Over the years, Crypto rise in value has made it one of the biggest buzzwords, but it has also created a new segment of the lending industry.
Other than the usual ways or methods of making money with cryptocurrency around the world. Crytpo lending is another way to earn some passive income. It’s just like the traditional concept of borrowing money from banks; crypto lending is all about an investor lending cryptocurrency on some platforms, then getting dividends in return for the amount lent using decentralized platforms.
Quite a couple of these crypto platforms exists out there, but which one of them can you trust? In this blog post, we are going to discuss the best you can trust and their features.
List of 6+ Best Crypto Lending Platforms and Rates In 2021
We’ve collated crypto lending platforms that are worth considering, the features that make them stand out and interest rates.
Let’s Get Started!
1. Blockfi
Blockfi is a cryptocurrency platform created in the year 2017 by Flori Marque and Zac Prince. And since then, it has set itself apart by providing credit services to markets with limited access to simple financial products.
One thing that makes Blockfi stand out as a crypto lending platform is the 8.5% APY that can be gotten on different cryptocurrencies. As if that is not enough, you do not need to worry about minimum balance requirements or hidden charges.
Other than being a platform to lend cryptocurrencies, you can have all your crypto assets stored on it in the case where the popular wallets mentioned in the best wallets to store cryptocurrencies is not available.
And for someone who is just starting, you can always rely on the communication from the service managers to ask every question that comes to mind, from how the collateral changes can lead to a margin call, to what make up major purchases with a crypto-backed loan.
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2. AAVE
Compare to Blockfi, AAVE is open-sourced and has a market size of up to $17 billion as of the time of writing this blog post. Just like every other crypto lending website on this list.
It makes it easy for crypto holders to earn interest on cryptocurrency deposits and can as well decide to borrow funds by staking deposited crypto assets. Another thing that’s worth noting is that users can get $250,000 from the developer’s community in USDC tokens if they see and report any bug.
What is more, with this platform is the uncollateralized loan options known as Flash Loan. It is a loan option designed for developers to borrow instantly without any/a collateral, however, the liquidity must be returned to the pool within one transaction block.
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3. CoinLoan
CoinLoan is another crypto lending platform out there you can trust and it’s available on both iOS and Android. This means that you can manage your crypto assets from anywhere. And just like Blockfi, you won’t get charged for deposits and withdrawals.
The transparency of the CoinLoan platform is another reason to check it out. – You can find a list of all supported crypto-assets and their interests, which makes it easy to decide the next line of action.
Also, the CoinLoan platform can be used not only for crypto lending, it can also be used to sell, swap or buy cryptocurrencies, the user-friendly interface makes this seamless.
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4. Binance
With over 1 million transactions taking place every second, Binance has made a spot for itself as one of the leading cryptocurrency exchange platforms. Whether you are a beginner who is getting started with cryptocurrency, Binance is a great place you can use for exchange, sell or buy or crypto assets.
But over the years, Binance has become more than a crypto exchange platform, it is now possible for users to become liquidity providers to get earn some more income from being a crypto holder. Other than this, Binance has introduced a marketplace where its users can auction their NFTs.
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5. Holdnaut
Are you looking for the easiest way to earn some passive income from your crypto assets? Look no other than Holdnaut. It is a crypto lending platform created in the year 2019 in Singapore.
What makes Holdnaut stand out as a crypto lending site is that you can withdraw anytime and there are no minimum deposits. No doubt, it is not all great as the platforms still need some upgrading, but it is one of the emerging platforms out there giving a new face to crypto lending.
It is worth noting that the interest rate depends on the crypto assets. – The interest rate is 6.5% for ETH, 8% for DAI, USDT and USDC and 6% for BTC.
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6. CoinRabbit
Either you are a crypto holder looking to earn passively from your crypto assets or an individual looking to borrow crypto quickly and safely? You won’t get it wrong with CoinRabbit.
Unlike every other crypto lending website listed here, CoinRabbit can’t be used for the storage of cryptocurrencies, except you want to deposit your coins to be used as collateral or crypto holder.
While you take loans on the website, you are expected to pay a 19% interest on your borrowings. One thing that CoinRabbit does right is its tracking features that help in notification in case there is a change in the market and any of assets is nearing liquidation.
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7. Nexo
Nexo is another Cryptocurrency lending platform where you can borrow using more than 20 different cryptocurrencies as collateral. For an investor, you will be able to earn interest on not Crypto, but also USDx, GBPx and EURx.
One thing that’ll interest you about this platform is that you can decide to withdraw or add funds anytime. Furthermore, Nexo is known for issuing cards to its interested users. – With the Nexo card you can spend and get instant cashback on purchases.
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8. YouHolder
The YouHodler FinTech platform specializes in crypto-backed lending, including fiat (USD, EUR, CHF, GBP), crypto (BTC), and stablecoin loans (USDT, USDC, TUSD, PAX, PAXG, DAI, HUSD), crypto/fiat and crypto/crypto conversions, and high-yield crypto-saving accounts (crypto-rewards & staking).
For security checks, data protection, and data encryption, Youhodler adheres to all industry best standards. It only works with trusted fiat payment providers and stores fiat funds in respectable bank accounts in Europe and Switzerland.
With a multi-authorization self-custody management solution and $150 million pooled crime insurance, YouHodler employs Ledger Vault’s industry-leading information technology infrastructure to securely control its crypto assets.
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Frequently Asked Question and Answers
Do you have more questions on the best crypto lending platforms? You are not the only one in this, so we have collated answers to common questions on this and other related topics.
Can You Get a Crypto Loan?
Yes, you can get a crypto loan from any of the crypto lending platforms we’ve listed here. However, there are quite a number of them not listed here, but be sure to read reviews of such platforms before getting committed.
Can You Borrow Money From Coinbase?
Yes, you can borrow money from Coinbase, but you can only use the accepted asset as collateral.
Does Coinbase Run a Credit Check?
No, Coinbase does not run a credit check to determine if you can access loans on the site.
Can You Lose Money With Crytp Lending?
Yes, you can lose money lending on different crypto lending platforms out there as the value of cryptocurrencies collateral may change at any time.
What Type of Cryptocurrencies Can Be Used as Loan on Coinbase?
Unlike every other crypto lending website listed here, only Bitcoin can be used as collateral on Coinbase
Is Lending Ethereum Safe?
No doubt the crypto market is volatile, but compared to other altcoins, Ethereum can be said to be more stable. This makes it ideal for dApps and crypto lending websites.
Conclusion
Is crypto lending safe? Is lending ethereum safe? We’ve provided answers to these and other related questions. No doubt crypto lending is real especially on platforms like Coinbase, Blockfi, AAVE, CoinLoan, Binance and so on.
However, you need to put the volatility of the crypto markets in whatever you do. Do you have any contributions to the best crypto lending platforms? Kindly make use of the comment box.
