market: 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.

day trading, investment, crypto enthusiast

Which crypto lending platform would you recommend and why?

Celsius is the best crypto lending platform, here you can earn up to a 17% APY in case of earn yeild. In case of borrowing you can choose interest rate from 1% up to 8,95%, depends on rate the amount of collateral will be decrease. In both cases if you used native CEL token you have more interesting conditions for profit (up to 25% more profitable). There is no transfer, origination, withdrawal fees.

How to earn on crypto loans?

You just need to choose crypto with highest api rate and earn yeild every week. For now the best rates on stablecoins. It's more conservative way of holdings and also risk free.

What are the main risks in the crypto lending process?

1. The platform will go away with your money 2. High volatility on market espeshially in chosen token 3. The long term of lending (more than 10 years) 4. The lack of strategy

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.

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.

Sales

Which crypto lending platform would you recommend and why?

Crypto.com but before I get into why it's one of the best options let me state this first this year and the coming years we will see many more options and there is already a fair amount of good platforms, blockfi,coinbase,crypto,kucoin so many but crypto.com besides being one of the biggest it signed a 20 year deal with the staples center pretty much locking in their position in the crypto field. They have a credit card you can get , staking options, loan options, where you can take a loan against your crypto or even loan out some of your crypto, the fees are decent and the benefits it provides to customers is also top notch

How to earn on crypto loans?

When you loan out your crypto through the website or company your crypto is safe and secure you gain rewards or more crypto for tying your money up or loaning it out

What are the main risks in the crypto lending process?

I don't believe there is any risks as the company takes on the responsibility of course u suppose loaning or staking crypto there is always a risk that the market will blow up or drop so not having it on hand to sell could be a risk

Driver

Which crypto lending platform would you recommend and why?

Balance. The most simple, reliable and effective crypto platform in my opinion. It was founded in 2017. Has been serving the community for several years now. They have development, they are constantly adding new projects. I will especially emphasize the Dot auction - this is an example of how credible it can be. As well as various methods of cashing in or buying that make it comfortable. Another innovation from their side is the NFT market. And it is very important crypto sticking (30-60-90days) without risks. Stacking in pairs is a bit risky, but other exchanges are not as sophisticated. All of this tells them that balance is best. thank you very much.

How to earn on crypto loans?

There are various ways to generate money through cryptocurrency: 1- Buy cryptocurrency and keep it for several years. 2-Buy every month for the same amount, the price does not matter and you will make a profit in 3 years. For example, buy $ 100 cryptocurrency on the 5th of each month. 3- Buy on each dip and sell on the increase. Also on the stock exchange though the latter carries high risks. 4- Buy and stake. 5-Participated in new defai projects and lots of other things. But keep in mind that there are always risks and you have to choose well which cryptocurrency you are buying. thank you very much.

What are the main risks in the crypto lending process?

There are many risks when buying cryptocurrency. The platform where you buy, it is necessary to be time-tested and reliable, otherwise the platform owners can cancel it and lose what you put. Also, if you buy in a decentralized wallet, you may lose liquidity. It is also possible for prices to fall globally and if you do not have a solid nerve you can sell at a loss. Also scammers who are very active and if you switch to an unwanted link you will completely lose everything you even have. thank you very much.

Crypto Enthusiast

Which crypto lending platform would you recommend and why?

Nexo… it is one of the best i see around. I really do know of many more. I do but i would need some time to think about it but anyway Nexo seems like one that is always advertising itself. I have seem trash sites turn to Gold and Diamond sites i have seen lots of changes and they have been top 100 for a long while. I havnt really looked in a long time but the rates are very good as well. I think if you have 1 bitcoin than you can borrow against that bitcoin plus more i am sure, like if bitcoin drops below the amount traded for than maybe the person who borrowed owes that plus original back or just owes the original amount even if Bitcoin doubles. I have no idea about all the ins and outs but NEXO is huge check it out

How to earn on crypto loans?

According to nexo site it says you can earn upto 20% buying crypto and you can earn some by adding friends. 20%api is a big deal if you spend a big amount

What are the main risks in the crypto lending process?

The loss is always the biggest risk the market can turn around for dumb reasons and from people saying scammy things, so it isnt always good to invest unless you are willing to lose what you can afford to lose

Crypto & Happy

Which crypto lending platform would you recommend and why?

CELSIUS, because it has a wallet application on mobile phone and can be access on web too usding pc, it has a reward also just by holding your crypto on there crpto wallet

How to earn on crypto loans?

you need to deposit first an amount for collateral and then you can loan now using your collateral crpto on there platform, and then paid the amount and interes before getting liquidated when the coins or token get lower value

What are the main risks in the crypto lending process?

the risk on lending a crypto currency is when the value of the coin you hold that was been collateral was get dip on market, your collateral crypto will become less valuable

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