Best Crypto Lending Platforms: Top 5
Best Crypto Lending Platforms: Top 5
Are you wondering which is the Best Crypto Lending Platform in 2021?
Find out what our top 5 favorite crypto lending platforms are and start earning interest on your cryptocurrencies!
What is a Crypto Lending Platform?
You’ve probably heard of people taking loans when they’re short on cash, right? It’d be either a bank or company lending them some money, which needs to be repaid with some interest. That interest is how the bank or company would make money.
A crypto lending platform lets you give out a loan with your crypto. Just like those companies, you get some interest from it too. However, it does work a bit differently than your standard loans.
In short, a crypto lending platform is an alternative investment solution, where investors lend fiat money or cryptocurrencies to other borrowers in exchange for interest payments. So there’d be two main parties involved in this loan.
The lender, who will receive interest from the borrower in exchange for the loan.The borrower, who will deposit crypto assets as collateral to secure the investor’s investment. That way, the lender can be sure that if something goes wrong, that collateral will be used to compensate him/her.
Check out our Top 5 List of the Best Crypto Lending Platforms below!
Celsius is a platform for earning and borrowing up to over 30 different cryptocurrencies. Manage your crypto portfolio and earn compounding rewards (up to 15% APY) in BTC, ETH, CEL, and more. Qualifying users can get instant approval for a dollar or stable coin crypto loan at just 1%.
Celsius Network has already originated more than $1 billion worth of loans since its foundation in June 2018. They’ve clearly demonstrated a huge demand for low-interest loans.
As highly successful, high-net-worth serial entrepreneurs go, you don’t get much better examples than CEO and founder of Celsius Network, Alex Mashinsky.
Similar to putting money in a savings account, storing cryptocurrency funds in Celsius earns you interest on your holdings each week. The premise is relatively simple:
- You deposit cryptocurrency into the Celsius app.
- The company then loans those funds out to retail and institutional borrowers.
- Every Monday, you receive a payment from the revenue that Celsius gains from those loans and other activities.
The functionality of the app expands far beyond simple interest payments, though.
On the other side of lending, loans are available through Celsius, as well. By putting up cryptocurrency as collateral, you can take out cash (or stablecoin) loans at a range of different terms. Unlike most traditional loan services, Celsius loans don’t require a credit check and typically grant you approval in minutes.
BlockFi is a cryptocurrency custodian that allows its customers to take out USD loans against their cryptocurrencies. BlockFi was founded by Flori Marquez and Zac Prince in August 2017 and is based in Jersey City, New Jersey.
BlockFi offers the best rates, most flexible structures, and the highest degree of security available in the blockchain lending ecosystem. Additionally, BlockFi operates within regulatory guidelines at the federal and state level in the United States.
The BlockFi team has decades of experience in consumer lending and financial services. BlockFi is the only independent lender with institutional backing from investors that include Valar Ventures, Winklevoss Capital, Galaxy Digital, Susquehanna, Akuna Capital, Fidelity, and some of the biggest names in the space.
YouHodler is focused on crypto-backed lending with fiat (USD, EUR, CHF, GBP), crypto (BTC) and stable coin loans (USDT, USDC, TUSD, PAX, PAXG, DAI, HUSD), crypto/fiat, and crypto/crypto conversions, as well as high-yield crypto-saving accounts (crypto-rewards & staking). The platform supports BTC, BCH, BNB, ETH, LTC, XLM, XRP, DASH, HT, REP, and other popular cryptocurrencies and tokens. User's digital assets are safely guarded with Ledger Vault's advanced custody and security options.
YouHodler is an EU and Swiss-based brand with two main offices in Cyprus and Switzerland.
YouHodler is an active member of the Blockchain Association of Financial Commission and the Crypto Valley Association. Customers are protected by the independent Financial Commission’s efficient dispute resolution process.
The YouHodler Team has strong and unique expertise in Commercial Finance and FX/CFD trading; creation of e-commerce and e-learning platforms, Blockchain and Distributed Ledger Technology. The team combines the wisdom and practices from the world of traditional finance with the start-up spirit of the Digital industry.
MyConstant was first launched as a stablecoin in 2019, later that year, and after a lot of discussions, the team set their sights on an industry that, until then, had a mixed reputation: peer-to-peer (P2P) lending.
When you invest with MyConstant, you first send your funds (either fiat like USD or stablecoins) to their custodial partner Prime Trust, an accredited US financial institution.
Prime Trust then converts your funds to a relevant stablecoin which MyConstant then lends on your behalf to collateralized borrowers, liquidity pools, and decentralized exchanges in return for interest.
When you’re ready to withdraw, Prime Trust converts your invested stablecoins back to the relevant currency of your withdrawal request. There are no charges or fees for fiat (USD etc) withdrawals. You’ll keep the interest you earn up to the moment you withdraw your funds.
You can choose the instant access account or invest for a fixed term. The instant access account has a 24-hour term that’s automatically extended every 24 hours unless you choose to disable the product or withdraw your funds.
All account statements for MyConstant investment products are stated in USD equivalent terms at all times.
Nexo has strived to bring professional banking services to the world of digital assets since its launch in 2018. Leveraging the best of the team's years of experience in FinTech along with the power of blockchain technology, Nexo empowers thousands of people to harness the value behind their crypto assets, shaping a new, better financial system.
Nexo currently manages $12+ billion in assets for 1,500,000+ users across 200 jurisdictions.
Nexo is committed to successfully solving inefficiencies in the lending markets by creating innovative, convenient and sustainable solutions. By harnessing the potential behind blockchain technology, Nexo is pioneering a new digital financial system.
Nexo’s values are rooted in efficiency, transparency, and inclusivity. This is reflected in their fully automated products, transparent processes, and extensive efforts to develop a truly global service that makes wealth creation opportunities available to everyone, providing accessible banking services for the unbanked.
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