Did you know that your idle Bitcoins in your wallet could get you passive income? Let’s look at some of the best platforms where you can lend bitcoins and other cryptocurrencies.
Currently, crypto is the biggest buzzword in the market, and people are desperate to try and earn profits in the crypto world.
Several people have a misconception that crypto is similar to stocks and only limited to that. But in reality, there is so much more to know about cryptocurrencies and blockchain.
One of the most common ways of investing in cryptocurrencies is buying and holding them till the price of the asset rises. But is it the only way to earn something from the crypto market? Well, the answer is no. If you dig deeper, you will see plenty of people talking about crypto lending and earning interest. Yes, you can gain high rates of interest in the invested amount in different cryptocurrencies!
That sounds like a fantastic deal, right?
The concept of lending remains the same as the traditional one, but the only difference here is that an investor lends cryptocurrencies on some platform instead of the fiat currency. The borrowers take up crypto loans from different platforms for trading or any other purpose. The investors get crypto dividends in return for the amount they lend to the borrowers on any decentralized platform.
You can go through the crypto lending and borrowing article to understand the concept in detail.
We will now look at the factors to consider while choosing a platform for lending cryptocurrencies.
How to choose a Cryptocurrency Lending Platform?
There are several factors that you need to consider while selecting any lending platform. Some of the key factors to consider are:
- Interest rates – Choose a platform based on the interest rate of that particular coin on any specific platform.
- Platform risks – Go through the track record of the platform for a better understanding.
- Fees – Compare the costs of different platforms for different coins.
- Deposit limit – See to it if there is any minimum deposit amount requirement or not.
- Lending duration – Check if it is fixed or not.
- Collateral – Compare the amount of collateral you need to get a specific loan amount among different platforms.
The most important point is that you should select the right platform for a particular coin. For instance, if you see that Binance provides better returns for lending Bitcoin, you should consider Binance for bitcoins.
You don’t need to lend all other cryptos on the same platform. You should research other platforms to find out where you can get better returns for your chosen cryptocurrency.
On the other hand, the borrowers should compare different platforms to see where they can get a crypto loan at the lowest interest rate for their crypto asset.
Now, let us have a look at some of the best crypto lending platforms.
When it comes to crypto lending, there is the simplest and fastest solution: CoinRabbit. The simple interface and a non-KYC approach (you only need your email or phone number to create an account) make CoinRabbit the best choice for beginners as well as for experts who value their time.
Despite the simplicity of use, CoinRabbit pays much attention to the security of clients’ funds. Multiple security and AML checks are always carried out. After receiving the funds, they are separately withdrawn to the system of cold wallets. Besides, you can always protect your account with 2FA additional protection.
The APR is just 1.2% per month and is supplemented by completely free withdrawals available anytime and unlimited time frames for your loans — repay them partially or in full when feeling that the time has come. Plus CoinRabbit provides the system to decrease your liquidation price as flexibly as you want.
For those who want to make some decent passive income, CoinRabbit makes the process easy and fast. Fixed 10% APY with no additional conditions is by far the highest in the whole market. The interest is paid out on a daily basis and you choose when to withdraw your profit.
Despite the fact that the service is still very young, it is rapidly gaining momentum and has already established itself in the community of many crypto coins and cooperates in close partnership with such big market players as ChangeNOW, Guarda Wallet, Atomic Wallet, etc.
Visit Coinrabbit to get a crypto loan and explore all perks that this platform offers.
Among the many things crypto SpectroCoin does, it’s the crypto loans, one of the finest applications of centralized finance.
Based on the coin, you can choose a loan-to-value (LTV) from 25% to 75%. SpectroCoin accepts BTC, ETH, XEM, and DASH as collateral. As expected, the highest LTV is available for BTC & ETH. However, choosing a high LTV increases your interest rates while a bigger loan amount decreases them.
Withdrawals are permitted in EUR, USDT, BTC, ETH, etc. The best part of SpectroCoin is the flexible range for the loans; you can avail of as little as 25 EUR to one million.
All loans are for a maximum term of one year – with the possibility to extend the term at a higher rate if needed. Interest is automatically debited monthly, whereas you can pay the loan at your convenience while maintaining the agreed-to LTV value in your account.
Nebeus is the all-crypto platform that you need as they have a full ecosystem for borrowing, earning, trading, and even insuring your crypto.
When it comes to crypto renting, they have some of the best rates in the market offered in four different earning programs. For instance, you can rent crypto and gain 6.5% interest per year or rent stablecoin and earn 12.85% interest per year. The great thing is that you can get paid and withdraw your gains as often as 24 hours, everything without a single fee.
Apart from the impressive earning rates, what Nebeus does best is crypto-backed loans. Two options are available to adapt to every user: Quick Loans are more suitable for smaller daily expenses with 0% interest, and Flexible Loans are best for tailored individual needs as they have customizable terms with up to 80% LTV, and 36 months term, with 9+ crypto coins to choose as collateral.
What is best is that loans are truly Zero risk, as they protect you against margin calls with a 10-day buffer period, and their unique Automatic Margin Call Management. To know you are in good hands, Nebeus also keeps your crypto collateral in segregated cold storage accounts which are insured by Lloyd’s of London for $100 million.
If you are looking for one robust platform that covers all your crypto needs, Nebeus is definitely a great choice.
How about a guaranteed return with a potential bonus? Cake Defi makes it easy, giving you an accurate indication of the minimum APY.
As of this writing, Cake DeFi supports lending in BTC, ETH, USDC, and USDT. You invest in batches with others and can check past performance.
Each batch runs for four weeks, at the end of which, you can withdraw or roll over to the next batch with the auto-compounding.
Lending through Cake DeFi won’t cost you anything. Besides, you can lend any amount you wish, even more than the entire batch by contacting support.
When it comes to lending and borrowing cryptocurrencies, Celsius is a huge name. You can earn up to a 17% yield when you lend crypto on the Celsius network. You don’t have to pay any fees, whether borrowing, lending, or transferring the coins. Another fantastic thing is that you can find Celsius on both web and application formats.
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 (exclusive to the Celsius portal), then you can expect 25% more rewards.
When you visit the Celsius website, you can find a calculator to see how much you can earn based on the crypto you select and the duration inserted by you. If you need emergency funding, there is no need to sell your crypto because you can stake it as collateral and borrow funds from Celsius for interests as low as 1% APR (Annual Percentage Rate).
AAVE 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. AAVE is a well-developed liquidity protocol with plenty of features other than lending and borrowing crypto assets.
When you move through the platform, you will see that it allows users to deposit or borrow assets. The interest rates are also clearly mentioned to make it easy for you to compare the deposit and borrow rates on different platforms.
There are different concepts involved in AAVE Protocol like Bug Bounty and Flash Loans. The fascinating thing is that if you see any bug and report it to the developers, you can even get up to $250,000 from the developers’ community in USDC tokens. So, this is definitely worth exploring!
Compound is another big name in the world of crypto protocols for lending and borrowing. There are plenty of cryptocurrencies listed on the protocol, and you can deposit or borrow any of them. Compound also has its own COMP token that can yield better returns while lending your crypto to the platform to provide liquidity.
The security of the protocol is top-notch so you can rely on it for your assets. There is a live price feed on Compound to easily track the prices on the platform based on the availability of liquidity. You can deposit or withdraw assets from your account every 24 hours.
Other than that, Compound is also building plenty of products, services, and tools for the decentralized finance (DeFi) ecosystem. You can even integrate different interfaces with the Compound Protocol.
MakerDAO has come up with its cryptocurrency named “Dai.” It can be used by anyone, anytime, and anywhere. As soon as you open a vault on Maker, you can deposit up to 25+ crypto assets as collateral. Now, you have two options after putting your crypto asset as collateral. You can either borrow Dai and hold onto it or purchase additional collateral to increase your exposure.
The Maker community has successfully built a complete ecosystem with Dai that consists of various apps and services. You can find the right app for getting, using, holding, and even accepting Dai in the ecosystem. Other than that, there are plenty of Games on the Maker protocol, among which Sandbox has gained massive attention.
The moment you connect your crypto wallet to Maker, you are good to go. Now, you can deposit, borrow, or even sell your crypto from the platform.
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 YouHodler for storing, exchanging, and even paying anyone through crypto-assets. You can 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.
On top of that, 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.
Another fascinating feature is the Multi HODL feature. This is an efficient tool that will help you multiply your favorite cryptocurrencies where you have to place small bets, and there are pretty high investment rewards provided.
CoinLoan is another trusted platform available on both Android and iOS to manage all your digital assets. There are no deposit and withdrawal fees that you need to worry about. On top of that, you can also enjoy daily interest by simply placing your assets on the platform.
You can borrow cash in exchange for your crypto assets by staking them as collateral. The official website mentions all the supported crypto-assets and their rates. Other than that, whether you wish to buy, sell, or swap your crypto, you can make it happen with a few clicks.
With CoinLoan, you can expect the complete safety of all your assets. There is biometric authentication provided in the apps for enhanced security of all your digital assets.
On MoneyToken, you can manage all your crypto assets and also receive crypto-backed loans with a few clicks. The process is pretty simple and only requires a few clicks. As you select the loan terms and deposit the collateral, you will only have to wait until your request is accepted and you receive your funds in the account.
MoneyToken is a decentralized platform where you have complete control of your assets that are at stake. You will receive an instant loan from here. Even if you wish to lend your assets on MoneyToken, you can begin with it even by lending 100 USD or any crypto of the same worth to the platform.
Binance is the world’s leading cryptocurrency exchange, with 1,400,000+ transactions taking place every second. Other than being the leading cryptocurrency exchange, Binance has built its own ecosystem. Binance has also launched a coin named “BNB.”
The main aim of Binance is to increase the level of decentralized finance around the globe. Currently, there are plenty of service providers building their blockchain applications on the Binance ecosystem.
You can say that Binance is a one-stop solution for everything in the blockchain world. Whether you wish to buy, sell, exchange, or trade your crypto asset or even get a loan or lend your crypto asset, you can do it all over here. You can even become a liquidity provider on Binance to get much better rewards. On top of that, Binance has also built its own NFT marketplace to develop a place where the creators can auction their NFTs.
Binance is a lot more than only a lending and borrowing platform. You can perform any task related to blockchain on the Binance ecosystem.
If you are in the crypto world, then you should definitely consider the option of lending. You can earn high interest on your crypto assets by lending them to different platforms. All you need to do is stake them and provide liquidity on various platforms rather than just holding them in your wallets. This is the best way to gain passive income.
Next, read about the best cryptocurrency mining platforms.
Want to learn more? Here are 7 Online Cryptocurrency Courses for Beginner to Advanced Level.