By Nathan Ferguson
Cryptocurrency usage has increased as much as the number of cryptocurrencies in the market. The best cryptocurrency lending platforms created nowadays solve a particular problem or fill a void in the respective crypto market. Let’s focus on current legitimate bitcoin and crypto lending platforms and how to set up a Bitcoin Lending platform.
I’ve tested out more than 20 bitcoin lending sites doing various research and decided to create this comprehensive guide for people interested in lending BTC (or alternative crypto coins). I have included some of my most valuable tips to help you choose a platform that will work best for you. The list shows the best sites based on the following criteria.
Nexo
Nexo is the new lending platform that’s changing the game. They’re a leader in the crypto-backed lending space, and their platform offers an opportunity to earn interest on your crypto assets.Nexo’s mission is to provide instant access to cash without having to sell your crypto holdings. They provide instant cash loans to over 30 million HOLDers worldwide using their native token, NEXO.
Nexo has several features that make it attractive to both lenders and borrowers:
1.You can borrow up to $2 million in fiat currency with zero selling pressure. It means you can keep your crypto assets while taking out a loan against them without worrying about selling before getting paid back in full with interest. It is an excellent feature for those who want to borrow money but don’t want to sell their cryptocurrency holdings.
2.Your USD loans are denominated in USD but issued as NEXO tokens; this gives you instant access to liquidity since you can sell your NEXO tokens whenever you want (although there is a small fee). It allows you to get cash if needed quickly or hold onto the tokens if you believe they will appreciate over time.
SALT
SALT is a cryptocurrency lending platform that allows you to secure cash loans using your crypto assets as collateral. It’s based on the Ethereum blockchain and can be accessed from anywhere in the world. SALT currently supports Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash.
SALT has institutional investors from all over the world, including venture capital funds like Blockchain Capital and Pantera Capital. The company was founded by Shawn Owen and was initially called Secured Automated Lending Technology (SALT).
SALT offers loans between $5,000 and $25,000 for up to 12 months. You can either pay off your loan early or roll it over another time at no additional cost. Users can pay back their loans using PayPal or other methods that SALT accepts as payment.
If they default on their payments, they’ll have their collateral liquidated automatically by smart contracts on the Ethereum blockchain.
Bitbond
Bitbond is a global lending platform that connects borrowers and investors from all over the world.You can invest as little as $1 and earn up to 18% annual interest. Bitbond is one of the oldest and most trusted platforms for peer-to-peer lending. Bitbond has paid out more than $2 billion in loans.
Investors can earn up to 18% annual interest by lending their money to businesses or individuals worldwide. Investors make their returns through Bitbond’s proprietary investment software, which automatically invests their funds into loans with attractive risk-adjusted returns.
Borrowers can get loans without paying any upfront fees or making any deposits. They have to submit an application and wait for approval before receiving the loan amount in their bank account within days (usually within 24 hours).
BTCpop
BTCpop is a peer-to-peer lending platform that allows investors to earn interest in their crypto holdings. It’s also one of the few crypto lending platforms that accept US investors, which is essential for investors but can’t because of regulatory restrictions imposed by their home country.
The BTCpop platform allows users to lend their cryptocurrency funds to borrowers who want to use it for various purposes. The borrowers can then repay the loan with interest and the principal amount. The interest rate charged by BTCpop varies depending on how much you have invested and how much you are willing to risk. If a borrower defaults on their loan, your funds will be returned automatically by BTCpop after 60 days of non-payment.
If you want to become a borrower on BTCpop, you must register as an investor first and deposit some funds into your account using Bitcoin or Ethereum (or both). You can then browse through available loans offered by other investors on the platform and apply for one that suits your needs best. Once both parties have accepted an offer, you will be notified via email and asked whether you wish to proceed with the transaction or not.
Coinlend
Coinlend is a peer-to-peer lending platform that offers cryptocurrency loans in Bitcoin, Ethereum, and Litecoin. The company has been around since 2015 and is based in the United Kingdom.CoinLend claims to have helped hundreds of thousands of people borrow money. The platform works with fiat currencies such as USD, EUR, and GBP, as well as for cryptocurrencies like BTC, ETH, and LTC.
The company provides loans between $50 and $10,000. It charges an annual interest rate of up to 24% on the loan amount plus an origination fee of 2%.CoinLend claims that it takes only 5 minutes to get your loan approved once you submit your application online. Once approved, the funds will be deposited into your account within 24 hours or less, depending on your location.
Poloniex
Poloniex is a US-based digital asset exchange offering maximum security and advanced trading features. It supports over 70 cryptocurrencies and has more than 400 tradable digital assets.Poloniex was established in 2014 and is headquartered in Wilmington, Delaware. It’s owned by Circle Financial Corporation, which also owns another cryptocurrency exchange called Circle Trade. Poloniex does not currently accept US customers but has an international clientele.
The platform is based on the open-source software of Bitcoin and offers margin trading for experienced investors where you can borrow money from other users to trade with. You can also lend your funds to other users who may need to borrow additional capital for their trades.
Poloniex offers many different types of trades, including Market Orders, Limit Orders, Stop Orders, Trailing Stops, and more advanced types such as Margin Trading/Lending (borrowing funds from other users) and Shorting (borrowing coins from other users).
Xend Finance
Xend Finance is a peer-to-peer lending platform that allows you to invest in various loan products. The platform is based on blockchain technology and smart contracts, allowing you to interact with your investments securely.The platform offers several loan options, from student to personal loans. You can also invest in crypto-backed assets, such as real estate, art, and more.
Xend Finance uses its cryptocurrency called XEND tokens. These tokens are used to make payments on the platform and can be traded on exchanges like other cryptocurrencies.
The company was founded in 2017 by CEO Ildar Fazulyanov, who has more than 15 years of experience in financial services and IT development.
Blockfi
Blockfi is a crypto lending platform that allows you to borrow up to $25,000 monthly. The company has been around for over a year and has over 10,000 customers. Blockfi charges an interest rate of 8% on your loan, but it’s capped at 15%.
The company requires a minimum credit score of 680, which makes Blockfi more accessible than some other lenders in the space.You can use Blockfi to get access to cash in a hurry if you need it. But don’t think of this as a free cash advance — you’re borrowing money at 8% interest and paying back what you borrowed plus 15%.
Blockfi was one of the first companies in the space to offer lending services through Coinbase’s wallet app. The company’s founder Zac Prince was formerly CEO at Avant, another fintech company that offers personal loans and other financial products.
YouHodler
YouHodler is a peer-to-peer lending platform that allows investors to lend their cryptocurrencies to borrowers, who can use them for any purpose. The platform offers instant loans with low-interest rates and no credit checks. YouHodler has a global presence, with services available in more than 30 countries worldwide.
The platform is licensed by the Israeli Financial Supervisory Authority (FSA) and operates under the jurisdiction of Israeli law.
YouHodler’s main features include:
A wide range of loan options: YouHodler offers short-term, long-term, and secured and unsecured loans. The minimum amount can be borrowed, $5,000, and the maximum is $500 million.
Lending interest rates: YouHodler has fixed interest rates ranging from 3% to 20% per year according to the loan terms chosen by the borrower and lender. The average annual return on investment varies from 5% to 10%.
Ethlend
Ethlend is one of the most popular cryptocurrency lending platforms out there. It’s a platform that allows users to lend and borrow digital assets through peer-to-peer transactions. Ethlend is based on Ethereum smart contracts and uses ERC20 tokens as collateral for loans. The platform is built on the idea that digital assets can be used as collateral for loans, making it possible for users to access capital without having to sell their cryptocurrency holdings.
The Ethlend platform can be accessed from anywhere in the world, making it a convenient solution for people looking to get access to financing without having to go through traditional banks or other financial institutions.
Ethlend offers a wide range of loan options for borrowers who want to use their cryptocurrencies as collateral for loans. Borrowing rates are determined by the market demand for loans at any given time. This means that interest rates will vary depending on supply and demand.
Hodlnaut
HODLNAUT is a platform that offers interest-free loans to cryptocurrency investors. The platform, based in the United Kingdom, was launched in 2017 and provided loans from £100 to £500,000. It also has a negative balance protection feature that guarantees customers will not lose more than 10% of their total investment.
The HODLNAUT lending platform uses a unique “dynamic collateral” mechanism that allows users to maintain control over their funds even after receiving a loan. In other words, if you apply for a £10,000 loan and get approved by the platform, you can use your money to cover any losses the borrower experienced during the repayment.
The company has an extensive vetting process for its lenders that involves checking their identity and verifying their location on Google Street View before allowing them to lend money through its platform. Its lenders must also provide proof of income, such as bank statements or salary slips before they can start lending money through the HOLD NAUT website.
CoinLoan
CoinLoan is a peer-to-peer lending platform that allows people to borrow and lend crypto. The borrower sets the interest rate between 1% and 30%. CoinLoan has many cryptocurrencies for borrowing and lending, including Bitcoin, Ethereum, Litecoin, Ripple, Dash, Monero, and Neo.
CoinLoan offers four types of loans: personal loans, business loans, car loans, and student loans. The personal loan is the most popular option because it provides the highest interest rate (30%) while being more flexible than other types of loans. On the other hand, business loans offer lower interest rates (15%) but are more restrictive regarding application requirements.
This platform does not charge any fees on deposits or withdrawals from your account; however, there are fees associated with taking out a loan on the site – ranging from 1% to 15%.
Celsius Network
Celsius Network is a new lending platform that allows you to loan your crypto assets to Celsius and earn interest on your holdings. Celsius Network has been around for about two years and has a good reputation in the community.
The benefit of using Celsius Network is that they lend out your funds at a higher rate than most other platforms, up to 10% per year. They also offer competitive interest rates on deposits (2%). This means that if you want to earn more passive income from your crypto holdings, then Celsius Network is a great option.
To get started on Celsius Network, you must sign up with them first. You can complete this process by creating an account.
Unchained Capital
Unchained Capital is a company that provides crypto lending services. These loans can be used for various purposes, including buying more cryptocurrency or paying off debts.
Unchained Capital has been around for over two years and is one of the world’s most well-known crypto lending platforms. The company has over $100 million in assets under management and has issued over $30 million in loans.
The company offers two types of loans: secured and unsecured. Unsecured loans are offered at a fixed rate of 5% per year, while secured loans can offer an interest rate as low as 3%.In addition to its main website, Unchained Capital also operates several other channels on social media, such as Twitter, Facebook, and Reddit.
Cashwagon
Cashwagon is a peer-to-peer lending platform that offers loans to bitcoin and cryptocurrency investors. This platform was launched in 2018 but has been operating successfully since 2017. The company has been around for almost five years, showing its reliability and trustworthiness.
The platform offers two types of loans: unsecured personal loans and credit cards with a high limit. Both types are available in both USD and EUR. The minimum loan amount is $100, while the maximum is 20% of your balance in your Cashwagon account. For a loan you can apply through a Cashwagon account or via the website (click on “Get Started Now”).
If you go for the second option, you must enter your details and upload your ID document (passport or driver’s licence). The process takes less than 10 minutes, and it’s straightforward – fill out the form and upload the documents the lender requires. Cashwagon charges no application fees or processing fees – all you pay is
Conclusion
If you’re comparing different crypto lending platforms, I believe the most important thing to consider is the amount they are willing to lend you and how long it takes them to do the loan.
If you’re looking for a small amount to use over a short period, there should be no problem. Still, if you’re looking for large sums and planning on repaying over extended periods, You may even find that some lenders approve your request in minutes, while others take days or weeks.