by Contributing Author
When investing in cryptocurrency, you can simply hold your coins and wait for prices to go up or choose to trade. However, holding your coins in digital wallet is not the wisest decision to make. You can deposit the coin into a savings account to earn interest or borrow fiat money against your saved crypto.
Assume you want to buy a house or car but only have cryptocurrency instead of fiat currency. In this case, you can deposit your cryptocurrency and use it as collateral to receive your fiat money loan. To do this, you have to find the best bitcoin loan platform around you and follow the simple steps.
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Below is a simple guide on the best crypto loan.
What is a Crypto Loan?
With lending platforms for cryptocurrency, you don’t have to trade your coins to get money. You can simply hold your coins and still get passive income on them. In this case, you will be using your cryptocurrency as collateral, and in return, you get a percentage of the collateral deposited in fiat currency.
Best Crypto Loan Platforms
If you are wondering where to start, here is an example of the best crypto lending platform.
· YouHodler – This best crypto loan platform has been running for quite some time and is known for its good customer services and high interest rates on crypto. Their APY ranges from 6 to 15% depending on the amount of crypto you deposit. The platform is well-secured, so you don’t have to worry about losing your investment to hackers.
· Nexo – By now, you probably have heard a lot about this platform. It is one of the leading and best crypto loan platforms that allows you to use a blend of coins from Bitcoin to Ethereum as collateral. This opens ways to a much bigger investing opportunity that increases the rate of loans earned.
· Compound Finance – This is a Bitcoin P2P lending platform where you can deposit cryptocurrency such as Bitcoin and earn interest on it. This is quite different from other platforms. First, it is a decentralized platform, which means that it does not require any party for exchanges to happen. Secondly, the interest earned is in the form of Tokens, which in most cases, is used as collateral.
· BockFi – This is a highly secured platform that allows you to lend cryptocurrency at a very low interest rate of 4 to 8%. Once you have completed the application processes, you can access your loan instantly, which is fast and reliable.
What to Look for in the Best Crypto Loan Platforms
When considering lending platforms for cryptocurrency, there are certain factors you should look for. Here are a few examples:
· Interest rate – Check out the platform interest rate before opening an account. Some offer high interest while others offer low.
· Supported cryptocurrencies – Not every best crypto loan platform supports all coins. You should choose a platform that supports your crypto for a successful lending process.
Cryptocurrency is a game-changer to the world’s economy. It allows you to deposit your coins and earn interest or get loans with your crypto deposits as a collateral. So, choose the best crypto loan platform that suits your needs and apply for a loan while still earning interest on your principal deposit.
Disclaimer: The views expressed in this article are those of the author and do not reflect the official position of Jewish Business News, or its editors.