Presently, the biggest buzzword in the financial space is cryptocurrency and people are desperate to earn profit from them. One of the common ways of making a crypto investment is purchasing and holding them till the asset’s value increases. But there are other ways as well like lending cryptos and then earning interest from them. In this article, we will be seeing the top 5 crypto lending platforms that can earn you great rewards.
There are many who have the misconception that digital currency is similar to stocks and is only constrained to that. But in reality, there is much more to understand about blockchain and digital currency. As stated earlier, there are many avenues in cryptocurrency that can earn you profits and that is not the case with stocks. With crypto lending, people are earning a handsome amount in crypto. So let us see what can be done to lend your cryptos. Here are some of the best crypto loan platforms.
Choose A Good Crypto Lending Platform
There are various factors that you are required to take into account while choosing any crypto lending platform. Some of the primary factors to take into account are:
- Interest rates – Select a platform that is based on the rate of interest of that specific coin on any particular platform.
- Platform risks – Check the track record of the channel for better understanding.
- Fees – Compare the costs of varied platforms for varied coins.
- Deposit limit – Check to see if there is any minimum deposit amount needed or not.
- Lending duration – Check if it is permanent or not.
- Collateral – Compare the total of collateral you require to get a specific amount of loan among varied platforms.
Top 5 Crypto Lending Platforms
The most crucial point is that you should choose the apt platform for a specific coin. For example, if you see that Binance offers better returns for Bitcoin lending, you should take into account Binance for BTC.
You do not require to lend all other cryptos on a similar platform. You should research other channels as well to find out where you can receive better returns for your chosen digital currency.
On the contrary, the borrowers should compare varied platforms to see where they can receive a crypto loan at the lowest rate of interest for their crypto asset. Now, let us see some of the best crypto lending platforms.
Blockfi is the ultimate solution for purchasing, selling, and earning digital currency. The user can expect up to 8.5% APY on varied digital currencies, where you will be paid on a monthly basis. There are no hidden costs or minimum balance needs that you need to be concerned about. You can keep all your crypto assets in one single place and also make them earn more for you.
If you need urgent cash, you can also borrow funds from Blockfi by staking your digital assets. The money can be borrowed at 4.5% APR. It is a pretty easy process to open an account on this platform, where you are only required to enter a few details, and you are fine to go.
When it comes to borrowing and lending digital currencies, Celsius is a big name. The user can earn up to a 17 percent yield when they lend crypto on this network. The user does not have to pay any charges, whether lending, borrowing, or transporting the coins. Another great thing is that the user can find Celsius on both application and web formats. This is the best DeFi lending platform 2021.
This is a quite popular decentralized liquidity protocol. It is a non-custodial protocol where the user can earn interest on their crypto deposits and also take funds by staking their assets. AAVE is a well developed liquidity protocol with ample features other than borrowing and lending crypto assets. If you are looking for the safest crypto lending platform, then this is ideal for you.
When the user moves through the channel, they will see that it enables the users to borrow or deposit assets. The rates of interest are also clearly stated to make it convenient for the users to compare the borrow and deposit rates on varied platforms.
The Compound is also among the big names in the arena of crypto lending platforms and borrowing as well. There are numerous cryptocurrencies that are listed on the protocol, and you can borrow or deposit any of them. The Compound also offers its own COMP coin that can yield good returns while lending your crypto to the channel to offer liquidity. This is indeed the best P2P lending platform.
The security that this protocol offers is top-notch so that you can depend on it for your assets. There is a live value feed on Compound to quickly track the values on the platform that is based on the availability of liquidity. The user can withdraw or deposit assets from your account every 24 hours.
MakerDAO has arrived with its digital currency that is called “Dai.” It can be utilized by anyone, anytime, and also anywhere. As soon as someone opens a vault on Maker, they can deposit over 25 crypto assets as collateral. Now, the user has two choices after putting your crypto asset as collateral. They can either borrow Dai and hold onto it or buy additional collateral to raise your exposure. This is among the best cryptocurrency lending platforms.
The Bottom Line
If you are in the crypto space, then you should certainly consider the choice of lending. You can earn a good interest in your crypto assets by offering your crypto assets for lending on varied platforms. All you require to do is stake them and offer liquidity on varied platforms rather than just storing them in your wallets. This is the best way to receive passive income. There are various crypto lending platforms that will make yo9ur job easier, and in the above section, we have stated some of them.