benefit from lower interest rates when interest is paid in CELs. The reward tiers are based on the proportion of the inventory held in CEL tokens.

Celsius security

Celsius has implemented security measures, including two-factor authentication and payout addresses on the whitelist, to protect customer accounts from being accessed by others.

Further measures are the cooling of unused funds and authentication with multiple signatures. This final measure requires multiple people within an organization to sign transactions through money transfers to prevent one person from acting maliciously.


Nexo is a European crypto credit and savings platform co-founded by Antoni Trenchev, Georgi Shulev and Kosta Kantchev. It was launched in 2018 and allows users to borrow their crypto assets or earn interest. Assets under management are over $ 4 billion.

Nexo core functions

Nexo provides users with a crypto bank account. Users can earn up to 10% interest on their crypto holdings. The interest earned is automatically deposited into an account holder’s savings wallet.

The Nexo bank account provides users with instant crypto lines of credit that they can then borrow against their digital assets. Nexo is also one of the first companies to offer a crypto debit card with Mastercard.

NEXO token

The NEXO token is an asset-backed token with dividend payout that will initially be distributed to users via Airdrop and ICO. Nexo users who hold NEXO receive benefits such as a higher APY on their crypto holdings and dividends on Nexo profits paid in the currency of their choice. In August 2020, Nexo paid dividends of over $ 6.1 million to NEXO holders who wagered their tokens, up from $ 2.4 million the previous year.

Users can also repay loans in NEXO and receive lower interest rates. The earnings and interest rates are based on the percentage of NEXO in the user’s portfolio.

Nexo security

Nexo offers cold rooms in class III vaults through BitGo, a SOC2 Type 2 certified cryptocurrency manager. It also offers two-factor authentication. The information security management systems comply with ISO / IEC 27001: 2013 conformity, which has been checked by CISQ, a member of IQNet and the world’s largest provider of management system certification.

In February 2021, Nexo added security infrastructure in the form of Ledger’s institutional security system, Ledger Vault, backed by $ 1 billion in crime insurance.


There are a variety of options for crypto accounts, from the chosen provider to additional offerings like native token rewards and crypto cards that you can take advantage of. Ultimately, your choice will depend on what you are looking for in your account.

For example, if you’re likely to make a lot of withdrawals, BlockFi is less attractive than its competitors because of its one-time free withdrawal (and subsequent fees).

If you are drawn to the prospect of a crypto credit or debit card and the rewards that come with it, Celsius Network is no longer operational. If you don’t mind keeping a native token, you may be lured by the attractive rewards that Celsius Network and Nexo offer for holding their respective tokens.

Security conscious users might find BlockFi’s allowlisting feature, and Celsius’s whitelist for added security.