Crypto lending/borrowing was one of the largest sectors of Decentralized Finance in 2021. The crypto lending platforms are also known as money market protocols and in 2021, they contributed to almost half of the Total value locked in DeFi. These protocols are decentralized and are not supervised by any central authority.
With several crypto lending platforms entering the market in recent times, you might be more confused than ever to know more about how crypto lending works and which platforms are trustworthy.
Let’s look at the process and the best crypto platforms in this blog.
Crypto transactions happen on a secure blockchain. Crypto lending is the same as traditional lending, where you give money to others and earn interest on it.
Crypto lending and borrowing happen on the DeFi platforms, where a crypto holder will lend the cryptocurrency to the borrower for an agreed APY (annualized percentage yield). The APY rate ranges between 5% and 12% for most transactions. The crypto platform charges a small fee to process the transaction. It is a secure, fast, and efficient method to lend/ borrow cryptocurrency online.
Note: APY is the interest the lender earns from the transaction, and APR (annualized percentage rate) is the interest amount the borrower owes the lender.
CoinRabbit is a London-based crypto lending and borrowing platform that became one of the best in a quick time. This platform has a simple user interface and is even easier to use in terms of creating an account and lending cryptocurrency.
Despite being a relatively new platform, CoinRabbit has gained many users in a short time. Though the APR rate is high for borrowers, the other features make it a preferred choice.
Blockfi has its headquarters in New Jersey, US, and was founded in 2017. It is a complete service provider that enables users to buy, sell, and earn crypto through the platform. It allows users to store all their crypto assets in one place and generate income from them.
Blockfi accepts BTC, ETH, USDC, LTC, PAX, and GUSD cryptocurrencies for buying and selling. It offers a special feature called Interest Payment Flex, where users can choose the currency of the interest payments they receive from borrowers.
YouHolder is a Swizz-based crypto lending platform that also offers fiat options. Users can convert one cryptocurrency to another or fiat currency to crypto on the platform and lend to others to earn handsome interest.
It is one of those DeFi lending and borrowing platforms with a high APR rate for borrowers. It ranges between 13.68% and 36%+ in some instances. However, YouHolder is popular for offering small loans and fiat compatibility.
is an Estonian crypto lending platform that offers mobile-friendly services for crypto lenders and borrowers. The platform is compatible with Android and iOS devices. It has a clean and comfortable interface.
CoinLoan also allows you to borrow cash by staking crypto as collateral. It is user-friendly and offers features like a fiat-on-ramp to transfer crypto assets from an exchange to a lending service.
SpectroCoin is based in Belarus and was founded in 2013. The platform has been delivering consistent results over the years and offers a range of crypto services, including crypto loans.
SpectroCoin is a crypto borrowing platform where you get loans from the company rather than lend your cryptocurrency to others.
A crypto lending platform makes it possible to have peer-to-peer transactions in cryptocurrency and earn passive income from your crypto assets. Many startups are hiring Antier, a reliable Defi lending platform development companyto build a platform and facilitate similar transactions between crypto lovers. It takes less time to launch a crypto lending platform by customizing existing solutions to suit your business mission.
Please fill out the form to make the request. We’ll be in touch to schedule a free demo.
