CryptoCurrency Lending Doesn't Have to be Hard! Read This 7 Stats

Do you want to make money with Cryptocurrency?

Are you looking for Low-Risk ways to start?

If yes, Then this Article is only dedicated to you guys.


You start with a Way (low-risk) to earn money from Cryptocurrency and you get a constant increase in your earning. 

Cryptocurrency lending

Which is that way?

Guess what?

Today we are going to discuss how to make money by Cryptocurrency lending.

To begin with, You should know about How cryptocurrency lending works and About different Platforms that offer this type of Lending.

Let's get Started.

By lending bitcoin (or any other Cryptocurrency) to edge brokers, you might most likely to generate a constant flow of passive revenue.

These brokers or even you can say Investors pays you an Interest on your Funds for Using your Cryptocurrency or Assets (basically) for their trading.

Table of Content

  1. CryptoCurrency Lending Basics.
  2. How does CryptoCurrency Lending work?
  3. What is the need of Cryptocurrency lending?
  4. Pros & Cons of CryptoCurrency Lending?
  5. Quick Tips to Make a Profit through Cryptocurrency lending.
  6. Popular CryptoCurrency Lending Platforms.
  7. Conclusion

1. Basics of CryptoCurrency Lending:

Everyday Traders or Investors trade Cryptocurrency with some margin.

They just try to make more money by investing less.

So as to get this cash, somebody should be eager to supply it.

Thus, a few trades have set up commercial Platforms where financial specialists can make arrangement of action to take a loan (lending) and get cryptocurrency.

Cryptocurrency lending is a way to generate a passive income.

In this, you are using your Cryptocurrency that you already own and not planning to sell in the upcoming short term or currently that currency is not in use.

In Cryptocurrency Lending, Interest rates are very high. It's going up to 5% per day.

Thus making a profit is relatively easy as compared to other ways.

2. How Does CryptoCurrency Lending Works?

Lending cryptocurrencies is a little bit dependent on the site that you are using, yet the basic thought is generally the equivalent.

As you are giving your cryptocurrency to trader or Investor, thus you play as a lender in this process.

So, as a lender, you should make your digital currency available and accessible to investors at a specific rate, on any of the lending platforms you like.

All things considered, most of the lending platforms have a few protections instituted in them, so as to abstain from losing cash from wrong exchanging calls.

For example, the borrower is commonly required to hold and keep up a level of security, which would then be able to come back to you in the event that currency costs drop.

In Addition to that, certain platforms offer clients through which you can give your currency (funds) straightforwardly to the platform instead of any traders as a loan.

So also, there are various protections instituted here too, to guarantee that your funds remain safe.

3. What is the need of CryptoCurrency Lending?

The answer is short.

There are only two purposes of peoples behind lending Crypto-Currency on such a high interest.
  • For personal use:
  • For Marginal trading:
when your currency is made available, a borrower who trusts that a cost increment in approaching for a specific cryptocurrency, will demand to loan a portion of your fund from the trade.

After Some Time (at least two) days, the borrower will return your money along with your interest amount.

As you can see, this is very very Risky deal: So, do you want to become a Lender or a Trader that takes the loan?

Before you decide this, Let's take a look at some Pros and Cons of Cryptocurrency Lending.

4. Pros and Cons of Cryptocurrency Lending:

>>1. Pros:

If you want to sign up for Lender Account on a Cryptocurrency platform then it is quite simple.

as it just takes a few minutes. In this manner making it a lot speedier encounter than setting up a new bank account.

Users are not required to effectively watch out for their funds, and how they are being loaned out.

Better stated, no quick activities are required by crypto lenders but, Traders need to keep every data up to date.

The risk factor generally remains with the borrower (Trader). Along these lines, in the event that they short the cost, and it winds up expanding, it will be their loss, not yours.

Furthermore, lending is generally protected and safe, yet I'll recommend you to Lend out the little amount at one time, instead of extraordinary sums.

The reason behind this, As you know everything has some glitches and thus these lending platforms can also get hacked!

Thus Choose a reputable platform for lending and try to lend out a small amount of money.

Automation is top dog. Most lending platforms have this feature for guaranteeing that the Interest on your funds is consequently paid back to you.

Simply means one can set up a lending account on a platform and let it run on automation for a lifetime.

Although, this is not recommended by experts.

With Margin loaning, you are not loaning a particular person, yet rather contributing your crypto coins towards a loaning pool that is accessible to margin traders.
The story is completely distinctive if we are thinking about shared or peer-to-peer (P2P) loaning platforms.

>>2. Cons:

As I said earlier, the risk is commonly low in Cryptocurrency lending. But anything can happen and can turn out very bad.

Also, you need to remember that you are managing a market that needs administrative agreement.

Along with these words, if relevant, legitimate issues will be dealt with manner depend relying upon your area, and which Lending Platform you are using.

A few Cryptocurrency Platforms will charge high commission rates out of the loan costs being paid by borrowers.

Furthermore, financing costs are set every day, which is not over the full amount of loan.

This implies it's never guaranteed of your benefits and per day profit.

5. Quick Tips to make Profit through Cryptocurrency Lending:

There are some aspects you need to take into consideration, to ensure that you increase your profit margin.

For example, most experts recommend that you should not to give a loan at base rates and for long time allotments.

This will put your funds on hold, and if greater open doors emerge, you will pass up that great opportunity.

At the end of the day, most of the lender wishes to loan out their refunds by means of a long span contract at an excellent premium interest rate.

And you will get happy by reading this:

Such opportunities also come to you, But for that, you need to keep patience.

Many Experts also suggest spreading your lending amount. I'm not saying that Lending your funds at a Single rate to one trader can't work, it works.


This lowers the chances of getting higher profits and also increases the risk factor a little bit.

By separating your funds into multiple blocks and loaning them out at more expensive rates, and at various moments, you can additionally expand their net revenues here.

To wrap things up, as a Lender, you are capable with cautiously surveying the market, perusing the terms and conditions, understanding the dangers, following audits and bits of knowledge posted by different loan specialists.

In one line, I can say: the sky is the limit from there.

Consequently, this will expand your comprehension of how the cryptocurrency lending market works, while additionally effectively expanding your benefits and profits.

6. Popular Cryptocurrency Lending Platforms:

As Cryptocurrency Lending is getting popular day by day, thus numerous lending platforms are opening.

In order to choose the lending platform, you have to first decide one thing:

And that is whether you want to start with Margin Lending or Peer-to-Peer Lending (Know more about P2P Lending).

If you are still confused about what to choose?

then Following Lending Platforms can be taken into consideration.

1. Salt:

You can read a Beginner guide to Salt Lending by Clicking Here.

2. ETHLend:

know more about it here.

3. Poloniex:

To start with Poloniex, Watch the following video.

There are also other Cryptocurrency Lending programs are available, you can check them out here.

7. Conclusion:

Now it's your turn.

I hope you enjoy this beginner guide to Cryptocurrency Lending.

Now I want to hear from you:

Which platform you are going to start with?

Is it Salt or EthLend?

Let me know by leaving a quick comment.

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