You can seek crypto-denominated returns through a custodial account or lending arrangement, or earn protocol rewards by staking an eligible proof-of-stake asset. These are different activities: provider-paid “interest” may depend on lending or other investments, while staking rewards come from supporting a blockchain network. Neither should be treated as guaranteed or equivalent to interest on an insured bank deposit.
What does “earning interest” on cryptocurrency mean?
Crypto products often use “interest” as a broad marketing term, but the return can come from different sources. Before depositing or locking up an asset, find out who or what generates the return, what rights you have to your assets, and what could prevent you from getting them back.
Custodial interest-bearing accounts
In a custodial account, you transfer crypto to a company that holds it and may use it in investment activity, including lending to borrowers. The company may then pay you a return in crypto. In its 2022 discussion of BlockFi Interest Accounts, the SEC described customers lending crypto to BlockFi, which used the assets in activities that included institutional loans. That example shows why an advertised rate is not simply a payment from a blockchain: it can depend on the provider’s business and its borrowers. SEC Investor Bulletin: Crypto Asset Interest-bearing Accounts
Crypto lending
In a lending arrangement, you provide crypto or funds to a borrower under terms that may require repayment of an equivalent value later, with additional interest. Your return therefore depends on the borrower’s repayment obligation and the arrangement’s terms—not on proof-of-stake consensus. The borrower, platform, collateral and applicable withdrawal conditions all matter. EBA-ESMA factsheet on crypto lending and staking (2025)
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
Staking
Staking means immobilizing eligible crypto assets to help support a proof-of-stake or similar consensus mechanism. In return, a participant may receive network rewards associated with validator privileges. Rewards depend on the network and arrangement; they are not automatically a fixed interest payment. Staking can involve a lock-up or an unbonding period during which assets cannot be freely withdrawn. EBA-ESMA factsheet on crypto lending and staking (2025)
Liquid staking generally routes assets through a protocol or service provider and may issue a receipt token representing a claim on the staked asset. In the circumstances described in the SEC’s FAQ, the receipt token itself does not generate or guarantee a particular reward; rewards depend on the underlying network and arrangement. SEC Division of Corporation Finance FAQ on crypto assets
How do the main ways to earn returns compare?
| Method | Where the return comes from | What happens to your assets | Important access or loss considerations |
|---|---|---|---|
| Custodial interest-bearing account | Provider investment activity, which may include lending assets to borrowers; the provider may pay a return in crypto. SEC, 2022 | You transfer assets to a custodian, so custody terms and how the provider uses the crypto matter. | Access depends on the provider’s terms and ability to meet withdrawals. Provider failure, borrower default or illiquidity can result in loss or restricted access. |
| Crypto lending | A borrower’s obligation to repay an equivalent value, potentially with additional interest. EBA-ESMA, 2025 | You make crypto or funds available under the lending arrangement; the contract determines the parties’ obligations. | Repayment and withdrawal depend on the borrower and arrangement. Default, illiquidity or liquidation can affect what you recover. |
| Direct or delegated staking | Rewards associated with supporting proof-of-stake or similar network consensus. EBA-ESMA, 2025 | Assets are immobilized to support the network; the exact process depends on the network and method of participation. | Lock-up or unbonding delays may limit access; network or technical risks can affect results. |
| Liquid staking | Underlying staking rewards, subject to the network and arrangement; a receipt token does not itself guarantee a reward amount in the circumstances covered by the SEC FAQ. SEC FAQ | A protocol or service provider handles the staking route and may issue a receipt token. | In addition to network exposure, consider the provider or protocol, receipt-token liquidity and technical risks. |
There is no current, comparable typical APY established across these methods in the cited official material. Rates are specific to a product and date, so a headline rate should not be read as a market-wide norm or a promise of future returns.
How to evaluate a crypto yield offer
Compare the mechanics and terms, not just the advertised percentage. Use this checklist before transferring assets or committing them to a network:
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
- Identify the return source. Is the payment generated by a borrower’s interest, the provider’s investment activity, or network staking rewards?
- Check control and custody. Who controls the private keys? Can the provider lend, pledge, rehypothecate or commingle your assets? What happens to customer assets if the provider fails?
- Read withdrawal and lock-up terms. Check whether withdrawals are flexible, restricted to a fixed term, subject to network unbonding, or dependent on selling a liquid-staking receipt token.
- List the ways you could lose money or access. Consider asset-price volatility, borrower default, provider insolvency, liquidity shortages, collateral liquidation, slashing, smart-contract failure, operational errors, hacking and malware.
- Check costs and eligibility. Confirm supported assets, minimums or limits, and account, transaction, transfer, setup and closure fees. Network costs may also apply.
- Confirm that the offer is available where you live. Product availability and legal treatment depend on jurisdiction and on what the service actually does.
The SEC’s retail custody guidance recommends asking how a custodian safeguards crypto and private keys, whether it uses hot or cold wallets, how it uses customer assets, what happens if it fails, which assets it supports and what fees it charges. SEC Investor Bulletin: Crypto Asset Custody Basics for Retail Investors (Dec. 12, 2025)
What protections and risks should you understand?
Crypto placed in an interest-bearing account is not protected like an insured bank or credit-union deposit. The SEC says crypto assets sent to these companies are not currently insured; do not assume that an advertised account has FDIC or NCUA deposit insurance. The SEC also identifies volatility and illiquidity, company bankruptcy, disappearing markets, regulatory changes, fraud or default, and hacking or malware as possible risks. SEC Investor Bulletin: Crypto Asset Interest-bearing Accounts
Proof-of-reserves claims do not, by themselves, answer every question about a custodian’s financial position. The SEC cautions that these assessments may be point-in-time snapshots, may omit activity between snapshots or liabilities, and are not as rigorous or comprehensive as a financial-statement audit. SEC Investor Alert: Exercise Caution with Crypto Asset Securities
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What do current U.S. and EU statements say?
United States
On Aug. 5, 2025, the SEC Division of Corporation Finance issued a staff statement saying that certain liquid-staking activities described in the statement, depending on the facts and circumstances, do not involve an offer and sale of securities under the specified Securities Act and Exchange Act provisions. This is scoped staff guidance, not a blanket approval of every staking service or token. Separately, an SEC investor alert says entities and platforms involved in lending or staking crypto assets may be subject to federal securities laws. SEC press release on certain liquid-staking activities (Aug. 5, 2025) · SEC Investor Alert: Exercise Caution with Crypto Asset Securities
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallBest Value
European Union
In an answer dated Feb. 18, 2026, the European Commission stated on ESMA’s MiCA Q&A page that crypto-asset service providers may not earn interest on client funds deposited in a credit-institution savings account under the cited MiCA Article 70 requirements, and that interest arising from the described compliance procedures must be transferred to the client. This answer addresses those client funds and savings accounts; it is not a complete ruling on all crypto lending or staking. ESMA Q&A 2486
How is crypto interest or staking taxed?
Tax treatment for interest, lending proceeds and staking rewards is not established universally by the sources cited here. It depends on current rules in the relevant jurisdiction and on the activity involved. Check the applicable official tax authority’s guidance or seek qualified local tax advice before relying on a tax treatment.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
