Choosing cryptocurrency lending sites that you can trust is very important, and it can make or break your trading success.
Moreover, you will be able to earn a good passive income. Thanks to such platforms you will be able to access cash that you might need without having to go through the process of withdrawing your Bitcoin.
Cryptocurrency lending is the process whereby you loan your coins or fiat money for a fixed period of time. The lending process in this case typically involves three parties, namely, the borrower, the lender, and a crypto lending platform which will connect them together. There are also sites that act as lenders and so in that case there will be two parties not three. Typically an investor will approach such a platform so as to request to borrow money by using his or her assets as a collateral. The borrower will indicate the sum required, and based on this the amount needed as a collateral will be determined by the crypto loan platform. Once the borrower deposits that collateral on the platform he may then apply for the loan and wait for it to be approved. As soon as this is finalized, the platform will deposit the funds on the borrower’s account.
Typically approvals are carried out quickly and transaction fees are relatively low. No credit score check is carried out and the crypto collateral appeals to many borrowers. This is a service that is thus appealing to many borrowers in this day and age.
There are various good cryptocurrency lending sites you can choose from, and we shall be outlining some of them below. Thanks to a good crypto lending platform you can expect to earn good interest on your crypto, while staying safe too. Both aspects are important in this field, and that is why you should make it a point to choose wisely and carefully.
Here are some of the top crypto lending platforms you may wish to check out:
BlockFi is a very successful crypto lending platform, which has raised more than $20 million from numerous firms. BlockFi offers some of the best interest rates for BTC and ETH. In fact it offers up to 6% interest on BTC and up to 4.5% on ETH for lenders.
Borrowers get a 4.5% interest rate, which simultaneously benefits lenders too as more people will be encouraged to borrow from this platform at such an attractive interest rate. Moreover, there is no minimum deposit required on BlockFi, so it is ideal for everyone and anyone.
BlockFi also offers a high security level, whereby all crypto assets are stored with Gemini, which is renowned for its reputability particularly as its track record is impeccable when it comes to hacking and customer fund losses.
Considering all of these pros, BlockFi scores very well. However one needs to take into account the fact that limited cryptocurrencies are available, namely BTC, ETH, LTC, GUSD, PAX and USDC. Also, it is not FDIC insured.
CoinTrustLoan is a licensed cryptocurrency lending platform, known on the market since 2017. It is widely regarded as one of the world’s largest and most diversified financial services providers, with more than $7 trillion in client assets under administration and over 1.3 million trades processed each day.
An all in one cryptocurrency lending, trading and investment platform where your idle digital assets work for you currently offering up to 12.25% APY.
CoinTrustLoan team has extensive expertise in currency exchange risk management and uses Ledger Vault’s industry leading information technology infrastructure to securely control its crypto assets.
Nexo allows you to access loans ranging between $1000 and $2,000,000. Nexo has offered many crypto-backed loans across the globe, and it is one of the most popular platforms without a doubt.
It prides itself as one of the lowest rates in the market, starting from just 5.9% APR. A borrower can use funds with the Nexo Card although this depends on his location, or else withdraw to a bank account.
Nexo relies on Onfido for regulatory compliance, and even this shows that it is a reputable and trustworthy choice.
YouHodler is doing really well in relation to other platforms, despite the fact that it is a relatively new entrant in this field. Crypto loans from this platform are very appealing as the loan to value ratio here goes up to 90%.
YouHodler requires a low minimum deposit of just $100 and it is the only platform where one can earn interest on BNB. Flexible payments are possible, including instant credit card and bank withdrawals.
The Bitcoin interest rate here is quite good, as lenders get to earn up to 12% APR on the deposit. Another positive aspect about YouHodler is that you can experiment with demo funds too and there is no need for credit checks.
Having said that, YouHodler is relatively new, and so its track record is not one that is as extensive as other platforms.
Also, only BTC, BNB, PAX, PAXG, USDC, USDT and TUSD are available. Lenders get paid their interest at the end of the month.
CoinLoan prides itself as being an easy to use and very secure platform. Lenders set what they want in terms of loan amount and currency, rate, and term, and thereafter the system takes care of everything.
This platform is currently offering up to 12.3% APR. There are numerous cryptocurrencies that one can choose from which are supported on this platform.
There are no fees involved for depositing or withdrawing funds on this platform, and users love the fact that there are several tools that can be used, along with the flexibility provided in repayments, interest rates, loan terms and other key factors.
Although the customer service can be improved upon, it is overall a great option as well.
6. Celsius Network
Celsius Network is a UK based crypto lending platform launched back in 2017 and since then it did quite well. It offers various crypto backed loans, and also caters for the borrowing of stablecoins and fiat money.
Holders can earn up to 17.78% APR on 25 different crypto assets, which include Bitcoin, Litecoin, Dash, Ripple and Ethereum. Loans start at just 1% APR.
Lendroid was launched in 2017 with the main goal of offering reliable credit in the blockchain space. Lendroid focuses mostly on the margin trading market of digital currency, unlike other platforms which do not offer this option, or stick to fixed conditions.
On Lendroid, traders can access several lenders who are willing to provide credit lines for competitive fees, as long as there is a collateral.
It is important to consider factors like the interest rate, term flexibility, and security when choosing any of the cryptocurrency lending sites.
Hodlnaut is an emerging crypto lending platform based out of Singapore. Since its inception in 2019, Hodlnaut has grown tremendously to 5000+ users with an AUM of $500 million. It offers one of the highest interest rates, up to 12.73% APY, on six supported assets: BTC, ETH, USDC, DAI, USDT and WBTC.
There are no lock-in periods or minimum deposits, and Hodlnaut credits the interest payouts weekly to the customer’s account. If you would like to earn a higher interest rate with Hodlnaut, you can do so with its VIP fixed-term loan. Earning interest on crypto is incredibly easy with the Hodlnaut interest account, and you can get started in a matter of few minutes.
In conclusion, it is important to consider factors like the interest rate, term flexibility, and security when choosing any of the cryptocurrency lending sites.