Crypto lending is one way to earn passive income using cryptocurrencies. There are many crypto lending platforms that investors can use to generate this passive income. However, choosing which platform to use depends on the priorities you have in mind, such as low fees, high interest, and so on.
If your priority is earning high interest on your funds, here are seven crypto lending platforms that deliver the highest interest rates, listed in no particular order.
1. BlockFi
BlockFi is a cryptocurrency trading platform that also offers crypto loans. It allows investors to lend assets to borrowers and pays them interest on their investments. BlockFi is one of the highest paying lending platforms, paying up to 7.50% Annual Percentage Yield (APY).
A tiered system is used to pay interest rates, which vary depending on the asset you are lending. Stablecoins generally bring higher interest than other assets. Find out what stablecoins are if you don't know much about them, and see how the biggest stablecoin, Tether, works as an example.
To participate in the lending program, you must sign up for BlockFi Interest Account (BIA). Interest is paid out to account holders at the beginning of every month. If you are new to crypto lending, it is advisable to learn what crypto lending is and how it works before participating.
2. Celsius
Celsius is a US-based crypto lending platform that allows users to borrow, lend and transfer crypto assets at zero fees. It also offers one of the highest interest rates in the space.
Celsius pays up to a whopping 17% interest rate on digital assets depending on which one you are renting out. The rates are generally higher than most platforms, regardless of the asset. In addition, if you choose to earn in Celsius' native CEL token, you'll enjoy an additional 25% interest.
Payments are made to lenders weekly, and you can check how much interest you're entitled to based on your chosen asset using the calculator on the website, even before you invest.
3. YouHolder
The YouHolder platform is used for many crypto-related activities. Users can store and trade cryptocurrencies, as well as use them to pay for goods or services. It is also one of the highest-paying lending platforms for those looking for passive income.
YouHolder offers up to 12% APY on deposited cryptocurrencies and stablecoins. Supported assets include Bitcoin (BTC), Pax Gold (PAXG), USD Coin (USDC), True USD (TUSD), and many others. Like BlockFi, YouHolder offers the highest rates on stablecoins but does not use a tiered system.
4. Nebeus
Nebeus is an all-in-one platform for all things crypto, including borrowing, earning, trading, and even insuring your assets. In terms of crypto lending, Nebeus offers some of the best interest rates.
You can earn up to 12.85% RPY for renting out cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and stablecoins such as Tether (USDT) and USD Coin (USDC). Nebeus does not charge any fees for depositing assets used for this purpose.
There is an interest rate calculator on the platform that you can use to check how much monthly interest you're entitled to at the beginning of your crypto lending journey. Interest is paid out monthly in any cryptocurrency of your choice. It is possible to withdraw the interest daily, still at zero fees.
This is one of the lending platforms that are fully regulated, giving its users confidence that their funds are fully secure. It also has a wallet that facilitates instant transfers between crypto accounts and fiat bank accounts.
5. Crypto.com
Crypto.com is a top cryptocurrency exchange that also provides crypto lending services. This allows its users to earn interest on their digital assets by renting them for lending. You can earn up to 14.5% renting your assets, including over 40 cryptocurrencies and stablecoins.
Like other crypto lending platforms, you can check your interest rate based on the cryptocurrency you want to use. Polkadot and Polygon are currently among the assets with the highest interest rates at 12.5% each.
To participate, you must register with Crypto.com and become a verified user. You can then deposit your funds and start earning monthly interest on them.
6. Nexo
Nexo is a cryptocurrency platform that offers several services, including buying, selling, and trading digital assets. Supporting more than 300 assets, Nexo also allows its users to earn interest on their crypto assets by making them available for lending.
The platform pays up to 16% APY on cryptocurrencies, with compounding interest. There are no fees charged for this service, and participants get daily payouts. Since it is a lending platform, it is also one where you can borrow funds backed by your crypto assets as collateral.
Interests are usually paid out in the cryptocurrency you're renting out, with Polygon (MATIC) having the highest returns of 16%.
7. CoinLoan
CoinLoan provides a regulated platform for buying, storing, and trading cryptocurrencies. It is also a renowned crypto lending platform that lets you earn passive income with your idle digital assets. There are 23 assets supported for this purpose with varying interest rates.
Like the case for most crypto lending platforms, CoinLoan pays the highest rates on stablecoins but also on fiat currencies like the pound sterling and euros. The highest interest rate is 12.3%, and interest payments are sent daily.
CoinLoan's biggest strength is that it is a registered and fully regulated platform, which gives your assets security. It is also a certified digital asset custodian covered by an insurance policy, so you don't have to worry about the safety of your crypto assets at any time.
Which Crypto Lending Platform Should You Use?
All the above crypto lending platforms offer high-interest rates on your assets compared to other platforms in the industry. However, you may be more interested in one of them than the other, which is fine. For example, you may be more interested in the security of your assets, which will make either Nebeus or CoinLoan of more interest to you. But, if you are looking for the highest returns and nothing else, Nexo may be your preferred platform.