usdt: 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.

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

Librarian

Which crypto lending platform would you recommend and why?

Xend finance is perfect project. Because they use bsc,ethereum, polygon ecosystem. Xend Finamce $XEND is futures money, token and payment. Go to Moon !

What are the main risks in the crypto lending process?

Futures is very dangerous. Because 5x + margins have too many risks. That risks are liquiditaion. E.t. 100 usdt will 0 usdt. Cok riskli ve spot alım en guzeli

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 Blockchain Technology expert from Port Harcourt, Nigeria

Which crypto lending platform would you recommend and why?

Binance loans platform is one of the best crypto lending services in the blockchain technology business because, firstly it does require so much qualifications to collect a loan from it. Secondly one of the good parts of Binance loan platform is that it afford you the opportunity to borrow several cryptocurrency including USDT and BUSD. Thirdly there are several cryptos that serve as collaterals including major cryptocurrency like BTC and ETH. Finally the loan terms in Binance loan platform are simple; 7,14,30, 90 and 180 days, which also allows repayment in advance and calculation is done hourly.

How to earn on crypto loans?

You can earn on crypto loans by lending out your cryptocurrency from your investment portfolio. This provide you with interest on investment. For example Binance exchange offers you several investment products through Binance earn platform for both fixed and flexible lending. You can earn interest on stablecoins like USDT that you plan to hold by lending them out.

What are the main risks in the crypto lending process?

There are several risks associated with crypto lending process. They include risk of price fluctuation. The fluctuating nature of crypto value can lead to margin calls, a situation where the borrower must put up more crypto as collateral to maintain the value of the initial collateral. Also crypto loan are not federally insured and stand the risk of security breach. Thus compensation is not guaranteed.

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.

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