Having a passive income in the cryptocurrency market is very attractive. Aside from the profit that is added to the capital over time, the extra income is not a story that can be easily ignored. This is while people usually think that crypto is like stock and staking is the final step. But they are wrong.
If you dig deep enough, you will find many talking about earning interest by lending their cryptos. Actually, it is a convenient way to pocket high rates of interest.
Lending here is the existing traditional concept with a relative difference; an investor lends cryptocurrencies on some platform instead of the fiat currency. Moreover, you probably will never know the people you would borrow from and visa-versa.
The matter of how to lend and borrow through these existing platforms is a subject for another article and here we are going to look at the factors to consider while choosing a lending platform and introduce the most successful ones.
How to choose the best crypto lending platform?
As you may guess, there are several features you have to factor in, but the most important points are:
– Interest rates
– Platform risks
– Deposit limit
– Lending duration
To be honest, there are the “right” platforms rather than the best ones. You have to assess your position, especially your coin, and jump for it, cautiously.
A good point is that you don’t need to put all your cryptos on the same platform; you can distribute your assets on different platforms to get the best returns you can achieve.
On contrary, if you are considering borrowing you must be careful about the lowest interest rates.
Who are the best Crypto Lending platforms?
Having all said, let’s take a look at some of the best crypto lending platforms.
If you’re searching to mitigate your long-term risks by lending out a wide variety of digital tokens, YouHodler is one of the best crypto lending platforms. Simply say, this eminent platform offers support for dozens of cryptocurrencies and stablecoins of all shapes and sizes. And, in most cases, you will find that the yields on offer are highly attractive.
Using YouHodler, you can get a cryptocurrency loan in any of the top 15 coins with up to a 90% loan-to-value ratio (LTV). You can use the platform for storing, exchanging, and even paying anyone through crypto-assets. You can also get instant cash by putting your crypto as collateral. The best thing is you can get a loan in Bitcoin (BTC), Tether (USDT), USD, EUR, CHF, or GBP.
Above all these, you can get a loan even for $100. You can exchange your assets into different forms with the universal conversion in YouHodler. By simply depositing your crypto in YouHodler, you can earn interest up to 12% on various cryptocurrencies and stablecoins.
For example, Bitcoin and Ethereum lending rates amount to an APY of 4.8% and 5.5%. Although slightly higher rates are available elsewhere, it is important to note that YouHodler accounts come without lock-up terms. Moreover, there is no requirement to stake any tokens on this platform. Other notable interest rates offered at YouHodler include an APY of 7% on Uniswap, 6.2% on Chainlink, and 4.5% on Yearn.finance.
BlockFi can be described as a specialist crypto lending platform, insofar that digital asset investments and loans stand at the heart of what the provider offers. In terms of generating efficiency on your digital tokens, the amount on offer will depend on two core factors, including your preferred token and the size of your investment.
If you’re looking to earn interest on Ethereum, for instance, you can earn 5% at BlockFi. Though, this is only payable up to the first 1.5 ETH that you deposit. Anything above this figure – up to 5 ETH, will attract a lower APY of 1.5%. Investments above this figure will pay just 0.25%. Regarding all these, BlockFi is perhaps one of the best crypto lending platforms for smaller investments.
On top of that, If you require urgent cash, you can borrow funds from Blockfi by staking your crypto assets. You can borrow money at 4.5% APR. It is a pretty simple process to open an account on Blockfi, where you only need to enter a few details, and you are good to go.
AAVE is not limited to lending and borrowing and it is a pretty famous decentralized liquidity protocol. It is a non-custodial protocol where you can earn interest on your crypto deposits and also borrow funds by staking your assets along with many other things.
When you move through the platform, you can easily find the interest rates and other main factors. There are also many other features like Bug Bounty and Flash Loans which you can find on the platform. So, not to miss any special features of AAVE, you definitely have to explore it.
As one of the most borrower-friendly services, Celsius claims to have the lowest industry rates at just 1%. The platform also lets lenders withdraw at any time and has no fees whatsoever. You can earn up to a 17% yield when you lend crypto on the Celsius network. You can expect up to 17% APY (Annual Percentage Yield) that will be paid to you every week. No matter what crypto you are lending on the platform, you will see excellent rates. On top of that, if you choose to earn in CEL token (Celsius native token), you can expect 25% more rewards. Remember this big bonus: You don’t have to pay any fees, whether borrowing, lending, or transferring the coins.
AQRU has been erected as one of the best crypto lending platforms in the marketplace for several key reasons. First and foremost, once you have opened an account – you will be able to earn interest of up to 7% per year on cryptocurrencies.
Aside from being very easy to use, AQRU offers the most popular stablecoins and cryptocurrencies for lending. Earn an annual percentage yield (APY) of 12% for lending your Tether (USDT), USD Coin (USDC), or Dai (DAI), and 7% APY for Bitcoin and Ether.
Behind the scenes, AQRU will lend out your digital tokens to borrowers, who pay a higher rate of interest on the funding agreement. This means you’ll be making money with cryptocurrency via crypto lending.
What makes these lending rates incredible is that there are no fees for crypto and bank deposits, no fees for buying crypto, and no lock-in period.
What is lovely about AQRU is that it has been designed with beginners in mind. That is to say, regardless of your experience in the crypto lending space, you won’t have any issues getting started.
simply keeping and waiting for cryptos to grow in price is not the only way to invest in cryptocurrencies. Rather, using lending platforms can be a very compelling way to invest. Apart from that, you can also count on these platforms when needed, which have certain advantages for each coin, and you have to carefully choose which one suits your situation.