With more people trading crypto on exchanges, the crypto-lending market has seen a tremendous rise over the past three years. A lot of the existing crypto lending websites are way more profitable than lending in the traditional financial system. And, they are pretty much safer thanks to the platform Ethereum and various security methods they employ.
Below, you will find highly profitable crypto-lending sites you shouldn’t miss.
Nexo is probably one of the biggest and newest crypto-lending sites around here. Started in the year 2018 with an ICO, Nexo established within a few months itself as a reputable crypto-lending site with a volume of $1 million so far. Lenders at Nexo can earn either through their Nexo token which is, in fact, a dividend-paying token or directly through on their website. The annual interest iś set at 8% annual interest which is compared with the traditional financial system very high. Moreover, holders of the Nexo token can enjoy even interest rates of up to 9% annually according to TheLazyCryptoInvestor. Investors can only invest in Stablecoins or in their token.
The difference between the token and direct investment lies in the minimum amount. While the minimum investment amount doesn’t exist for direct investments, token holders need to hold tokens worth ~$1000 in order to be eligible for dividends. Besides, interests are paid directly for investments made on the website. And, the interests compound for direct investments. Token holders, however, need to wait a half year for dividends and there is no option for auto-compounding.
Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it.Albert Einstein
All in all, I suggest investing directly on their website as you profit from the compounding feature and the interest rate is nearly the same.
- Website: https://nexo.io
- Interest Rates: 8%/ann
- Accepted Cryptocurrencies: Stablecoin, ICO Token (Nexo)
Compound.Finance, a crypto-lending dApp based on Ethereum, also offers pretty interest rates of up to 10% annually. Unlike other platforms, you don’t have to go through a KYC process nor need to sign-up using your personal information, which provides anonymity and security.
Starting lending or borrowing crypto on Compound.Finance requires first of all the browser extension MetaMask which acts as a bridge between you and the platform. The MetaMask extension is available for Firefox, Chrome, Brave and Opera. Once you set up your Metamask account, you can start funding your Metamask wallet and communicate with Compound’s dApp.
The interest rates fluctuate between 0% and 10%; the listed Stablecoins USD Coin and DAI offer the highest interest rates there.
While there is not much information on how Compound pays interest to their user, usually, interests will be paid with every new Ethereum block.
- Website: https://compound.finance
- Interest Rates: 0% to 10%/ann
- Accepted Cryptocurrencies: Ethereum, Dai, USD Coin, Augur, 0x, Wrapped BTC, Basic Attention Token
Celsius Network, another popular crypto-lending app for iOS and Android, offers interests on over 19 cryptocurrencies. Founded in 2017 with the mission to provide financial freedom with the blockchain technology, Celsius Network records $1.2 bln of loans processed through their platform.
On Celsius Network lenders and borrowers can choose between 19 cryptocurrencies, including the popular cryptocurrencies Bitcoin and Ethereum as well as Stablecoins like DAI or USD Coin. Unlike other platforms, you can choose between two interest rates: earn in the desired cryptocurrency you chose or earn in the in-house token Celsius. The highest offer the second option where you will receive a 30% bonus on top of your earnings.
Moreover, at Celsius Network, the minimum investment amount amounts as low as $5 which suits for small and large investors. Also, any made investments are not subject to a lock period which means you can divest at any time.
- Website: https://celsius.network
- Interest Rates: 3% to 10.53%/ann
- Accepted Cryptocurrencies: more than 15 cryptocurrencies, including BTC, ETH, LTC and Stablecoins
The New York-based start-up BlockFi offers interests on the popular cryptocurrencies Bitcoin, Ethereum and Gemini Dollar. While Nexo and Celsius Network may be popular among people, BlockFi might be still unknown to most of you. However, the two-year-old start-up raised lately $18.3 million in funding led by the notorious investor Peter Thiel. The fundraise should help to build a bridge between crypto and the traditional financial system, letting more people access blockchain products.
Currently, BlockFi offers the above-mentioned cryptocurrencies to earn interest on. The annual interest ranges from 6.2% to 8.6% with GUSD offering the highest for investments above $2500.
Moreover, the minimum investment amount at BlockFi is set truly high with a minimum amount starting from $2500. Nevertheless, an advantage is the compounding feature which allows to re-invest the daily earnings in your investment account.
- Website: https://blockfi.com
- Interest Rates: 6.2% to 8.6%/ann
- Accepted Cryptocurrencies: Bitcoin, Ethereum, Gemini Dollar
There is a variety of crypto-lending sites. Some of them offer interests on many cryptocurrencies, others only on Bitcoin or Stablecoins. Although all of them provides high annual interest, I personally would go with Celsius Network or Nexo as they have a range of cryptocurrencies integrated and provides additional security for customers’ funds. Besides, their rates are one of the highest among all.