Crypto Lending Platforms is a very popular topic these days. Few platforms provide lending and borrowing benefits to their customer same as traditional banking systems. Loans can be taken from these platforms and also interest can be earned by depositing cryptocurrency. Without Any Credit Score You can get a loan by keeping a cryptocurrency or asset as collateral and passive income can be made through cryptocurrency holding using this system. So the system becoming so popular at the time.
How Crypto Lending platforms work?
When investing via a crypto lending platform, these are the key steps of the process:
a borrower requests a loan to the platform (specific duration, amount)
the lending platforms evaluates the loan (in terms of security)
once approved, the borrower stakes a certain amount of his crypto as collateral for the loan (usually the platforms request that 50% of the total loan amount is available as crypto collateral)
the assets of lenders deposited on the wallets of these lending platforms are used to fulfill the loan
investors receive interest usually weekly or monthly based on their amount of assets
once the borrower pays back his loan, he can unblock his crypto collateral.
Crypto lending and borrowing are fairly straightforward ideas in which crypto HODLers get passive income on their idle cryptos while margin traders borrow cryptos for a set interest rate in the hopes of making additional profits from the margin transaction.
Things to check in crypto lending platforms
The section identifies the primary platforms worth considering and delving more into before making an investment. When selecting a platform to lend cryptocurrency, consider the following factors:
- The rate of interest depends on the coin you want to lend
- Length of the loan, check if it is fixed or not
- A maximum deposit
- How much crypto collateral borrowers need to have compared to the amount of money they are borrowing
- Platform fees, risks, and track record.
1. Binance
Binance is the world largest Crypto trading platform by trading volume. Binance is a one-stop solution for buying, selling, exchanging, and even trading 200+ crypto assets.
The platform has launched its native coin, “BNB,” intending to promote DeFi adoption worldwide. In addition, Binance now be used to receive a loan on your crypto assets. Long time cryptocurrency holder now can stake their crypto asset to earn passive income. Binance offering most cryptocurrency staking facility in their platform. At the time of writing this article, the interest rate of stable coins is upto 4%, You can also earn over 80% interest as passive income by staking various types of alt coins.
2. BlockFi
Your bitcoin can earn up to 7.5 percent annual percentage yield (APY) with a BlockFi Interest Account (BIA). Interest is calculated on a daily basis and paid monthly. There are no hidden charges or minimum balance requirements. That means if your BIA BTC balance was between 0.5 and 1 BTC at the end of April, you were eligible for interest. In the foreseeable future, we expect to cut your minimum balance even more. To get funds, you don’t have to sell your crypto. BlockFi allows you to borrow money against your crypto assets, allowing you to acquire a loan while keeping your crypto.
3. Vauld
Vauld is a Singapore-based crypto lending and trading platform. It enables customers to buy, lend, borrow and trade crypto assets from one unified platform and is backed by Peter Theil’s Valar Ventures, Coinbase Ventures, Pantera Capital, and other major names in the industry.
Earn up to 12.68% APY on Crypto Fixed Deposits. Borrow crypto up to a loan-to-value ratio of 66.67% and pay it back anytime. Buy and Sell 250+ cryptocurrencies and tokens including BTC, ETH, XRP, and DOGE using fiat currencies at the best rates in the market. The unique feather of the vauld is you can Create your own cryptocurrency baskets from 150+ tokens and execute buys on a daily, weekly, or monthly basis, also Buy The Dip automatically using Automatic Investment Plans (AIPs).
4. Crypto.com
You can borrow against your crypto assets without selling them with Crypto.com Lending. You can utilize them to fund your financial needs by putting them up as collateral for crypto loans, Margin Trading on the Crypto.com Exchange, or hedging on other exchange platforms.
Users can acquire an immediate loan using CRO, LTC, BTC, ETH, XRP, USDC, USDT, VET, LINK, and DOT as collateral, with a high loan-to-value (LTV) ratio of up to 50%. You have the option of repaying the loan in full or in part at any moment during the 12-month period.
5. Celsius Network
Asset management in the 21st century. Everyone should be able to use digital currency, with substantial benefits and true flexibility – to acquire a loan, send money to pals, and accumulate wealth. The company proudly shares up to 80% of its revenue with its consumers, allowing you to earn up to 21.49 percent APY, which is paid out monthly. There is no requirement for a minimum balance. Weekly rewards are distributed. There are no costs if you withdraw at any point. Borrow cash or stablecoins with your crypto. The interest rate on the loans starts at 1% APR. Make more money with your cryptocurrency. Simply convert your cash to Celsius and earn up to 21.49 percent interest. There are no charges. There are no minimums. Sending crypto in a secure manner is as simple as sending a text message.
Read More : 7 Best Cryptocurrency Exchange in India
6. Holdnaut
Hodlnaut is a financial services platform that allows private investors to earn interest on their cryptocurrencies by lending them to institutions. Users can earn favorable interest rates by depositing their crypto assets into a Hodlnaut Interest Account. Our current BTC, ETH, and DAI, USDC, and USDT interest rates are 6.2 percent APY, 6.7 percent APY, and 10.5 percent APY, respectively.
7. ZebPay
ZebPay’s new offering allows users to lend their coins to the company and receive returns based on the coin and the length of time it is lent for. The ZebPay Lending Platform pays out returns on customers’ crypto investments if they lend out certain cryptos, allowing them to earn a passive income in addition to the gains made from rising crypto values.
The loan tool will handle Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dai (DAI) when it launches (DAI).
Disclaimer
This content is for educational & information purposes only and does not provide investing or financial advice. Before making any financial decisions, please do your own research.