Best Bitcoin Lending Sites

One of the most profitable businesses is loans, and with how much finance has evolved, it was to be expected that cryptocurrency loans would also appear. Most of these services allow their users to lend their assets to another person who has the ability to pay and for this service, the lender receives a profit. Given the volatility of the cryptocurrency market and the risks that debtors will not repay the loan, it is common for the platforms that provide the service to act as a safeguard and implement some security terms.

For this purpose, smart contracts are sometimes used, since they qualify the payment terms and establish an amount that is released if the borrower defaults on the payment. A series of requirements are also requested from the debtor, in order to keep a percentage of cryptocurrencies as collateral. Even if the price of the cryptocurrency falls too low, a margin is set and it is possible to recommend to the lender to return the borrowed funds, along with the interest rate.

In this opportunity, we will talk about the best bitcoin lending sites and analyze how they differ from each other, according to their properties.

What are the differences between lending and staking?

Lending

Lending is like any other form of conventional loan. The user places his cryptocurrencies at the command of a company, which is responsible for obtaining an interest in said assets and generating a profit at a monthly / annual rate to the original holder of the tokens. As we have explained previously, the company in charge of offering the service (in this case, the exchange companies) work with liquidity pools where your assets will obtain a higher return, being able to obtain a profit and provide you with an interest rate as required. I would make a savings account in a bank.

There are two types of lending; Centralized and Decentralized Lending.

Centralized lending takes place in companies that are in charge of receiving and moving the tokens that the user deposits to generate interest, while decentralized lending works through smart contracts that establish all the terms and conditions so that the principles of the loan for all parties involved. In other words, without the intervention of a third party.

Although the most “secure” alternative may seem to be centralized lending, users should know that if the company fails to negotiate the deposited tokens with a trusted entity and loses the money, the user will also lose it.

Because decentralized lending works through smart contracts, users can be sure that tokens do not fall into the wrong hands, although contracts must be audited to avoid vulnerabilities (which has also happened in the past).

Staking

Staking is a service offered by multiple exchange platforms that allows users with a certain number of tokens to become validators of that specific cryptocurrency network. Staking is based on cryptocurrencies that work through Proof of Stake, which is a “mining” protocol in which these hardware devices that have high electricity consumption and generate additional expenses are not needed.

In short, if you have POS-powered cryptocurrencies like EOS and Tezos (which are currently the most popular for staking), you can deposit a particular amount and staking for an annual return. Basically you would be receiving an interest rate in exchange for “locking” or “keeping” your cryptocurrencies on the platform, although you can also see it as the mining reward that miners receive when working with Proof Of Work.

In this case, the miners are not machines but validator nodes and in order to be a validator, the user needs to have a specific amount of that cryptocurrency.

While traditional lending makes you a cryptocurrency lender, staking makes you part of the network of the token you are depositing.

Here are the best Bitcoin Lending Services:

BlockFi

BlockFi is a company that offers credit services and loans to a huge community of crypto users. Founded in 2017 by Zac Prince and Flori Marquez, this company has achieved financial support from Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi and Coinbase Ventures, which has given the platform and its functions notable legitimacy.

This company not only offers centralized lending services to natural persons but also includes institutional investors, who can start earning interest with their own cryptocurrencies.

BlockFi has listed some of the most popular assets in the cryptocurrency market, even multiple highly reputable stablecoins are being used as collateral. The rates for Annual Percentage Yield (APY) are as follows; Bitcoin (6% APY), Ethereum (5.25% APY), Litecoin (5% APY), USDC (8.6% APY), GUSD (8.6% APY), PAX (8.6% APY), PAXG (5% APY) and USDT (9.3% APY).

The BlockFi platform has a friendly and highly intuitive interface that offers its users different sections; A basic section of cryptocurrency trading without fees, a section of crypto-backed loans so that users can borrow USD at excellent rates and BlockFi interest accounts, which can grant the previously mentioned annual returns.

 

 

 

Youhodler

YouHodler is an EU and Swiss company with two main offices: Limassol in Cyprus and Lausanne in Switzerland. The FinTech YouHodler platform focuses on crypto-backed lending with fiat, crypto, and stablecoin loans, crypto-to-fiat and crypto-to-crypto conversions, as well as high-yield savings accounts. YouHodler is compatible with some of the most popular cryptocurrencies and allows you to earn cash while holding your tokens, thus allowing you to meet your daily needs while your investments are ongoing.

YouHodler is an active member of the Financial Commission Blockchain Association and the Crypto Valley Association. Clients are protected by the efficient dispute resolution process of the independent Financial Commission.

This platform supports dozens of cryptocurrencies as collateral and Multi HODL options, among which are Bitcoin, Ethereum, Chainlink, Maker, Uniswap, Huobi Token, Bitcoin Cash, Basic Attention Token, Stellar, PAXOS Gold, EOS, Bitcoin SV, Augur, DASH , Compound, Binance Coin and Ripple. Soon, users will be able to use Ethereum Classic, Cardano, Tezos, Tron and Monero.

The interest rates for each cryptocurrency are:

• USDT – 12%
• TUSD – 12%
• USDC – 12%
• EURS – 12%
• LINK – 6.2%
• MKR – 2.5%
• XLM – 4.5%
• DASH – 5.5%
• HT – 3%
• EOS – 5%
• BNB – 3%
• LTC – 5.5%
• AID – 12%
• BTC – 4.8%
• UNI – 7%
• PAX – 12%
• HUSD – 12%
• ETH – 4.5%
• COMP – 2.5%
• XRP – 4.5%
• COMP – 2.5%
• PAXG – 8.2%
• BCH – 5.5%

The “Multi HODL” mode is truly the jewel in Youhodler’s crown, especially since not all lending platforms have it. When a user chooses Multi HODL, the platform automatically takes a predetermined percentage of a user’s savings account and uses those funds as collateral to start an automated loan chain. In this loan chain, the funds from the first loan are used to buy more cryptocurrencies to use as collateral for the next loan in the chain. This process is repeated up to ten times depending on the user’s choice.

 

 

 

Coinloan

Coinloan is a P2P platform for crypto-backed loans where borrowers can get money without having to ditch their crypto, and lenders fill this need in exchange for competitive interest rates. The terms are rigorously respected thanks to the over-guarantee, which makes payments are made on time. The platform is protected by bank-grade security and has an extensive list of cryptocurrencies for lending at different terms.

Founded by Alex Faliushin and Max Sapelov, the Coinloan service has been available since February 2017 for many countries around the world, although the platform is only available in 4 languages.

Coinloan supports loans in BTC, ETH, LTC, USDC, XMR, TUSD, PAX, USDT, EURS, DAI, BUSD, WBTC, USD, EUR, GBP and RUB, taking as collateral amount to BTC, wBTC, ETH, LTC , XMR, BCH, XRP, PAXG and LINK. Loans can repay up to 10.3% APY annually, although there are different loan terms (from one week to three years).

If you want to use the Coinloan platform as a lender, you will have to deposit the trust funds and if you want to borrow, you will have to deposit the cryptocurrencies that will be taken as collateral. Create a personalized ad or choose an offer of your interest, depending on your needs. If you are a borrower, you have to pay the loan on time or Cryptolaterall will intercede in the negotiation.

When paying off the loan, the lender receives his principal plus interest and the borrower receives the cryptocurrencies he left as collateral, so everyone ends up winning.

 

 

 

BTCPop

BTCPOP is a British P2P lending company that since 2014 has been offering its BTC Banking services to a huge community of users, with a mission to become the leading P2P company among Bitcoin domains. After ensuring that Bitcoin really was the course the company wanted to take, they expanded rapidly in recent years and have innovated with exciting features.

BTCPOP has established itself as a competitor among the Bitcoin banking community, as a challenge to the other Bitcoin companies. BTCPOP offers low interest charges and the ability to generate instant loans.

The BTCPOP platform is divided into different sections:

Loans based on the reputation of the user with a specific term and amount.

IPO: Use BTCPOP loans to launch your great idea / project through funding from the entire user community.

Exchange: BTCPOP allows you to exchange between Bitcoin, Litecoin and Dogecoin through instant swaps and at real prices.

Staking: Many cryptocurrency projects have migrated to POS and in BTCPOP you can deposit your coins in pools to obtain your rewards.

BTCPOP is one of the few companies that uses an internal collection service; offers 5% interest on savings accounts; give their clients the opportunity to set their own annual interest rate (APR) limit; They offer insurance backed loans, and are the only company to use Ardeva verification services to verify new users.

 

 

 

Binance

Binance is a cryptocurrency exchange company founded in 2017 that, through a multifunctional platform, allows users to exchange tokens on a spot market or trade pairs of cryptocurrencies in its futures section, margin, OTC and more.

Like the platforms we just reviewed, Binance also has a section for Loans and Staking. The cryptocurrencies available with their interest rates for loans are:

• WAVES – 5.00%
• BTC – 1.20%
• BUSD – 5.19%
• USDT – 5.19%
• ADA – 0.70%
• SOMETHING – 1.00%
• ARK – 1.00%
• BAKE – 10.00%
• ARPA – 1.25%
• ATOM – 1.45%
• BAL – 8.64%
• BCH – 0.31%
• COTI – 2.00%
• CVC – 6.12%
• DAI – 4.53%
• DASH – 0.70%
• DOT – 1.27%
• EGLD – 1.00%
• EOS – 0.36%
• ETC – 1.16%
• ETH – 0.88%
• EUR – 1.78%
• FET – 1.00%
• FIL – 2.75%
• IOST – 0.81%
• IOTA – 0.12%
• KAVA – 2.50%
• KMD – 1.00%
• KNC. 0.14%
• LINK – 0.39%
• LOOM – 1.00%
• LSK – 1.00%
• LTC – 0.40%
• NEO – 0.44%
• ONE – 1.23%
• ONT – 0.71%
• QTUM – 0.84%
• STRAT – 1.00%
• SXP – 1.00%
• THETA – 0.55%
• VOLUME – 3.00%
• TROY – 1.00%
• TRX – 1.80%
• UNI – 0.68%
• USDC – 4.94%
• VET – 1.10%
• XLM – 0.35%
• XMR – 1.83%
• XRP – 0.91%
• XTZ. 0.66%
• BAT – 0.28%
• ZEC – 0.48%
• ZIL – 1.22%

The interest rates for each digital asset are calculated annually and the platform shows you in detail everything you need to do to participate.

For Locked Staking, the annual interest rates are different and are calculated as follows:

• 5.31% for USDC.
• 3.80% for EOS.
• 6.31% for BUSD.
• 6.31% for USDT.

Binance also has a great security system that, despite being a cryptocurrency exchange service and not a hardware wallet, allows its users to deposit and keep their tokens on the platform and feel protected at the same time. This company has shown to take care of the investments of its users in past episodes, which has given it a very good reputation among so many platforms.

Any type of investment in cryptocurrencies carries a risk, either as lending or trading. For this reason, users are recommended to learn about the projects in which they are going to invest and always choose the best platforms to do so.