5 Best Crypto Lending Platforms for 2022
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Do you need alternative ways to earn on your crypto in 2022? Lending is a popular option for increasing your earnings. In this article, we discuss crypto lending, the top five cryptocurrency lending platforms, and how to choose the right platform for your lending needs. Keep reading to learn more.
This loan is essentially the cryptocurrency version of traditional bank loans. It involves the use of fiat or crypto collaterals to access funds. The collateral is held by the lending platform and returned upon payment of the loan and its interest. Cryptocurrency loans have far higher interest rates than their traditional counterpart.
An easy way to understand lending platforms is by looking at the parties involved. There is a borrower who requires cryptocurrency, a lender who wants to invest theirs, and a company that can connect them. This company, the third party, is the crypto lending platform. It can be centralized or decentralized.
The following are steps to follow in selecting the right lending platform:
Nowadays there is a lot of crypto platforms that are pretty hard to use, especially for the newbies. KYC procedures are long and the interface is complex. You will be very lucky to find out that the CoinRabbit platform exists.
It is a crypto lending platform that transacts similarly to traditional finance institutions. It allows users to lend and borrow cryptocurrency in return for interest. Lenders earn 10% APY on their investment while borrowers get an APR of 14%. What you will be fascinated with is the fact that the LTV (Loan-to-Value) is flexible and 50%. You don’t need to have any special platforms tokens to enjoy the
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