Intro -

Just holding your savings in cryptocurrency is not easy there always fear of losing down and as of my experience we only remember the loses while holding not the profit that’s why it become really frustrating while holding just the cryptocurrency

When it comes to getting interest on your holdings you can get some stress relief by seeing you holding grow daily

What Is crypto lending -

Crypto lending platforms gives you opportunities to lend your token without liquidating them and earn interest

How it works -

When someone wants to borrow tokens as loan, they have to agree on paying them back with some interest

For security borrower has to give the other token as collateral

So, if the borrower is unable to payback your tokens then collateral is used to pay you back and if borrower pays the loan successful then he will get back his collateral

That’s why it's a 100% safe way to earn money while just holding your savings

Now How to do that -

There are many platforms out there but as of my suggestions here are the four best platform to earn interest

1. Nexo

2. Celsius network

3. BlockFi

4. Compound Finance (Decentralized)

5. dYdX

Let's take a look at each with more details-

1) Nexo -

https://nexo.io/

Nexo is the biggest and most thrusted lending platform

You can lend only stable coins bitcoins and Ethereum are coming soon

No minimum investment and no hidden fees

Earn up to 8% per year and withdraw any time

The collateral of each loan is subject to custodial insurance of $100 million provided by the world’s leading audited custodian BitGo and the insurance leader Lloyd’s of London

Nexo is powered by a leading FinTech group serving millions of people across Europe for over 10 years

2)Celsius network -

https://celsius.network/

Celsius network support 18 diff cryptocurrency including BTC, ETH , DAI , USDT ,XRP you can check their interest rates here- https://celsius.network/earn-interest-on-your-crypto/

The Celsius network is a fully centralized platform, it has a mobile app

The Celsius network shares up to 80% of its entire income with its community members

no minimum balance, withdrawal period, and lock-up period

It provides up to 30% higher rates than normal if you agree to get interest in CEL (Their ico token)

3)blockfi –

https://blockfi.com/crypto-interest-account/

Blockfi is centralized platform Made by Gemini Exchange and Winklevoss brothers

company has raised over $20 million from firms, including Coinbase Ventures

Blockfi enables its users to learn interest on BTC, ETH, LTC, USDC and GUSD up to 8.6% interest, compounded on a monthly basis.

4) Compound Finance-

https://app.compound.finance/

Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.

But by using community-built interfaces integrating the protocol you can use it ->

https://app.compound.finance/

Compound finance is a decentralized protocol implemented by Coinbase wallet, huobi wallet and many more

Total market overview of compound finance -

Check interest rates offered by compound finance at https://compound.finance/markets

5) dYdX -

https://dydx.exchange/

dYdX is a decentralized exchange for margin trading and eventually derivatives. With dYdX users can trade, borrow, and lend any supported asset.

dYdX is powered by smart contracts on the Ethereum Blockchain, which eliminates the need to trust a central exchange while trading.

There are several risks involving in crypto lending

Why people take a loan on crypto -

Taking loan also has a better use case like in ico, Let's say there is an ico going on that you want to invest in but you already have your investment in bitcoin that you don’t want to lose because it may increase in value so , you take loan in usdt with bitcoin as collateral and invest in ico after ico is done and you have made your profit you can get back your bitcoin by paying the loan.

Referances -

https://nexo.io/
https://celsius.network/
https://blockfi.com/
https://blockfi.com/crypto-interest-account/
https://app.compound.finance/
https://compound.finance/

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