5 Best Crypto Lending Platforms to Invest in 2022

Not everyone wants to constantly try their luck, trying to guess which way the trend will turn. Therefore, some crypto enthusiasts prefer a stable passive income and healthy nerves. The best solution, in this case, is crypto lending.

Crypto lending is based on lending your funds to the platform and receiving a yield after a certain period of time. Where does this yield come from? Other users can borrow cryptocurrencies from the platform’s liquidity pool and pay fees for using the borrowed funds. These fees make up the profits of crypto lenders.

Different platforms may have different lending mechanics, interest rates, and terms. In this article, I will review the most profitable options.

CoinLoan

There are currently 23 assets available on the platform, and interest rates vary from 3 to 12.3% APY.

CoinLoan differs from similar crypto lending by featuring fiat currencies, EUR and GBR, with interest rates of 12.3%.

The positive point is that the yield can be received daily, and the user can withdraw his funds at any time.

All deposits are free, while withdrawals are free for only 11 assets. For other assets, you have 1 free withdrawal per month if it’s ETH or an ERC-20 token.

AAVE

Using this protocol, you can become a liquidity provider for 37 assets that include only ERC-20 tokens and ETH.

AAVE stands out because of the option to choose between a fixed rate and a variable rate, which changes depending on the demand for the asset.

To interact with the protocol, you need to pay transaction fees on the Ethereum network.

YouHodler

The platform is rather similar to CoinLoan, but the range of assets is much wider — 56 currencies. On the contrary, the maximum interest rate on YouHodler reaches 8% APY.

Yield is paid out weekly, and you can leave funds on your account to get even more profit next week. It is also convenient that on the platform you can convert currencies, including fiat.

Deposits in crypto are free, and withdrawal fees vary for each currency.

Nexo

The platform allows you to earn up to 16% APY, however, interest rates depend on your Loyalty Tier, which is determined by the share of the NEXO token in your portfolio. For example, the Base Tier for BTC provides a maximum profit of 4% APY, and Platinum — 7% APY.

Premium Tier users also can use flexible lending terms, but the interest rates are lower than with fixed terms. The fixed term lasts 1 month. During this period, you cannot exchange, borrow against, or withdraw your assets.

The interest rate may increase if you choose to earn your yield in NEXO Tokens. The income accumulates daily on the Nexo account when using flexible terms and brings even more profit the next day.

WhiteBIT

This is a full-fledged cryptocurrency exchange with a lending option called SMART Staking.

There are 45 assets available for lending with really high interest rates, up to 30% APR. The duration of plans can be 10, 20, 30, 90, 180, and 360 days. You can withdraw money at any time before the end of the plan, however, then you won’t receive your yield.

While the interest rates seem suspiciously high, the exchange inspires confidence as its security is regularly audited and WhiteBIT has partnerships with big brands.

Fees depend on the currency and payment method, so these data need to be checked separately for each asset.

Choose a platform that provides the conditions and assets that suit you best and don’t forget to check fees and minimum deposit/withdrawal amounts!

Happy lending!