Lending has been around for ages. Up until recently, individuals couldn’t access crypto loans from any platform- it was only available through special arrangements with gateways that provided this service before they folded up shop or were bought out by another company who also discontinued their services entirely.
As the crypto market continues to grow, more people are looking for ways in which they can make money off of it. One such way is by lending out their coins and earning interest on top! If you have some idle cryptocurrency that’s been sitting around recently, and asking yourself “Should i lend crypto” – now might be a great time as any get back into investing with this new technology before its too late!
No Need for Mining Hardware
The high costs of crypto mining may be on their way due to the rising energy consumption. Crypto loans offer an alternative for those who want income without having large investments or technical know-how needed by traditional miners!
The future of lending is now available to everyone. Crypto loans offer an easier and more accessible way for first-time cryptocurrency investors, as well those who want greater exposure in this space without having restrictions on their investments or needing mining equipment set up at home beforehand
Risks Involved Are Lower
Crypto loans are one of the few investment opportunities with almost no risks and huge rewards. While these are not your traditional loans, they come with some unique features. For example the borrower can only access amounts that match up to their initial deposit; thus ensuring security for both lender and loanee because if one falls behind on payments then there won’t be any more funds available until he/she pays back what was originally given as collateral- which could take years!
With 2:1 or 3 times the value of a crypto loan as collateral, lenders are protected from big price changes. If you want to borrow more than what’s currently available on deposit – say because your investment went up 20% in one day- then it might not be possible without taking out another loan at an even higher interest rate (to protect them against risk).
High-Interest Rates on Deposits
Some people want to put their money into something that will generate a return. They choose loans because of the interest rates, which can be either APY or APR depending on what’s better for your situation and needs as an individual investor
The higher one pays in exchange for access over time- especially if it means paying more upfront but receiving monthly payments thereafter – then typically they would go with “simple” rather than compounded interests: This way you’re guaranteed some profit even after taking out all necessary costs like fees.
With interest rates so low, it’s no wonder that people are flocking to high-interest crypto accounts. The average savings account at banks offers only 0.1% on deposits; however a cryptocurrency platform can offer 36%.
More Efficient Use of Crypto Assets
The old way of earning on cryptocurrencies was to hold them. The goal is to wait for these assets to appreciate after positive price movements.
Unlike the previous strategy, lending your crypto ensures that it will be worth more in future. Market volatility is no longer an issue with this method because you are lent out coins which can appreciate or depreciate depending upon demand and supply respectively
The advantage to having less risk associated with holding assets on exchange platforms makes them a better option for long term investments.
Interest on crypto loans is an easy way to make your money work for you. The more interest that compounds, the greater chance of increasing deposits over time and increasing their value in a very short period as well!
Crypto lending platform is the new way to get your money in an instant, especially if you’re looking for a high yield. All that’s needed from clients is simply depositing their assets onto one of these services and they will return with interest rates as high as 3%!
Borrowers can seek financial freedom by taking on the risks of loans, while lenders keep their assets. This process creates a frictionless system for both crypto borrowers and lenders that are looking to invest in someone who has good credit!
Support Unbanked Borrowers
In the world today there are 1.7 billion people who do not have savings accounts and yet they still own assets with values in their economic ecosystem – how unfortunate! Getting a loan to help them further develop or expand on these businesses is next-to impossible for many reasons; some financial institutions won’t give loans without collateral while others charge very high interest rates (which means you’ll pay off your debt much quicker).
Imagine the freedom of not having to worry about a credit history or checking account. With digital currency loans, you can take out personal money in small amounts and use it as needed!
The loan amount of $50 might not seem like much. But, converting to other currencies could offer a lot for unbanked people!
A Variety of Crypto Assets Are Available
The most popular kind of digital currency is still Bitcoin, but there are other options for investors who want to diversify their investments. One type that has been gaining traction in recent months is called stablecoins – these currencies maintain a constant price and can be used like USD or EUR with cryptocurrencies such as Ethereum (ETH) & Ripple’s XRP respectively
Some lenders offer attractive interest rates for deposits managed by the platform itself. Others use automatic market makers (AMMs) to adjust prices based on supply and demand, which means that they can often get better pricing than you would find elsewhere!
Wider Market Access
Crypto lenders have been able to offer loans with terms that are more attractive than those of traditional financial institutions. At present, their reach exceeds the ability for other types or lenders because they do not need regulatory approval and can operate without it depending on current legislative actions in different countries around the world.
The unique value proposition of crypto lending is that it can be accessed by those who don’t fall into any traditional category. This includes individuals without bank accounts, or those whose corporations won’t give them loans because they are considered too risky for business ventures–even though these same people may desperately need financing!
The Bottom Line on Lending Your Crypto
Crypto lending offers better returns on deposits. It also removes much of the risk attached to one’s digital currency holdings – which makes it a viable way for you, as an investor or depositor with some extra cash lying around (or in this case: waiting), make your money work harder by turning them into fiat currencies that will allow access all sorts free-flowing funds without having any restrictions placed upon what can be spent where!
Which platform to use?
Blockfi is an interesting platform, but we have some concerns about their ethical practices. When you sign up for Blockfi to deposit money and borrow coins from them instead of lending your own assets like Bitcoin or USD Coin (a US dollar backed cryptocurrency), they don’t tell prospective borrowers that unless they submit proof at any time during registration process – there’s no warning signs telling people what will happen if we can’t fulfill KYC obligations later on down the line! This seemed pretty sketchy since most other platforms provide ample notice before request.
Celsius is a mobile-only lending platform that offers great features for withdrawals and interest rates. Their only flaw in my eyes is the lack of internet browser applications, but they still rank higher than other platforms due to how easy it has been using them so far!
Binance is a great place to get your coins locked up for days, but without any interest rates. On Celsius I was getting less than half of what they were giving out with the DAI loans there- it’s just not worth going through all that trouble!
Coinloan is a great place to be if you need funds but don’t want the hassle of dealing with banks. You’ll get your money in minutes and it’s easy enough that even a dog could use them!
Lending your cryptocurrency is a great way to make money, but only if you know what you are doing. If not then it will just waste time and energy for nothing in return! The first thing that needs addressing when looking into lending services like these two platforms — Celsius vs Binance — or any other type of financial product/service with high interest rates – which could potentially lead someone down an investment roulette path where they lose more than they earn-is understanding how long term investments work best since this usually means locking up assets such as coins on deposit rather