Last Updated on 22 March 2021 by CryptoTips.eu
Compare Bitcoin interest rates with all providers in [jaar]
Holding Bitcoin and earning interest with your Bitcoin at the same time? This is easily possible in [jaar] using Bitcoin interest providers. These are so-called P2P credit market places where you can earn interest for lending your Bitcoin.
With our calculator you calculate your estimated profits over a certain period and you can easily compare Bitcoin interest rates with all providers. This way you can discover new crypto banks and immeditately calculate your earnings in BTC, euro and dollar.
Provider | Interest | Interest in BTC* | In EUR and USD* | |
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0.77% | 0.007700000 BTC | € 715.73 ($730.34) |
Review
Visit
€10 Free + €10k Free Trading
|
|
0.25% | 0.002500000 BTC | € 232.38 ($237.12) |
Review
Visit
50 USD staking bonus
|
|
6.00% | 0.06 BTC | € 5,577.13 ($5,690.95) | Review Visit |
By earning interest on your Bitcoin you can generate a passive income with your holdings, without running the risks that you have while trading crypto. Now that the interest rates from the bank are on an all-time low, many people are looking for solutions to make their money work for them.
Keep in mind that using these types of platforms is not risk free. Read more about the risks by clicking here.
* The profits you see are calculated based on the shown interest rates and the current Bitcoin exchange rate. This is an estimation and no rights can be derived from it. There are many factors that can influence profits, such as: changes in interest rates, exchange rate fluctuations and the BTC market price.
How to compare Bitcoin interest rates?
The Bitcoin interest calculator is fully interactive and uses the current Bitcoin price to calculate the estimated profits. You can enter how much Bitcoin you want to lend and for what period.
At Amount (in BTC) you enter the number of Bitcoin you want to lend out. At Period you can select how long you want to lend your Bitcoin. If you click Calculate Interest you will get the estimated profits for the selected period.
By selecting 1 day, you can easily see what your estimated profits will be on a daily basis. Same goed for the weekly and yearly period. We show this estimation in euros and dollars, but the actual value depends on the future Bitcoin price. If the price changes in the future, your profits will also change. The amount in BTC will be the same (if the interest rate stays the same).
How does earning interest with Bitcoin work?
Almost all platforms either have a credit marketplace or use one. At a credit marketplace, crypto borrowers and lenders are brought together. Bitcoin lenders ensure that Bitcoin is available for borrowing and Bitcoin borrowers can borrow this in turn. The Bitcoin borrowers pay an interest for this (which is adjusted to the current market conditions) and a large part of the interest goes to the BTC lender. The difference is the fee for the platform.
Crypto borrowers can apply for a loan without providing any documents or credit score and this is usually even accepted within a few minutes. This is possible because they use crypto as a collateral. The platform determines how much crypto you need to provide as a collateral. The advantage for the borrowers is that you do not have to spend your crypto, if you want to have USD quickly. Some platforms also offer EUR.
When the loan period is over, the borrower will of course get his collateral back.
Risk of Bitcoin Lending
Lending Bitcoin to earn interest is the perfect solution for many long-term holders. You do not have the risks that your portfolio will become smaller due to a wrong trade. Although it seems like a perfect solution, there are also a number of risks for lending your Bitcoin.
In fact, you literary lend your Bitcoin to the chosen company to lend it to other people. Take the following risks into account:
- The company can be hacked or go bankrupt. Although lending parties are often high on the creditor list, we can only imagine that it will be hard to reclaim your funds.
- Bitcoin interest rates are not fixed and are often adjusted to market conditions.
- The Bitcoin price can fall.
When you have lent your Bitcoin, it will be lent by the company to borrowers. This also means that you cannot do anything with your Bitcoin. It is therefore only a good alternative if you have nothing planned with your crypto. And simply want to buy Bitcoin and earn interest on it.
It’s not wise to lend out your whole Bitcoin portfolio, since there are also risks involved. Only use a small portion of which you are comfortable to lose, if anything goes wrong. If you want to invest more Bitcoin, you can spread the risks by using multiple lending platforms.
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