aave: Best Crypto Lending platforms. How to earn on crypto loans in 2022

BD & Partnership Head

Which crypto lending platform would you recommend and why?

Crypto Lending Platform can be divided into CeFi (Centralized) and DeFi (Decentralized). CeFi is further divided into Exchanges and Platforms. Exchange: Binance, Gemini, VAULD, CoinDCX, etc; Binance has multiple crypto assets for stalking and also has SAFU insurance so is probably the safest, while CoinDCX gives 16% APY on stable coins. Platforms: NEXO, Celcius; Voyager, HARU, CABITAL, B2C2; Celcius had a good reputation but the recent BadgerDao hack exposed that they deploy user funds directly onto other platforms using Metamask for earning yield. So although user funds are protected, the act itself sets dangerous concerns. NEXO & HARU are similar in their ways of earning interest. CABITAL is a new entrant who are trying to do everything in a compliant manner. DeFi : MakerDAO. COMPOUND, AAVE; For ETH-backed loans, MakerDAO has is the better choice. COMPOUND gives COMP tokens (2-3%) to both borrowers and lenders. While AAVE has the max no of digital assets supported on its platform along with being the pioneer for providing flash loans.

How to earn on crypto loans?

So, for individuals, the main challenge is depositing fiat to crypto, so if you are considering saving in USD, you might as well take the opportunity to save in USDT as this would give higher interests than banks. So, any platform offering direct fiat deposit and conversion should be considered more profitable than using OTC to send USDT to the platform. In CeFi, Binance has many assets for staking and also the security of SAFU funds so most users can directly use it. In DeFi, COMPOUND is the better choice for individuals as they also get COMP tokens. Also, CABITAL, VAULD, etc offers direct deposit of FIAT and good yields on staking. For Institutions, choosing a platform should depend on the legal standing and in this regard, B2C2 & CABITAL is the better choice for CeFi and AAVE for DeFi. CABITAL is doing everything to get the related regualtory approvals while B2C2 is one of the largest market maker owned by SBI Capital. AAVE is the next generation of DeFi to invest in supporting the highest no of Crypto assets for asset collaterilization.

What are the main risks in the crypto lending process?

Crypto lenders earn interests in a few ways which are - 1. Borrowers pay high interests to Lenders to get loans for getting USDT for trading and this can well be over 30-40% annually. 2. Lenders can directly contribute to CeFi projects and they invest in other DeFi or lend to borrowers while lenders get a fixed yeild. 3. Lenders can directly contribute to USTD pools in DeFi and the DeFi allows borrowers to borrow against collateral. 4. Lenders can also put their USDT in the Binance (or other Crypto exchange) leverage pools and depending on market trends can earn profits, but this is strictly for technically equipped personnel. Risks- 1. DeFi hacks - Celcius had a good reputation but the recent BadgerDao hack exposed that they deploy user funds directly onto other platforms using Metamask for earning yield. While the process itself is normal but using a Metamask wallet exposed it to the front end hack suffered by Badger DAO. 2. In Sept, 2021 COMPOUND accidentally gave away 280K COMP tokens due to a pushing ahead with a bugged update, the reverse might also happen and users might loose funds due to vulnerabilities. 3. Besides backend and frontend vulnerabilities, smart contract vulnerabilities too can cause users to lose funds. 4. Last, but not the least if the yeild is too good to be true, it could definitely be a scam so do a through background check about the CeFi or DeFi before investing.

CEO

Which crypto lending platform would you recommend and why?

AAVE is my recommended crypto lending platform. It offers security for borrowing from blue chip crypto assets in an organization with a substantial TVL. Staking and borrowing rewards are paid in Matic which has a strong future.

How to earn on crypto loans?

Crypto loans are novel ways to earn passive income. An ideal method respects the value of an asset while managing the risk associated with the high volatility of crypto. Recommendations start with locking a high value asset in a DeFi platform that offers an attractive yield. Collateralize your asset and borrow a stablecoin on it, look for yield earning on both of these mechanisms. Trade your borrowed stable coin for an asset that is in high demand for lending. Put your lending asset on the market for well balanced yield for the lender and interest rate for the borrower.

What are the main risks in the crypto lending process?

The most significant risks in the process occur at each level of action. The first being custody of the collateralized assets, the platform in which they are locked and can be rehypothecated to. The second being the volatility of the asset that is collateralized risks liquidation. The third being the security of the final lending and borrowing platforms for asset owners. Depending on your methods, you may submit custody to one or more lending platforms.

trader

Which crypto lending platform would you recommend and why?

aave, because since the first appearance it has been growing, we can see the price in the market is increasing, they offer credit to benefit users, I believe their project can compete with other similar projects

How to earn on crypto loans?

we can do long-term staking or trade but of course with a big enough risk, for me, I choose to do staking so it's easier to do without having to constantly look at the market

What are the main risks in the crypto lending process?

if the market price is very unstable and easily slumped by market players, to minimize losses we need to do long-term staking, one has to be willing to take risks with the decisions taken

Engineering Technologist

Which crypto lending platform would you recommend and why?

Aave is a great lending platform. The reason is that it is competitive. If you do not like the rate of one lender you can always choose cheaper options. It's the flexibility for me. The disadvantage of Aave is the gas fee. Investors with little funds may loose a lot of funds if lending directly from aave.com , it can be very frustrating for investors with little funds. We all want to make money, but not spend all paying gas fee or transaction fee. I suggest those who want to use Saved, use on decentralized exchange as margin lending as that will save you massively from the fees. Another advantage of Aave is the Liquidity. It has huge liquidity, currently sitting at about $25 Billion. That's really huge and huge liquidity boost investors confidence greatly. The third advantage will be the community. Most Crypto enthusiast know that a great community is super support for any Crypto. My second lending platform of Choice will be Kucoin. Kucoin is a centralized exchange that offer margin lending. I love it because it's very easy to use especially for beginners. Binance on the other side is quite complex and beginners may not easily understand thier margin lending.

How to earn on crypto loans?

Kucoin is the best for me. Especially for startup. I noticed they give loan of up to 10x your initial capital. Meaning if you have $80, you can get a loan of up to $800 . That's a huge leaverage opportunity.

What are the main risks in the crypto lending process?

The main risk will be liquidation. Crypto currency market is a highly volatile market. Prices can fluctuate very excessively and it's very discouraging for beginners. collateral process usually involve the borrower leaving some money on the table which is used as collateral for the loan. If the coin or token price of that is being borrowed against goes too low beyond the "limit" and the borrower doesn't understand risk management, there is a high chance that they will get liquidated and loose thier funds even before they start making profit. As a ln extra advice, I suggest borrowers learn and understand risk management most importantly before venturing into any kind of Crypto borrowing. The knowledge will save them from a lot of avoidable losses.

Active trader

Which crypto lending platform would you recommend and why?

'AAVE' is quite renowned in this factor for me but because of ease and easy access to the services i would say 'binance'. The people i know of mostly use this 'Binance' platform because they get all of the services they need with easy access. Hm, but they have a con regarding their user interface of application as well as website which I'm highly unsatisfied with.

How to earn on crypto loans?

When the lenders give crypto loan to borrowers, these borrowers offers thier crypto assets as collateral so, this lenders can earn from the intrest rates monthly or weekly.

What are the main risks in the crypto lending process?

There are many risks included like fraud and security risks, uncollateralized lending and also collateral asset value drop(now that's a huge risk that leads to loss one way or another). If not understood carefully it may certainly cause financial harm.

Cryptocurrencies Trader, Revain Author

Which crypto lending platform would you recommend and why?

Aave and Nexo. I choose Aave because it's Decentralized and they offer flash loans with no collateral attached and Nexo, because it has a long standing and great track record of returns.

How to earn on crypto loans?

You can become a Lender whereby you pool in your funds for others to borrow and get stable returns. Also, you can collateralize your assets on the platform in return for Stables which can be used to invest more in other coins giving you double returns

What are the main risks in the crypto lending process?

Liquidation calls are one. Another is rugpull, and this is common among Decentralized options. Malicious bug in the code can lead to loss of assets

Blockchain Analyst

Which crypto lending platform would you recommend and why?

Aave on polygon is the best for now as a lawyer 2 solution to lend your crypto stable coin or Eth blockfi has a good APY and I have added bitcoin for usdt

How to earn on crypto loans?

You can lend bitcoin or Eth and take out usdt to invest in metavers index or crypto metavers coin not more than 30-40% of your crypto that have set up

What are the main risks in the crypto lending process?

The main risks is the liquidity that you can get liquidate you asset if case you are on a big leverage and don't have assets to hold you position

Crypto

Which crypto lending platform would you recommend and why?

Aave, because everyone is talking about it, and using it on regular basis, I haven't used Aave to be honest with you, but if I would like to do leading that's the place where I will prob go, but why don't use staking? Like Binance, ByBit, CryptoCom, and millions others? Staking is pretty cool too, and less risky I would say.

How to earn on crypto loans?

I have no idea to be honest, coz I've never used it before. I have no idea to be honest, coz I've never used it before. I have no idea to be honest, coz I've never used it before.

What are the main risks in the crypto lending process?

I have no idea to be honest, coz I've never used it before. I have no idea to be honest, coz I've never used it before. I have no idea to be honest, coz I've never used it before.

rivalhmd.eth

Which crypto lending platform would you recommend and why?

I think Aave .. Aave is lending crypto multichain , if we don't have the fee to pay in the eth network, we can use aave in cheaper networks, such as polygon, avalanche

How to earn on crypto loans?

I think if the market is bearish, we can borrow stable coins and buy coins/tokens that run on the platform, we will get profit from the loan proceeds and fees

What are the main risks in the crypto lending process?

I think it's all risky , Depends on how we manage our finances . Especially for people who don't understand at all about lending & borrowing in crypto

Graphic designer

Which crypto lending platform would you recommend and why?

AAVE is decentralized liquidity protocol, well-developed liquidity protocol with plenty of features other than lending and borrowing crypto assets.

How to earn on crypto loans?

Once your wallet is connected to the Aave protocol, you can place your funds into the Aave liquidity pool, You can then select the amount you would like to stake. From there, you can begin earning interest.

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.