Finding the Best Crypto Lending Platform in 2022
It’s no secret that crypto lending has gone through a tumultuous 2022, with projects failing and others fighting for survival. Beyond the alarmist headlines, however, are many robust platforms that are calmly navigating the choppy waters as crypto shows resilience amid uncertainty. In this post, we’ll help you find the right crypto lending platform for you
What is Crypto Lending?
Firstly, let’s get into the nuts and bolts of crypto lending. It works in the same way as peer-to-peer lending but with crypto. For instance, you could use your crypto assets as collateral to take out loans in other crypto or fiat currency like USD. It’s a great way to liquify your digital assets without selling them.
Alternatively, you could invest by lending your crypto or USD to borrowers. Some platforms offer bank-beating, inflation-busting returns on your investments, which can be compounded daily.
The loans are usually secured by the borrower’s collateral, up to 200% of the loan value. This bypasses the need for credit checks and adds greater flexibility for all parties
In short, it’s a great way to diversify your investment portfolio.
How to Find the Best Crypto Lending Platform?
Each platform will have its own characteristics, and it’s essential to do your research. The first thing you need to do is to understand your financial goals and risk tolerance and even consider where you are.
The United States, for example, restricts a lot of features on Binance that are available in other countries.
A good basic framework could be:
$200 per month (or $2400 one-off deposit)
To double my saving in 5 years
Medium (Willing to risk losing initial partial for strong gains)
In terms of crypto lending platforms from an investment perspective, you’ll want to look at:
- Fees: Always make sure you understand the fee structure of each platform. Some charge for transactions, while others charge matching fees. You will likely need to pay for the service - just don’t forget to figure out how.
- Interest rates: There’s a huge variety in the APR/APY you can earn on these platforms. On one platform, you could be earning up to 15% on USDC. Others may not even support it.
- Supported currencies: This is key. If you’re not careful, you could sign up for a platform that doesn’t support your selected cryptocurrency. Save yourself hassle and headache by checking out which currencies each platform supports.
- Track record: Most crypto-lending platforms have a strong presence on social media. Check out any app or TrustPilot reviews to see how other customers rate the platforms.
Once you’ve figured out your goals and parameters, you can start to look at crypto lending platforms.
Top 5 Crypto Lending Platforms in 2022
We’ve found five crypto lending platforms that you can trust. Please note that no investment is risk-free, but these platforms do their best to mitigate the risk as much as possible.
MyConstant: High Interest on USDT/USDC
Founded in 2019, MyConstant is a relative newcomer to the world of crypto lending. However, it has matured quickly and matched over $180 million in investments from 200,000 customers worldwide. The crypto lending platform is constantly evolving too, with new products and features being continually added.
Most recently, MyConstant revamped its membership program to offer more tangible rewards for holders of MCT (MyConstant’s native token). It also supports over 70 cryptocurrencies. The interest on crypto is also compounded and paid out every second.
You can withdraw these crypto investments anytime, with no lock-in period.
MyConstant Interest Rates
MyConstant supports over 70 cryptocurrencies and pays out interest in kind, so you don’t need to worry about swapping your crypto interest. You can also benefit by holding some MCT to take advantage of higher rates.
- USDT: 12.5% APY (Up to 15% with MCT membership)
- BTC: 4% APY (Up to 4.8% with MCT membership)
- NEAR: 4% APY (Up to 4.8% with MCT membership)
Nexo: A Market Leader
Nexo is often the first name on the sheet for crypto lending platforms, primarily due to its high-interest rates - paid out daily. Of course, a few conditions are attached to it, such as holding on to some of its native token - NEXO, which applies only to certain cryptocurrencies.
Nonetheless, Nexo is a market leader and has recently taken a lead in reassuring customers in the latest round of crypto volatility. It appears to have a strong, self-sustaining business model.
Nexo Interest Rates
Nexo supports dozens of cryptocurrencies, including the big names and key altcoins. The interest rates vary from crypto to crypto, and it also pays higher rates if you agree to accept the interest in its native token, Nexo. Here are a few examples:
- USDT: 10% APY (12% APR in Nexo)
- BTC: 6% APY (8% APR in Nexo)
- NEAR: 8% APY (10% APR in Nexo)
Aqru: Dependable and Solid
On the face of it, 7% APR doesn’t sound like a lot for a crypto lending platform, but there are some great features on Aqru. First, you earn interest even just by transferring crypto on its platform. Secondly, it’s designed for beginners - so if you’re new to crypto and the idea of making investments through lending, Aqru is a good place to start.
However, there are some drawbacks - it does not offer the highest interest rates and supports a limited number of cryptos.
Aqru Interest Rates
There’s no getting away from the fact that these interest rates are somewhat on the low side. However, it’s still a great product if you’re just starting out on your investment or crypto journey.
- USDC: 3% APR (7% with 90-day lock in)
- BTC: 1% APR
- ETH: 1% APR (5% with 90-day lock in)
BlockFi: All-Round Performer
BlockFi is regarded as one of the pillars of the crypto lending industry - and for good reason. Founded in 2017, BlockFi was among the first to offer a new way to earn in the crypto market - through lending. It has since expanded its services to offer trading and other ways to earn interest from crypto.
Like MyConstant, it’s seeking to become a bridge between traditional finance and blockchain. As part of its vision to become a crypto bank, BlockFi is also rated very highly for its security.
BlockFi Interest Rates
BlockFi supports dozens of cryptocurrencies and offers competitive interest rates. If you’re a DOT owner, then you could enjoy up to 15% APY with this platform.
- DOT: Up to 15% APY
- BTC: Up to 3% APY
- ETH: Up to 3% APY
YouHodler: A Platform for Flexibility
YouHodler does offer exchange services, but as the name suggests, the platform aims to support hodlers of crypto by providing a variety of products that helps you to earn more by holding cryptocurrencies.
YouHodler Interest Rates
The interest rates offered on this platform are competitive for crypto investors, and also supports a wide variety of cryptocurrencies with returns being paid out weekly. Here are three examples:
- USDT: 10.7% APY
- BTC: 4.7% APY
- NEAR: 8% APY
Find Your Best Crypto Lending Platform
The five crypto lending platforms listed in this article are some of the best in the industry. They all have solid track records and offer competitive rates for investors. However, finding the right one for you means you’ll need to dig a little deeper.
For example, if you’re looking for high-interest rates on USDT or USDC, then MyConstant could be the one for you. On the other hand, you could earn up to 15% APY on DOT with BlockFi, while Aqru is good for beginners.
Hopefully, you'll be able use our article as a basis to start your crypto earning journey today!
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