Blog Crypto The best crypto lending platforms in 2020

The best crypto lending platforms in 2020

date September 21, 2020 time 6 min read 1000 views

Lending crypto is a fantastic way to diversify your investment portfolio and earn interest on your idle cryptocurrency. Crypto loans also provide a great tool for borrowers to secure quick loans against their assets.The best crypto lending platforms offer competitive interest rates,  easy, free withdrawals, and great rates to borrowers regardless of their credit score. 

Are you looking for quick crypto loans at decent rates?  Or do you want to earn interest on your crypto and make it a source of passive income?

When choosing a crypto-lending platform you must understand your specific goals.. Maybe you like the investment terms on one but want something else for borrowing. Some platforms offer investments at a steady rate and others may give fluctuating options. Today there’s quite a few major platforms to choose from.

Here are the best new crypto lending platforms in 2020 and some of the ways they can help you earn.

What are the best crypto lending platforms?

MyConstant

Cryptocurrency lending platforms may be the next big thing in P2P lending
Cryptocurrency lending platforms may be the next big thing in P2P lending (source: pxhere.com)

On MyConstant, you can switch freely between USD and major stablecoins like DAI. We also provide a diverse range of investment options to grow your crypto assets as well as provide leverage for over 70 different cryptos.

For investors

Crypto lend

When you invest in crypto lend, you can earn 9% APY on BTC, ETH, and BNB in a DEX liquidity pool and withdraw anytime you want. There are no fees for withdrawals and your money is never locked in.

Crypto-backed loans

When you lend stablecoins or USD through our fully-collateralized crypto-backed loans, your money is locked in for periods of 1-6 months for up to 7% APR. You provide your terms and we pair you with a borrower. Our crypto-backed loans use crypto as collateral which is sold if the borrower defaults.

What’s more, our customer service team is always available to answer any questions you may have. This makes us one of the most user-friendly crypto-lending platforms right now.

For borrowers

MyConstant lets you take out loans against more than 75 cryptocurrencies, with interest rates starting from 6% and some of the lowest LTV ratios in the industry. You can also combine the value of your crypto portfolio and use multiple coins as collateral for a single loan.

MyConstant’s strengths

  • 24/7 customer service.
  • Wide range of stablecoins and cryptos offered.
  • Easy arbitrage between USD and stablecoins.
  • Stable interest rates up to 7% for investors.
  • Borrowers can get 6% APR on loans against any crypto offered.
  • Flexible loan terms.
  • Can lend BTC, ETH, and BNB.
  • Plaid ACH integration.

MyConstant’s limitations

  • MyConstant is a new platform.
  • Rates are all in the middle range.
  • Only offers investment with major stablecoins and USD.

BlockFi

BlockFi is a growing lending platform that offers attractive interest rates on Bitcoin and ETH. You can earn interest on your crypto by purchasing supported stablecoins and depositing them into a BlockFi interest account. 

For investors

Investors on BlockFi can get started by opening a BlockFi Interest Account and depositing their crypto. Blockfi pays out compounding interest to their BIA accounts every month by lending your money to a combination of institutional and individual borrowers.

For borrowers

Individual borrowers can borrow against BTC, ETH, LTC, and PAXG. BlockFi offers three levels of loans based on your LTV.  Loans at each level are instantaneous.

  • For 200% LTV: 9.75% with a 2% origination fee
  • For 350% LTV: 7.9% with a 2% origination fee
  • For 500% LTV: 4.5% with a 2% origination fee

BlockFi’s strengths

  • You can earn up to 6% APY on Bitcoin.
  • Compounding interest.
  • Access your funds worldwide.
  • Supported cryptos for interest include BTC, ETH, LTC, USDC, GUSD & PAX.

BlockFi’s limitations

  • Interest rates fluctuate depending on the coin.
  • Only one free withdrawal per month.
  • There are currently just six cryptos available for investors.
  • BlockFi makes it difficult to assess the value of the USD in your account.
  • BlockFi charges 0.0025 BTC per withdrawal after your first withdrawal which is approximately $29. There is also a limit on how many times you can withdraw in a week.

Nexo

Nexo is a secure lending platform based out of the EU. They have been around for more than 12 years as their parent company, Credissimo. Like with BlockFi, when you deposit cryptocurrencies in your Nexo account, the platform will give you credit in a currency of your choice. Interest is credited into your wallet daily. You can also access better interest and loan rates if you use their native crypto, NEXO..

For investors

On Nexo, you again invest in both institutional borrowers and individuals. Nexo offers up to 5% on normal crypto investments, and 10% interest on stablecoins and cash. However the 10% rate is only accessible to investors that hold at least 10% of their account’s value in NEXO tokens.

For borrowers

Loans on Nexo start at $10, with interest rates starting from 5.9%.  However, you can only collateralize your loan against 16 cryptocurrencies. Nexo claims it intends to add more in the near future.

Besides cash, Nexo also allows its customers to borrow stablecoins and cryptocurrencies.

Nexo’s strengths

  • Crypto assets are insured up to $100 million.
  • Attractive interest rates.
  • There is no minimum investment.
  • Daily interest payments for investors.

Nexo’s limitations

  • Nexo only operates with stablecoins for investors. If you ever decide to withdraw to fiat, you will need to pay fees to convert into USD.
  • Few coins offered to borrowers.
  • Many of Nexo’s best rates are reserved for Nexo token holders.
  • Minimum withdrawal limits on crypto.
There are many new cryptocurrency lending platforms today
There are many new cryptocurrency lending platforms today (source: medium.com)

YouHodler

YouHodler is a new crypto lending platform with a growing fan base.  You can earn interest on your cryptos by opening a YouHodler savings account. Deposits can be made in all major stablecoins. And borrowers can get loans against 15 different cryptos. 

For investors

YouHodler offers more or less the same options to investors as the above platforms with a $100 minimum investment amount. However, they have a special feature called Multi HODL that reinvests a percentage of your earned funds through margin loans.

Multi HODL lets you either leverage your crypto interest for USD or USD for crypto depending on how you expect the market to move. They claim APRs as high as 290% are possible through this feature. 

For borrowers

YouHodler is primarily designed for margin borrowers. Borrowers can take out loans against 15 major cryptos and receive funds in USD, EURO, GBP, CHF, BTC and Tether (USDT). Interest rates are around 12% APR and you can borrow against as much as 90% of your asset value on a 30-day loan.

Like with Multi HODL, borrowers have access to a feature called Turbocharge which lets you automatically margin borrow against a certain amount of collateral by reissuing your loan as collateral for another loan. You’ll need at least $100 in assets to get started.

YouHodler’s strengths 

  • You can deposit 15 different cryptos
  • Attractive interest rates in Bitcoin (BTC) and Pax Gold (PAXG).
  • Payments are flexible and you can withdraw cash instantly.
  • Great tools for crypto margin traders.
  • Fixed interest for investors.

YouHodler limitations

  • YouHolder is somewhat new and does not yet have a proven track record as a platform.
  • If you release your funds before the end of the week, you will not receive any of the interest earned in that particular week.
  • Transfers from USD to BTC have a 4% transaction fee.

Where to start lending cryptocurrency today

MyConstant, Nexo, and BlockFi are some of the top platforms where you can lend cryptocurrency
MyConstant, Nexo, and BlockFi are some of the top platforms where you can lend cryptocurrency (source: pxhere.com)

As you can see from this crypto lending platform review there are a lot of options available today if you want to start earning extra income on your crypto.  However, this is just a light overview. We encourage you to dive in and do some research yourself before putting up large sums on any platform.

If you want great rates, easy access, and transparency we encourage you to come check out MyConstant.

We are one of the fastest-growing crypto lending platforms in the US today and we are always developing new ways you can earn on your crypto.

At MyConstant, you can get 9% APY on BTC, ETH, or BNB. And we offer crypto-backed loans against more than 70 different cryptos for borrowers as well as one of the easiest fiat-to-crypto onramps in the industry. For more information about our platform, hop on our Telegram or come read our blog.

Sign up for a free account today.

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George Schooling

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Tags: best crypto lending platforms new crypto lending platforms cryptocurrency lending platforms where to lend cryptocurrency crypto lending platform comparison

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