Crypto Lending Earnings Calculator
Calculate Your Crypto Lending Returns
See potential earnings based on current interest rates for stablecoins and major cryptocurrencies
Projected Earnings
Want to make your cryptocurrency work for you instead of just sitting in a wallet? Lending crypto to earn interest isn’t science fiction-it’s a real way to get passive income without selling your coins. You’re not gambling. You’re not mining. You’re simply letting someone else use your digital assets, and they pay you for it. Think of it like a savings account, but with Bitcoin or USDC instead of dollars.
How Crypto Lending Actually Works
Crypto lending connects people who have digital assets they aren’t using with people who need to borrow them. Borrowers might be traders needing leverage, businesses funding operations, or even other crypto users looking to buy more coins without selling their holdings. In return, they pay you interest-usually paid out daily or monthly.
There are two main ways this happens: through centralized platforms (CeFi) or decentralized protocols (DeFi). Centralized platforms like Nexo, Ledn, and YouHodler act like banks. You deposit your crypto, they lend it out, and they pay you interest. You don’t control the keys to your wallet-they do. That’s convenient, but it means you’re trusting them with your money.
Decentralized platforms like Aave and Compound work differently. You connect your own wallet-like MetaMask-and deposit your crypto directly into a smart contract. The contract matches your funds with borrowers automatically. You keep control of your assets the whole time. But you need to understand gas fees, wallet security, and how to read contract warnings.
What Coins Earn the Most Interest?
Not all crypto earns the same interest. Stablecoins like USDC and USDT are the most popular because they don’t swing in value. They’re pegged to the U.S. dollar. As of mid-2025, you can earn between 4% and 10.5% APY on stablecoins, depending on the platform. Nexo offers up to 10.52% on USDC. YouHodler matches that. Ledn gives around 8% on USDT.
Bitcoin and Ethereum earn less because they’re volatile. Lenders are more cautious. Bitcoin typically pays 0.5% to 8% APY. Ethereum runs between 1% and 6%. If you’re holding long-term and don’t mind lower returns, this still beats sitting idle. Plus, if Bitcoin’s price goes up, you get the gain on top of the interest.
Other coins like Solana, Cardano, or Polygon offer higher yields sometimes-up to 12%-but they’re riskier. If the coin crashes, your collateral might not be enough to cover the loan, and you could lose part of your deposit. Stick to stablecoins if you want predictable income.
Centralized vs. Decentralized: Which Is Better?
Here’s the trade-off: higher yields vs. higher risk.
Centralized platforms (CeFi) pay more. Nexo, YouHodler, and Ledn all offer rates above 8% on stablecoins. They’re easy to use-sign up, verify your ID, deposit, and start earning. Most have apps, customer support, and instant withdrawals. But they’ve also failed before. Celsius collapsed in 2022, freezing $8 billion. BlockFi filed for bankruptcy in 2022 and paid back only part of what users lost. Even today, platforms like Nexo have paused withdrawals during market crashes.
Decentralized platforms (DeFi) are safer from bank-style collapses. Aave and Compound have never gone bankrupt. They’re code. If the code works, your money stays safe. But they’re not immune to hacks. Euler Finance lost $600 million in March 2023 due to a smart contract flaw. And gas fees on Ethereum can hit $15 per transaction. If you’re depositing $500, that’s a 3% fee right off the top.
DeFi also requires you to manage your own wallet. If you lose your seed phrase, you lose everything. No customer service can help you. CeFi might be simpler, but DeFi gives you more control. If you’re comfortable with tech, DeFi is the long-term play. If you want convenience and don’t mind trusting a company, CeFi works-for now.
Step-by-Step: How to Start Lending Crypto
Here’s how to get started, whether you pick CeFi or DeFi.
- Choose your platform. Compare at least three. Look at APY, minimum deposit, withdrawal speed, and reputation. For CeFi: Nexo, YouHodler, Ledn. For DeFi: Aave, Compound.
- Select your asset. Start with USDC or USDT. They’re stable, widely accepted, and pay the best rates. Avoid lending obscure tokens.
- Sign up and verify. CeFi platforms require KYC-your ID, proof of address. Takes 15-30 minutes. DeFi? Just connect your wallet. No paperwork.
- Deposit your crypto. On CeFi, transfer from your exchange to their wallet. On DeFi, use your wallet to send coins to the protocol’s smart contract. Watch for gas fees.
- Start earning. Interest compounds daily. You’ll see it show up in your account balance. No action needed.
Pro tip: Don’t put all your crypto in one platform. Split it between two or three. That way, if one fails, you don’t lose everything.
What Can Go Wrong?
There are three big risks.
1. Platform failure. Celsius, BlockFi, and Voyager all collapsed. They lent out your money to risky borrowers or used it for speculative trading. When markets turned, they couldn’t pay you back. Even Nexo, which seems stable now, cut Bitcoin interest rates from 6% to 2.5% in early 2024. Rates can drop anytime.
2. Smart contract bugs. DeFi isn’t magic code. It’s written by humans. One line of bad code can cost millions. The Euler hack in 2023 was caused by a flaw in how collateral was calculated. Even Aave and Compound have had minor exploits.
3. Regulatory crackdowns. The SEC says many crypto lending products are unregistered securities. In 2023, they sued Coinbase and BlockFi. If the U.S. bans lending platforms, you might not be able to withdraw your funds. The EU’s MiCA regulation (effective December 2024) forces platforms to hold 2% capital reserves-good for safety, bad for yields. The U.S. still has no clear rules.
And don’t forget taxes. In the U.S., Canada, Australia, and the UK, interest earned on crypto is taxable income. The IRS now asks directly on Form 1040: “Did you receive any crypto as income?” You need to track every payment. Use a tool like Koinly or CoinTracker.
Real Numbers: What Can You Actually Earn?
Let’s say you deposit $50,000 in USDC.
On Nexo at 8% APY: $4,000 per year. That’s $333 a month.
On Aave at 5% APY: $2,500 per year. $208 a month.
That’s more than most savings accounts. And you still own your crypto. If USDC stays stable and the price of Bitcoin rises, you’ve got two wins: interest and capital growth.
One Reddit user, u/StablecoinFarmer, reported earning $3,200 in 2024 on a $50,000 USDC deposit. That’s 6.4% APY. He didn’t touch his coins. He just left them in Nexo.
But here’s the catch: that rate won’t last. Interest rates have dropped 63% since 2021. Back then, you could get 12% on stablecoins. Now, 4-8% is the new normal. Don’t expect 10% forever.
What’s Next for Crypto Lending?
The market is changing.
Platforms are adding more safeguards. Nexo now publishes monthly Proof of Reserves audits by Armanino LLP. Aave’s Safety Module now uses 30% of its revenue to fund insurance. Compound raised its minimum collateral from 50% to 65% to protect against crashes.
Institutional players are coming in. BlackRock launched its BUIDL fund in March 2024, putting $10 billion into Ethereum lending protocols. Fidelity is partnering with BlockFi to offer institutional-grade custody.
Real-world assets (RWA) are the next frontier. Imagine lending crypto against real estate or government bonds. That’s what BlackRock is testing. If it works, yields could become even more stable.
But don’t expect the wild west of 2021 anymore. The era of 15% APY is over. The new standard is 3-6%. Platforms that promise more are either lying or taking dangerous risks.
Final Advice: Play It Smart
Don’t chase the highest rate. Look for the most trustworthy platform with transparent audits, reasonable withdrawal terms, and a track record. Start small. Test with $1,000 before putting in $10,000. Use stablecoins. Diversify across platforms. Keep your own keys if you can handle the tech. And always, always track your taxes.
Crypto lending isn’t a get-rich-quick scheme. It’s a way to make your digital assets work harder. If you treat it like a savings account-not a casino-you’ll do fine. The market will keep changing. But as long as people need to borrow crypto, someone will pay interest to lend it.
Can I lose my crypto if I lend it?
Yes, but only if the platform fails or gets hacked. On centralized platforms like Nexo or YouHodler, you’re trusting their business practices. If they go bankrupt, you could lose access to your funds-as happened with Celsius. On decentralized platforms like Aave, your crypto stays in your wallet, but smart contract bugs or market crashes could lead to losses. Always understand the risks before depositing.
Is crypto lending taxable?
Yes. In Australia, the U.S., Canada, and most countries, interest earned from crypto lending is treated as taxable income. You must report it on your annual tax return. The amount is based on the AUD or USD value of the interest when you receive it. Use crypto tax software like Koinly or CoinTracker to track payments and generate reports.
What’s the best crypto to lend for interest?
USDC and USDT are the best choices for most people. They’re stable, widely supported, and offer the highest yields-typically 4% to 10.5% APY. Bitcoin and Ethereum pay less (0.5%-8% and 1%-6% respectively) and are more volatile. Avoid lending obscure altcoins unless you fully understand the risks.
Do I need to be an expert to lend crypto?
No, not if you use a centralized platform. Nexo, Ledn, and YouHodler are designed for beginners-you sign up, verify your identity, deposit, and earn. DeFi platforms like Aave require more knowledge: managing wallets, paying gas fees, understanding smart contracts. If you’re new, start with CeFi. Learn DeFi later.
Can I withdraw my crypto anytime?
It depends. Most platforms allow withdrawals within 24-48 hours. But during market crashes or liquidity crunches, platforms like Celsius and Nexo have paused withdrawals. Always check the platform’s terms. Never assume your funds are instantly accessible. Keep a portion of your crypto outside lending platforms for emergencies.
Are there fees for lending crypto?
Centralized platforms rarely charge fees to lend. They make money from borrowers. DeFi platforms charge gas fees when you deposit or withdraw-usually $1 to $15 on Ethereum, less on other chains like Polygon or Arbitrum. Some platforms also take a small cut of your interest (around 10-20%), so check the fine print.