How to Earn Interest on Cardano

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Contributor, Benzinga
April 19, 2021

Cardano (ADA) announced that investors can purchase the currency on Coinbase Pro. Cardano has quickly gained traction as one of the largest cryptos, right on the heels of counterparts Binance Coin (BNB) and Tether (USDT). As of this publication, the company’s market cap sits at about $36 billion with more room to grow.

Investors are bullish on this crypto since the energy consumption for mining it is less than that of Bitcoin (BTC) so they're willing to put real money into this cryptocurrency. At the basic level, Cardano offers just another blockchain, but it’s also a good way to rack up some passive income. 

Learn how you can earn interest on Cardano today.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

Step 1: Open a crypto account.

To get started, you’ll need to open an account with a platform that lets you earn interest in your crypto holdings. While you’ll pay more attention to the widely used and less volatile cryptos like Bitcoin and Ethereum, a few crypto exchanges still support interest-bearing accounts for Cardano.

You can still earn up to 6% annual interest on your deposits on private users can rack up to 8% annual interest. Interest pays out on a weekly basis in the coin deposited with flexible, 1-month or 3-month terms available for users to select.

To register on the exchange, go to and create an account with your name, date of birth, nationality and email. You can also download the crypto app on the App Store and Google Play.

Step 2: Look at interest rates.

You can look up the interest rate you’ll earn on Cardano on With 30+ cryptocurrencies and stablecoins supported on this exchange, the interest you earn may vary among crypto assets. Also, you need to check whether the company takes a cut of the interest earned.

Here’s the amount of interest you can expect to earn for the 3 term options as a earnings calculator.

  • Flexible term: A $5,000 deposit with a 50,000 CRO stake will earn you $50 per year paid in ADA. The interest rate is 1% and rewards worth $0.96 paid weekly.
  • 1-month term: A $5,000 deposit with a 50,000 CRO stake will earn you $100 per year paid in ADA. The interest rate is 2% and rewards worth $1.92 paid weekly.
  • 3-month term: A $5,000 deposit with a 50,000 CRO stake will earn you $150 per year paid in ADA. The interest rate is 3% and rewards worth $2.88 paid weekly.

Interest rates may increase or decrease depending on the crypto inflation rates and amount of leverage traders’ use.

Step 3: Add Cardano to your portfolio.

You must own Cardano to earn interest in this crypto asset, but you can anticipate some exposure to Cardano’s high volatility. While you can expect to earn up to 8% interest on your investment, your earnings get paid out in ADA. You will also earn weekly rewards on your holdings.

Step 4: Earn interest.

Once your account with an exchange is open and fully funded, you can start monitoring the interest rate and rewards you earn on your investment. 

Remember, interest rates are just floating rates that may change as the market demand for the crypto asset changes. Monitoring your interest rate on a regular basis will help you decide whether you are earning enough to make your investment worth it.

How Does Compound Interest Work for Cardano?

As with most cryptocurrency savings accounts, interest in Cardano accrues on a weekly basis or an even shorter time period. This is attractive for investors since compounding interest will grow your account faster than simple interest.

For instance, if you invest $5,000 earning 8% interest compounded annually for 3 years, the interest you earn on the second year will be what you earn on your principal plus the interest from the previous year. The same applies for the subsequent year.

Time is your greatest arsenal due to compounding. The longer you hold onto your Cardano assets, the faster your investment will grow. The same doesn’t apply for simple interest since no interest is earned on any interest you had earned previously.

Pros and Cons of Earning Interest in Cardano

Earning interest in this crypto offers a great way to increase your investment. If the price of Cardano surges while it's still in your savings account, the interest on your initial investment will increase and so will other interest you earn in subsequent years. This is entirely because the interest earned is paid directly to your account in ADA.

Besides, you will rarely find a savings account yielding up to 8% interest per annum. This means that your money is better off earning interest in a crypto exchange as opposed to sitting in a conventional savings account.

On the flip side, interest rates on cryptocurrencies involve floating rates, so there’s no guarantee that they will remain high in the long run. If Cardano depreciates, so does your interest, and consequently, your overall investment.

Is Cardano Worth the Interest or the Hold?

Holding Cardano as an investment gives you a better hand at liquidity — you can enter or exit a position fast if cryptocurrency prices fluctuate outrageously. Even so, it may all come down to your appetite for risk. Earning interest on widely known cryptos like Bitcoin or Ethereum may provide a safety net, but you may still not be out of the woods yet. Ultimately, it’s a trade-off you’ll have to make depending on your preferences and goals.

Frequently Asked Questions


Can I get free Cardano with a crypto interest account?


While some exchanges reward you with free cryptos for signing up, no promos are free on Cardano with a crypto interest account. Even so, the interest earned on your holdings can be compared to receiving free Cardano.


Should I put my savings into Cardano?


Putting your savings in Cardano is just as rewarding as it is risky. While crypto interest accounts can earn you interest rates you won’t get with a conventional savings account, you can easily lose your investment. Only put in money you’re willing to lose.  

Even so, Cardano is on the list of top 5 cryptocurrencies by market capitalization, so this crypto asset is still viable in the long term. Just hold your investment for years and see the true power of compounding interest.

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