This article was originally posted on The Merkel - with a dedicated cryptocurrency news section and also a variety of educational articles relating to Bitcoin, you can find anything from how to make money with bitcoin to how to create your own cryptocurrency. For more check the link below.
Most cryptocurrency users are not in this industry for the technology, but rather to make money. Achieving that last part may prove somewhat challenging, especially if one doesn’t like to trade cryptocurrencies back and forth. Cryptocurrency lending platforms have always been rather interesting to keep an eye on in this regard. The following platforms all provide this service, albeit it is advised users conduct their own research first and foremost.
dYdX Exchange (A Multi-tool Platform)
Whereas most people may not necessarily be familiar with the name dYdX Exchange as of yet, the platform seems to offer all of the tools to make a meaningful impact. Its focus lies on four key pillars of cryptocurrency activity. Users can trade, borrow, lend, and manage their positions, portfolios, and assets. Especially the cryptocurrrency lending option could be of great interest to so many people, primarily because earning interest over time is considered a viable way of earning a passive income of sorts. dYdX users can earn variable interest rates to keep them engaged and active on this platform. dYdX is completely powered by Ethereum smart contracts, which removes the need for dealing with centralized entities altogether.
Dharma (Multi-currency Lending and Borrowing)
When companies like Dharma first introduced stablecoin lending services, community members weren’t too sure it would actually work. Over time, it became apparent there may be a good market for this type of activity. At this time, the Dharma platform supports Ethereum, DAI, and USDC borrowing and lending. Depending on which asset users decide to lend to others, they can expect interest rates between 2.5% and 14%. Users looking for a loan can get verified quickly, as there is no need for credit checks or bank accounts. Dharma isn’t a custodial service either, which will be of great value to potential clients.
Nuo (Supporting Six Currencies)
One thing that quickly becomes apparent where most of the cryptocurrency lending services are concerned, there isn’t too much of a focus on Bitcoin these days. That is not necessarily a bad thing, although some users may have hoped for more. Nuo providers lending and borrowing services fox six assets, including Ethereum, Basic Attention Token, 0xm Maker, USDC, and DAI. This latter one offers the highest rates, yet it is clear BAT, ZRX, and MKR are not all that popular as of right now. That situation may come to change one Nuo gains a bit more popularity. This is another platform which will not act as a custodian of user funds.
BlockFi (Interest Accounts)
When it comes to cryptocurrency lending, interest accounts work a bit different compared to more traditional services. BlockFi specializes in a cryptocurrency interest account, which will put users’ crypto to work and yield monthly interest payments. It is expected users can earn up to 6.2% annually on both Bitcoin and Ether balances. Cryptocurrency loans will last up to 12 months, which gives users some flexibility in terms of paying back the money accordingly. This is a custodial service, however, thus users will need to trust this service to remain in existence for some time to come.
Nexo (A Different Kind of Lending Service)
When visiting the Nexo website, it quickly becomes apparent this company is trying to explore traditional financial services with a cryptocurrency angle. Its instant crypto credit line is intriguing, albeit the lending service is what most users will be interested in. Nexo provides users with an insured account which lets users earn up to 6.5% interest on stablecoins. Support or Bitcoin, Ethereum, and XRP are expected to be added in the near future. Users will also benefit from compounding interest, and they seemingly have the option to withdraw funds at any given time.
LendaBit (P2P Lending with Bitcoin and Ethereum)
In this industry, there is a growing focus on cryptocurrency lending services. LendaBit focuses on Tether’s USDT token for this specific purpose, which is rather interesting. Lenders can only put up loans in USDT, yet borrowers can put up both Bitcoin and Ethereum as loan collateral. Lenders will earn between 8% and 12% interest per annum, depending on the duration of their loan. It is a simple and straightforward service.
ETHLend (Bitcoin, Ethereum, and LEND)
It was a matter of time until a cryptocurrency lending service came to market which uses its very own token. ETHLend falls into this category, as its LEND token powers the entire ecosystem. Users can put up both Bitcoin and Ethereum as collateral for their loan. There is a minimum yearly interest of 3%, and loans can be offered for up to 12 months. It would appear there is a lot of activity on this platform to lend and borrow cryptocurrency these days, although primarily small amounts are being offered at this stage.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
To read more from The Merkel follow this link.