Crypto lending has become quite common as crypto adoption continues to grow, but there are many who don’t know about it yet. If you’re a crypto investor who cherishes your portfolio so much you don’t wish to sell it for fiat, you don’t have to.
Crypto lending is a method through which you can get a fiat loan without selling your crypto assets. Crypto lending companies provide platforms through which you can easily do this. You can simply approach one and ask to lend your crypto assets in exchange for a fiat loan.
You’ll need to sign up on the platform and go through a KYC verification process. After that, you can apply for the loan which will go through stages of approval. After approval, you deposit your assets to the platform – you’re technically lending the assets to the platform – and it will get you a fiat lender who will then offer you a cash loan.
After the agreed term for the loan expires, you’ll pay back the fiat loan with the stipulated interest, and the platform will release your deposited crypto assets to you. This allows you to use your assets as collateral to secure loans without selling them. If this sounds good to you, here are some of the best platforms you can use for this purpose in 2023.
KuCoin is a top global cryptocurrency exchange with headquarters in Seychelles. It offers many other services to its customers, including crypto lending. If you’re looking for a small short term crypto loan, KuCoin is a good place for it, especially if you’re a beginner.
You can withdraw money at your convenience, and there are no limits on deposit options. However, the interest rate is quite high, at 0.2% daily interest. You also have to pay back within 28 days.
Nexo
Nexo is an advanced crypto trading platform that also offers crypto lending services. If you’re a long term crypto investor then this is an ideal platform for you to use. The platform doesn’t charge any fees on BTC loans, making it particularly attractive.
There is no loan duration limit, so you can borrow and pay back whenever it’s convenient for you so you don’t get stressed. There’s also no limit on options, but it charges a flat interest rate of 5.8% per year. Nexo also charges APR on interest.
Crypto.com
Crypto.com is a top global crypto exchange based in Singapore. The exchange has a reputation for high security and regulatory compliance, making it quite reliable. You can use Crypto.com for crypto lending services as well.
One good thing about using Crypto.com is that it has no deadlines for loan statements or late fees. You can earn as much as 8% per annum interest on Bitcoin loans with the platform.
xCoins
xCoins is a peer-to-peer platform that offers Bitcoin (BTC) loans via crypto-friendly bank accounts and credit card payments. The platform is mostly used by PayPal users and crypto traders, since it offers Bitcoin lending services via PayPal.
There is no deposit limit for lenders on this platform, and lenders determine the interest for Bitcoin loans. However if the lender doesn’t repay on time, the borrower can keep the bitcoin collateral.
Kiva
Kiva allows lenders and borrowers to network and carry out transactions directly, and is available in over 80 countries. Kiva aims to offer instant Bitcoin (BTC) loans as credit lines to users with its crypto lending services.
The borrowers can take their time to repay at their own pace, but the maximum deposit is $10,000. You can also access Bitcoin-backed loans on education, healthcare, and agriculture.
Conclusion
These are the top crypto lending platforms you can use in 2023 to access crypto and Bitcoin loans. Ensure you consider the up to date terms and conditions of each platform before proceeding with lending to avoid unpleasant surprises.
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