- Bitcoin Lending
Full Guide about Crypto Lending, Interest on Bitcoin- and Crypto
How to earn interest on Crypto
Earning interest in Cryptocurrencies is very easy. You just put a sum of for example Bitcoin or something else into your Crypto Interest Account and you start earning right away! With BlockFi, for example, it is the same, you earn crypto on the first day of what you have deposited, so to speak. With BlockFi, for example, it is the same, you earn crypto on the first day of what you have deposited, so to speak. BlockFi is an institution that makes it possible to earn interest on Bitcoin, Ethereum, Litecoin, and Chainlink, but the effective yield is different for each currency. Then there is Binance Exchange where there are many more cryptocurrencies on offer. You can store your coins on Binance for a certain (7-365 Days) or indefinite period of time and then earn a fraction back on these stored cryptocurrencies every day. Coinbase Earn is not the same even if many people think so, Coinbase Earn is more of a crypto airdrop for users who pass a quiz about the cryptocurrency to be dropped. For this, you get $6 - $10 of the respective cryptocurrency. Other possibilities would be Cryptocom App and Poloniex. At Poloniex you can do peer to peer bitcoin lending and thus lend your bitcoin to traders who are currently borrowing bitcoin on the margin platform for a percentage. On Crypto com, it is therefore easy and everything is child's play to manage via the app! These three Major Crypto Exchanges alone have made banking on Bitcoin easy! So what are you waiting for? Use your cryptocurrency to earn interest now!
What is Bitcoin Lending?
Bitcoin and crypto lending platforms are mostly exchanges or institutions that lend Bitcoin and crypto from registered members for a certain percentage of compensation. There are many different types of cryptocurrency lending platforms such as Poloniex, an exchange that has a bitcoin p2p lending corner where traders can borrow bitcoin. Then there is also Binance, BlockFi, and Cryptocom where it is lent more directly to the company which then diversifies but the principle remains the same as you earn interest on crypto here too.
How to get a VISA Crypto Card?
First of all, you need to meet the regulators for the region you are living in at the moment as there are restrictions for Crypto Visa Cards in some Countries while in most of the countries there are no issues. You can apply for a coin credit card on BlockFi, Binance, and Cryptocom the latter is the best coin card alternative because with Crypto com you don't have any limitations like on Binance or BlockFi, and besides, with the Crypto.com app, they have created something that really doesn't top anything right now. XAPO was similar to Cryptocom only now you have to exchange your crypto for fiat before you can use it on the card which is easy to do with the app.
How to borrow Bitcoin?
Borrowing Bitcoin is fairly easy on exchanges that offer functional "margin". With the leverage you can then say for example I give the exchange 0.01 Bitcoin and lend me 0.99 Bitcoin which would be leverage of x100 but everything has a hook because if you would be with x100 only 1% behind, this would liquidate 100% of your capital. After all, you trade with 1 Bitcoin of which only 1% is equity!
Best Bitcoin Lending Sites
🥇 #1 - Binance - How to use Binance
Binance is currently the most widely used crypto exchange which is based in several countries with its headquarters in Malta. The trading platform offers various cryptocurrencies and derivatives. You have the choice between the traditional spot market where you can buy and hold and then have the futures market both in USDT and COINS where you can trade with levers. You can also borrow cryptocurrencies on Binance and earn Bitcoin interest. Members who are not verified can only withdraw 1 Bitcoin per day and verification is not required unless you want to withdraw more than KYC is required.
🥈 #2 - BlockFi - BlockFi Review
BlockFi is a bank that lends Bitcoins to banks and institutions. BlockFi gives you monthly interest on your Bitcoin, Litecoin, Ethereum, and ChainLink that you hold in your account on BlockFi. You can even hold Bitcoin and cash out in USDC (Dollar Coin). The trading feature even lets you swap your Bitcoin straightforwardly to react to a sudden price fluctuation. We find BlockFi to be very secure as the company is very transparent. The BlockFi Credit Card promises 1% cashback in Bitcoin for every purchase! With your first deposit, you can get up to a $250 bonus.
🥉 #3 - Cryptocom - Crypto.com Review
Crypto.com is a very innovative company that made Crypto Credit Cards easy again after VISA and Mastercard banned cryptocurrencies in 2017! The company has introduced its own cryptocurrency with which you can really profit by buying one of the higher credit cards. You have a card that is free with 1% CashBack in CRO (Crypto.com Coin) and then cards where you have to stake CRO for 6 months! You also have the possibility to deposit Bitcoin, Litecoin, Ethereum to earn percentages by lending them to the Crypto.com App.
📌 #4 - Coinbase - Coinbase Review
Coinbase is the largest Bitcoin exchange and the first one most people come into contact with. We see Coinbase less as an exchange and more as a wallet and the main terminal for Bitcoin purchases. Coinbase has numerous cryptocurrencies listed. With Coinbase Earn you can even get cryptocurrencies for free by qualifying and taking a quiz! The Coinbase fees are quite high and that's why we recommend exchanges like Binance for Bitcoin purchases because you simply get more for your money through much lower fees.
📌 #5 - Poloniex - Short Poloniex Review
Poloniex is an old crypto trading platform. You have both margin and spot trading for different markets; Only Poloniex US customers are not allowed to trade on the Margin Market! Poloniex is legitimate and the once biggest player among the Exchanges does not have to hide! Poloniex has soft staking + P2P lending where traders can borrow crypto from you if you release your crypto in lending at a certain rate. Nothing can happen as Poloniex guarantees for everything. Poloniex Fees are progressive which means the more you Trade the less your Fees will get. The exchange was bought by Justin Sun in 2019 and is still operated by him.
Is Poloniex Safe?
Yes, Poloniex meets all the criteria to be considered safe! We give this exchange 4 out of 5 stars! The Exchange is owned by Justin Sun which is seen as a Shady figure by many but the fact is that people hate for nothing as we this Justin has made a lot of good things for the whole Crypto space!
Is Blockfi Safe?
Yes, BlockFi is 100% secure because the standards are extremely high and the security is one of the best. You can safely store your cryptocurrencies here while they constantly grow. BlockFi lets you borrow funds against your crypto assets so you can get a loan while continuing to hold your crypto assets.
Is Binance Safe?
Yes, the self-proclaimed largest crypto exchange Binance is one of our favorites in several categories. Firstly, it has 0.1% fees (0.09% with our link) when trading, and secondly, it has revolutionized trading with the best platform in the industry. Binance puts a lot of emphasis on speed, so you can get started very quickly and do not have to wait for ages until you are verified, as is the case with many other exchanges. Binance is not only the biggest exchange by volume but also has the most users behind Coinbase. The Binance Coin is an "Ethereum Killer" or the "Centralized Version" of Ethereum. What we also find very good is the huge insurance policy in case of a hack which not many exchanges have.
Is Crypto.com Safe?
Yes, Crypto.com is a very secure app in our opinion. WARNING: There is no homepage to log in to, these are all scams! Crypto.com only has an app! We have been using Crypto.com since the beginning and never had any problems with the app or with the credit card! Even with the free card, you can withdraw daily up to 5000$/€ ATM for a 2% fee. We find it the fastest alternative to making crypto dollars or euros. Once you are verified and apply for the card it takes 2-12 weeks depending on where you live to get the card!
Is Coinbase Safe?
Yes, Coinbase is one of the safest ways to keep crypto secure online. We can not recommend Coinbase to buy crypto because the fees for a deposit as well as for purchase are about 3-5% what you get at Binance for 0.09%! With Coinbase Pro you also have a trading platform separate from Coinbase but also belongs to Coinbase! Besides the high fees, there is nothing bad about Coinbase, you can buy your Crypto on Binance and Store it still on COinbase which is a pretty good strategy.
Binance vs Coinbase
It's very difficult to compare Coinbase vs Binance because the companies are too different! Binance is a trading platform and Coinbase is a wallet. If you had to compare Binance and Coinbase then Binance would win the battle through much lower fees and in terms of security they have caught up in recent years at light speed!
Poloniex vs Binance
Poloniex and Binance are both trading platforms. If you had to choose, Binance would be the clear winner because there is unfortunately not so much volume on Poloniex anymore, it is more difficult to trade than on Binance where you have a lot of volumes. In terms of security, both exchanges are top-equipped. Especially on Poloniex, after the DDOS of 2017, much has been improved in terms of security, but despite this, we feel more comfortable with Binance!
Gemini vs Coinbase
The two American crypto exchanges are quite different. Gemini is a trading platform while Coinbase is more of a mix of trading and wallet. The Winkelvoss brothers are the owners of Gemini which makes this exchange a very safe and attractive alternative especially for US citizens. Coinbase is just as popular if not more so. This comparison would be the same for Kraken vs Coinbase or BlockFi vs Coinbase!
The bottom line is that Binance is the first choice for most of us despite the low fees and because of the interface. Even for US citizens who cannot trade on Binance, Binance US is the first address which we do not recommend as there are several exchanges in the US like Gemini or Coinbase Pro that have a larger trading volume.
When it comes to a crypto credit card, we would declare Crypto.com as the winner because there are no limits like with BlockFi, Binance, or similar providers. Also, no one can compete with the bonus you get with the cards you buy!
For Lending, we would call Poloniex the first choice, because P2P Lending can bring up to 5% in a short or long time frame! BlockFi would be the more constant alternative!
All in all, we can recommend each of the above Crypto Exchanges and Wallets with a good conscience as safe!