You may be surprised to hear that the Bitcoins sitting in your wallet can provide passive income. This article will examine the top venues where you can lend cryptocurrency like bitcoin. At the moment, “crypto” is the most popular marketing term, and everyone is eager to get in on the crypto profit action. Some people think that cryptocurrency is just like stocks and nothing more. Crypto and blockchain are complex topics, though, and there is a lot more to learn.
A frequent strategy for investing in cryptocurrency is to purchase some and hold on to it until its value increases. However, is this the sole strategy to profit from the cryptocurrency market? Obviously, that’s not the case. Borrowing and lending cryptocurrency, as well as making income from crypto loans, is something you’ll hear a lot about if you look around. Investing in several cryptocurrencies can indeed yield significant rates of interest!
Investors still lend fiat money on certain platforms, but this time they lend cryptocurrency instead. The principle is the same, though. In order to trade or do anything else they want, the borrowers take out crypto loans from various sites. On any decentralised platform, investors can lend money to borrowers and obtain crypto dividends in exchange.
CoinRabbit
CoinRabbit is a simple and fast solution for crypto lending, offering a non-KYC approach with a simple interface. It requires only an email or phone number to create an account, making it suitable for beginners and experts. CoinRabbit prioritizes client security through multiple security and AML checks, and funds are withdrawn separately to cold wallets. It also provides 2FA additional protection. The APR is just 1.2% per month, with free withdrawals available anytime and unlimited loan timeframes. CoinRabbit also allows for flexible liquidation price reduction. For those seeking passive income, CoinRabbit offers a fixed 10% APY with no additional conditions, with interest paid daily and the option to withdraw profits at any time. Despite its young age, CoinRabbit is gaining momentum and has established itself in the crypto community, partnering with major players like ChangeNOW, Guarda Wallet, and Atomic Wallet.
SpectroCoin
Crypto loans are one of the best uses of centralised finance, and SpectroCoin accomplishes a lot of things. You have the option to select an LTV ranging from 25% to 75% depending on the coin. As collateral, SpectroCoin will accept Bitcoin, Ethereum, XEM, and DASH. Bitcoin and Ethereum naturally have the highest available LTV. Interest rates will be higher if you choose a high LTV, but they will be lower if you borrow more money. Any of these cryptocurrencies—EUR, USDT, BTC, ETH, etc.—can be withdrawn. You can get a loan from SpectroCoin for as little as 25 EUR up to one million, which is the nicest part. The maximum duration of any loan is one year, with the option to extend it for an additional year at a higher interest rate. You have the freedom to pay back the loan whenever it’s most convenient for you, and the interest is automatically deducted each month. The agreed-upon loan-to-value ratio will remain in your account.
Nebeus
Nebeus is a comprehensive cryptocurrency platform that offers a range of services including borrowing, earning, trading, and insurance. It offers four earning programs and competitive rates for renting cryptocurrency, such as stablecoin for 12.85% interest per year and crypto for 6.5% interest per year. Nebeus also offers crypto-backed loans with adjustable terms and up to 80% LTV. Two options are Quick Loans with 0% interest and 0% interest for daily expenses, and Flexible Loans with 36 months, 9+ crypto coins as collateral, and adjustable terms. Nebeus’s innovative Automatic Margin Call Management and 10-day buffer period make loans zero-risk investments. Cryptocurrency assets are stored in cold storage accounts insured up to $100 million by Lloyd’s of London. Nebeus is an excellent choice for those seeking a unified platform to meet all cryptocurrency needs.
YouHodler
A cryptocurrency loan in any of the top fifteen coins is available through YouHodler, with an LTV of up to 90%. Using YouHodler, you may store, trade, and even pay people with cryptocurrency. Using your cryptocurrency as collateral can get you cash quickly. A loan in Bitcoin (BTC), Tether (USDT), US dollars, Euros, Swiss francs, or British pounds is available, which is the greatest part. Furthermore, you are eligible for a loan of as little as $100. In YouHodler, you have the option to convert your assets into several types using the universal conversion. For a variety of cryptocurrencies and stablecoins, YouHodler offers interest rates of up to 12% just for storing your crypto. The multi-hold function is another intriguing addition. With this effective method, you can increase your favourite cryptocurrencies with little bets and relatively significant investment returns.
Celsius
Celsius is a well-known brand in the cryptocurrency lending and borrowing industry. Lending cryptocurrency on the Celsius network might yield a yield of up to 17%. Whether you’re lending, borrowing, or moving coins, there are no fees involved. The fact that Celsius is available in web and application formats is another great thing. Each week, you can anticipate receiving payments of up to 17% APY. You may expect to get great rates on whatever cryptocurrency you lend on the platform. Additionally, you may anticipate a 25% increase in incentives if you opt to earn in the Celsius coin, which is specific to the Celsius site.
Celsius has a calculator you can use to figure out how much money you can make depending on the cryptocurrency you choose and the amount of time you enter. Staking your cryptocurrency as collateral allows you to borrow funds from Celsius at interest rates as low as 1% APR, so you won’t have to sell it if you need cash quickly.
How to Choose a Cryptocurrency Lending Platform?
Before you choose a loan platform, there are a few things you should think about. Among the most important things to think about 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.
Choosing the correct platform for a specific currency is the most critical consideration. Consider Binance for your bitcoin needs, for example, if you see that they provide superior returns for lending Bitcoin. It is unnecessary to lend out every cryptocurrency on the same exchange. To get the most out of your cryptocurrency investment, you should look at different platforms. Conversely, borrowers should shop around for the best interest rate on their crypto asset loans by comparing several sites.