Best Crypto Lending Platform in 2021 | Top 5 Bitcoin Lending Platforms

Get the best lending interest rates for Bitcoin and other cryptocurrencies

Sten Ivan
Sten Ivan
Aug 25, 2020 · 6 min read

We can all agree that 2020 has been a challenging year. Back in March last year, the cryptocurrency and legacy markets went downhill due to the COVID-19 pandemic. Things have been picking up with bitcoin reaching $12,000 in August, a significant jump from the $3,600 price plunge. Towards the end of 2020, Bitcoin made a comeback, reaching a new all-time high of $20,000 and as of early February 2021, it has doubled to over $40,000. It is certainly an impressive rally for cryptocurrency. However, economies around the world are still scrambling albeit slowly bouncing back with government interventions. The Covid-19 pandemic is not over and it continues to create volatility in the global markets.

In times like these, cryptocurrencies such as Bitcoin still stand out as valuable financial assets despite the tumultuous year. The outstanding growth and the recent record-breaking all-time highs have proven that Bitcoin is solidifying its position in the financial world. It is a non-inflationary digital currency that’s not governed by individuals or corporations but a protocol. As rumors about legacy markets reaching negative interest rates, it’s time for Bitcoin investors to keep preserving their assets and increase productivity by lending their assets and earn interest in the process.

Crypto lending is a type of trade where you lend out your cryptocurrency and earn interest from it. The trade is facilitated by crypto lending platforms that accept deposits of different cryptocurrencies like Bitcoin, Ether, or Stable Coins with some interest in return. The Bitcoin lending interest rates vary but often very competitive, with some offering up to 12% on Annual Percentage Yield (APY). These platforms also often loan the assets with collateral, usually with crypto, and thus called crypto-backed loans.

If you’re thinking about growing your crypto assets through crypto lending, here are five crypto lending platforms that worth considering.

#1 Hodlnaut

The interest rate for BTC is 6% (effectively 6.2% annually), 6.5% for ETH (effectively 6.7% annually) and 8% (effectively 8.3% annually) for DAI, USDC and USDT. There are no minimum deposits or lock-in periods, and users can withdraw anytime. Hodlnaut is one of the emerging players in the crypto lending platform market that aspire to be the leader in the industry.

Read Hodlnaut Review

#2 YouHodler

It’s good to note that if you don’t have the crypto that you wish to deposit and earn interest from, you can convert from another crypto that you have or fiat currency.

YouHodlers is offering interest rates for stablecoins up to 12% a year (4.8 for BTC annually) and supporting four fiat currencies, 7 stablecoins, and 15 cryptocurrencies.

Read YouHodler review

4 Easy Ways to Make Money with YouHodler

#3 BlockFi

One exciting feature from BlockFi is the Interest Payment Flex. It allows users to select the currency of the interest payments and diversify their portfolio without buying additional crypto assets.

BlockFi review

BlockFi vs Celsius vs Hodlnaut

#4 Nexo

Nexo has expanded their services with the launch of Nexo Card, which gives qualifying users instant access to the Crypto Credit Line that they can spend without selling their crypto.

#5 Celsius Network

Users can earn interest rates in CEL Tokens up to 6.2% annually for their first BTC or 100 ETH and up to 12% for stablecoins.

Best Crypto Lending platform

  1. YouHodler
  2. BlockFi
  3. Nexo
  4. Celsius Network

Author’s Bio: Sten Ivan is the Head of Growth at Hodlnaut, a Singapore-based fintech startup that enables users to earn favorable interest rates on their crypto assets.

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Sten Ivan

Written by

Sten Ivan

Head of growth at Hodlnaut, part-time traveler.

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

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