If you’re one of the many people who hold cryptocurrency in their portfolio, you’re probably wondering what to do with all that digital money while it’s not being traded and exchanged back into fiat currencies. These days, there are plenty of options to invest your cryptocurrency holdings in projects that are directly related to crypto and blockchain, and Lending block is one of them. Here’s what you need to know about this unique platform and why you should consider investing your crypto holdings there in the next 5 years.
1) Aave
Aave is a decentralized lending platform built on the Ethereum blockchain that allows users to earn interest on their digital assets. Aave supports a wide range of assets, including Bitcoin, Ethereum, and other popular digital currencies. In addition, Aave offers a unique feature called flash loans which allows users to borrow funds without collateral.
This lending platform operates by matching lenders and borrowers through a smart contract. The loan is held with a collateral of crypto assets, which means no credit checks are needed and funds can be released quickly.
2) Alchemix
With Alchemix, you can lend money and see it “pay itself back over time.” It uses a new but intriguing method to create loans that pay themselves back over time. dAI is deposited into a smart contract, which exchanges it for tokens called alUSD. These tokens are comparable to a USD, but may be converted 1-1 to DAI on the Alchemix platform, or traded for tokens at a decentralized exchange, like Sushiswap.
With Alchemix, users’ AlUSD debt is repaid as the yield is harvested, meaning that eventually, the deposit’s yield harvest makes up for the loan. To speak in typical cryptocurrency loan terms, with Alchemix the LTV is 50% when we translate the alUSD coin value into coin value. For now, it accepts only DAI deposits but they are looking to accept more stablecoins in the future.
3) blockFi
BlockFi is a digital currency lending platform that offers loans in both USD and cryptocurrency. With BlockFi, you can use your Bitcoin or other digital currency as collateral to get a loan in USD. You can also earn interest on your deposited cryptocurrency with BlockFi’s Earn program. BlockFi is one of the most popular crypto lending platforms and is trusted by many in the space.
If you want to earn interest on your crypto holdings without worrying about losing value, consider BlockFi. You can deposit Bitcoin or other cryptocurrencies into your BlockFi account and earn interest on them through their Earn program. With a $50 minimum deposit, BlockFi gives you access to competitive interest rates. Use those earned funds for anything from making payments on high-interest credit cards or loans to investments in other assets or business ventures. Keep an eye out for new features, like adjustable capital payouts, from BlockFi over time.
4) Nexo
Nexo is one of the leading crypto lending platforms and offers a suite of products that can help you earn interest on your digital assets. In addition to traditional lending, Nexo also offers margin lending, which allows you to borrow against your existing crypto holdings. And with Nexo’s Earn Interest program, you can earn up to 12% per year on your idle digital assets.
This is not only important in aiding the healing process but can also be financially beneficial. They are transparent in how easy it is to create a cryptocurrency loan through the right credentials and a multitude of cryptocurrency assets. Currently, there are more than 2.5 million of their users, and this number is continually growing. They have a system that connects the crypto-world to the conventional banking system, which makes it easy for you to buy and sell cryptocurrency.
Additionally, their security is at the top of the line for banking and finances, so you can feel confident in the knowledge that your money is safe. With Nexo, you can easily make a passive income, without having to take a big risk. After you create your profile, you’ll receive 20% interest in return, if you make the right investment. Let’s say you pick a currency and a number of coins you own. To see what kind of return you can expect, just fill in that information below. At the same time, you can securely store a wide variety of different cryptocurrencies while simultaneously adding to your investment.
5) Unchained Capital
Unchained Capital is one of the best crypto lending platforms for those looking for a self-custody solution. They can give you insight into how your cryptocurrency investment could increase in value. They make it really easy and simple for you to borrow cryptocurrencies such as Bitcoin and others because they provide help to users in safeguarding their own keys. No matter how much cryptocurrency you have, they want to make sure that you can be in control of it. As well, each team member has the key to be able to sign transactions if necessary. As a result, you don’t need to use separate wallets for each teammate, simplifying the process.
In addition, you can start with one-on-one coaching, which will assist you in figuring out your current financial situation and creating a plan to reach your goals. You can also store your Bitcoin on your own in what is called self-custody, where you will have complete control over your own assets. When it comes to their customized advice for Bitcoin growth, what they offer is what we feel is important, and also they offer you the option to purchase, lend, or borrow Bitcoins. And they offer rates that are highly competitive.
6) Celcius Network
Celsius Network is another good choice for crypto-lending platform, best for you if you want to do everything from your smartphone. There are an increasing number of people choosing to use their smartphone in the buying and selling of cryptocurrency, so why not take out a loan with the cryptocurrency you currently have on your phone?
They pay as much as 17% interest on your cryptocurrency holdings, and every week, you’ll get more tokens, as well as the ability to borrow money for 1% interest. They don’t have any fees, so that you can borrow and transfer cryptocurrency in a number of different ways, and you can either choose to use a web browser, or your smartphone to borrow and earn money.
It’s available for both Android and iOS. Among the most alluring features of this crypto lending platform is that you can use your cryptocurrency as collateral. They don’t charge origination fees, so you won’t have to worry about paying a pile of hidden charges.
7) Youholder
With YouHodler, you can get a cryptocurrency loan up to 90% LTV in any of the top 15 coins. If you own any crypto assets, you can use YouHodler to store, exchange, and even pay anyone with them. You can get instant cash by using your crypto as collateral. And the best thing is you can get a loan in BTC, Tether (USDT), USD, EUR, CHF, or GBP.
On top of that, the starting rate is $100. If you own some assets you can exchange them with universal conversion to YouHodler. By putting your crypto in YouHodler, you can earn interest rates as high as 12% on crypto. A fascinating feature of the platform is the Multi HODL feature, which allows you to multiply your favorite cryptocurrencies by placing small bets and receiving pretty high investment rewards.