As you might have noticed, global interest rates are getting closer and closer to zero, and in some countries are even negative. That’s why many people consider cryptocurrencies as an alternate way to make additional income.
A popular way to earn passive income is via interest accounts and lending platforms that use decentralised finance services. In this article, we will present you with the best platforms to earn interest in crypto in Australia, based on ease of use, reputation, available assets, and other important factors.
Best Platforms to Earn Interest on Crypto in Australia - Tested and Reviewed in 2022
From our detailed research and tests, we have come up with a list of the best places to earn crypto interest in Australia in 2022. We are always updating our information, and edit our lists accordingly. You can trust that we have the best up-to-date list for you.
- 1Hodlnaut - Best Overall in Australia - Highest Interest Rates
- 2Celsius - Earn High Interest on 46 Coins
- 3BlockFi - Buy & Sell Crypto as well as Earn Interest
- 4Nexo - Best Crypto Wallet for Earning Interest
- 5Crypto.com - Earn Crypto Cashback on Visa Purchases
- 6Binance Australia - Earn Interest on Widest Range of Cryptocurrencies
How Do I Earn Interest in Cryptocurrencies?
Simply put, you can earn interest in crypto in two ways - either through staking or on lending platforms. Staking means setting aside and locking your cryptocurrency, so over time, you earn more of that crypto as a reward for contributing to the blockchain network.
Lending platforms use your crypto to loan it to others who want to borrow it and pay you interest on your cryptocurrencies. Basically, you are lending your crypto to a lending platform, which then lends it to those who want to borrow. Let's take a look at the best platforms to earn interest in crypto in Australia.
Best Places to Earn Crypto Interest - Reviews
Hodlnaut – Best Overall in Australia (Highest Interest Rates):
Hodlnaut is definitely our top choice due to several reasons. It offers the highest returns without the need to lock your crypto for any period, and the platform also pays every week. It offers 8 popular cryptocurrencies: BTC, ETH, USDT, USDT, WBTC, UST, LUNA and DAI, and they have a great signup offer of 30 USDC FREE when you sign up, complete KYC verification and deposit >USD 1,000. Note that you need to leave your deposited crypto in there for at least 31 days before you will receive the 30 USDC bonus.
The interest depends on the coin, and how much you want to deposit. For Bitcoin, if you deposit less than 1 BTC, the interest is 5.33%, while it drops to 5.02% if you deposit between 1 and 1.5 BTC, then 1.51% if you deposit between 1.5-2 BTC, and only 1.00% for any more than 2 BTC.
Interest rates change depending on the cryptocurrency, so if you want to earn interest in Ethereum, the rates start from 5.44%. For USDC, the rates go much higher, up to 9.41%. The highest rates are for UST, at 13.86% APY.
Note that Hodlnaut is a Singaporean company and doesn’t come with the FDIC protection, which covers U.S. deposit accounts. However, if you are worried about the security, note that Hodlnaut runs on AWS and the traffic is SSL-encrypted and uses no hot wallets.
If you are still worried about hacking, you might want to purchase additional insurance with Nexus Mutual. However, note that Hodlnaut doesn’t cover the cost of Nexus Mutual insurance.
- Highest returns among all lending platforms
- Excellent sign-up offer: 30 USDC FREE when you complete KYC verification and deposit >USD 1,000
- You can withdraw crypto at any time, with no locked periods
- Weekly interest payments
- Only 8 cryptocurrencies are supported
Celsius – Earn High Interest on 46 Coins:
A great thing about Celsius is that, unlike Hodlnaut, it supports 46 different cryptocurrencies, and also offers the ability to earn high interest. It is a well-established company with over 1.6 million users worldwide.
Celsius is registered with FinCEN in the USA, so you don’t have to worry about security. However, the downside of Celsius is that their interest rates are updated weekly, so you need to be aware that the rates you signed up for may change to be less favourable.
For Bitcoin, if you deposit less than 1 BTC, the current interest rate is 5%, and it drops to 1.5% if you deposit more. For Ethereum, the rate is 5.35% for up to 30 ETH and drops to 3.52% for depositing more.
To sum it up, Celsius is the right choice for you if you are focused on earning passive income and trading crypto is not much important to you.
- High interest rates
- 46 different cryptocurrencies supported
- Top-notch security
- Rates are updated weekly, so you need to continually check to see if you are still receiving a good rate
BlockFi – Buy & Sell Crypto as well as Earn Interest:
If you want to buy, sell, and earn interest on your crypto on the same platform, BlockFi is the easiest way to do it. Although Hodlnaut has the highest interest rates, it is a bit of a hassle for beginners to have to transfer the money from a crypto exchange into their Hodlnaut account.
BlockFi provides a centralised hub for various financial services, whether it’s taking out a loan or holding crypto. Also, they offer unique use cases for crypto and have articles to educate users on how to use the platform. However, their help centre is limited to written case scenarios and there are no video explanations.
The platform offers up to 11% interest rates, depending on the cryptocurrency. For MATIC, the interest is 11% APY, with no stipulations on maximum deposit amounts. However, the interest rate on Bitcoin is 4.5%, but only on your first 0.1 BTC. If you have more than 0.1 BTC, the interest rate drops to only 1% APY, and anything over 0.35 BTC only receives 0.1% APY.
- You can easily buy, sell, and earn on your crypto on the same platform
- Easy to use for beginners
- Interest rates are low compared to the top platforms
Nexo – Best Crypto Wallet for Earning Interest:
Nexo supports 22 cryptocurrencies and allows you to easily buy crypto with a card, swap between coins, and earn up to 12% interest on your coins, as well as fiat currencies.
There is an intuitive Nexo app that allows you to manage your money in a simple way. It is a great choice for beginners.
A simple way to access higher interest rates in Nexo is to improve your loyalty level, which is based on the number of NEXO tokens you are holding compared to other coins in your wallet. That way, you can increase the interest rate up to 10% on stablecoins and 5% on other coins at the highest loyalty level. Based on your loyalty level, you can also receive higher interest rates if you opt for your rewards to be paid in NEXO token instead of the original cryptocurrency. For example, instead of receiving interest on your BTC, if you choose your interest to be paid in NEXO token, you can get an additional 2% APY at the highest loyalty level.
- Easy to use for beginners
- Fully regulated
- Offers their own card which you can use for regular transactions
- Interest rates are not as high as other top platforms
Crypto.com – Earn Crypto Cashback on Visa Purchases:
Similar to Celsius, Crypto.com allows you to buy over 250+ different coins, and earn interest on 47 of them. Due to the intuitive app that they provide, you can easily buy, sell, and swap your crypto on the same platform.
Another nice thing is that you can receive a free Visa debit card if you stake at least $500 of their native coin (CRO). You can load it with AUD and use it for online or in-store transactions and receive a certain percentage of cashback in CRO coins on your purchases. Depending on the amount of CRO you stake, you will receive between 2% and 8% back!
In terms of earning interest on your crypto, the rate depends on the coin you choose and whether you leave it flexible or fix it for 1 month or 3 months. If you have staked CRO, you can also access higher APY on all your staked cryptocurrencies.
- Earn interest on an extensive list of 47 cryptocurrencies
- Buy and sell over 250+ coins
- Stake CRO to receive a free Visa debit card that you can use to receive crypto cashback on purchases
- Stake CRO to receive higher interest rates on all staked coins
- Need to lock your crypto for 3 months to receive good interest rates. Flexible staking gives very low APY compared to competitor platforms
Binance Australia – Earn Interest on Widest Range of Cryptocurrencies:
Binance Australia allows you to earn interest on the widest range of more than 70 coins. The interest rates are not very high, but if you choose to lock your crypto for a fixed period, the interest rates become more competitive. For example, the interest rate in Bitcoin is only 1.2% APY if it is flexible. However, if it is locked for 60 days, the rate increases to 8.19% APY. One thing to note is that staking on popular coins can often be sold out. This means they have reached the limit, so you no longer can stake your crypto.
If you want to purchase crypto using Binance, you will find over 600+ coins that you can access. There are no deposit fees for AUD, and trading fees are only 0.1% per transaction, so you can get your hands on crypto at a very good price.
- Purchase or sell over 600+ cryptocurrencies
- Earn interest on over 70+ different coins
- Access higher interest rates on coins when you lock for 60, 90 or 120 days
- Staking on popular coins can be sold out
If you are looking for the highest interest rates on your crypto, Hodlnaut is the best way to go, especially with their sign-up bonus of 30 USDC FREE when you complete KYC verification and deposit >USD 1,000. However, if you want to earn interest on a wide range of coins, Hodlnaut is limited to only 8 different cryptocurrencies, so you may need to choose a different platform. Ultimately the one you choose will be based on what's best for your personal needs, but you will not go wrong with any of the platforms in this article.