Coin Lending is not a strange word for investors, especially in the field of cryptocurrency. There are so many sources of information surrounding this platform that we, who are new to the world of crypto lending, feel lost in the middle of a mess of information.
Watching: What is Lending Coin
In today’s column, Trade24h will share the basics of Coin Lending and the different crypto lending platforms you can borrow or lend crypto. Hopefully the information shared below will help you get the necessary knowledge to be ready to enter this matrix world.
1. What is Coin lending?
Lending is a form of using an official base coin like Bitcoin and Ethereum to buy a new Crypto coin with a Lending mechanism. Most of them only accept Bitcoin and Ethereum because these are official Cryptos with high liquidity.
You can hold Crypto coins and wait for it to appreciate. Then bring it to the exchange to sell if you see a suitable price. If you choose to receive monthly interest, you will receive interest on a daily, weekly or monthly basis in USD.
Cryptocurrencies like Bitcoin were introduced as a peer-to-peer (P2P) payment method. Later, Ethereum was introduced which had the properties of Bitcoin plus another smart feature of self-executing contracts powered by the Ether token. And after that, many other cryptocurrencies were added. Although Bitcoin/Ethereum is being used to make transactions, it is mainly used for “investment or store of value” along with other cryptocurrencies.
2. How does the coin lending platform work
?The coin lending platform works by connecting borrowers with a network of lenders registered on the platform. To get permission to borrow money, borrowers first need to collateralize their cryptocurrency. The lender will lend the borrower the equivalent amount and they will earn interest on it. Once, the borrower repays the loan with interest and gets his crypto assets back from the coin lending platform.
For lenders, this can be an opportunity to earn some interest by lending money to other users. At the same time, borrowers will avoid pressure to sell cryptocurrencies when they feel that their price could rise further in the future.
There are a number of ICOs (short for Initial Coin Offering – a form of raising capital by startups in the crypto currency and Blockchain industries) that have joined the coin lending platform and made the whole process go. process to become more democratic.
Coin Lending is not a strange word for investors, especially in the field of cryptocurrencies
3. Top 15 best coin lending platforms today
3.1 SALT lending
SALT stands for Secured Automated Lending Technology. It is a financial business that offers loans powered by blockchain technology.
To become a member of the SALT platform – coin Lending, buyers must use their cryptocurrency to buy access to the platform’s services. The more tokens a user has, the more benefits a higher level member can access. The higher your membership level, the more financing options you have. In addition, SALT allows borrowers to mortgage their crypto assets in exchange for a cash loan without having to sell the crypto.
The eligibility criteria for the loan is quite simple, borrowers are required to pay a fee to become a member of SALT Lending. There are many tiered subscription plans available depending on the usage needs of each person. The loan amount will be equivalent to the crypto asset that the borrower has collateralized.
SALT Lending does not check the user’s credit score, it only relies on customer information (KYC) and anti-money laundering checks to confirm the legitimacy of the borrower. With SALT, it is not necessary for crypto-asset holders to sell their assets as the platform will hold them as collateral and demand an interest rate of 14 to 15%. Furthermore, SALT is not binding on a repayment timeframe.
SALT Lending is a financial business that provides loans powered by blockchain technology
3.2 ETHLend crypto lending
ETHLend is a decentralized lending application based on the Ethereum Blockchain (dAPP) technology, allowing peer-to-peer lending backed by smart contracts.
ETHLend strives to eliminate the control and dependence on traditional banks and large financial institutions to democratize the lending process. In stark contrast to other lending apps, ETHLend allows both borrowers and lenders to decide on essential loan details without going through an intermediary. Thus, interested parties can create their own loan agreement on their own terms no matter where in the world they are.
The Ethereum platform allows to connect borrowers with lenders from anywhere in the world. The terms and conditions are formulated by a negotiation between the duo. The platform’s operation is essentially a networking site for investors and lenders to meet a potential borrower. Both lenders and borrowers have access to a wide range of credit liquidity without restrictions.
To perform the transaction procedure, the user must fill in the required information about the cost of the loan, the percentage of the premium and the amount of tokens required for collateral. If these terms and conditions are agreed to by the lender then a loan agreement is created.
ETHLend is a decentralized lending application based on Ethereum Blockchain technology
3.3 BITFINEX coin lending
Bifinex is well known as one of the best cryptocurrency exchanges in the world, it also provides crypto lending services.
Since 2016, users can borrow or lend their assets to those wishing to borrow on Bitfinex. Cryptocurrency exchanges offer an interesting service called “margin”. Accordingly, users can use many other cryptocurrencies to transact, not just Bitcoin.
Bitfinex also provides additional service to earn daily income by lending USD or cryptocurrency. Accordingly, you just need to create an account and deposit crypto assets into the Funding wallet. After setting it up, your account will automatically receive interest.
Bifinex offers an interesting service called “margin”
3.4 POLONIEX coin Lending
Another form of cryptocurrency exchange. Similar to Bifinex, Poloniex also offers coin lending platforms but does not lend fiat currency. The procedure for borrowing and lending cryptocurrencies on Poloniex is quite similar to that of Bitfinex.
Poloniex offers coin lending platforms but does not lend fiat currency
3.5 Money token crypto lending
Money token is a platform that offers tokenized loans, MTC stablecoins, and decentralized exchange (DEX) services. The Money token platform raised over $35 million in its ICO.
The platform is powered by a technology called Amanda, an Artificial Intelligence Assistant. It analyzes customer activity to generate predictive data for future financial services. The two accepted cryptocurrencies are Bitcoin or Ethereum, which can be used as collateral to borrow funds on the Money token platform.
Bitcoin.com CEO and Bitcoin CASH supporter Roger Ver is the advisor of the Money Token platform.
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Money tokens are powered by a technology called Amanda
3.6 BITBOND coin lending
BitBond operates and operates on the Bitcoin blockchain platform. Users can borrow up to $25,000 USD. BitBond platforms offer an average 13% interest rate to lenders. Interest is calculated at 1% per month.
The Bitbond platform is a bitcoin lending site that connects lenders and borrowers. The website claims that over 3,000 loans have been sourced from over 120 countries on the BitBond platform.
All loans are secured in bitcoin so repayment must be made on the platform itself. Since the platform offers unlimited investments, it has attracted a lot of interest from the community.
Bitbond is a bitcoin lending sites operating and operating on the Bitcoin blockchain platform
3.7 BTCPOP coin lending
BTCPOP is a cryptocurrency lending platform based on the bitcoin blockchain that allows two parties to exchange messages, discuss terms and agreements between two parties. Before connecting lenders and borrowers, the platform checks the borrower’s identification and financial status.
BTCPOP is a cryptocurrency lending platform based on the bitcoin blockchain
3.8 NEXO coin lending
NEXO is currently backed by Credissim, a publicly listed FinTech company in Europe. The NEXO platform offers instant loans, bill payment services, and e-commerce financing. The NEXO platform allows users to access fiat loans to limit crypto holdings.
Another interesting feature of the NEXO platform compared to other crypto lending platforms is that the borrower can spend the loan money through the NEXO Credit card. Borrowers can also get part or all of the loan amount in their own bank account.
NEXO is currently backed by Credissim, a publicly listed FinTech company in Europe.
3.9 Unchained Capital coin lending
Quite similar to SALT, it provides liquidity to users without requiring borrowers to sell off their crypto assets. The difference between the Unchained Capital platform compared to SALT is that it is powered and operated by the Bitcoin blockchain technology. Besides Unchained Capital and with SALT also differ in interest rate, loan amount, and payment method.
Borrowers on Unchained Capital can receive a loan of 50% of the current asset value of the borrower. Borrowers pay interest from 1% to 16% monthly. Person Unchained Capital users can use the same wallet for two purposes: borrowing or mortgaging assets. When the borrower pays the full amount borrowed, the collateral value will be returned to any address chosen by the user.
Unchained Capital provides liquidity to users without requiring borrowers to sell off crypto assets
3.10 BlockFi crypto lending
BlocFi another crypto lending platform is located in New York. It allows users to borrow money with the condition of using Bitcoin or Ethereum as collateral. Borrowers must pay monthly interest on payments in dollars or cryptocurrencies.
When using this platform, users will get many benefits such as: Borrowing or lending fiat money with crypto collateral, supporting daily business operations and many more. Furthermore, they can make large crypto-backed investments in other markets. The interest rate offered by this platform is around 12 percent.
Blockfi is the latest company to offer loans with crypto collateral
3.11 Credible Friends coin lending
This is a completely different platform from the ones presented above. Instead of other platforms looking for lenders, for reliable Friends you can only borrow bitcoins from people on your friends list. Credible Friends is an app that works similar to a credit card for peer-to-peer lending.
Credible Friends allows users to borrow bitcoin as a credit loan from other users in their contacts. Payments are made the same way you would on credit card bills.
Credible Friends only allows you to borrow bitcoins from people on your friends list
3.12 Coincheck coin lending
Coincheck is one of the most famous cryptocurrency exchange and wallet service providers in Japan. Coincheck claims that it is a leading Bitcoin and crypto exchange in Asia. Coincheck has also been providing crypto lending for a long time but now it has stopped updating new applications. The platform offers crypto lending with an interest rate of 5%.
ETH and XRP added to Coinchek OTC desk
3.13 CoinLoan coin lending
The CoinLoan platform allows borrowers to get loans up to 70% of their collateral. When the loan amount is paid back, the borrower will receive collateral in his cryptocurrency. The lender needs to deposit fiat currency and will get the loan back with interest from the borrower.
The CoinLoan platform works internationally and the minimum loan amount is $50 and the maximum loan amount is limited by the borrower and lender’s budget.
CoinLoan platform allows borrowers to get loans up to 70% of their collateral
3.14 Lending block crypto lending
Lending block platform allows hedge funds, investors, startups and traders to borrow crypto assets to support trading, working capital or any other requirement.
Lenders can be any person or entity, they can earn secure interest on their crypto assets.
According to the website:
Lendingblock is an open exchange for crypto loans in which borrowers and lenders are instantly connected in a simple, secure and transparent way.
The Lending block platform only supports peer-to-peer lending, which can offer or receive crypto-crypto collateralized loans. In April, the company was able to raise $10 million in its initial offering, and it uses the LND token as fuel for the lending engine.
Lending block platform only supports peer-to-peer lending, can offer or receive crypto-crypto mortgage loans
3.15 Lendo Crypto lending
Lendo is a cryptocurrency lending platform based on blockchain technology. It allows lenders to set their own terms and compels borrowers to use their crypto assets as collateral. These assets will be stored in Lendo’s highly secure Crypto wallet.
At the time of publishing this article, Lendo is continuing with its ICO and plans to start a global lending operation in April 2019.
In addition to crypto lending, Lendo will also provide a range of additional services, such as crypto wallets, credit cards, and crypto trading exchanges. All services aim towards a complete cryptocurrency ecosystem.
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Lendo is a cryptocurrency lending platform based on blockchain technology
Above are the top 15 best coin lending platforms in 2019 in the world. In case we missed out on any other crypto lending platforms, let us know in the comments section below.
The information in this article is a reference for coin lending platforms and is not investment advice. Every platform All have different advantages and disadvantages and it is only really good when used for the right purposes and needs. Therefore, you should research carefully before making a decision.