Can You Earn Interest on Bitcoin?

Key Takeaways

  • You can earn interest on Bitcoin but it's risky.
  • All of the biggest crypto interest companies have gone bankrupt.
  • Users with funds on these platforms will be lucky to ever get them back.

Many users want to earn interest on their Bitcoin.

However, let’s take a dive into the history of companies that allowed users to earn interest on Bitcoin and learn the risks.

interest on bitcoin


The main risk of earning interest on bitcoin is simple:

While mentally you may feel that you still have bitcoin in your account, the company is usually free to distribute your bitcoin as they see fit.


FTX was one of the world’s largest crypto exchanges. It had celebrities pushing it on social media and offered users up to 8% interest on their bitcoin or USDT.

FTX is famous for losing all of its customers money. FTX filed for Chapter 11 bankruptcy on November 11, 2022.

Its founder and CEO Sam Bankman-Fried’s $16 billion net worth fell to near-zero overnight.

FTX is a classic case of the risk of earning interest on BTC:

Once you leave your coins with another company, they are not yours.

As is the case with FTX, the company’s users had claims to over 100,000 BTC, but FTX owned zero bitcoins.

This means that all the bitcoins that FTX customers thought they deposited with FTX were not even there!


Blockfi was another US company that also allowed users to earn interest on BTC, USDT and other coins.

In November 2022, Blockfi also filed for Chapter 11 bankruptcy.

Blockfi claims that the issues at FTX are what caused it to fall.

Regardless of what caused to lose its funds, the issue remains the same:

When you trust another company with your coins, you are placing your trust in their decisions. And the coins you deposit there are not yours.


Celsius was yet another crypto lending company.

At its height, Celsius managed $25 billion in assets and promised interest up to 19% APY on crypto deposits.

Now, it has only $167 million “in cash on hand,”.

Three weeks before filing for bankruptcy, it halted all customer withdrawals.

Celsius now owes its users around $4.7 billion.

Celsius’ fall serves as another warning about the risks of depositing digital assets with third-party companies.

Article Sources

BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.

  1. NBC - FTX Collapse Explained,
  2. The Guardian - BlockFi Collapse Explained,
  3. CNBC - Celsius Collapse Explained,

About the Author

jordan tuwiner

Jordan Tuwiner is the founder of He studied computer science at Towson University and holds an online degree in trading & cryptocurrency. Jordan has been writing about Bitcoin since 2015. His work has been featured in The Guardian, International Business Times, Forbes, VentureBeat, CoinDesk and many other top Bitcoin media outlets.

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