The 3 best sites to generate interest on your cryptocurrencies

Generating interest on your cryptos, do you dream of it? This is exactly the article you need to read.

I say it very (too much?) often, the best thing when you have cryptocurrencies is not so much to buy them as to put them to work. It is in fact the same thing as for classic money. It is important to place them and make them bear fruit.

Besides, I'm going to show you sites where you can grow your cryptocurrencies but also your euros! And that’s really interesting in that Livret A only yields 0,75%….

The good news is that you can do this relatively easily with cryptocurrencies. You can therefore increase your capital and in fact obtain passive income. This passive income will be all the more substantial as your capital is.

That said, this is no reason to skimp. Even if you earn little, it's still good.

Also, there is plenty of choice regarding sites to earn interest and my goal is to provide you with a comparison of the best sites.

We will therefore see in this article:

• A comparison of the 5 best sites for earning interest on Bitcoin and cryptos.
• The 9 factors to consider when choosing your site.
• The 3 reasons why you should take advantage of the best bitcoin lending sites to earn passive income.

So, are you ready? We can then begin.

The 3 best sites to generate interest on your cryptos

To select the 3 best, I analyzed the different reviews and the different services offered by the different companies. I would like to point out that there are several sites that have gone bankrupt like Cred, Celsius or even BlockFi….

You must therefore remain vigilant with services of this type. Please always diversify your funds.

Now that we have the best platforms, that's not all. You still need to compare them with each other and see which ones suit you best. For this, and to see the final ranking, let's first see what they offer to earn interest on your cryptos.

1/YouHodler: The most profitable and most complete platform.

YouHodler is a newcomer, but it is a very strong competitor. With YouHodler, you can lend your cryptos and earn interest up to 8% APR.

In fact, it is a site that offers different options other than simple placement. That is to say, it allows you to diversify your investments and even earn more. I wrote an article about it for this site because it really is very interesting: my opinion on Youhodler.

Advantages:

• Confidence. YouHodler is a member of the Crypto Valley Association of the French-speaking Switzerland section. Likewise, in 2022, the company celebrated its 4 years of activity.
• Flexible payments. Instant credit card and bank withdrawals included.
• Multi-Hodl. A unique offering allowing lenders to earn interest from 80% of their portfolio while using 20% ​​of their portfolio to buy and sell other cryptocurrencies.
• BTC interest rate. Lenders earn 4,8% APR on their deposited BTC, which is above average.

The inconvenients:

• Lack of experience. Young platform without proven track record.
• Strict KYC/AML laws (is this really a flaw??)
• Stable and modest APR. DOther platforms offer higher interest rates to lenders who deposit stablecoins.
• Limited choice. Only BTC, BNB, USDT, PAX, PAXG, USDC and TUSD are available to earn interest.

Payment Terms:

Lenders receive interest which is paid at the end of the month. When you make a withdrawal, you have the option to withdraw in the crypto or fiat of your choice.

2/ Coinloan: The peer-to-peer platform

Coinloan is not a company like any other. Moreover, it is not very well known despite very high customer satisfaction. It is one of the first P2P crypto lending platform companies. The company was launched in 2017 in Estonia, where it is still located today.

They have a simple setup process, bank-grade security, and they offer crypto lending and borrowing in various cryptocurrencies.



Advantages:

• Trust and good reputation. Partnership with Ontology, Bitcoin.com and Acquiring to name only the biggest names.
• Good interest rates with APR. 6,6% for BTC, 5,13% for ETH, 5,97% for BCH, 5,34% for LTC and 5,13% for XMR.
• Interest rates on Stablecoins and even on fiat (rare) with 10,5% for Euro, USDT, USDC, TUSDT and PAXOS.
• No charge. Coinloan does not charge any fees for depositing and withdrawing funds on the platform.
• Flexibility of terms. You can choose the interest rate, loan tenure, loan amount, repayment method, etc.
• Company based in Europe with license fromEuropean Financial Licenses.
• Security. Bank insurance granted by the largest Russian private bank (Alfa-Bank).

The inconvenients:

• Dependent on P2P.  You might be better off waiting for the P2P network to grow so you can borrow or lend crypto more easily. This is actually the biggest flaw if we can say so. I would like to point out that Coinloan is a P2P platform. This means that lenders and borrowers enter into contracts directly with each other. These platforms often have less liquidity (chance of finding the right conditions for you). There are fewer people who want to go through the hassle of finding and setting up a loan rather than simply depositing and withdrawing their crypto on a platform like Blockfi.
• Infrequent customer service. No 24/7 chat support and wait time may be longer than other competitors.
• The minimum is 100 euros ( approximately).

Payment Terms:

Lenders receive interest once a month.

The interest rate depends on the lender since the lender's “interest rate, loan currency, duration and desired loan amount”.

The smallest duration is 7 days, but from there you can withdraw them at any time.

Here are the Coinloan interest rates:

3/ Crypto.com

So, there too, I had already written an article and even a video where I talk about interest rates on crypto.

Besides, I have a lot to say and I'm not sure that this company can survive for long.

That said, many of you have asked me to talk about it, so I'm talking about it, but here you go, know that I still have reservations...

It's up to you, of course.

Advantages:

• Ease of use: You can start earning interest with just one click.
• The highest interest rates on many cryptos such as BTC, CRO, MCO, ETH, LTC, XRP, BNB, BAT, LINK, MKR, DAI, PAXG, ATOM, BCH, VET, ICX
• Interest rates on Stablecoins.
• Flexibility of terms. You can choose the interest rate, loan tenure, loan amount, repayment method, etc. You have the choice between flexible term, 1 or 3 months. The more you keep them, the more you earn.
• Company based in Europe with license fromEuropean Financial Licenses.
• Security. Bank insurance granted by the largest Russian private bank (Alfa-Bank).

The inconvenients:

• Weak security : We do not find a backup site such as a bank or a corporation on the site.

You can win $50 in MCO with this code: 8nfdgbz7h

Payment Terms:

You can withdraw your funds once the contract has ended. You receive your winnings every day at midnight.

Here are the Crypto.com interest rates:

How to choose the best platform: 9 factors to consider

So there we have the advantages and disadvantages of all the sites. Let's now see, to help you make your choice, the factors that must be taken into account. Yes, it’s still a real comparative article that I wanted to do. So these are the main factors to take into account.

1. Crypto Interest Rate: Pay attention to both the interest rate offered to borrowers and the interest rate offered to lenders. The interest rate offered to borrowers should be low enough to entice them to borrow, while still being high enough to make money for the platform and lenders. The interest rate for lenders should also be balanced enough to give lenders a good return.

2. Security :  It doesn't matter if lenders earn high interest on their cryptos that end up being stolen through hacks or scams. Make sure you use Bitcoin lending sites with a level of security that you feel safe with, as well as only lending the amount you are willing to lose.

3. Available Cryptocurrencies:  How many cryptocurrencies does a platform offer lenders to deposit? This is great if all you have or want to lend is your bitcoins. But many people in the crypto space also have altcoins sitting around.

4. Reputation: Some lending platforms, such as YouHodler for example, are relatively new. They have not yet had time to build a solid reputation. This doesn't mean you should stay away, just that you should be a little more careful with the amount of money you put in.

5. Flexibility of terms: Some platforms, like Blockfi, have very flexible lending terms. Borrowers can repay their loan at any time without penalty; Lenders can withdraw their funds at any time without penalty. However, other sites like Coinloan are P2P platforms; they allow users to borrow and lend among themselves and set their own terms. Take the time to think about how flexible you want with your funds.

6. Payment frequency:  Blockfi pays and charges interest on your loans once a month. It's like a standard bank loan agreement in that sense. Make sure you choose the payment method you want.

7. Geo-restrictions:  Since all of these DeFi platforms are finance-centric, they all must comply with KYC and AML laws. Therefore, some platforms may not be available to users in certain regions. When considering a platform, be sure to check which regions it operates in.

9. Limitations:  Each platform has its own limits on deposits, withdrawals and conditions. Not only that, but each platform has different limits on each cryptocurrency they offer. Each platform will have different deposit and withdrawal limits for BTC, ETH, Fiat and stablecoins.

So, take a good look at all these parameters before making your final choice.

Also, if you are wondering whether to really use these sites or just keep them in your wallet.

Here are 3 reasons to use these sites to grow your cryptos:

1.  Mathematics :  The first reason comes down to simple math. Suppose you bought 1 BTC at $10 and held it for 000 year until the price of BTC reached $1. You sell it and you made a profit of $20. But what happens if you HODL your crypto on one of these crypto lending sites, say Blockfi? In 000 year, you would have earned an additional 10%, or $000, for a total profit of $1 Boom. Some lending sites even pay interest in BTC. So you would have also benefited from the increase in BTC prices.
2. Security:  You need to make sure you have your funds safely with a reliable company. While this is good for experienced investors, it is not so for those who are not tech savvy. If you use a crypto lending site like the blockf – which emphasizes its level of security, so you will rely on their bank-grade technology to keep your crypto safe. Of course, not all lending sites have the best security. Sites like Coinloan may not have the revenue or experience to keep your funds as safe as Blockfi.

My advice: never deposit more than you can. Keep in mind that cryptos are still a new technology. Likewise, some lending companies have gone bankrupt.

3. Peace of mind :  This might be the best reason. If you use a crypto lending site, you won't have to deal with the stress of trading, securing, or anything else. Simply lend your crypto and watch your passive income grow.

Is lending risky?

In investing, in general, there is always an element of risk. This also applies to this type of placement services. It is a fact. Only invest what you can afford to lose. Diversify your funds.

Remember that not all cryptocurrency lending platforms are equal in terms of security. One site may have the best crypto interest rates – but don't let greed fool you. Always do your own research! In any case, generating crypto interest has never been easier.

In January 2018, we remember the DavorCoin platform which turned out to be a big scam…Bitconnect is another excellent example, as is Lendconnect. There is no shortage of examples…

 👿 Companies offered “too good to be true” ROI – and indeed, they were too good to be true. Bitconnect offered 1% per day compounded. It's shocking. This can't last forever. These “opportunities” for generating crypto interest are also called Ponzi scams.

Be careful, do your research, and don't get your hopes up – and you'll be safer and safer. There are many legitimate bitcoin lending sites that offer better interest than a bank and are just as secure.

In conclusion, the concept is simple if you want to generate interest on your cryptos.

In general, as you have seen, sites for earning interest on cryptocurrencies are generally based on the same concept. There are borrowers on the one hand and those who lend.

For borrowers. You put up a small amount of crypto as collateral, this is called collateral. It's not like in traditional finance where we lend you without asking you for a contribution or guarantee. This is why there are so many sites to generate interest on your cryptos. That said, certain times and depending on the amounts, you will still be asked to mortgage property. It's the same thing for cryptocurrencies. You then get a line of credit in fiat or stable currency to spend as you wish. You repay the loan according to the terms you choose, knowing that you already have your collateral.

For lenders, this is the time to earn cryptocurrencies from the interest paid by borrowers. Bing, bam, boom. Earning interest on crypto is that simple.

The pros and cons of how to earn interest on your cryptos are becoming more and more simple and everyday. Once these lending platforms find their niche and audience, we will see fantastic financial tools that open up the world of finance to the unbanked.

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This is not investment advice. Always do your own research.