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Top 8 Crypto Savings Accounts for 2024

10 mins
Fact Checked
by Ish Bautista
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There are many income generation methods in the crypto market, and one of the safest options is via crypto savings accounts. These operate just like bank accounts and can be an excellent source of passive income. Here, we will look at some of the best savings accounts offered by well-known platforms.

KEY TAKEAWAYS
• Crypto savings accounts offer higher yields than traditional bank accounts, though they come with higher risks.
• Platforms like Nexo, Coinbase, Binance, and others provide various crypto savings account options with flexible or fixed-terms.
• Using stablecoins can mitigate some volatility risks associated with crypto savings accounts.
• These accounts can generate passive income from idle crypto assets, but they are best suited for those already invested in crypto.

What are the top crypto savings accounts?

Type
Digital trading platform
Supported countries
200+
Cryptos
75+
Type
Brokerage
Supported countries
100+
Cryptos
240+
Type
Exchange
Supported countries
200+
Cryptos
750+
Type
Exchange
Supported countries
100+
Cryptos
500+

5. Crypto.com

Type
Exchange
Supported countries
100+
Cryptos
350+
Type
Trading platform
Supported countries
60+
Cryptos
50+

What is a crypto savings account?

A crypto savings account allows users to collect a yield on their crypto deposits. In this way, they work similarly to how regular banks operate. 

This rate of return is quite striking and puts bank yields to shame. Traditional banks typically offer yiedls below 1%. Crypto savings accounts usually offer yields at a rate of 3-5% APY.

https://x.com/charliebilello/status/1779534569915515100?bic=4

Your APY will vary depending on whether you choose a fixed term or a flexible term. These accounts (crypto), however, also offer less security than savings accounts at banks or credit unions.

Bank deposits in the U.S. are insured by the FDIC up to $250,000.

Crypto savings accounts can offer high yields

The main incentive for choosing a crypto savings program is its high interest rate or yield. Several DeFi apps, such as Anchor Protocol, offer a nearly 20% yearly yield on its savings option. These are figures with which modern banks cannot compete.

These accounts offer yearly yields. Unlike banks, however, these types of accounts estimate their yields using crypto. This is useful for crypto enthusiasts. It can also be confusing for those new to the crypto world. It is best to remember that crypto assets can be volatile.

crypto savings account bitcoin volatility
Bitcoin volatility in 2024: tradingview.com

This will influence the value of the yearly yield. It is best to consider offers that involve stablecoins. These are cryptocurrencies pegged to the value of a fiat currency, such as the USD.

Savings accounts will include flexible or fixed terms as withdrawal options. With the latter, you are likely to receive higher yield rates in exchange for locking up your money for a set period of time. These accounts have similar characteristics to the high yields in crypto staking.

Risks involved with crypto savings accounts

There are also possible cons to consider when starting a crypto savings account. First of all, these accounts are not insured by any government. This means that in the off-chance that they should default, no government institution can step in and assist customers.

Speaking of the default risk, it is important for crypto users to understand that, in this case, they will have a harder time getting their money.

Lastly, the volatility of the crypto markets isn’t for everyone. These changes in the values of various digital assets have helped make fortunes for some but have also led to great losses. The terrific yields offered by these savings accounts come with considerable risks. Simply put, what the crypto world is currently offering may not be for everyone.

These accounts should appeal primarily to those that are already heavily invested in the blockchain space. These are the people that can make good use of their assets. Instead of simply storing their coins, they can use those as a way to earn additional revenue.

Why go for a crypto savings account?

These accounts are a great way to earn passive income from your crypto assets. Another advantage refers to the interest rates related to digital currencies. These accounts are different from traditional savings. Customers can receive either USD interest rates or crypto interest rates.

This allows crypto-aficionados the ability to accumulate their favorite crypto assets directly. Knowing the pros and cons will help you decide whether these accounts are suitable for you.

ProsCons
Higher yieldsNot insured
Passive incomeCrypto is volatile
Fixed and flexible plans
Puts idle crypto to use

Are crypto savings accounts worth your time and money?

A crypto savings account, under the right circumstances, can be a good way to earn additional income from digital assets that would otherwise be stuck in storage. Major crypto platforms generally have programs in place to cater to these needs. Each program offers various yearly yields and various conditions for withdrawing your funds.

However, it is also important to consider numerous factors. Cryptocurrencies are, by the market’s nature, volatile. Furthermore, it is important to conduct your own research to avoid unnecessary risks. Finally, you may feel that your crypto is better used elsewhere.

Frequently asked questions

What is the safest crypto savings account?

What is a crypto savings account?

Can you use crypto as a savings account?

Is crypto better than a savings account?

Which crypto savings account is best?

What is a good APY for crypto?

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Eduard Banulescu
Eduard Banulescu is a writer and musician originally from Bucharest, Romania who is currently active on a number of various projects. Eduard's been working in an official position in the crypto-world since 2017 when he joined the team of blockchain-based game www.footballcoin.io. Currently, he is Brand Manager of FootbalCoin.
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