Top Crypto Lending Pools For 2022
The Ultimate List Of Crypto Lending Pools
Crypto borrowing and lending have become increasingly popular over the last few years. Just like traditional lending, you can loan out your digital assets to receive high interest from whoever is borrowing from you. Many platforms let you give out or take a loan with your crypto.
Are you looking for the best crypto lending pools for 2022? This article will provide the ultimate list of crypto lending pools for crypto loans.
What Is Crypto Lending
Crypto borrowing and lending have become increasingly popular over the last few years. Just like traditional lending, you can loan out your digital assets to receive high interest from whoever is borrowing from you. Many platforms let you give out or take a loan with your crypto.
Crypto lending works the same as traditional banking, but for digital assets. Crypto lending refers to a type of Decentralized Finance that allows investors to lend their cryptocurrencies to different borrowers. This way, they will get interest payments in exchange, also called “crypto dividends”. Crypto lenders offer yields on crypto deposits, such as stablecoins, by lending them on interest. Many platforms that specialize in lending crypto also accept stablecoins, on top of cryptos.
When it comes to crypto lending, borrowers also have the chance to stake their cryptocurrency as guarantees of loan repayment or security. Thus, the investors will be able to sell the crypto assets if the borrower doesn’t pay off the loan anymore, meaning they can recover the losses.
Example Of Crypto Lending
Let’s give an example. You may have 20 bitcoins. You plan to get a steady passive income with them, so you have the chance to deposit them into a crypto lending platform wallet. As such, every month or week, you will receive interest. The interest rates can differ. They can either go from 3% to 7%, or they can go quite higher, up to 17% in some cases.
In my previous story, we went through the notion of crypto lending in depth. If you haven’t already, go ahead and read my last story to get a better understanding of crypto lending 👇
How To Select a Crypto Lending Pool
Finding a trustworthy crypto lending pool that meets your needs is crucial to having a successful crypto lending experience. There are some important factors to look into when selecting a lending pool.
Interest Rates
This is one of the main driving factors when selecting any lending platform. Choose a platform with a decent interest rate for your specific crypto assets. It’s often possible to get a crypto loan with an interest rate below 10% or even as low as 0%.
Platform Risks
Another major factor for any decision about crypto lending platforms is looking into a platform’s track record regarding safety risks. Crypto has become a prime target for cyber attacks. Research shows that fraud and theft on Defi platforms totalled more than $10 billion in 2021. So, look for platforms that outline on their website the security safeguards they have in place.
Costs
Compare the fees on multiple platforms for various crypto assets. Keep in mind that if you have different cryptocurrencies, you don’t have to use the same platform for all of them.
Loan Duration
Make sure to verify the lending duration parameters when choosing between crypto lending platforms. Check whether the loan duration is fixed or flexible.
Minimum Deposit Limit
It’s a good idea to verify if a platform you’re interested in has requirements for a minimum deposit amount.
Collateral
This is key for borrowers! Take some time to compare the collateral required to get a specific loan amount across different platforms.
Geo-Restrictions
Some crypto lending sites have geo-restrictions that may not be obvious right away. These restrictions mean that you may not be eligible to use a particular platform, depending on where you live.
When it comes to investing in crypto lending, you’ll also have to choose between an automated and a manual lending platform. An automated platform is the preferred option for many people since it simplifies the process by ensuring that assets keep generating a profit and aren’t forgotten about.
Now. Let’s see what are the top crypto lending pools you should choose in 2022.
Top Crypto Lending Pools
Here are some of the top choices among crypto lending platforms that are popular today.
CoinRabbit
It is best for borrowing altcoins because they support newer coins.
CoinRabbit is one of the safest crypto lending platforms that lets customers save crypto so they can earn passive income at specified interest rates on saved crypto. They can also use crypto loans collateralized by those same crypto savings.
Customers do not need to do KYC or credit checks. Loans are given at 50%, 70%, and 80% LTVs (loan-to-value that expresses a relationship between the loan amount and market value of the collateralized assets). The interest paid on the loans depends on the amount taken and LTV. It is calculated monthly and there is no mandatory loan term for the loan.
The latter depends on your wish to buy the collateral back or the liquidation limit. When the collateral is consumed by the loan due to a change in currency rates (margin call), the loan is closed and you lose the collateral. Customers can borrow from $100 to $100, 000,000. To get back the collateral, you pay back the loan plus the APR.
CoinRabbit is an easy way to save without losing crypto value due to support for stablecoin savings. For purposes of loan, though not as affordable as most, it is quite fast and supports a more vast range of assets for loaning than the popular crypto lending platforms.
Cryptocurrencies Supported: 71+ cryptocurrencies including Ethereum, Bitcoin, USDT, Dash, Polkadot, Doge, Litecoin, Zcash, Tron, Bitcoin Cash, EOS, BUSD, and USDC.
Binance
It is best for Using Multiple Cryptocurrencies
Binance may be a familiar name even to beginners because it’s the world’s largest crypto exchange. Its loan service is similarly large, supporting more cryptocurrencies than any other alternative, including some lesser-known altcoins. There are also no deposit limits and additional benefits, including:
Users can choose between fixed and flexible deposits, offering more freedom. Their Interest rates vary depending on a currency’s latest value, ensuring both parties get the fairest deal. It is verification-free, so as long as users have an account, they can start lending and borrowing immediately. Binance is accessible across all platforms, including Windows, Mac, iOS, and Android.
Cryptocurrencies Supported: All major tokens plus more than 100 smaller currencies. Binance supports all major cryptocurrencies, it doesn’t support fiat currencies, limiting it slightly. There are also limits on when users can withdraw, whereas plenty of alternatives have no such restrictions.
AAVE
It is best for variable interest rate borrowing dependent on market demands. Best for developers needing crypto loans without collateral.
Aave is a decentralized protocol for borrowers and depositors with the later earning market demand-based incomes on their deposits. The open-source application allows users to interact with or through APIs, user interface clients, or via smart contracts on Ethereum.
Unlike on other platforms, users can earn interest on deposited assets and this offsets the interest rates accumulated on borrowing.
Aave also provided an opportunity for depositors to earn from deposited crypto even as they take loans on the same collateral. Thus, they can reduce the interest paid on the loans. The variable interests may make it harder for people to plan for loans.
Cryptocurrencies Supported: 30 Ethereum-based assets, including DAI, USDC, and Gemini dollars. Other lending/borrowing markets are Avalanche, Fantom, Harmony, and Polygon. It also pools real-world assets like real estate.
CoinLoan
It is best for Users Looking for Trust and Transparency.
CoinLoan is one of the oldest lending platforms on this list, and its experience shows. The service offers zero deposit and withdrawal fees and a user-friendly interface. CoinLoan takes security seriously, boasting MFA, insurance, cold storage, and CCSS compliance. Users can compare rates to other websites, showing how competitive they are. Lenders and borrowers set their terms, including the loan length, interest rate and repayment options.
CoinLoan does have minimum deposit requirements of around $100 and a limited user base, restricting its usefulness. However, its other features make up for that.
Cryptocurrencies Supported: All major tokens and a few smaller currencies.
Celsius
Best for high-net-worth people and corporations interested in staking and borrowing.
Celsius gives loans at an APY of 0.1%, probably being the lowest in the market. This is in addition to letting users earn up to 18.63% APY to get paid weekly. CelPay also lets you send and receive crypto as payment for goods and services fee-free. With the Celsius Visa card, you can withdraw at ATMs and/or spend crypto at merchant stores.
Besides, it works as an exchange on which you can buy crypto with a credit card and third-party methods. You can also swap over 40 cryptos instantly with each other fee-free.
The minimum stable coin loan borrowable is $100 and for USD, it is $1,000. USD loans are wired to the bank after approval. It supports the lending of 40+ cryptos. Loans can be collateralized with BTC, ETH, CEL, ADA, LINK, MATIC, and DOT.
The platform offers up to 30% off the interest by paying with a CEL platform token. Interests can be paid in CEL, BTC, ETH, USDC, GUSD, TUSD, USDT, and MCDAI.
Cryptocurrencies Supported: USDC, USD, USDT, TUSD, MCDAI, GUSD, and PAX.
SpectroCoin
Best for loans of 25% LTV.
SpectroCoin is a cryptocurrency exchange and portfolio management tool that enables users to buy, sell, exchange and manage 40+ cryptocurrencies and take crypto loans against their crypto collateral. The exchange enables customers to buy crypto via a branded Visa debit card and IBAN bank account for depositing and withdrawing money.
The debit card lets customers convert their crypto to Euros and either withdraw at ATM or pay for goods and services with it at any Visa merchant store. The platform also enables customers to buy crypto using VISA, MasterCard, SEPA, Skrill, Neteller, and Payeer. Advcash, local bank transfer, and other methods are also supported.
The crypto-backed loans can be paid to your bank instantly after you request. Accepted currencies for collateral are BTC, ETH, XEM, and Dash. The challenge is that it supports giving out loans in just six cryptos in addition to Euro– BTC, ETH, XEM, BNK, USDT, and Dash.
The minimum loan amount asked is quite low at 25 Euros and up to 1 million Euros. The LTV can be chosen as 25%, 50%, and 75%. High LTV is riskier but allows the client to get the biggest available loan for their collateral. The loan duration is up to 1 year.
Cryptocurrencies Supported: Euro, BTC, ETH, XEM, BNK, USDT, and Dash
Wrap Up
in this article, we have reviewed the ultimate list of crypto lending pools. If you’re interested in getting involved with crypto lending, whether as an investor or borrower, it’s essential to do thorough research first. Indeed, when done with a trustworthy platform, crypto lending can be advantageous to both investors and borrowers.
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