Leading crypto lending platforms to earn passive income in 2022!

While discussing the cryptocurrency market, we always talk about buying and selling crypto. However, a new buzzword in the crypto market is lending crypto assets and earning an Average percentage yield (APY) or interest rate over it. In addition, Crypto banks are emerging in the decentralized ecosystem to transform the market into more beginner-friendly so that risk-averse investors can earn passive income without the fear of losing money.

Moreover, there are a few pointers to gauge while choosing a crypto lending platform:

• Choose a platform that offers the best interest rate according to the coin.
• Conduct an in-depth analysis of the history of the platform.
• Compare the fees charged by different platforms.
• Identify if there is any minimum deposit requirement.
• Discover the amount of collateral you would require to get a particular loan amount.

Leading crypto lending platforms:

CoinRabbit:

It is one of the most prominent platforms when it comes to crypto lending and borrowing with an effortless and simple user interface. In addition, CoinRabbit saves a lot of time for an investor because of its non-KYC ( Know your customer) approach to opening an account on the platform. Investors just have to enter their names and email addresses.

Nevertheless, the platform is simplistic. It conducts regular Anti-money laundering checks (AML) and has strict guidelines to protect investor’s funds. Furthermore, as soon as the platform receives the funds, CoinRabbit stores the funds in cold storage, allowing users to protect their accounts with two-factor authentication.

It offers the industry’s highest Annual percentage yield (APY), fixed at 10%. The Annual percentage rate (APR) is 1.2% paid monthly with additional perks like free withdrawals, and they can repay the amount anytime the investor wants.

SpectroCoin:

SpectroCoin is one of the finest crypto loan applications in the industry. The platform allows a loan-to-value (LTV) ratio between 25% to 75%. Moreover, SpectroCoin bestows collateralized loans, and it accepts BTC, ETH, XEM, and DASH as collateral for the crypto loan. On SpectroCoin, you can get a loan amount between 25 EUR to one million.

Moreover, choosing a higher loan-to-value ratio increases the interest rate, while a huge loan amount decreases the interest rate. The highest LTV is offered by none other than Bitcoin (BTC) and Ethereum (ETH). Furthermore, you can withdraw the amount in Euro (EUR), Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and so on.

Additionally, the loan time frame is one year at the maximum. Again, though, it can be increased if the borrower wants. The interest rate is automatically debited from your account, and the borrower can repay the loan at his convenience, depending on the agreed LTV.

Nebeus:

Nebeus is a one-stop shop for crypto traders, both novices and professionals. It offers crypto lending, staking, renting, and trading on its platform. For instance, if you want to rent cryptocurrency, Nebeus bestows the best rate in the crypto market. You can earn a 6.5% interest rate per annum for renting crypto and a 12.85% interest rate per annum on the Stablecoins. The most enticing feature of Nebeus renting is you can withdraw your gains as often as 24 hours without charging a single fee.

In addition to this, Nebeus offers two types of crypto-backed loans, Quick loans and Flexible loans. You can get Quick loans at a 0% interest rate for your daily expenses, while Flexible loans are suitable for specific needs of the individuals. The latter is a collateralized loan category with a 36-month term and a Loan-to-value (LTV) ratio of 80%.

Nebeus stores your crypto collateral in separate cold storage or cold wallet account insured at $100 million by Lloyd’s of London. Moreover, the platform gives you a 10-day buffer period and protects the borrower against margin calls via margin call management.

BlockFi:

BlockFi offers you an opportunity of trading, buy, sell and earn cryptocurrencies on its one-stop platform. The Annual percentage yield (APY) offered by BlockFi to the investors or users is 8.5%, which will be paid monthly. Moreover, on this platform, you can transact and store all your cryptocurrencies in one place. BlockFi markets itself as a zero-fee platform with no minimum balance requirements.

For instance, if users need urgent cash, they can borrow funds from the platform by staking their crypto-assets and earn an annual percentage rate (APR) of 4.5%.

Coinbase vs Blockfi: Which Is Best For Crypto Trading

Celsius:

Celsius is a prominent name in the market sphere of lending and borrowing crypto assets, wherein you can earn an annual percentage yield (APY) of 17% while lending crypto on the platform. Moreover, the 17% APY will be paid to the investors for lending crypto every week, irrespective of the coin or token.

Additionally, Celsius has its native token CEL token. Therefore, any investor holding a CEL token will be eligible for an additional 25% reward. Moreover, you need not sell your crypto if you need emergency funding. Instead, you can stake the crypto asset at an annual percentage rate (APR) of 1%.

Conclusion:

Staking, lending, and renting cryptocurrencies are the new byword in the crypto market space. As we know that crypto is the currency of the future, these additional features will replace the traditional banks if implemented carefully.