Best Polkadot DOT Interest Rate – Get Highest APY

Welcome to our article about the best Polkadot DOT interest rates and how to achieve the best APY on your DOT holdings.

We will list all kind of different ways to get passive income with DOT, from staking to interest accounts.

There are always pros and cons with each alternative and we will help you to find the best alternative for you. This might not always be the best interest rate.

No Financial Advice, Information only. Do your own research

What is Polkadot?

Polkadot is a sharded multi-chain network that seeks to incentive a global network of computers. This network is intended to operate a blockchain on top of which users can launch and operate their own blockchains.

However, Polkadot, launched in 2020, is among the newest, and it introduces a number of novel technical features toward its ambitious goal.

Where to get the best interest rate for Polkadot DOT token?

In the table below, we have listed all the best interest rates for the Polkadot DOT token. As you can see, Binance is offering the very best APY.

However, there are some restrictions and limitations you must be aware of to receive the 27.79% yield. Read more about these in the Binance section below.

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Binance Polkadot Interest Rates and APY

Binance is offering the best interest rate for the Polkadot DOT token. At Binance, you can get up to 27.79% APY on your DOT holdings.

However, this product is capped per account and also capped as a total amount. This means that you can only deposit 15 DOT, if available at all.

The 27.79% APY is a part of the Binance high yield program where Binance offers extreme high APY´s but only for a limited amount of coins for each cryptocurrency.

But, Binance also has a the second best interest rate for the Polkadot DOT token. As you can see in the screenshot below, you can get 12.79% on your DOT holdings by deposit them for 30 days. Here, the maximum amount is 5000 DOT per user.

Read more about Binance in our Binance review.

Get -20% on all fees charged by Binance with our referral code

Celsius Network Interest Rates and APY

Celsius Network gives you a decent interest rate for your Polkadot DOT holdings.

On the Celsius Network you can achieve 8.89% on your idle DOT holdings.

For Polkadot, we would rather use Kraken or Binance to get a higher yield.

Read more about Celsius Network in our Celsius Network review.

Get $40 if you deposit $400 and hold them for 30 days.

Kraken Polkadot Interest Rates and APY

Kraken gives among the best interest rates for the Polkadot DOT token, after Binance.

Here, you can get 12% on your Polkadot deposits.

The big advantages with Kraken are

Kraken allow US citizens (Binance_com doesn´t)
Kraken staking is unlimited time (With Binance you have to renew every 15 or 30 days. Also, you don´t know if it´s possible to renew since the program can already be filled)
Kraken is a regulated exchange based in the US

Read more about how to stake crypto on Kraken.

Risks involved With Polkadot interest Rates

Investments always involves risks. There is not a single risk free investment.

So, the important thing is to make a risk versus reward calculation.

To do this, the risks should be known because it´s always hard to make calculations with unknown parameters. It´s here it becomes difficult since the risks are known but not the probability of them to come true.

Lets calculate an example.

Alice has 1 Bitcoin and she wants to earn interest on them. She want to diversify and uses 10 different platforms to earn interest on. For simplicity, we imagine each one of these platforms pay 10% interest rate.

Also, we assume that over a 10 year period, 1 one of those 10 will fail for any reason (They might got hacked or bankrupt for any other reason).

What do Alice have after 10 years.

Each account is generating 10% yield on yearly basis.

Account 1: failed and Alice lost 0.1 BTC
Account 2-10: Alice started with 0.1 BTC and after 10 years she had 0.259 BTC on each account (0.1*1.1^10)

End result: After a ten years period Alice has 0.259*9BTC= 2.33 BTC

Crypto Passive Income and Risks

We are always looking to get our idle cryptocurrency holdings to work. By doing this, you can earn crypto passive income.

With Crypto passive income you can can an extra income without spending more time.

What are the risks and how to minimize them?

All investments involves a risk. However, it is possible to minimize the risk by certain actions.

One easy example is to diversify your investments. Diversification can mean different things and can be done in different ways.

Some examples are

Do not buy all cryptocurrencies at once. Spread out over time to minimize the risk to buy at all time high
Invest in different cryptocurrencies.
The higher the market cap is for a cryptocurrency, the less is the risk (A simplification but will be valid in most cases)
Spread your cryptocurrencies over several accounts (Your account or private key can be hacked)