What is a Crypto Lending Platform
Beginners and experienced traders who want to receive passive income on cryptocurrency think about where it is more profitable to invest their money. One of the effective ways to get a passive income is the landing of cryptocurrencies. It means the transfer of funds to the best crypto platform for trading or lending platform that uses them at their discretion: increasing liquidity, subsequent issuance of loans, lending to margin trading, etc. Today there are several best crypto trading platforms in the US that offer such services, and they are in great demand.
How Cryptocurrency Lending System Works
The process in which individuals can give away their crypto-savings to other individuals, crypto exchanges, and some companies is called cryptocurrency lending. The loan is carried out at a certain interest rate.
The benefits for traders are obvious:
The possibility of additional cryptocurrency earnings on free funds, which are held as investments.
Many crypto investment platforms allow you to independently choose an investment plan or set up investment criteria to get the maximum benefit from your financial capabilities.
For developers, it can be a good way to promote little-known tokens as well as in crypto blogging platforms such as the social media crypto platform Voice.
In most cases, the method is more profitable than using traditional bank deposits.
Types of Cryptocurrency Lending
Five main types of cryptocurrency lending are now available on the market:
Clients lend to the best US crypto trading platform or lending platform using investment offers.
Margin lending is secured lending whereby traders borrow money on top crypto cloud mining platforms from other traders in the hope that the price of a cryptocurrency will rise or fall soon.
Secured Bitcoin Loans is a type of lending where a person can obtain direct peer-to-peer loans in Bitcoin using other assets as collateral. Individuals set their loan offers with desired interest rates and collaterals at their discretion. Borrowers research the market, find a suitable offer and respond to it.
Fiat/Bitcoin hybrid loans are loans you borrow in fiat and pay back in BTC. The borrower gives, for example, US dollars, and receives Bitcoins. If the price of Bitcoin rises over the term of the loan, then he will need to repay less, since the debt is calculated in fiat.
Reputation-based crypto loans work on the principle that lenders issue loans based on the personal reputation of the borrowers. You can build a reputation in different ways by having a large amount of collateral or positive repayment history.
Fiat loans with cryptocurrency as collateral allow traders to pledge their BTC as collateral for a fiat loan. Perhaps the most popular crypto farming platform of this kind is SALT.
The Best Lending Crypto Platforms
Many services in the world provide cryptocurrency lending. It is worth highlighting the top 3 crypto trading platforms which provide profitable investment packages.
Binance has a landing platform as an additional service for users who have unused crypto assets. Traders can increase their capital by receiving interest income for lending their savings for a while. It is also one of the best platforms to trade crypto penny stocks.
At the first stage of the launch of lending, a fixed period of 14 days is set for the following lending products: BTC, ETC, XRP, BNB, ETH, USDT, ZEC, USDC, LTC, XMR, DASH, ADA. Annual interest rates for them differ – BNB 15%, USDT 10%, and the rest 7%. In the future, based on the market assessment of the initial phase, rates may be adjusted.
Nexo has been on the market for over 10 years and is trusted by 250,000 users. It has processed applications for 700 million dollars. Works with cryptocurrency, fiat, and stablecoins.
The standard interest rate is 8% per annum. The funds are 100% collateralized and the collateral is covered by custodial insurance from the custodian BitGo and Lloyd’s of London. Interest is paid daily without commissions.
The LIvecoin cryptocurrency exchange pays rewards for holding certain assets on its account. The user must simply deposit one of the available coins. The larger the contribution, the greater the monthly profit. Also, the program takes into account the funds pledged in open orders.
The calculation of the amount of time spent on the account during the billing period is carried out. The trader will receive the reward even if the funds were on the account for only one day per month. Payment is transferred to the balance once a month.
Cryptocurrency landing seems to be an easy and attractive way to passively earn money. But it is important to carefully choose a reliable crypto e-commerce platform with suitable conditions. If you have already gained enough experience in cryptocurrency lending and thinking about launching a crypto funding platform, please contact Beurop specialists for advice.