In this post, I’ll share my top 3 Bitcoin lending sites in 2020, their advantages and disadvantages, how you pick them, what websites to avoid, and many more.
This means that whatever the markets do, even if they burn on the table, you keep this.
But who said it must be so stressful?
Some of the best Bitcoin lending facilities today alleviate your HODL burden by helping you gain confidence in Bitcoin with bitcoin lending.
Passive income is one of the best advantages of lending your crypto.
Studies show that you have passive income, that your stress and anxiety are minimized, that you spend more time with family and friends, and that you are more able to practice hobbies and interests that you have always desired. After you learn how to gain interest in Bitcoin, you will do it too.
The 3 Best Bitcoin Lending Sites
Which makes lending sites for cryptocurrency good platforms?
You should at least consider the following factors:
- Your funds ‘ protection.
- Your fund’s insurance.
- Crypto rate of interest.
If a bank fails, the government insures part of its customer’s money; when they fail, its customers are (partly) safe.
But what about the websites that Bitcoin lends? How do we remain safe and make a profit in this brave new open world of finance?
Compare my most common loan platforms: Nexo, Celsius Network and BlockFi. You’ll see how to gain interest in crypto and keep it safe.
Founded in 2017, Nexo, also profiled by Forbes, is sponsored by TechCrunch’s creator Michael Arrington. It has almost 200,000 customers in 45 Fiat currencies and back payments. This certainly makes them one of the best bitcoin loan sites.
NEXO is supported by Credissimo, an EU company that began in 2012 and was published in 2014 and manages loans. As with SALT, there appears to be interested in the value proposition NEXO provides — demand for approximately $350 M in overdraft requests was received as at 15 February 2018. The Credissimo-backed company NEXO also has a history of handling credits with EUR 28.8 million in loans issued in 2017 and EUR 37.5 million in cash collected in 2017. Credissimo’s total year-over-year rise in loans amount to approximately 20 percent and year-over-year growth in cash collected is approximately the same. Credissimo has issued loans worth EUR 109MM since the beginning and raised EUR 140MM in cash. Given NEXO’s large loan demand, it’d be realistic to assume that they’ll be able to serve a smaller percentage of their existing Credissimo loans. The selling of NEXO token raised $52.5 million.
- BitGo also offers Nexo Wallets. Therefore, users who bought or loan Bitcoin and other cryptocurrencies will be insured by Lloyd’s–a London-based bank–for up to $100,000,000.00 in cases of hacking or bankruptcy. This is the total amount of the business, not per person.
- Earn interest daily. Nexo helps borrowers to deposit their profits every day without any waiting.
- Strong flexibility: still withdraw.
- 8% interest— some of the best available crypto interest rates. You will find it hard to find better opportunities to lend your money.
- The user experience is first-rate.
- Nexo is a continually creative company that builds good partnerships.
- Although borrowers can withdraw in over 45 fiat currencies, borrowers are entitled to deposit only stable coins and fiat. NEXO is currently working on the sale of BTC and ETH deposits, but no idea is expected when this will take place.
Zac Prince and Flori Marquez founded BlockFi. The company has raised more than 20 million dollars from companies, including Coinbase Ventures. They are young and growing, and they do so quickly. As far as bitcoin loan platforms are concerned, this one is to be observed.
BlockFi secured investment from well-known companies including ConsenSys Ventures, Kenetic Capital, SoFi, Galaxy Digital from Mike Novogratz, and Morgan Creek Capital from Anthony Pompliano.
BlockFi is classified as a protected non-bank lender that provides US dollar loans backed up by the reserves of crypto and regulated according to Article 9 of the Secure Lending Uniform Commercial Code.
The corporation also files financial statements for UCC-1 with each of its borrowing states. With the Gemini, a licensed cryptocurrency exchange and registered custodian, BlockFi holds its customers ‘ crypto-accounts and lends them in the form of USD payments onto their bank accounts. The team also partners with Scratch, a third-party lending service provider, which handles all loan contracts and refunds.
Today, the company operates in about 35 US states, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Gemini’s GUSD collateral options, with plans to incorporate more crypto assets shortly.
- They bid a cumulative interest rate of 6,2% on BTC and 3,3% on ETH. This is the best interest rate for both BTC and ETH crypto. This refers only to deposits between 10 BTC and 100 ETH (see opposites).
- 4.5 percent lenders interest rate. This is a benefit for borrowers. Why? Why? Because it allows people to borrow attractively from the website. Think of it as cash. The increasing the liquidity, the better for all.
- There is no minimum deposit. BlockFi opens its doors to everyone regardless of the size of their wallet.
- Your Gemini crypto assets are stored. The 3rd party depositary trust is insurance approved custodian with a perfect track record of damages from hacks of consumer assets. In reality, Gemini works with many credit sites and other websites that you can use.
- Digressive interest rates are available at BlockFi. The rates for deposits over 10 BTC and 100 ETH decrease to 2.2 percent and 0.2 percent, respectively. But for most people, this shouldn’t be a problem.
- Fewer different choices of cryptocurrencies are available to earn interest in BTC, ETH, and GUSD.
- FDIC is not protected, but Gemini-your wallet provider-has a strong security track record.
3. CELSIUS NETWORK
In 2018, the Celsius Network was founded by Alex Mashinsky— one of VOIP (voice over IP) technology’s inventors and patent proprietors. He has several corporate awards. In their top 10 companies, Forbes named Celsius Network to look for in 2018, saying “they have been primed to disrupt traditional banking.” And best of all, they provide some of the highest interest rates on crypto.
Celsius Network and Bitcoin.com, known as two of the giant names of blockchain and cryptocurrency worlds, formed a brand new alliance that makes one of the biggest combinations of blockchain/crypto businesses.
This is so unless you are one of those people who keep themselves aware of what is happening in the industry. A name like Celsius Network won’t mean to you too much, even if you have to consider knowing more about it.
It is one of the few services out there that starts with the express intention of swiping financial solutions on their hands, representing them in the best interests of Celsius crypto users and holders.
- Deposit and HODL your Cryptocurrencies BTC, ETH, and many more top 10.
- No cancelation charges, no reservation costs, no transaction fees, no early termination charges, no origination charges.
- BitGo, the pioneer in the multi-signature encryption technology, offers Celsius wallet wallets. Lloyd’s–a London-based bank–ensures customers who are lenders and creditors for up to $100,000,000 in the event of a hack or bankruptcy. This is the total amount for the company, not per person.
- There is no minimum deposit. Celsius opens its doors to everyone, regardless of their wallet size.
- Few lockups, anyway. You can always withdraw. Have you got an emergency? Feeling worried? No concerns. No worries. Full financial liberty.
- Weekly interest payments won. Don’t have to wait for a month or six months. Get your 9-5 job paid more often.
- High-interest rates on earnings. More than 8 percent of the interest earned on USDC, TUSD and GUSD deposits. The interest rates on ETH, BTC and other cryptocurrencies deposits are also very competitive.
- In the adoption of CEL tokens, higher interest rates (up to 10 percent!)— the cryptocurrency of Celsius.
- For US consumers, CEL, their ICO token, has been suspended. It ensures that U.S. consumers can not benefit from the highest possible interest rates. International customers can still participate, however. Note: The suspension affects US customer interest rates only— their credit/loan network remains open to everyone.
- Only a mobile app. The experience of the user is not as strong as the Nexo experience.
What is Bitcoin Lending?
Bitcoin lending is turning into a hot topic. Cryptocurrency financing and cryptocurrency-backed funding rapidly become a new way for developers, miners and hedge funds to exploit and support business ideas even unbanked.
All in all, crypto HODLers will earn interest on their Bitcoin assets and thus gain greater financial freedom by passive income. We just need to know how to lend bitcoin.
In general, the concept is simple:
- For borrowers: you can put on a small bag of crypto as collateral if you need a loan. You get to invest fiat or a safe coin as you see fit. You repay the loan in compliance with the arrangement. But first, find the best interest rates for crypto.
- For lenders: you’ve applied X amount of crypto and you’re collecting Y interest. Bing, bam, text. Bing, bam. Crypto earning interest is that straightforward.
If you plan on HODLing, lending your cryptocurrency is the best way to earn the most interest during the price growth of these cryptocurrencies.
There are, of course, threats, but we’ll get into them.
Stay wary of scams.
The old saying is true: if you don’t own your private keys, you don’t have your cryptography.
This applies to cryptographic platforms. The Bitcoin and other cryptocurrency lending model is remarkable and will flourish. But as we ramp up, the pain will intensify.
A website could have the best interest rates for crypto–but do not let greed deceive you –do your work!
In January 2018, the Davor Coin cryptocurrency lending platform announced: “Lend us your money to win $1,000,000.” People around the world have registered and loaned their money to Davor Coin. The company received letters of cease-and-desist from the State of Texas a week later. People wanted to gain trust in bitcoin— but they didn’t know what would happen.
The lending scheme of Davor Coin worked as long as the prices continued to increase. Nonetheless, when cryptocurrency prices crashed— Bitcoin lending companies run the cash. Others were fined by the SEC, and letters of cessation and resistance were released by the same SEC regulators claiming fraud in securities.
Bitconnect, as is Lendconnect, is another great example. All firms promised “too good to be true” investment returns— and were too good to be true. Such’ chances’ are also referred to as Ponzi schemes.
Bitconnect gave 1% of compounded daily— this could not go on forever. And Lendconnect has offered up to 164%! It’s shocking, especially as people have fallen for it.
These details increase awareness of the worst lending places. Be alert, do study, and don’t predict the moon— and by far you will be healthier. Many legal bitcoin loans offer better interest than a bank— without having to go to scam bitcoin loan sites.
The Future of Passive Income
Money is circling the planet, they say. And there’s no other crypto. After some research, it is clear that some cryptocurrencies are becoming crypto assets— a new asset class.
All these options are an excellent way to earn your crypto or your crypto passive income.
The input and results of Bitcoin are becoming simpler and easier every day. Once these lending networks find their foundation and their market, we shall see incredible financial instruments that open the financial world to the unbanked-and we can gain passive income from them.
Lending your crypt is a free, simple and great way to earn passive revenue. But for more safety and better returns, stick to the best bitcoin loan sites with the best crypto rates while you are insured for your safety.
And remember, better to start early to work for you with compounding interest.