platforms: 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.

General Manager @ Excoincial Exchange

Which crypto lending platform would you recommend and why?

Cryptocurrencies have made people create fortunes for themselves via participating in crypto lending and borrowing schemes. There are many lending platforms that favour huge APY and APR with vast security and good reputation. However, in 2022, banking institutions are coming on board and are taking with them ideas of DeFi and blockchain properties. I personally would recommend www.africuniabank.com which will be a digital bank with real life contact to people whilst based on blockchain technology. It will be one of the banks in the world that will digitalize its asset with a good monthly and annual returns of about 30%, transfer money like world remit into mobile money accounts and bank accounts for traditional money, buy Airtime credits and data bundles. It has its AFCASH crypto deployed on BSC and its own mainnet chain will also be deployed. The ecosystem is huge which includes AFRICUNIA TV station with a physical office; EXCOINCIAL Crypto Exchange; AGRICUNIA Bio Organic Farm that is currently producing healthy products in markets; JOINTIUM social media network akin to like Facebook; PANGRAM.CITY video streaming platform which is similar like YouTube; AFRICUNIA-DEX and many other products. Get to know the people that you will also be lending your money to, thus promoting reality verses virtual. Cryptocurrencies are only providing us ideas on how financial institutions should be runned affectively. In conclusion for 2022 project, I would recommend www.africuniabank.com and its huge ecosystem.

How to earn on crypto loans?

Earning on crypto is very simple you can actually deposit some funds directly from bank account or crypto which can be used as a collateral in AFCASH tokens or stable coins. Loan can be acquired by also by paperwork submissions in areas/places/countries where the bank is operating from, civil servants, govt workers and non governmental workers will be encouraged to apply. These loans vary from short term to loan term loans from weeks, month, and years.

What are the main risks in the crypto lending process?

There are many risks in crypto lending process; 1. Due to volatility in price movements, you end up making huge losses and fail to reply the loan. 2. Crypto platforms are exposed or open to many attacks like script attacks, rugpulls, and hashing attacks. Projects without known location would disappear without trace at any given time.

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.

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

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.

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

Student

Which crypto lending platform would you recommend and why?

There many platforms and networks available for lending crypto. But I will recommend Celsius network as the best and reliable platform for lending Crypto. Celsius network is one of the biggest cryptocurrency lending platform available. The Celsius network allows you to earn some certain percentage by borrowing on their platform. In this platform, no charges are attached for lending, transferring coins. Also, the interest rate charged by this platform is very low and affordable. Celsius network can easily be accessed both on web and application formats.

How to earn on crypto loans?

Earning on Crypto loans is very easy. By providing loans to borrowers, Crypto lenders can earn by charging interest rate to the borrower. Most of the lending platforms earn through the interest they charge borrowers.

What are the main risks in the crypto lending process?

There are risks involve in Crypto lending process, this risk can result to great loss. Due to their volatility, cryptocurrency collateral may change in value at any time, which can lead to loss of investment on the lender side.

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.

Aspirational Whale

Which crypto lending platform would you recommend and why?

I find Pancakeswap to be best lending platform and for yield farming as well. Binance is top of class alternative as it allow lending in many more coins and Celsius, Blockfi and Crypto.com are popular in the US.

How to earn on crypto loans?

As a lender or investor, you recieve a Dividend or Interest for short term loans. I have seen returns from 5% to 25%. Yield Farming can allow for returns of over 100% APY. It is an extraordinary way to grow your assets!

What are the main risks in the crypto lending process?

From time to time, you will read about hacks and of course, there are scams and additional risk factors embedded in lesser known platforms. As a general rule, if it sounds too good to be true, it probably is!

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

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