ZoneBitcoin EditorialLending bitcoin to receive interest is a method that attracts more and more people. And, that’s completely understandable, given the many benefits.
Yes, lending your bitcoins and generating interest can help you earn big. It’s really easy to create passive income as well. Likewise, it makes you increase your crypto wallet gradually and continuously.
By the way, keeping your cryptocurrencies sleeping in a wallet is not the best way to get rich with cryptos. Keeping your cryptocurrencies will not increase the amount. That said, it can be a hodling strategy since you wait for the price to increase. It is also a very common way for those who invest in bitcoin. Buy and wait for the price to increase (this is called "hodling").
Be careful though, it may involve risks to maintain your bitcoin in a centralized platform.
Lend your bitcoins and receive interest
Lending your bitcoins to businesses or individuals is a good way to generate interest. This is a very well-known method, particularly in classical finance. There are many so-called peer-to-peer platforms where you can do this easily.
The best known of these bitcoin lending platforms Youhodler, BlockFi, Nexo or Celsius. We are therefore going to take a quick tour of each of the platforms. Only these 4 platforms are worth the detour, if I may say so.
😎 You can decide to invest in one or other of the platforms or even several as is my case.
What return for bitcoin lending platforms?
What is certain is that you can generate a lot more bitcoins than by letting them sit in an account. Likewise, compared to loans in traditional finance, interest rates have nothing to do with it.
It will also depend on the cryptocurrencies you lend. Because yes, you can lend not only bitcoin but also dollars and other cryptocurrencies. It is also a criterion that can help you make your choice when selecting your lending platform.
So here are the interest rates offered by these three main crypto players:
- Youhodler : Up to 12% (stablecoins)
- Nexo: 6.50% (DAI, PAX, USDC, USDT and TUSD)
So, before seeing the particularities of each of the platforms that will help you generate interest on your cryptocurrencies, let's quickly talk about bitcoin lending.
What is crypto lending, exactly?
Bitcoin loans are becoming really popular. On the one hand, they attract people who want to generate interest on their assets. On the other hand, they simply attract people and businesses who want to borrow money.
In addition, I remind you before going any further that bitcoin lending sites are more secure and reliable than their counterpart sites in traditional finance. For what? Well simply because cryptocurrency lending sites are actually loans backed by cryptocurrency.
In other words, the person borrowing must first deposit an amount of what they are going to borrow. Thus, the risks of non-reimbursement are non-existent.
In this article, we will focus on HODLers who want to earn interest by lending their bitcoins. The concept is simple for both parties: the borrowers and those who lend.
- For borrowers: If you need a loan, then you need to deposit a crypto fund. You will then obtain the equivalent loan. You will then be able to use your loan and repay in accordance with what is provided on the site.
- For lenders: You lend a certain amount and a duration of your choice. You earn interest every day, week or month depending on the site. You withdraw your funds (your repayment and your interest) whenever you want.
The best platforms to lend your bitcoins and earn interest
For this selection of the best Bitcoin lending sites, we have selected 4 essential factors:
- Security of your funds
- Insurance on your funds
- Interest earned
And more. To be fair, banks have a small advantage over Bitcoin lending sites: if a bank goes bankrupt, its customers' money is insured by the government; if they fall, their customers are safe.
1/ Nexus: Earn up to 8% interest on your stablecoins
First of all, know that Nexo allows you to generate interest without even having to lend your bitcoins. Nexo is a fantastic company that has done enormous communication work. Every time I visit a cryptocurrency-related site, I always see an ad for Nexo.
You too must have certainly seen at least one. It is true that this media hype is justified. The service that Nexo offers is pretty incredible.
We can do so many things with Nexo that I have to write a whole article about this company because we can also have a cryptocurrency bank card. This tells you the extent of the possibilities with Next.
The great thing about Nexo is that you can withdraw your winnings daily. No other platform allows you to withdraw your winnings every day.
In addition, and this is also what made Nexo famous, it is its incredible assurance. The company is insured for all possible losses. Which gives enormous credibility to using this platform.
Also, know that in my case I use Nexus in another way. In fact, I bought Nexo tokens and I receive dividends linked to this cryptocurrency. It is also an excellent way to generate passive income in cryptos as you know.
I bought Nexo tokens and I will tell you about them below. It is in fact, according to me and several other experts, a safe value because it is indexed to the company itself which continues to grow.
Remember that to receive your dividends, send your Nexo tokens to your Nexo platform.
Note: To receive your interest on your stablecoins, you must only deposit TUSD type stablecoins, the Tether (USDT), USD Coin (USDC), Dai (DAI) and Paxos Standard Token (PAX).
Conclusion: Bitcoin lending is the future of passive income?
Frankly, this is one of the best benefits of lending your crypto: having passive income.
Studies show that when you have passive income, your stress and anxiety are reduced. Properly managed, you spend more time with friends and family and enjoy greater freedom to pursue your hobbies.
This is also why I really like the idea of passive income. And, indeed, bitcoin lending sites can help us grow our cryptocurrency assets. Why do without it?
Note: Once again, I am not a financial advisor and in the field of cryptocurrencies, it is even more difficult to advise. I have given you here sites which are solid and which allow you to generate interest. I tested them all and I am still using these services. Other users have also left good comments. But it's up to you to decide if it's really interesting for you.
