This guide takes a look at the best performing and reputed platforms to earn interest in Bitcoin holdings and other cryptocurrencies.
Blockchain technology has so far been successful in disrupting industries across the board, penetrating into everything from supply chains to traditional finance. Riding on the popularity and effectiveness of blockchain technologies, cryptocurrencies have also seen a more legitimate ecosystem created around them.
Cryptocurrency lending has been one of the fastest-growing segments of the blockchain industry, with even institutional investors showing a significant interest in the service. However, individuals with fewer resources than institutions often find it hard to keep up with the increasingly maturing market and sift through the growing competition.
These companies make money by providing collateral-backed loans to users, where they take the crypto deposits and lend them out to various hedge funds and exchanges. These borrowers have to provide collateral equal to 100 percent of their loan in either crypto or cash while paying interest of 15 percent or more.
Those holding Bitcoin that want to take a portion of the profits made by the loan companies can give their coins to them for a return of anywhere between 3 and 8 percent per year.
In this article, we’ll take a look at some of the most popular and most promising cryptocurrency lending platforms to help users navigate the growing, complex market.