How To Earn Big Interest On Crypto Stablecoins

Here we show you where to earn big interest on crypto stablecoins, through staking. Now, there are 2 ways to earn interest with cryptocurrencies. If you stake with stablecoins, you don’t have to worry about the price of the cryptocurrency going down.

If you stake to earn interest with cryptocurrencies where the price fluctuates, then you can gain nicely when the price of the crypto goes up.

However, your crypto staking interest can be easily wiped out if the crypto goes down, so it can be quite a risky option to use non-stablecoins for staking. You can lose your interest along with a loss on the value of the cryptocurrency.

In this article we show you the stablecoins that you can stake to earn interest on, along with the best exchanges. We also have 2 terrific videos on using stablecoins to earn a passive income.

At the end of this article, I have shared with you a Stablecoin Interest Calendar URL, where you can find the latest earnings interest from various providers.

Best Stablecoins To Earn Interest 

  • USD Coin (USDC)
  • True USD (TUSD)
  • Tether (USDT)
  • Paxos  (USDP)
  • Binance USD (BUSD)
  • eToro (EURX)
  • eToro (GBPX)

How To Earn Big Interest On Stablecoin Cryptos

Here is the best exchanges to earn big interest on stablecoins in the digital finance industry;

NOTE: There are always risks with any type of investing, so before investing, it is always good practice to do your own due diligence before investing.

Asset Backed Stable Coins Versus Algorithm Stable Coins

There are various types of stablecoins. You have asset backed and algorithmic stablecoins. Here is a bit of explanation on both. All the stablecoins above are fiat / asset backed.

Asset Backed Stablecoins

Now, there are different types of stablecoins to invest in, which you need to be aware of. You have crypto stablecoins that are backed by assets (commodities, fiat currency or other crypto currencies).

Algorithmic Stablecoins

Some stablecoins use an algorithm, rather than a physical reserve asset, to stabilize their price. Now, these are called algorithmic stablecoins are pegged to a stable asset, just like regular old stablecoins. But instead of being backed by a reserve, they rely on smart contracts and user incentives to maintain a stable price.

When the stablecoin price goes above $1, the protocol issues more tokens to apply downward pressure. Conversely, when the stablecoin price goes below $1, the protocol buys/burns tokens to apply upward pressure.

Compared to collateralized stablecoins, algorithmic stablecoins have a harder time staying on peg. If they don’t have the proper balance of liquidity, incentives and automation, then the coin can enter a so-called “death loop” where it becomes impossible to restore the peg.

This death spiral happened in May 2022 with TerraUSD (UST), where it basically lost all its value along with it associated now re-named Luna Classic token.

USD (USDC) Asset Backed Stablecoin 

USD coin (USDC) is an Ethereum-based stablecoin and this digital value is pegged 1:1 with the U.S. dollar. This means holders can redeem 1 USD stablecoin for $1. Every USDC is backed by one dollar or with assets that have an equivalent value, held in accounts with U.S. regulated financial institutions.

True USD (TUSD) Asset Backed Stablecoin

TrueUSD (TUSD) is a fully collateralized, legally protected and transparently verified ERC-20 token. It is pegged to the US dollar and maintains a 1:1 ratio. Also, it is the first crypto asset built on the TrustToken platform.

TUSD token benefits:

  • Legal Protection. The company publishes regular attestations that come with strong legal protection provided by the escrow accounts.
  • Redeemable for USD. Any individual or organization that passes AML/KYC check on the TrustToken platform can redeem TUSD for USD. However, the minimum withdrawal amount is $10 000.
  • Trustworthy Fund Management. The way TrueUSD’s system is set up, it allows you to exchange USD directly with escrow accounts by design instead of wiring money through TUSD network.
  • Full Collateral. A single TUSD token is always collateralized by USD held in the escrow account company. New tokens are minted and burned by the publicly audited smart contracts.
  • Regular Attestations. All holdings of escrow accounts are subjected to regular attestations that are published openly

Tether (USDT) Asset Backed Stablecoin

Tether and the tokens it creates are designed to be stablecoins pegged to real life assets or commodities to provide stability in value. Tether’s USDT is pegged to the U.S. dollar, but whether the USDT reserves consist of actual dollars, or similarly safe assets, has been the subject of contention.

Tether launched on Bitcoin’s Omni Layer, but continues to expand to other protocols, including Ethereum, Bitcoin Cash, TRON, EOS, Liquid Network, Algorand, SLP, and Solana. Ethereum and TRON are the blockchains with the most USDT supply.

Paxos (USDP) Asset Backed Stablecoin

USDP, also knows as the Pax Dollar is issued on the Ethereum blockchain through the ERC-20 token standard. As a result, the Paxos USDP stablecoin stands to benefit from all upgrades coming to the Ethereum 2.0 network, which also includes the move to sharding to process a higher number of network transactions simultaneously.

It also means USDP is compatible with all smart contracts and decentralized applications (dapps) built on the Ethereum blockchain. Additionally, Paxos’ cryptocurrency brokerage platform is using the Chainlink oracle network (Ethereum based platform) to widen the adoption of USDP within the  DeFi ecosystem.

The USDP reserves are held 100% in cash and U.S. Treasuries, meaning that customers funds are always available for a 1 to 1 redemption. This also makes USDP the safest of all stablecoins to own.

Moving your USDP over to the ABRA Earn account, will pay you 7.5% interest.  NEXO are also offering very good interest on USDP.

Here is a terrific article on why USDP is a terrific crypto investment. The article includes some terrific videos including interviews with the Co-Founder and CEO of Paxo, Chad Cascarilla.

Binance (BUSD) Asset Backed Stablecoin

Binance USD, which is also known as BUSD, is a U.S. dollar stablecoin issued by crypto exchange Binance and blockchain company Paxos Trust. This BUSD stablecoin maintains a price of one U.S. dollar through the backing of using fiat reserves. Just as importantly, this BUSD stablecoin is approved by the New York State Department of Financial Services (NYDFS).

Paxos handles its issuance. So, whenever a person wants to redeem BUSD for cash, Paxos then burns or destroys BUSD, and sends cash to the withdrawer’s bank account. Then, whenever someone wants to create BUSD with U.S. dollars, Paxos mints more USD in exchange for the dollars.

Paxos keeps all of the fiat it receives in a trust, and then puts that money into U.S. bank accounts. They claim to hold $1 for each BUSD it issues, meaning that the coins are issued at a one to one backing. Also, Paxos publishes independent attestations from an auditor to verify that it holds the total supply of BUSD in bank accounts, which are insured by the Federal Deposit Insurance Corp (FDIC).

There is no cap on the number of BUSD, which can ever exist, with its supply depending on how much money people have entrusted to Paxos. As of June 2022, BUSD was the 3rd largest stablecoin by market capitalization.

Here is an excellent video, which explains BUSD for beginners.

eToro EURX Tokenized Stablecoin

eToro has been in the brokerage business since 2007. Now the EURX is a tokenized stablecoin, listed for trading on eToroX Exchange. EURX is tied to the value of the Euro on a 1:1 valuation basis, making trading in EURX on eToroX the same as exchanging or trading fiat Euro.

On the eToroX exchange, you can buy EURX using crypto options such as Ethereum or Bitcoin, and you can use EURX to buy other crypto assets as well.

With the eToro Wallet, you can fund your account with Bitcoin or Ethereum. Also, you can exchange EURX against various  stablecoins and crypto assets, including EURX / JPYX, EURX / GBPX, EURX / USD, BTC / EURX, and ETH / EURX pairs.

With Nexo, you can earn up to 12% on EURX.

eToro GBPX Tokenized Stablecoin

GBPX Great British Pound on the eToroX Exchange. It tracks the movement of the British Pound. GBPX trading is similar to trading the GBP in that the prices are pegged to each other. You can buy GBPX using fiat or other cryptos such as Bitcoin or Ethereum, and sell it in exchange for other crypto assets.

Funding the eToroX account with a cryptocurrency such as Bitcoin, and buy GBPX on eToroX is easy. Then, it is possible to trade GBPX in its pairing with other cryptos or stable coins as though you were trading with pounds sterling. Exchange GBPX for other cryptos, to use it as a bridge to purchase other altcoins etc.

GBPX is paired with 16 different assets, which are a mixture of other stable coins as well as full crypto assets.

You can earn interest with GBPX on Nexo.

Difference Between APR And APY In Crypto

Crypto staking providers and lenders vary in how they pay interest on the funds you invest.  You will see interest prices in either APR or APY and over the long term, APY is better.

  • APR means annual percentage rate, the investment rate you get with simple interest.
  • APY stands for annual percentage yield, which is based on the compound investment.
  • APY is more profitable than APR since it includes interest on interest and not only interest on the initial investment.
  • In DeFi, APY is mostly possible due to manual compounding, when users add their interest to the initial investment every day in order to get more profit.

Difference between APR and APY in Crypto

Best Crypto Currency Exchange For Earning Interest

Here are 5 of the best places where you can earn very nice staking interest earning on stablecoins and cryptocurrencies.

ABRA – Earn Interest On Crypto

ABRA started in early 2015 with Bill Barhydt as the CEO.  Everything is located in an easy to use app, which allows users to access interest earning, buying, selling and trading in cryptocurrencies.

Using ABRA, you can earn up to 12.5% interest on stablecoins, compounded daily and paid out every Monday.

Binance – Earn Staking Interest On Crypto

Binance was founded by Changpeng Zhao in 2017, and it is now one of the world’s leading blockchain ecosystem and cryptocurrency infrastructure providers.  It has a full financial product suite, which includes the largest digital asset exchange. It completes 1.4 million transactions per second.

With Binance you can earn up to 10% interest on stablecoins, with a lot higher interest on other crypto currencies.

CoinLoan – Earning Interest On Crypto

CoinLoan Earning Interest

In April 2018, CoinLoan obtained its first required financial license.  It is a Crypto exchange, loan provider, and also a place to earn excellent interest by staking your cryptocurrencies.

With the CoinLoan Interest Account, you can earn up to 12.3% on stablecoins.

Nexo – Earn Interest on Stablecoins & Crypto

Nexo is one of world’s largest and well known lending institution. This DeFi company currently manages assets for over 4 million users across 200 jurisdictions.

It was founded in 2017 by Antoni Trenchev, Georgi Shulev, and Kosta Kantchev, who have vast experience with various financial institutions around Europe. The company is registered in London, England.

With Nexo, you can earn 11% on UST stablecoin, with a lot higher interest through purchasing the NEXO crypto currency.

Stablecoin Interest Earnings Calendar

On this stablecoin interest earning calendar website, you will be able to find and compare the best stablecoin savings accounts, which are paying the highest interest rates.

There is also a stablecoin guide to familiarise yourself with the different types of stablecoins, and how the stablecoin sector could potentially evolve.

Stablecoin Staking & Passive Income Videos

Here are 2 excellent videos, which show you the best stablecoin and passive income strategies.