Crypto Loans & Top Crypto Lending Platforms

Traders and investors alike have been alerted to the emergence of several different financial products and services in the cryptocurrency world, with questions like what is DeFi thoroughly expanding attention levels to movement on the Ethereum Blockchain. 

Crypto is currently the most prominent buzzword in the financial and technological market. With several misconceptions that it bears the same similarities and limitations to stocks, there is much more to the blockchain and the world of Cryptocurrency than you know. 

Since its inception in 2018 by its mysterious creator Satoshi Nakamoto, cryptocurrencies have come a long way in finance, giving people financial freedom across the world.

There have been several adoptions to Cryptocurrency in the past years, with the emergence of different altcoins, technologies, and projects coming into the financial system, with traders looking into different means to earn profits on their digital assets in the crypto world.

One of the many ways crypto holders can earn profits on their crypto assets is in the form of lending and borrowing on crypto lending platforms. Crypto asset holders can earn interest on their crypto assets by borrowing or lending them out on crypto lending platforms.

Crypto Assets

Cryptocurrency is a digitally based currency that uses cryptographic encryption to ensure financial transactions and authenticate the transfer of crypto assets.

Crypto assets embody a profound shift in how the financial market operates and have increased popularity in recent years. Crypto assets can unsettle the financial system by the technological advancements behind them.

Cryptocurrency

Cryptocurrencies are digital currencies that use cryptographic systems to enable secure online financial transactions without the need for third-party interference.

 “Crypto” alludes to the numerous cryptographic techniques and encryption algorithms that secure these entries, such as public-private key pairs, hashing functions, and elliptical curve encryption.

Cryptocurrencies can be purchased or mined from crypto exchanges, though not all eCommerce sites allow crypto purchases. Bitcoin is one of the more popular cryptocurrencies.

The surging value of Cryptocurrency in the financial market has increased its popularity as an increased trade instrument. An increasing number of crypto holders put their digital assets on crypto lending platforms for traders interested in borrowing crypto assets.

Popular cryptocurrencies

There are thousands of uniquely different cryptocurrencies available in the crypto world today. Here are some of the popular cryptocurrencies the crypto market utilizes:

• Bitcoin: invented in 2008 by Satoshi Nakamoto, an alias coined by a person or a group of people, bitcoin is the first Cryptocurrency. Trading as BTC on exchanges, bitcoin is the most valuable and popular Cryptocurrency by far.

• Ethereum: Although it ranks second to bitcoin in market capitalization, Ethereum is the most vigorously used blockchain. Ethereum is a decentralized blockchain-based software platform that utilizes ether (ETH) as its primary Cryptocurrency.

• XRP: Ripple, a digital blockchain-based payment network and settlement system, use XRP as its native currency. Thoughts on diminishing wait times and transfer fees for financial institutions in mind created XRP.

• Cardano: Cardano is the Cryptocurrency that operates on the Cardano blockchain. It trades as ADA. The token holders can vote on funding decisions, updates, and improvements.

• Stellar: Invented by the Stellar Development Foundation, the Stellar blockchain links financial institutions to facilitate economic and low-cost transactions in evolving markets. Lumen, Steller’s native token, trades as XLM.

Crypto Loans

Crypto backed loans are insured loans. Crypto holdings are pledged as collateral by borrowers for loans, akin to how cars and houses are collateral for auto and mortgage loans. 

A crypto loan allows you access to money for expenses you need to make immediately without the need for a transaction with your digital assets if you have no intention of trading or using your Cryptocurrency in the foreseeable future.

Cryptocurrency, in this case, is the asset tendered to a lender as a swap for cash. The cash obtained is then paid back in installments, with the lender having the privilege to cash out or liquidate the Cryptocurrency if you fail to pay back the loan you took out if the agreed loan duration has passed.

Some rights, like the ability to make transactions or use your crypto asset to trade, will be lost when you repossess ownership of the crypto you used as collateral. Also, if you default on the loan you’ve taken, you may eventually end up owing way more than you borrowed if the value of your crypto assets drops substantially. 

 In addition, a crypto loan may make more sense to a lender that owns a substantial amount of crypto assets and would want to liquidate said assets without selling and possibly having to pay taxes on it. 

Borrowers of Crypto-secured loans could see reduced interest rates, and there is no credit check on crypto-backed loans, unlike personal loans.

The funds secured on these loans could be invested in a business or used for several purchases, similar to borrowing a personal loan. This information should not constitute investment advice with the volatile crypto market, and borrowers should make pertinent findings before borrowing crypto assets.

Flash loans are another type of crypto loan. Operated by smart contracts, flash loans do not secure assets.

You can obtain crypto loans through a crypto lending platform or a crypto exchange. 

HODL, an acronym for ‘hold on for dear life, is a common theme in online forums that are crypto-focused

Problems With Crypto Loans

Between April 2021 and October 2021, the bitcoin price seesawed between about $30,000 and $64,000. Due to the unstable value of crypto, a margin call, where a borrower pledges more crypto assets to sustain the value of the original pledge made.

You have a limited amount of time to pledge additional Cryptocurrency if the value of your initially pledged crypto falls below the threshold the lender set.

 In Crypto-speak, Loan-to-value or LTV is the ratio of the amount loaned to the value of the collateral pledged. For example, the maximum LTV of BlockFi, a crypto lender, is 70%. Borrowed would have 72 hours to increase their crypto at that threshold.

Including unsteady pricing, cryptocurrency loans are not federally insured. So compensation isn’t guaranteed if, for example, during a security breach, you lose your funds.

Advantages of Crypto Loans

Anyone looking into lending or borrowing crypto assets will question whether cryptocurrency loans are a great idea. There are several options accessible to users who can choose between borrowing or lending crypto loans.

Here are some of its numerous advantages:

• Low-interest rates

The meager interest rate is a lucrative prospect that attracts potential borrowers. For example, BlockFi, one of the best crypto lending platforms, offers borrowers a 4.5 percent annual percentage rate (APR) on long-term loans. 

Several crypto lending platforms also have low-interest rates on cryptocurrency loans secured long-term.

• Earn Interest

Lenders have vast opportunities to earn high-interest rates on their loans. Stable passive income can be made by loaning out crypto assets, cash, or stablecoins such as DAI or USDT.

• No use for Banks

Banks and similar financial institutions are stripped of the power to grant approval or deny loans by cryptocurrency loans.

Cryptocurrency loans are a lucrative, easy, and empowering method for accessing funds rather than going through conventional methods.

• Crypto assets ownership

Crypto holders that own many crypto assets and require cash need not sell their crypto assets. Instead, they can obtain cash loans by using their crypto assets as collateral and getting them back after paying the loan. 

• Swift and secure

One of the prominent issues with conventional loans is that they can be time-consuming, and everyone does not have the assurance of securing one. With crypto backed loans, the time to secure a loan is minimal, and most people can obtain one.

Disadvantages of Crypto Loans

Although cryptocurrency loans seem profitable, there are several inherent disadvantages to them.

A few of these disadvantages are:

• Unstable crypto prices

The loan period experienced enormous volatility by the crypto assets a loan secured against throughout the loan period.

 A margin call is risked by borrowers if there is a drop in the price of the crypto assets below the lenders’ set threshold level.

Market sentimentality would require the borrower to deposit more of his assets if a margin call occurs. The trading platform might sell the borrower’s assets to cover the loss if he fails to deposit more assets.

• Locked crypto assets

The borrower has no access to the crypto assets after securing the loan for the duration of the loan for trading and other purposes.

If there is a hike in the asset price, the borrower can’t sell them. Additionally, they won’t cut their losses short if there is a price drop.

• They have a limited repayment period

Compared to conventional loans, the repayment period for cryptocurrency loans is short, ranging from 12 months to 3 years. This shorter period mounts more pressure on the borrower.

• Large minimum loan amount

The minimum loan amount of cryptocurrency loans is usually very high, making it a risky venture for people.

Also, a lending platform such as BlockFi requires a minimum of $20000 in crypto assets to gain approval to secure a loan of $10000

How to secure a cryptocurrency loan

The first step to borrowing Cryptocurrency is choosing the right platform. You may need to do some probing till you find a trustworthy platform, as there are several different platforms in circulation that allow you to borrow crypto. 

So, before proceeding to borrow a loan, you need to make sure the platform you’re using is authentic and safe. 

Not every platform carries all the Cryptocurrency available, so you’ll need to ensure the platform has the crypto you are interested in. Also, the yearly returns on the crypto you intend to borrow are something you also need to look into.

In comparison to traditional loans, getting a crypto loan is relatively easy. The amount of collateral you use will equate to the loan amount available to you. The loan-to-value ratio specifies the loan amount compared to the collateral value. 

For instance, if you pledge $10,000 worth of crypto as collateral and receive $5,000 as the loan, 50% is the LTV. Crypto loans generally have minimal LTV ratios due to the unsteady nature of the  

This information is purely intended for informational and educational purposes alone and should not be considered professional investment advice.

Crypto lending

Essentially, crypto lending is a method for lending crypto assets or fiat currencies to borrowers at previously agreed-upon interest rates.

The concept behind lending crypto is the same as the traditional lending methods. The only difference is that, on some platforms, investors lend crypto instead of fiat currency in exchange for interest payments. 

In exchange for lending to borrowers on several decentralized platforms, investors get dividends in crypto. The borrowers take up these loans from various platforms for trading and other purposes.

With a fundamental increase in the level of attention of the DeFI movement, crypto lending has seen a prominent emergence in the crypto world.

A Smart Contract is an answer to how crypto lending work. The borrower gets funds in either the fiat currency or Cryptocurrency they want, and immediately a pledge is made in a smart contract.

Lending your digital assets

Before looking into the safest crypto lending platforms available to you, understanding the difference in crypto lending is essential.

There are two significant categories of cryptocurrency lending platforms. They are CeFi and DeFi platforms.

CeFi Platforms

Centralized finance or CeFi platforms typically act as mediators in executing the crypto lending process.

A centralized cryptocurrency lending platform takes control of lenders’ assets and the borrower’s collateral during the loan period, restricting access to both parties. 

A KYC process is also standard, excluding anonymity on a centralized cryptocurrency lending platform.

DeFi Platforms

On the other hand, Decentralized finance platforms use code-based contracts, also known as Smart Contracts to execute the lending process. 

DeFi lending platforms are automated and execute specific demands due to pre-programmed instructions. Thus, undergoing a KYC is unnecessary as the process and ruleset are pretty transparent.

How to Lend Cryptocurrency

Passive income and earning interest rates in return make the practice of crypto lending appreciated. It is similar to using a savings account. 

The credit union or bank pays a particular amount of Interest on the balance when you have a savings account, allowing you to use the money to grant other people loans.

Finding a trustworthy and authentic platform is the first step to lending out your crypto assets. Then you consider if you want a respectively fixed or flexible exchange. 

Next, you must establish the coins you have in mind to lend out, and this depends on the returns you crave, the market conditions, and your risk tolerance. 

Once you give out a crypto loan, you stake your collateral, and Investors fund the loan. The Investors earn Interest, and once the borrower pays back the loan, the collateral you staked returns to you. 

Crypto Lending Rates

The rates for lending crypto vary across different platforms. The platform you select will determine how much return you get on your investments. 

Every lending platform has a specific ROI, with different risks associated with different platforms; this also helps diversify your investments.

An annual percentage yield is likely when it comes to crypto lending. It is between 3% to 8% for crypto coins, while stablecoins are between 10% to 18%. The rates per coin differ according to the investment platform.

You’ll have to choose a platform based on the coin you’re holding for maximum optimization.

Crypto Lending Platform

A crypto lending platform is an online-based platform that enables one to lend Cryptocurrency in exchange for Interest. 

The easiest way to understand how a lending platform works is by understanding the role of individual components.

Two different parties utilize these platforms:

• Borrowers

People who need physical fiat currencies (e.g., USD, EUR) will use their crypto assets as collateral to obtain loans without selling.

• Lenders

Lenders are also called investors, and they play a crucial role in contributing to the lending process. They earn passive income by depositing their assets in fixed or flexible terms.

 Cryptocurrency lending platforms act as a medium for regulating the borrowing and lending process. A platform could either be Centralized or Decentralized.

The platform type determines the lending process’s regulation approach, involving liquidity pools, codes, or matching orders. 

How to Choose a Crypto Lending Platform

Below are some factors that lenders should consider before selecting a crypto lending platform for lenders interested in earning attractive interest rates by lending out their crypto assets holding.

• Interest rate

The essential factor in choosing a lending platform is the interest rate it offers. Choosing a lending platform that offers beneficial interest rates for your crypto assets is wiser.

• Loan duration

The lending duration is another crucial aspect you should pay attention to when considering lending platforms. Verify if the lending durations are fixed or flexible, and make your decision accordingly.

• Collateral amount

The collateral you need for borrowing a specific amount is another critical factor to consider.

• Cost

Different crypto assets incur different costs on different platforms, and this is a crucial factor to consider before choosing the best lending platform for you.

• Minimum deposit limit

The final aspect in selecting the best crypto lending platform would be the deposit limit. Any particular requirements the platform needs for a minimum deposit amount is something you should look into.

The best crypto lending platform risks and track record are worth considering before you choose to deposit funds into a lending platform.

Pros of Crypto Lending

• It is available to any crypto holder
• Reward incentives and high-interest rates 
• Diversified nature
• Short process compared to traditional systems.

Cons of Crypto Lending

• Over collateralization of assets
• Vulnerability of centralized platforms to online attacks
• Security
• Volatile crypto market.  

Crypto lending is a profitable way to earn Interest with Cryptocurrency sitting in your wallet, especially if you don’t plan on selling off your assets.

Although it has been instrumental in granting financial liberation to people, the platforms and the mechanism are still growing.

Proper research into the best crypto lending platforms will make crypto lending safe. As long as you choose a trustworthy platform, lending out Cryptocurrency is safe. 

Holding their assets on wallets like a CoinStats Wallet is advisable for lenders interested in earning Interest by lending out their crypto assets.

Additionally, you can oversee your crypto assets across different platforms using  CoinStats. 

How a Crypto Lending Platform Works

These are the fundamental steps of the processes involved when investing with a lending platform:

• A loan request is made to the platform by the borrower (amount, specific duration)
• The lending platform evaluates the loan (in terms of security)
• The borrower puts a certain number of his Cryptocurrency as collateral once the loan gains approval (the crypto lending platform usually request that 50% of the loan amount be available as collateral)
• The crypto assets deposited into the wallets on the lending platform fulfill the loan.
• Interest is received weekly or monthly by Investors, based on the asset amount.
• The borrower can unblock his collateral once he repays the loan. 

Comparing Platforms

Every crypto lending platform is unique to itself and the services they offer:

• Some crypto lending platforms do not require a minimum amount (e.g., Celsius, BlockFi)

• Your crypto asset will determine the lending and borrowing platform you use (e.g., Binance for Bitcoin)

• Some lending and borrowing platforms provide high returns on crypto, others on stable coins.

• Some platforms offer an unlimited crypto lending duration (e.g., YouHodler, Celsius)

• Some crypto lending platforms offer a bonus when you sign up ( Celsius is the biggest at $50)

Best Crypto Lending Platforms

After a detailed review of the essentials of crypto lending platforms, the best crypto lending platform is something you’ll be eager to find. Here are a few of the best crypto lending platforms that are gaining popularity today 

1. Celsius Rating- 9/10

Founded in 2017 and Run by CEO Alex Mashinsky, Celsius is a US-based crypto lending platform gaining popularity as one of the most popular crypto lending platforms. 

Primarily a Decentralized finance platform, the Celsius network is a leading crypto lending platform, boasting about 485,000 users and over $17B in assets.

Operating on the Ethereum Blockchain, with multiple utilities, Celsius offers better coin loan rates, better rates for dollar loans, better-earning rate, with a price of $3.34 and a $4,003,011 24 hour trading volume.

The Celsius network, using Blockchain technology, aims to revolutionize the crypto world by replacing traditional financial systems with one that has the community’s best interests at heart.

Celsius is a crypto lending platform that doesn’t require a minimum investment amount; however, depositing a few thousand dollars worth of crypto is highly recommended to see significant returns.

There is no maximum loan to take out (your collateral determines the maximum loan), but you need to deposit a proportional number of crypto to get the loan.

However, starting with a smaller amount is advisable to gain experience and trust with the crypto lending platform.

Celsius interest rates vary according to the Cryptocurrency you’re lending. You can expect to earn a Celsius interest rate on an annual percentage yield (APY) of up to 17%, paid every week when you lend crypto on the Celsius network.

You can also expect to earn Interest rates between 3.5% and 6% APY on your Ethereum and 3.51% and 6.2% APY on your Bitcoin.

Celsius fits beginners with minimal Interest in crypto trading and anyone interested in making passive income by earning Interest rates on their crypto deposits through its lending services.

It is also a crypto app that allows the purchase of 10 different cryptos, and lenders or borrowers can also convert these cryptocurrencies into more than 30 different e-currencies. 

Users can convert their digital assets to CEL, Celsius native currency, although this is a drawback for many users familiar with cryptocurrencies like Bitcoin, Ethereum, or Litecoin.

Excellent rates are assured no matter the crypto you are lending on the platform. 

Celsius supports all major tokens, including Bitcoin, Ethereum, and stable coins. Additionally, if you choose to earn in CEL tokens exclusive to the Celsius network, you can earn 25% more rewards.

The LTV range is between 25% and 50% when you lend money to borrowers.

As an “investor,” you can utilize the Celsius network app to lend your crypto to borrowers. Downloading and verification take about 10 minutes, making it an excellent alternative to Nexo. 

Note that lenders and borrowers will need a copy of their ID card and some personal information for complete access to all the features on the app.

You can top-up your account from any Waller of crypto exchange or buy Cryptocurrency through the app. 

Another advantage to Celsius is that they do not charge any fees for their services. Neither transfer fees, withdrawal fees, transaction fees, early termination fees, or origination fees.

Using the Celsius wallet is completely free. 

The Celsius website has a calculator to view how much you can earn based on your selected duration and crypto. There is also no need to sell your crypto if you need emergency funding as you can stake it as collateral and obtain funds with Interest rates as low as 1% annual percentage rate (APR).

Celsius provides financial services not accessible through conventional financial institutions. For example, 

The Celsius financial report is the only publicly available report amongst all bitcoin lending platforms.

Pros

• Free withdrawal
• Extensive DeFi services
• Co-founded by a seasoned entrepreneur
• The app is straightforward
• Up to 17% APR on stablecoins
• Up to 6.35% on crypto
• No fees for loan origination, transfers, or minimum balance
• Available in over 150 countries for trade via iOS, Android apps, or desktop
• CelPay is an easy to use funds transfer system

Cons

• Not regulated
• Highly Centralized control
• Limited trading via third-party vendors- does not have a crypto exchange.
• No support
• Questionable business practices.
• Us residents have no access to the CEL token.

Loan Terms

• 6,12,18,24,30 or 36 months
• Borrowers can cancel the loan at any time after six months of maturity without any fees
• minimum term interest rate payment of six months.

Supported Cryptos

• Bitcoin (BTC)
• Binance USD (BUSD)
• Ethereum (ETH)
• Bitcoin Cash (BCH)
• Stellar Lumens (XLM)
• Dai Coin (DAI)
• USD (USDT)
• Tether (USDT)

Security is essential to the Celsius team. Six security certifications include 365/24/7 network monitoring, ISO/IEC, cyber intelligence, incident response experts, and cryptographic innovations. Multi-party computation, a unique technology, provided asset protection top-tier security.

Although Celsius is seemingly the fastest growing crypto lending platform, note that there is no dedicated support, potentially harming your experience with the platform.

Celsius is one of the top crypto lending platforms to consider for serious crypto investors.

2. Nexo- Rating 8/10

Nexo is one of the best cryptocurrency lending platforms in circulation today. Founded in 2018, Nexo grants an Interest account for you to deposit currencies or cryptocurrencies. 

One of the top bitcoin lending platforms, Nexo, was founded by the team behind Credissimo- a large European lender; however, they are both separate.

Nexo is a respected name in decentralized finance, and it’s one of the best crypto lending platforms.

Through crypto lending and borrowing on this platform, crypto owners can earn Interest in their fiat or crypto assets deposited in an interest account.

Although it claims to be regulated, in truth, according to the Estonian financial institution, neither Nexo nor Credissimo own lending licenses in Estonia, which is one of the prominent locations where Nexo is Registered.

 With Nexo, you can earn passive income from your idle assets without risk. 

Simply top up your wallet, and you can earn Nexo Interest rates up to 17% annual percentage rate. 

Nexo supports major tokens with more support underway. However, it does not support wrapped coins.

Nexo is accessible across mobile platforms ( iOS and Android) and the web.

In addition to lending over 40+ fiat currencies, the Nexo lending platform support over 175 market trading pairs such as

• BTC/ NEXO
• ETH/ NEXT
• USDT/ ETH
• ETH/ DAI
• NEXO/ USDC
• ADA/ ETH
• LTC/ ETH
• XLM/ BTC
• DAI/ BTC 

Interest Rates

• Cryptocurrency: 4%-5%
• Fiat currency: 4%-6%
• Nexo: 7%
• Stable coins: 8%-10% (+2% on all, when paid in Nexo)

Terms for earning interest rates on fixed loans are between 1 and 3 months. In comparison, flexible loans have no lock-in.

Interest rates on borrowing range between 13.9% and 6.9% depending on the loyalty tier.

It is necessary to own a Nexo account before you can be eligible for loans, and then You only need to deposit funds into the Nexo account. Basic and Advanced verification is required to obtain loans in fiat currency.

Multiple loans are possible depending on the credit line amount 

The minimum loan is $5000 in stable coins and $500 in fiat currencies.

Nexo loans mature in 12 months.

The maximum loan amount is equivalent to $2,000,00p stable coins.

You can withdraw assets at any time. Depending on the loyalty tier, some withdrawals are free; the network fee becomes applicable after that.

The threshold value is 83.3%, the lending platform will liquidate collateral if it goes above this.

Nexo doesn’t require KYC. 

Pros

• high-interest
• Lending and borrowing features
• Several supported coins
• High yielding Interest account

Cons

• Support is unable to answer due diligence questions
• $1,000 is the minimum investment amount.
• Nexo’s website has questionable claims.
• Individuals in management have connections to a previously unlawful platform.
• No banking license.

3. BlockFi

BlockFi is a crypto lending platform run by BlockFi lending LLC headquartered in New York.

BlockFi is one of the best crypto lending platforms that allow you to open a crypto interest account to deposit cryptocurrencies like Bitcoin, Ethereum, and other altcoins, earning Interest rates up to 8.6% APY. 

BlockFi enables crypto holders to deposit funds into their Interest account. Gemini. Gemini, an institutional custodian authorized by the New York state financial services department, hosts this act.

Gemini extends Insurance on their hot wallets covering up to $200M.

This crypto lending platform provides financial services and various loan amounts that make the platform easier to use.

One appealing feature of BlockFi is the Interest rate payment flex, which gives users a choice to select the currency of the interest payments without buying more crypto assets.

Automated clearing house (ACH) is something you might have heard before. Most conventional bank transactions use ACH payments. BlockFi asks for permission before processing a payment made from your account when applying for an ACH transfer. 

The introduction of instant bank transfer makes crypto lending and borrowing fast and easy.

BlockFi investors will be able to promptly buy and trade their choice cryptocurrencies using money from their bank account.

You can take advantage of market opportunities as they appear without delay by buying crypto directly through a linked bank account with the establishment of instant back transfers.

BlockFi users earn Interest with Bitcoin lending rate of 4.5% APY and 9.5% on stablecoins. The BlockFi interest account( BIA) is amongst the most competitive Interest accounts in the cryptocurrency market. 

Valued at over $3B, it has captured audiences’ attention in the crypto and traditional finance world alike.

Accrued Interest is paid monthly at the end of the month. 

Your Interest compounds monthly, the day after you find your crypto account, you receive your first interest payment, the next month’s Interest will accrue on your initial capital in addition to the Interest earned.

BlockFi is more than a borrowing platform. It is suited to investors of all skill levels. 

As a beginner, service managers will provide complete information about crypto to you. On the other hand, you can get support for your queries if you’re an expert in the crypto world.

Compared to the Celsius network, BlockFi is a borrowing platform that lends only to borrowers in the US. BlockFi will not allow you to borrow money if you’re not a US citizen.

BlockFi doesn’t support fiat currencies, and this can be slightly limiting. Instead, BlockFi turns your bank or wire transfer into stablecoin GUSD.

Fees

BlockFi touts itself as a “fee-free” platform. Fees depend on the transaction complexity. 

BlockFi is a commission-free crypto lending platform. There is no transaction fee added to trading costs, as you don’t have to pay for trading on the crypto lending platforms.

BlockFi has withdrawal fees, with BTC and stablecoins users getting one free withdrawal per month.

Pros

• No monthly fees
• Low fees compared to other crypto lending platforms.
• No minimum withdrawal
• Earn Interest and trade with the BlockFi app
• Insured wallet
• Regulated
• No commission fee
• BlockFi is Available worldwide- except in sanctioned countries.
• Instant trades.

Cons

• Requires crypto knowledge
• Other DeFi Platforms that do not use KYC cannot access BlockFi services
• Only accepts crypto tokens: Bitcoin, Ethereum, PAX Gold, and Litecoin.
• No joint or custodial account
• Loan and APY rate volatility
• Savings are not protected
• Interest accounts have limited free withdrawal 

BlockFi is a beginner-friendly crypto lending platform, although it requires some knowledge of crypto, with the mobile apps and website easy to navigate for first-time investors. 

BlockFi also suggests advice on paying crypto taxes or understanding term loans instead of resources geared towards crypto learning. 

The interest rate in BlockFi allows users to earn with their Interest accounts up to 8.6% APR on BTC, ETH, USDC, GUSD, and PAX.

Conclusion

Crypto lending is something you should consider if you’re in the crypto world. As an investor, you should conduct your own research before choosing the best crypto lending platform with several lending platforms in circulation, and traders should do this with care.

The interest rate, deposit and withdrawal fees, and platform risks associated with each lending platform are some things investors should thoroughly consider before picking a crypto lending platform that best suits their needs.