8 Best Crypto Lending Platforms

When it comes to cryptocurrency lending, tons of factors equate to a good earning profile. Also, the borrowing part of the lending ecosystem is almost always missed out on. Therefore the article covers concepts of lending, borrowing, and process steps for the 10 best crypto lending platforms.

What is Cryptocurrency Lending?

The method of lending crypto assets or fiat currency to the person who wants to borrow it at an agreed-upon interest rate constitutes crypto lending. Therefore, it has the same execution as that of investments and loans in a traditional banking system. 

• Lenders: They are usually someone who has an accumulation of cryptocurrency and is looking for a way to earn passive income.
• Borrowers: They are usually someone who requires a loan against their crypto asset. Getting a loan helps them to retain their asset without selling them.
• Lending Platform: The platform which allows users to lend or borrow crypto assets.

Where to Lend your digital assets?

1. Centralized Finance (CeFi) Platforms

The platform which acts as a middleman in the execution of the lending process comes under this. It means that the lenders and borrowers give up their respective asset and collateral to this platform until the time borrowed amount is settled in full.

Both parties will not have control over their assets. Moreover, a KYC process is standard on these platforms, meaning that anonymity is not possible. 

2. Decentralized Finance (DeFi) Platforms

These platforms have code-based contracts known as Smart Contracts to execute lending. The contract executes when the specified demands are fulfilled, and this process is automated. Thus, one does not need to undergo the KYC process, and since it works on a set of rules, it is pretty transparent.

How does Crypto Lending work?

Let’s have a look at lending at an operational level.

Cryptocurrency Lending: An Overview Pros and Cons of Crypto Lending Best Cryptocurrency Lending Platforms

Here is a list of some of the best crypto-lending platforms

1. Figure – Crypto Backed Loans

Unlock Cash Without Selling Your Crypto: Borrow cash using your Bitcoin (BTC) or Ethereum (ETH) as collateral without having to sell your assets.

Flexible Borrowing Options: Access up to 75% of your crypto’s value with fixed interest rates starting at 12.5% (APR: 12.5%-16.73%). Deferred interest payments are also available.

Loan Amount and Eligibility:

• Minimum loan amount of $5,000 (no minimum for international borrowers).
• Eligible collateral: BTC or ETH.
• Disbursement options: USD or USDC.

Loan-to-Value (LTV) Ratio:

• Max initial LTV: 75%
• Max LTV: 90%

Loan Term and Fees:

• Term: 3 months
• No prepayment fees, allowing flexibility in repayment.

Get Crypto Backed Loan

No Credit Score Needed: Your eligibility is based on your crypto collateral, not your traditional credit score. A soft credit pull ensures you’re in good standing with other lenders.

Fast and Simple Process:

• Create your account.
• Deposit your crypto as collateral.
• Get cash instantly, directly to your bank account.

Flexible Payment Terms: Choose between interest-only payments or deferred interest until maturity.

No Impact on Credit Score: Borrow confidently without worrying about your credit report.

Nationwide Availability: Available in most states and internationally through Figure Markets Credit LLC.

Trusted and Proven: Figure has originated over $7B in loans, including crypto-backed loans, without losing coin assets or pausing withdrawals.

2. Binance

Binance is one of the largest crypto exchange platforms globally. To learn more, read Binance Review.

• Binance Earn is the product for the investment of crypto assets and providing multiple services to earn a passive income.
• Crypto Loans is the product where you can borrow loans for trading or staking.

Binance Crypto Lending

It has two ways of earning interest on crypto assets. 

1. Flexible Savings
2. Locked Savings

Visit Binance Binance Earn For Lending Binance Earn

* The Annual Percentage Yield is calculated yearly; they look at the last 7 days to calculate approximately how much growth you can expect in a year.

** As of latest. It can, change in the future.

Crypto Loans

Borrowing on Binance happens through Crypto Loans.

Borrowing on Binance Visit Binance 3. YouHodler

Youhodler is a FinTech platform that provides crypto lending and exchange services. To learn more, read the YouHodler review.

Visit YouHodler Visit YouHodler

Note: YouHodler has a service charge for many of its services.

4. Nexo

Nexo is a cryptocurrency platform that provides instant crypto loans. It is centralized and aims to remove inefficiencies wrt to lending in the crypto world. In addition, it extends its lending to 40+ Fiat currencies across 200 jurisdictions. To learn more, read Nexo Card Review.

Visit Nexo Nexo Crypto Lending and Borrowing Visit Nexo 5. CoinRabbit

CoinRabbit is an instant lending and borrowing platform with hassle-free steps. Further, it is a centralized platform and lets users take loans for an unlimited period. It has several advantages, including:

• low minimum loan amounts
• No boundaries on the maximum loan amount
• No monthly payments
• Instant lending service without any credit checks

To get detailed information, read our CoinRabbit Review

Visit CoinRabbit Visit CoinRabbit 6. Kucoin Lending

Kucoin is a global cryptocurrency exchange established in 2017. Kucoin Lending provides an easy-to-use platform for lending and borrowing crypto assets and invites new investors to lend their assets in a low-risk environment. To learn more, read Kucoin Review.

KuCoin Crypto Lending Kucoin Borrowing Process Visit KuCoin

Note:

• If there is a failure in auto-renewal, the system will start to partially liquidate the coin of the highest value estimated in BTC until it repays off the debt.
• When a borrower’s debt crosses the 100% mark, all withdrawal and trading activities of that account are suspended.

7. Crypto.com

Crypto.com is a crypto application that provides products savvy to the field of cryptocurrency. You can buy/ sell or earn/ borrow, opt for a wallet facility, and trade in the native exchange. To learn more, read Crypto.com Review.

Crypto.com Lending Crypto.com Credit Process Visit Crypto.com

Note:

• Crypto.com also provides Crypto.com lending, which is different from crypto credit as lending is supported on the exchange while credit is supported on the mobile app.
• More or less, the dynamics are the same except for multiple loans supported on Crypto Lending and the provision of taking out crypto loans in BTC.

8. AAVE

Aave is an open-source market protocol for lending and borrowing which is decentralized and non-custodial.

The protocol operates as a set of multiple smart contracts in place, having the following entities in general.

1. Lenders: Provide liquidity to the pool by depositing crypto assets.
2. Borrowers: Borrow the funds from the pool and pay the interest incurred.
3. Interest Rate: Decided algorithmically, the lesser the funds in the pool, the higher the interest rate for the borrower.
4. Reserve: Takes the deposited crypto assets and stores them as an Ethereum equivalent as total liquidity. This is a preventive measure so that the lender can always withdraw assets at any time.

The loans are not matched per lender or borrower; rather, it depends on the funds available in the pool. 

Moreover, since smart contracts are coded contracts, anyone can buy the collateralized asset in case of failure of repayment at a discounted price.

AAVE Protocol: An Overview Aave Crypto Lending Aave Borrowing Visit AAVE

Note: AAVE is a protocol-based crypto lending platform. It has many native terminologies that one must try to understand before jumping directly into lending or borrowing.

Best Crypto Lending Platforms: Conclusion

There is a huge growth in options available for cryptocurrency services. Do Your Own Research (DYOR) stands true when opting out for a particular platform or service. Therefore, it is necessary to understand how you can earn passive income on your assets. Hence, you can go with Nexo if you’re looking for high interest rates and security.

Moreover, if you don’t want to withdraw your funds from your trading account, then Binance or KuCoin can be your go-to platforms. In addition, if you wanna do a complete deep dive in DeFi, the head for all the vast features of AAVE.

Visit Binance Visit KuCoin Visit AAVE Frequently Asked Questions What is the crypto lending price?

Crypto Lending price is associated with many fees such as origination, network, transaction, etc. Keep in mind that the platform may not charge for the service, but withdrawing/depositing fees is still applicable.

Is KYC required for all lending platforms?

No, KYC is not required for decentralized platforms.