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There are multiple ways to make money from crypto and Crypto Lending is part of it. In this article, we’ll be taking a look at the Top 10 Crypto Lending Platforms In 2022.
What is Crypto Lending?
Simply put, Crypto lending works by taking crypto from one user and providing it to another for a fee. This way, they will get interest payments in exchange, also called “crypto dividends”.
Additionally, you aren’t just limited to being a borrower. Investing in a pool that manages your crypto can help you earn a passive income and earn interest.
How Does Crypto Lending Work?
Crypto lending is carried out through a third party that connects lenders and borrowers. The lenders are the first party involved in crypto lending while the second party is the crypto lending platform, where the lending and borrowing transaction happens. Lastly, the borrowers represent the 3rd party of the process, and they are the ones who will get the funds.
The borrower goes to a platform to request a crypto loan. The borrower then stakes the crypto collateral as soon as the loan request is accepted by the platform. It will not be possible for the borrower to get back the stakes until he can repay the entire loan.
Using the platform, the lenders will instantly fund the loan, which is a process that the investors cannot see. Investors will receive regular interests as payments. Lastly, when the borrower pays off the loan, he will get back the crypto collateral he wanted.
Top 10 Crypto Lending Platforms In 2022
This is one of the best choices for beginners because of its simple interface and non-KYC approach. CoinRabbit makes the process fast and seamless. Fixed 10% APY with no additional conditions is by far the highest in the whole market. Interest is paid out daily and you choose when to withdraw your profit.
After you receive the funds, they are withdrawn separately to the system of cold wallets. Additionally, you can always protect your account with Two-Factor Authentication protection.
With BlockFi, you can earn up to 8.6% annual interest. Your crypto does the work for you with BlockFi, which lets you lend Bitcoin for interest and earn monthly payments in the deposited asset type. Investing in crypto can result in compound interest, resulting in an increase in your wealth.
With Celsius, you can earn up to a 17% annual percentage yield which will be paid to you every week when you lend crypto on the network. No fees are required when borrowing, lending, or transferring the coins.
Additionally, if you choose to earn in CEL token which is exclusive to the Celsius portal, then you can expect 25% more in rewards.
YouHodler lets its users take out crypto-backed fiat, crypto, and stablecoin loans. Loan terms range from 30 to 60 days, interest rates start at 3% and there are no extra platform charges, and loan applications are processed almost instantly.
AAVE is a decentralised non-custodian protocol where you can earn interest on your crypto deposits and also borrow funds by staking.
BtcPop allows for a quick Bitcoin income by getting loans from other members or loaning it yourself. It offers easy-to-use services that result in your getting the assets you need. They accept multiple currencies and also offer new rising altcoins. There are no deposit limits and lenders can withdraw at any given time.
This is one of the most popular crypto lending platforms. Multiple cryptocurrencies listed on the protocol to deposit or borrow. Compound also has its own COMP token that can yield better returns while lending your crypto to the platform to provide liquidity.
They challenge the traditional financial market by putting together crypto and crowdfunding by allowing individuals to borrow funds with a loan-to-value (LTV) of up to 70%. CoinLoan does not charge any fee and lenders can withdraw at any time.
MoneyToken is a decentralized platform where you have total control over the assets that are at stake. 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. The lending process is easy and only a few clicks are required. As you select the loan terms and deposit the collateral, you will only have to wait until your request is conformed and accepted and you receive your funds in the account.
Nexo is the most secure crypto lending platforms platform. All accounts are insured by BitGo, a digital asset security expert which allows all transactions to be conducted safely. On Nexo, you can instantly borrow 45+ cryptocurrencies. You can also earn Nexo Bitcoin interest in idle assets.
Crypto lending is a good way to earn passive income with crypto and the process, although it differs across platforms, it’s almost the same.
Each platform has its unique features and advantages over another. So, before picking a suitable crypto lending platform, do your extensive research to find out which suits your interests the best.