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

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

< Show Wisdom Collection: Best Crypto Lending platforms. How to earn on crypto loans in 2022article avatarKrishnendu Chatterjee

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.

article avatarEric Crawford

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.

article avatarJoseph Rockins

Businessman

Which crypto lending platform would you recommend and why?

The whole point of crypto lending is to allow individuals with cryptocurrency assets to generate some dividends, with quite a few crypto lending platforms out there, and some popular names also, it's difficult to overlook platforms like e.g binance. But I will recommend CELSIUS, the reasons why are simply stated below 1. Accessible reach. Celsius has got a wide global reach, including the U.S.A. 2. Based on my research it's got the highest stable coins yield (up to 17.7%) and Bonus ($50) Up to 17.7% APR on stable coins 3. They also offer one of the most wide options in lendable coins (incl. BTC, ETH, USDT), basically up to 41 coins to choose from. 4. Process & security. The process is pretty swift and secure in both ends. So funds are safe. 5. They also have a good flexible lending duration.

How to earn on crypto loans?

Choose an Interest rate. You can choose to Start with stable coins, which generates you higher interest rates most times than assets such as Bitcoin or ethereum. Also a good way to earn good returns, is to invest in native platform tokens, like $Cel & $Cro. These platforms want you to invest in their own tokens, so they offer you higher interest rates when you do this with them. Also having a good lock up period is essential to earning even more dividends, the longer the lockup period the better your interest.

What are the main risks in the crypto lending process?

One of the risk associated with crypto lending is that your deposits are not insured. 2. High volatility, this could be a good thing most times but if you don't know what you are doing, might end up hurting you. 3. Counterparty risk. This is basically what is being done with your money, something to take note of. Also smart contract risk, custody risk and so on. These are things to take note of, if you plan on getting involved with crypto lending

article avataranishaa

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.

article avatarHerdy Taufik

Trader

Which crypto lending platform would you recommend and why?

I choose Blockfi the reason is because 1.BlockFi is backed by biggest investors like Valar Ventures, Morgan Creek Capital Management and Coinbase Ventures. Of course this makes us more confident to use the platform. 2.Zero percent trading fee 3.BlockFi is easy to use also a beginner-friendly platform and available Mobile App. 4.Can earn up to 9.5% APY with a BlockFi Interest Account (BIA).

How to earn on crypto loans?

First if we like to earn passive income from crypto lending we could deposit crypto coin such a Bitcoin or Ethereum to the platform so we can receive weekly or monthly interest from it, so if we want get high earning we could choose crypto lend with a good interest rates. Two if we choose a flexible lending we can also make profit at the time from our crypto.

What are the main risks in the crypto lending process?

First the important point is that we must choose a lending platform that is truly secure, because if we carelessly our assets and data will be insecure. Secondly, if we choose a crypto landing with a locking period, I suggest choosing a stablecoin because if we choose an alt coin if a bear market occurs we cannot sell our assets.

article avatarChristian Patrick

Blockchain analyst and front end web designer.

Which crypto lending platform would you recommend and why?

Kucoin will do because they have got low return (profit) fees when it come to lending and it happens that the fees could actually last for a long while and under the same conditions the fees are unchanged. Crypto lending is actually important and Kucoin is absolutely the major platform that offers the best fees when it comes in the aspect of fees. Kucoin is actually the only exchange that I am aware of that provides such fees and this is as a result of it being a project aimed at lowing the fees either in transactions and trading and as a matter of fact the lending fees which is accessible through the Pool-X page on the Kucoin exchange and this is the only place where you can access the lend on the Kucoin exchange.

How to earn on crypto loans?

Kucoin still should hold for this. To earn via lending is easy and requires no much technicalities. How do you earn on Kucoin exchange. First,the assets are transferred to the Pool-X section. Note that any amount transferred to the pool X section is automatically out for loan and this amount is collected from the Pool-X section to the user. They amount of earnings for each loan is actually analyzed by the system and for every amount it is different and requires a different amount. They more the lending the more the profit gotten in return. To start, Sign up on Kucoin exchange and move funds from the main account to the pool X account then place the amount you would want to loan to any user available. And the earnings after stipulated days are transferred directly into your Wallet.

What are the main risks in the crypto lending process?

Well, since my lending on Kucoin I haven't actually seen a risk for now but on a more important note everything on crypto is very risky and in my own part I might say that the problem or the risk involved might be users or the lender being unable to pay back even after the stipulated time offered to the user and most at times the receiver might probably logout of the exchange or even close down the account after taking the loans just like other forms of financial institution because in this case the lender actually provides no fees or collateral in returns and tracing the location might also take time but on the side of the exchange the will take out time to prevent the user from making transactions whereas the user has already taken away funds and Left the account.

article avatarEverlyn Mendoza

social media evaluator

Which crypto lending platform would you recommend and why?

I think nexo is the best lending crypto platform because it offers lower interest than the other. Another is crypto.com wherein you can trade and earn from your assets interest. Coinbase is also one of them. Whatever platform it is I think you have to be very responsible in every actuation so that you can earn from it and that is what business matters.

How to earn on crypto loans?

We can earn on crypto loans by its percentage in APY and by swapping and trading to other coins. Moreover we can earn on it by hodling coins in a certain time frame terms like hodling the coins in 3 months 6 months and one year or more.

What are the main risks in the crypto lending process?

The main risks we can face in this crypto lending process is when you holder does not know how to swap and trade her coin like does not know how to use the trading matrix, the spot, the signal and when to buy one sell the crypto coin he/she manage.

article avatarPraise Olagbadun

Professional Author and Crypto Trader

Which crypto lending platform would you recommend and why?

I know quite a lot of crypto lending platform but can't recommend any for now because I've not used one before. It's quite better I recommend one that I've used before

How to earn on crypto loans?

The best way to earn on Crypto loans is by lending your idle assets to crypto lending platforms. But I must inform you of how risky it is. I've been a victim of a lending platform that kind of rug pooled and has ever since taken my time when it comes to making a decision on crypto lending platforms

What are the main risks in the crypto lending process?

The risks in crypto lending process are quite much. That's one of the reasons why I would advice a trader to have a thorough check on any lending platform before putting his or her funds into it 1. The platform can get rug pooled and flee with your funds. I've been a victim of this 2. The crypto space is a virtual one, leaving you with risk of loosing your funds to someone you don't know. This risk seems to be covered by platforms who necessitates KYC 3. Price fluctuations in crypto assets is another one. The collaterals used might end up not being worth up to 10% of the amount borrowed, leaving the lender at loss if the borrower doesn't return it.

article avatarOlagbadun Olatunde

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

article avatarDorian Kane

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

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

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