nexo: 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.

Product Manager

Which crypto lending platform would you recommend and why?

This is great question. I am using these platform very heavily. I am fan of Celsius (they have lovely promo codes and low fees) and NEXO (great APR, great tokenomics, 0 loans for platinum members). NEXO is perfect start.

How to earn on crypto loans?

This is not an option for beginners as it usually means going for margin / leverage trading. On the other hand you can use loan to get stuff you really want without selling your crypto. It has an tax advantage.

What are the main risks in the crypto lending process?

There is aleays risk of liquidiation of your collateral, i.e. your crypto. You have to be cautious and have reasonable LTV, which I think should be around 20-30 %.

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.

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

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

CEO

Which crypto lending platform would you recommend and why?

I would recommend NEXO, very transparent and easy to use. Secure and safe at the same time. I like the way they do promotions, also a way to earn passive income by inviting friends to join.

How to earn on crypto loans?

I think if you have strong enough budget, you can issue crypto loans via different DEFI platforms. I think its only a start in the financial world, and its time to join these finance mechanisms.

What are the main risks in the crypto lending process?

I think the choice of trusted source and collateral towards the loans is the main factor that influence risks in crypto lending processes. It is risky to use unknown sources and new platforms.

Investor

Which crypto lending platform would you recommend and why?

Nexo is a very well established lending platform. The platform has a lot of cryptocurrencies that are available with a big liquidity pool. The rates available for lending are reasonable

How to earn on crypto loans?

The nexo platform has a straightforward process of applying for crypto loans and easy process to understand collateralization and establish a new loan

What are the main risks in the crypto lending process?

The volatility and fluctuations in the cryptocurrencies can trigger liquidation of the collateral which can create adverse implications for the transaction causing significant losses

Crypto Investor

Which crypto lending platform would you recommend and why?

Nexo and compound are the bets platforms available. Flexible fees, a variety of cryptos to choose from, ease of use. Simple interface and your funds are insured

How to earn on crypto loans?

You earn crypto by borrowing and lending. Both can earn you good profits if u know what to do. I prefer lending my cryptos, while earning good returns

What are the main risks in the crypto lending process?

Fraud, Rug pulls, hack attacks. Alot can go wrong in this space, proper decision making in choosing a good platform can not be over emphasised

Developer Associate

Which crypto lending platform would you recommend and why?

I have an account with Nexo(NEXO) I will recommend NEXO for their constant innovation, transference and accountability. Also, I like their services because if you deposit your asset has an insurance coverage, meaning that in the case of hacks or other incident you can get your assets back. Another landing platform which I like a lot is Anchor Protocol (ANC), in their case you can even borrow from the platform and earn interest rather than paying it, but the major difference is that it does not offer insurance.

How to earn on crypto loans?

As I mention in the previous paragraph if you deposit your money like USDT as collateral in NEXO you can borrow with some limit and that money that you borrow you can buy another crypto if the price goes-up you easily sales it, payback the money and hold the profit. Also in NEXO your deposit earn you a daily interest. In the case of Anchor, you borrow some USDT use the money in the platform to buy another token and at the same time earning some interest with that money that you borrow, but if market goes down there is possibility of your initial deposit to be liquidated.

What are the main risks in the crypto lending process?

Lack of sufficient insurance coverage, risk of your initial deposit to be liquidated and some project are not audited meaning it is very easy to be hack and a lot of people lose their hard earning money.

Operator

Which crypto lending platform would you recommend and why?

I use and recommend Nexo, for its time in the market giving some of the best returns and security. In my opinion, it is the best of all.....

How to earn on crypto loans?

The best way is to leave cryptos blocked and earn day by day ... By lending your cryptos you can earn between 2 to 12% per year or more, depending on the type and the page ...

What are the main risks in the crypto lending process?

The risks are really very low and I think the benefits are worth it, I really don't know what risk there may be in nexus-style platforms, the lending itself in others is something different and I don't know enough about the risks.

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